The problem, in this case, is to develop a corporate strategy for the purpose of maintaining the growth of Singapore Airlines for the next ten years. The company growth pattern twenty years ago was close to 20%. The pattern declined 15 years ago to mid-teens while recently the growth rate is within single digit figures. This reduction in growth can be explained by the product life cycle. This principle states that once a product matures, the growth pattern reaches stability and declines. At this stage, organizations can develop corporate strategies in order to increase the level of growth measured in terms of sales or revenue or other measures. In this situation, Singapore Airlines Ten-Year Statistical Records indicates that total revenue
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First, the vertical integration option. This option is seeking to manufacture specialty products for the airline industry as well as, training packages to be sold to other airlines in the world. Singapore Airlines will further build the necessary buildings to produce the goods and services. It is also recommended to establish a Research & Development division who will be tasked with developing new strategies and products to make the traveling experience much better for travelers.
The second option is the market creation alternative where Singapore Airlines seeks to enter new markets in South and Central American regions. Several countries in Latin-America are building modern airports and installing facilities to accommodate more airlines and provide a wide variate of options for travelers. For example, the Republic of Panama one of the fastest growing economies in Central America has recently invested several millions of dollars on the upgrade the Tocumen International Airport.
The third option is the strategic alliance and joint venture with other organizations expanding equity and scope of services while targeting countries that are not including in its present alliances. This option is attractive due to the experience Singapore Airline has with …show more content…
This option is attractive for the cultural diversity that could pour into the company from another airline. Mr. Loh manifested the need for more cultural changes where there are more tension and competition and using this environment to get the best out of the group of people in the organization. Acquiring another organization and making the necessary adjustment to reach the level of success Singapore Airlines have accomplished will surely meet Mr. Loh statement.
The fourth recommendation is the most plausible for several reasons. Singapore Airlines executives are looking for a cultural change in the organization. They are looking to attract to the company high-risk takers, mavericks and people with different personalities. However, fundamentally they are looking for an organization similar to theirs in terms of good product delivery, strong management with a similar growth
First, the vertical integration option. This option is seeking to manufacture specialty products for the airline industry as well as, training packages to be sold to other airlines in the world. Singapore Airlines will further build the necessary buildings to produce the goods and services. It is also recommended to establish a Research & Development division who will be tasked with developing new strategies and products to make the traveling experience much better for travelers.
The second option is the market creation alternative where Singapore Airlines seeks to enter new markets in South and Central American regions. Several countries in Latin-America are building modern airports and installing facilities to accommodate more airlines and provide a wide variate of options for travelers. For example, the Republic of Panama one of the fastest growing economies in Central America has recently invested several millions of dollars on the upgrade the Tocumen International Airport.
The third option is the strategic alliance and joint venture with other organizations expanding equity and scope of services while targeting countries that are not including in its present alliances. This option is attractive due to the experience Singapore Airline has with …show more content…
This option is attractive for the cultural diversity that could pour into the company from another airline. Mr. Loh manifested the need for more cultural changes where there are more tension and competition and using this environment to get the best out of the group of people in the organization. Acquiring another organization and making the necessary adjustment to reach the level of success Singapore Airlines have accomplished will surely meet Mr. Loh statement.
The fourth recommendation is the most plausible for several reasons. Singapore Airlines executives are looking for a cultural change in the organization. They are looking to attract to the company high-risk takers, mavericks and people with different personalities. However, fundamentally they are looking for an organization similar to theirs in terms of good product delivery, strong management with a similar growth