The paper "Business Strategy at Tiger Airlines" is a perfect example of a management case study. The airline industry is one of the most sensitive business industries that requires effective strategic planning in order for a business to thrive. This is mainly because of the vulnerability and susceptibility of the industry to issues such as fluctuation in fare prices, fuel cost, safety regulations and even terrorism. As a result, airline managers have to employ effective strategic planning in order to survive in this murky and volatile business (Kleymann & Hannu 2004). This essay will analyse the strategy employed by Tiger Airlines in a bid to circumvent the uncertainties that followed its six-week grounding because of safety concerns.
Key management strategy analysis models such as SWOT analysis and Micheal Porter’ s Five Force Analysis model will be used to analyse the effectiveness of the strategies employed by Tiger Airlines. Business strategy at Tiger Airlines According to Waddell et al (2007), a strategy is a short-term plan that aims at increasing the market share of a business, thus making it a market leader in the industry. Often times a strategy is formulated in line with the company’ s objectives, mission statement and the vision (Waddell et al 2007).
Teo’ s article (2012), provides great insight into the unpredictable nature of the airline industry and Tiger Airways predicaments which led to its six-week grounding. From this article, it is evident that the management of the airline should put in place effective strategies although indications are that the company is not doing bad in terms of reinventing itself after the grounding period. Already the company has made several steps that are even surprising to the market analysts who were quick to write off the company after its grounding.
For a start, the company has acquired a new president who brings in its operations vast experience and skills in its ambitious plans (Teo 2012). Secondly, the company has sought to acquire the Philippine South East Asian Airlines(SEAir). Moreover, the company’ s management has focused its efforts towards improving its operations through better utlisation of its aircraft in Australia and its associate airlines in the Philippines and Indonesia which will in turn help to absorb capacity and promote lower-cost units(Teo 2012).
In addition to this, Tiger Airways has teamed up with Alipay in China in order to provide to its customers' great value fares. SWOT Analysis Based on the findings of Teo (2012), it is too plausible to argue that Tiger Airlines current strategies are effectual. For an airline that is faced with several risks to its operations to come up and show the kind of rejuvenation that Tiger Airlines has shown is not an easy task. The resilience that the airline is showing is a manifestation of the effectiveness of the strategic decisions that management has made.
For instance, the decision to change the company’ s president has proven to be advantageous since the new president has provided the company with efficient leadership and strategic skills (Teo 2012). For a business to grow there is a need to increase the market base through expansion of the assets and properties owned by the business. Tiger Airlines has directed its effects towards increasing the fleet to 67 up from the current 31. Currently, the airline is pressing itself to receive its new aircraft from Airbus amid declining passenger traffic.
This means that a change in the business environment is not threatening to derail the strategic plans that the airline had before being grounded. However, the management will need to look critical in its decision to increase the fleet in future since reports have indicated that passenger traffic has drastically declined on the routes that the airline operates. This decline is coupled with increasing completion from other airlines like Qantas Airline that enjoys a whooping market share of 65%, China Southern Airlines and China Eastern Airlines both that have identified Australia as a potential market(Teo 2012; SkyNews 2012).