SATS Air Cargo Customers - Essay Example

?SATS Air Cargo Table of Contents Table of Contents 2 Part SATS Air Cargo s 3 Changes within the Airline Sector 3 Changing Expectations 3 Increased Competition 4 Part 2- SATS Air Cargo Competition 5 Summary on Competitors Analysis of SATS 10 References 11 Bibliography 12 Part 1- SATS Air Cargo Customers Changes within the Airline Sector In recent years, the tastes as well as preferences of the customers in the airline network has changed drastically, where a shift from price centric to quality centric attitude has been witnessed clearly. Owing to these changes, companies operating in this sector have been strongly influenced to make changes in their products and/or services in order to meet the continuously changing demands of the customers. Changing Customer Expectations As mentioned above, the expectations and demands of customers have increased as well as shifted in the airlines market in recent times of the 21st century. Correspondingly, the organizational operations of SATS have also seen changes over the years owing to the changing nature of its customers. With the increasing number of customers in the cargo sector of the airline market, SATS initiated the SIA Superhub 2 also known as the Airfreight Terminal 6 in the year 2001 with an investment of around $270 million. This approach of the company accompanied it with the ability to handle 800,000 tonnes of cargo per year, which was also accounted among the biggest capacities during that time. Furthermore, the customers in the cargo handling sector of the airline industry have also become more attracted towards online web based operations in course of time. Contextually, SATS introduced the web-based cargo tracking services in the year 2003 in order to meet the changing expectations of the customers (SATS 20111). Increased Competition With the augmented number of operations of various companies in the cargo sector of the airline industry, the competition has become more intense. This aspect further enables the customers to have a variety of choices for themselves, which further affected their loyalty towards a particular brand. In order to deal with this changing scenario, SATS initiated the introduction of new products and/or services in its range of products in the year 2005. This step of the company ensured the loyalty of the customers with the company for a longer period of time. Moreover, in similar regard, it has also introduced a new brand promise to the customers, which further states as “One with you” (SATS 20111). Furthermore, since there are various numbers of companies offering similar kind of products to the customers, only effective or innovative services would ensure enhanced operational services for any company including SATS. To comply with this aspect, the company has been continuously changing its service offering patterns to the customers so that their valuable association with the company continues for a longer period of time (SATS 20111). Part 2- SATS Air Cargo Competition SATS DHL Singapore Airlines Market Share .0019% 11.49% .0.02% Share Price as of Submission .31% (2013) Singapore Exchange 1.03 % (2013) (Singapore Exchange n.d.) .48% (2013) (Singapore Exchange n.d.) Stock Turnover 27.70 (2013) (Singapore Exchange n.d.) 23.56 (2013) (Singapore Exchange n.d.) 35.50 (2013) (Singapore Exchange n.d.) Revenue 2008- S$1,062,094 2009- S$ 1,538,906 2010- S$ 1,729,131 2011- S$ 1,685,413 2012- S$ 1,818,992 (SATS 20112) 2008- S$ 7,474,908,000 2009- S$ 6,175,362,000 2010- S$ 7,525,278,000 2011- S$ 8,223,343,128 2012- S$ 8,405,745,600 (Deutsche Post AG 2013) 2008- S$ 186,245 2009- S$ 181,752 2010- S$ 145,834 2011- S$ 159,980 2012- S$ 169,157 (Singapore Airlines 2012) Resources People: The chairman of the Edmund Cheng Wai Wing was appointed in the year 2012. Apart from him, there are also some other crucial members altogether forming the management team of the organization. Brand Position: With more than 60 years of operations in the airline industry, the company has acquired the reputation to be called as one of the leading brands in Singapore and its other targeted Asian markets. Important Aspects: Innovative as well as effective working process Providing maximum priority to safety and security of the goods carried Ensuring excellence in the tasks performed Quality as well as cost effective services Building healthy relationship with seeking trust and loyalty for customers (3SATS 2011) People: Dr. Frank Appel is the CEO of the group. Other members of the management comprise of Ken Allen as the head of the express department, Roger Crook as the head of the fright department and Lawrence Rosen as the finance chief among others. Brand Position: Operating in various countries of the world, the company has gained a reputed brand image for itself, which further makes it a fierce competitor for other companies in this particular industry structure. The increasing revenue over the years depicts its brand image worldwide. Important Aspects: Implements advanced technology in its operations Works on behalf of the interests of the customers Intends to ensure cost effective services along with value for money for the customers Seek for maximum satisfaction of the customers The company also ensures overnight services for the customers (Deutsche Post AG 2013) People: Effective set of board members and management team is regarded as the backbone of the company’s operations. Stephen Lee is the chairman of Singapore airlines. With all his past experiences he is among the biggest assets for the organization. Additionally, other members of management team comprising of William Fung Kwok Lun, Goh Choon Phong and Euleen Goh Yiu Kiang work collaboratively to ensure noteworthy results for the company. Brand Position: Serving in more than 62 destinations of the world and employing 14,515 personnel, the organization established itself as one of the prestigious airline service providers. Important Aspects: The main USP of the company is to ensure that services are delivered to the customers with utmost efficiency Innovation is the key aspects of providing enhanced level services to the customers Prioritizes customer’s satisfactions primarily Maintains healthy relationship with the customers Experience of operating in various nations Key Competitive Advantage Brand Name: The brand name of the company is one of its major competitive advantages, especially in Singapore Management Team: It consists of a strong management team, which comprise of well experienced members that enable it to have an edge over the competitors Quality Services at reasonable amount: The company ensures maximum quality of the products or the services it provides to the customers, ensuring maximum satisfaction of the customers and raising its competitive strength (3SATS 2011) Brand Name: Over the years, the company has strengthened its brand image worldwide with the expansion of its operations continually. Its aura also has grown considerably with Deutsche Post acquiring maximum percent of shares of the company. Use of technology in Operation: In order to ensure quality services to the customers, DHL operates with maximum innovation, which further can be seen in its implementation of advanced technology. This also assists the company towards assuring on-time services for the customers. Quality Services: The approach of the company to meet the needs of the customers at any cost, further can be seen in the quality of its services Brand Image: With more than 60 years of experience in the airline industry and operations in more than 62 destinations worldwide, the company has emerged to be among the leading brands in both the Singaporean market along with the global arena. Product Offering: When offering services, the company ensures that each and every customer gets the opportunity to experience the uniqueness and effectiveness of the brand Ensuring loyalty of the customers through proving high quality services: To fulfill every demand and need of the customers, the company employs efficient setoff workforce with proper training and development. This ensures maximum satisfaction of the customers and enhances their loyalty towards the company (Singapore Airlines 2012) Sustainable Competitive Advantage Depict challenges faced by the customers and seek to develop instant solutions The company discovers and searches continually for creative ideas to delight the customers with maximum innovations Diversifying its range of services including ramp services, baggage handling services as well as load controls with the blend of youthful along with experienced staff members (3SATS 2011) With a wider range of operations in collaboration with Deutsche Post, the company has augmented its brand image quite rapidly, which has further enhanced its sustainable competitive advantages among the competitors Enabling safe as well as on time performance with regard to delivering customer services further encourage its employees to perform effectively in every occasion, which is also expected to ensure its sustainability for a longer period of time (Deutsche Post AG 2013) Offers a comprehensive range of services to the customers Ensures that customers are able to fulfill their needs from the services with ease Continuous improvement of the product or services (Based on changing trend) will further ensure sustainable competitive advantage for the company (Singapore Airlines 2012) Current Product Strategy Living up to the expectations of the customers. Delivering low and affordable cost product with commendable quality Up-gradation of product at regular interval or with changing needs of customers Ensuring environment friendly product and services (3SATS 2011) Directly aim the target customers Delivering affordable cost product with commendable quality Adding to their range of services provided on a regular basis (Deutsche Post AG 2013) Understanding the changing needs of the customers Adopt competitive product strategy Ensuring environment friendly product and services (Singapore Airlines 2012) Current Pricing Strategy The pricing strategy of SATS mainly intends to offers customers with delivering commendable product and services at a reasonable price (Penetration pricing) (3SATS 2011) The pricing strategy of DHL also follows similar sort of approach as of SATS. The company also initiates certain loyalty programs owing to which it sets different price for the customers (Product Line Pricing) (Deutsche Post AG 2013) The pricing strategy of Singapore Airline intends towards assuring right price for the right product maintaining quality of the same Product Line Pricing) (Singapore Airlines 2012) Current Promotion Strategy Advertising- Through newspaper, television etc Interactive- Interact with customers through company website Marketing- Through various mass media and new generation means comprising social media site (3SATS 2011) Advertising- Through newspaper, pamphlets and innovative packaging Interactive- Through company website Marketing- Through social networking site and campaigns (Deutsche Post AG 2013) Advertising- Through television, radio and newspaper Interactive- Through company website Marketing- Through social networking site and initiating various campaigns (Singapore Airlines 2012) Summary on Competitors Analysis of SATS I. DHL (Air cargo) and Singapore Airlines (Air cargo) are among the major competitors for SATS in the ground handling and cargo in Singapore market II. Both the operators are considered as competitor for SATS because they provide similar sort of services offer by SATS III. The revenue and market share of DHL is greater than SATS but Singapore Airlines lacks in this aspect IV. Both the companies have efficient human resource working with them, working in alignment with the mission and vision of the organisation, which is also a major point of concern for SATS V. In terms of customers loyalty, SATS is observed to be more effective in the market of Singapore as compared to its competitors VI. The competitors of SATS also seek maximum satisfaction of the customers through deliverance of their products and services VII. The brand position and brand image of both the competitors is higher as compared to SATS especially in the global market where they are among the prime players VIII. In summarizing the points, it can be depicted that DHL and Singapore airlines are potential competitors for SATS in the ground handling and cargo sector with consideration to their performance factor References Deutsche Post AG. 2013. “Annual Reports.” Home. Accessed September 16, http://www.dpdhl.com/en/investors/financial_reports/annual_reports.html Stockpickr. 2013. “Ratio comparisons.” Home. Accessed September 16,http://www.stockpickr.com/symbol/SATS/fundamentals/ratio/ 1SATS. 2011. “Our History.” Home. Accessed September 08, http://www.sats.com.sg/AboutUs/OurHistory/Pages/OurHistory.aspx. 2SATS. 2011. “Financial Reporting.” Home. Accessed September 08, http://www.sats.com.sg/InvestorRelations/FinancialReporting/Pages/FinancialReporting-AnnualReports.aspx. 3SATS. 2011. “About Us.” Home. Accessed September 08, http://www.sats.com.sg/AboutUs/WhoWeAre/Pages/WhoWeAre.aspx Singapore Airlines. 2012. “Annual Reports.” Home. Accessed September 16, http://www.singaporeair.com/pdf/Investor-Relations/Annual-Report/annualreport1112.pdf Singapore Exchange. n.d. “Market Information.” Home. Accessed September 17, http://www.sgx.com/wps/portal/sgxweb/home/marketinfo/securities/stocks Bibliography “Datamonitor.” 2012. Singapore Airlines: 1-4. Damodaran, A. n.d. “Option Pricing Theory and Applications.” Home. Accessed September 17, http://pages.stern.nyu.edu/~adamodar/pdfiles/country/option.pdf Singapore Airlines. 2013. “Full-Year Net Profit Up 12.8% But Operating Performance Impacted By High Fuel Prices And Yield Pressures.” Home. Accessed September 16, http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/News-Release/nr-q4fy1213.pdf Read More