Sample Student Presentation Slides

Strategic Management Case Analysis

Dr. Paul N. Friga2005

Overview of Document• This slide deck exemplifies a student presentation of the analysis of a case study for a general management or strategic management course

• The case used in this study is: Singapore International Airlines: Strategy with a Smile (Thunderbird, 2001)

• There are multiple ways to present a case story – this is only one example

• The storyline is presented first, followed by the supporting data for the high-level conclusions

Singapore Airlines is in a tough situation but

opportunities for global leadership exist

• Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand

• Several strategic options exist related to how SIA can improve its competitive positioning for the long term

• I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the ‘premier long-distance airline’

Singapore Airlines is in a tough situation but

opportunities for global leadership exist

• Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand

• Several strategic options exist related to how SIA can improve its competitive positioning for the long term

• I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the “premier long-distance airline”

The environmental analysis suggests some important

issues

What is really important?

External

Internal

General Environment:•Globalization is increasing demand for international air travel (esp. to Asia)•Political changes include the increase of free trade markets (like Singapore)

•Economic conditions are important as recessions cause price sensitivity

Industry:•Consolidation in the airline industry is increasing to enhance scale and scope•Alliances are the hottest strategy tool as companies seek global connections•Customers are increasingly price sensitive but business segments are loyal

•There are little to no substitutes for international air travel

Competition:•Key domestic competitors are Japan Airlines, Thai Airways, and Cathay

•Key international competitors are United, KLM, and British Airways•SIA has the best cost structure for premium level service but losing ground

Strengths:•Reputation and brand image of the “Singapore Girl”

•Young fleet and excellent training facilities and programs•Extensive regional and international route network

Weaknesses:•Increasing difficulty supplying high quality labour at low costs (esp. Singapore)

•“Buttoned Down” image may not be attractive to younger demographic•High cost structure needed for high quality service is difficult to change

SIA is the largest Asia-Pacific airline

0

5000

10000

15000

20000

1999

Capacity (Available Ton Kilometres)

SIA Cathay Qantas Thai Malaysia

Source: Singapore International Airlines Case – pp.

Singapore Airlines is in a tough situation but

opportunities for global leadership exist

• Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand

• Several strategic options exist related to how SIA can improve its competitive positioning for the long term

• I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the ‘premier long-distance airline’

There are three key questions that should be

addressedQuestion Option / Hypothesis

Decision Criteria

Pros Cons

Invest in VA? Yes Return on Investment

•Enables a lower cost product offering•Access to younger demographic•Complimentary routes

•Competes with Star Alliance•Limited resources/ opportunity cost•May affect reputation

Overall Strategy?

Low Cost (rather than Differentiation)

Long Term Profitability

•Head to head with new competitors•Seems to be the trend in the U.S.•Fuel costs are rising

•Lose reputation as high quality provider•Goes against infrastructure•Differentiation may be the only way to win

Stay in Star Alliance?

Yes Market Share Growth

•Cross-selling opportunities to new customers•Access to additional routes quickly

•Lose control of scheduling •May compromise the consistent quality of service

While SIA has a higher OM, competitors are not far

behind

0

10

20

30

1999

Operating Margin - Percentage

SIA Cathay Qantas

Thai Malaysia BA

KLM United American

Source: Singapore International Airlines Case – pp.

Asia is projected to be a key market moving

forward

0

500

1000

1500

2001

Projected Passenger Kilometres - billions

Africa Middle East L.A. Asia Europe N.A.

Source: Singapore International Airlines Case – p.

Singapore Airlines is in a tough situation but

opportunities for global leadership exist

• Singapore International Airlines (SIA) is facing dramatic environmental shifts, increasing competition, and changing customer demand

• Several strategic options exist related to how SIA can improve its competitive positioning for the long term

• I recommend that SIA pursue a high-end differentiation strategy based upon unique positioning as the ‘premier long-distance airline’

Singapore Airlines should strive for unique

positioning

•This is a critical time as technology and global reachrequire a high-end international access airline

•SIA’s best strengths are high end service and global routes• Going low-cost will damage long-term profit potential

SIA should set a strategicvision to be the leading global

premier service airlineRisksImplementation

•Alliances don’t deliver

•Costs get too high

•Other airlines act first

•Invest in VA (but go high end)

•Stay in Alliance

•Expand high quality labour pool

The growth rate through 2007 is estimated to be

high

6

6.5

7

7.5

8

8.5

Growth

Regional Route Growth - %

NE Asia-SW Asia Eur - NE Asia NA - SE Asia

Source: Singapore International Airlines Case – p.