1.3 Porter’s Five Forces

Porter’s five forces are developed by Michael E. Porter during 1979 as a framework to analyse industry and business strategy [Wikipedia, 2008]. The five forces includes threat of new entrants, rivalry among existing firms, threat of a substitute products or services, bargaining power of buyers and bargaining power of suppliers. Freeman recommends a sixth force: Relative power of other stakeholders, being added to Porter’s original five forces [Thames Business School, P61]. This analysis if often uses to evaluate an organisation’s competitive strength and its position in the industry.

2.0 Company Introduction

Singapore airlines were originated from Malayan Airway Limited where the company started it business on year 1947. Due to political reason, the company was renamed Malaysian Airways, Malaysia-Singapore Airlines and finally split to Singapore Airlines and Malaysia Airlines System in 1972. Singapore Airlines is owned by Temasek Holding which is a state owned investment house.

With no domestic route available after the separation, Singapore airline have been force to rely solely on international market, which subjected to heavy competition. The tough start created a driving spirit to compete and also a dedication to branding. The airlines have began its branding strategy on it in-flight service, the company engaged French haute-couture designer Pierre Balmain in 1972 to design a special version of the Malay sarong kebaya as the airline stewardess uniform and then is brand “Singapore Girls” for providing excellent in-flight hospitality. This later becomes one of the most recognized signatures of the airlines [Roll, undated].