Strategic Management of Silkair
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 successful and sustainable today. SilkAir’s strategic capabilities were accessed with the Value, Rarity, Inimitability, and Non-substitutability (VRIN) concept. Several attributes were factored into the success of SilkAir achieving sustainable competitive advantage in the industry.
In summary, SilkAir has been able to maintain its position by providing an extensive network of regional travel, along with excellent service and providing competitive fares. SilkAir works to maintain this position by adding new travel routes and ensuring stringent requirements in the selection of its crews and staffs while keeping its prices at the most competitive levels.
1. Introduction SilkAir is a wholly owned subsidiary of Singapore Airlines formed in 1976. Its newly appointed Chief Executive Officer (CEO), Leslie Thng, has been part of the company for 13 years. With a current total fleet of 21 aircrafts, SilkAir operates out of its base at Changi Airport to an extensive network of destinations within Asia. This strategy of flying to destinations within five-hour radius has proven to be effective and works best for the airline, being one of the most dominant airlines in Singapore.
The airline has quietly emerged as a strong
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 successful and sustainable today. SilkAir’s strategic capabilities were accessed with the Value, Rarity, Inimitability, and Non-substitutability (VRIN) concept. Several attributes were factored into the success of SilkAir achieving sustainable competitive advantage in the industry.
In summary, SilkAir has been able to maintain its position by providing an extensive network of regional travel, along with excellent service and providing competitive fares. SilkAir works to maintain this position by adding new travel routes and ensuring stringent requirements in the selection of its crews and staffs while keeping its prices at the most competitive levels.
1. Introduction SilkAir is a wholly owned subsidiary of Singapore Airlines formed in 1976. Its newly appointed Chief Executive Officer (CEO), Leslie Thng, has been part of the company for 13 years. With a current total fleet of 21 aircrafts, SilkAir operates out of its base at Changi Airport to an extensive network of destinations within Asia. This strategy of flying to destinations within five-hour radius has proven to be effective and works best for the airline, being one of the most dominant airlines in Singapore.
The airline has quietly emerged as a strong