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Strategic Management of Silkair

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Executive Summary
SilkAir’s success in the regional air transportation services has proven to be achieved with the right implementation of business strategies over the years.

An analysis of the macro-environment of the airline industry with the use of the PESTEL framework was inevitably explored to better understand the current situation of the environment SilkAir is operating in. This is done so as to analyze the overall impact on the growth of Silkair. In order to provide a better understanding of the current competition and the driving force in this competitive industry, the Porter’s five forces model was used to further analyze SilkAir’s position in the industry.

The resources and competences of the company is what make it so …show more content…

Thus, there is a need to cater to the different needs of the various groups of passengers. More people are traveling by air than ever before as it is now much more affordable due to competition in the marketplace as well as the increased disposable income and spending power of Singaporeans. The airline and tourism industries have both benefitted from this and significant growth is seen in these sectors. An increase in the number of elderly and disabled traveling, along with the rising number of business travelers and students on international study exchanges contributes to the growth of the airline industry.

Technological The increasing use of the Internet has provided many opportunities to airlines such that they are now able to provide internet-based services that include updates on flight information and online ticket booking. Also, with the considerably cheaper fares and discounts offered by airlines on their websites, the number of visitors to Singapore has kept on increasing (Economist Intelligence Unit 2012). Booking a flight ticket is now much simpler and airlines are encouraging potential passengers to book a flight directly through their website to avoid having to go through travel agencies.

In addition to that, advanced technology has allowed aircraft manufacturers and industry experts to come up with fuel-efficient engines and airframes, and this led to impressive

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