Analysis Of Scoot Approaches Profitability Essay

Question:

Discuss about the Analysis of Scoot Approaches Profitability.

Answer:

Introduction:

Internal analysis identifies and evaluates the specific characteristic of the organization such as the resources and capabilities of the organization as well as the competencies. Organization’s current vision, mission, strategic objectives and strategies comprise the internal analysis of that organization.

Why is it essential to conduct an internal analysis?

There are two basic reasons to conduct an internal analysis in an organization. It identifies the strength and weakness of the organization and required for making good strategic decisions.

The internal environment analysis process assesses the internal activities of the organization by analyzing the organizational strength and weakness, also obtaining the competitive advantage by investigating the potential of these strengths. (The scoot away, 2016)

Mission, Vision and Objective of Scoot

The mission and vision of scoot are:

Mission: providing a great flight to customers every time.

Vision: become an airline influencing the youth.

Objective: coming up with new airlines, specifically aiming at the ASIAN countries. Also identifying and developing international alliances and partnerships. (Scoot, 2016)

Resources and Competencies

Resources are assets employed in the activities and processes of the organization. The resources of an organization are as:

These resources of the organizations are so used in a way to get value out of them. The scoot airlines transform its inputs (resources) into output as product and services.

This model is the internal processes or activities that the organization achieves competitive advantage providing vale to its customers.

There are two main activities that this is performed by scoot airline:

The primary activities include the following:

Inbound and Outbound Logistics: This operation of scoot is complex and involves timely delivery of fleets. The devices value in outbound logistic is efficient of luggage handling: scheduling of flight: facilities planning: yield management system and the service system of passengers.

Operations: Scoot has quite extensive scope of its operations. It globally flies to eighteen destinations. Competitive advantage of scoot in operation is as it offers customers increased security in their checked in luggage, online booking, quick ticket booking and many other e-services.

Services: Scoot has services which add value for scoot’s customers; it has Kris flyer card privileges and loyalty card for its customers.

Sales and Marketing: The scoots strategy of marketing is directly related to its target market by utilization of the marketing mix such as social media and advertising, direct marketing, public relations, experiences and events, promotions and sales.

The supporting activities include the following:

Technology Management: The management of technology has many systems under it such as the baggage tracking system, flight scheduling system, yield management system, in-flight system.

Procurement: Scoot has automated procurement process with strict compliance of rules and regulations.

Human Resource Management: It has various training for the scoot members such as ground crew customer service training, agent training, pilots and cabin crew safety operation training.

Scoot Airlines Competitive Advantage

Using the capabilities of the value chain the strategic resources and capabilities are identified. The strategic position of scoot with respect to revenue focus on the company and its competitor’s. Revenue with 30% increased in 2014 and 5% increased in 2015, with increasing demand of air travel by 6.3%-6.5%.Scoot success factors are as hiring a well trained, a management team with great skills, ground staff, and cabin crew, pilot’s etc. using a high tech aircrafts and electronic system on board. Partnership with more established airlines globally.

In addition to fantastic value airfares scoot provides a safe, reliable and contemporary travel with unique attitude. It has passionately changed the ways people travel long distance

At the airline excellence awards by airlinerating.com Scoot in 2016 has been named as the best low cost airline for the Asia-Pacific region.(Hauston, S, 2016)

Scoot being a low cost subsidiary airline possesses standards and quality in flight services.

SIA(Singapore airlines) is a reputable parent company of scoot, the day to day operations of scoot run with stability and with great assurance to its consumers.

Scoot provides premium cabin option to consumers. It also seeks to change the perception of the people that if one wants to travel cheap, they have to travel uncomfortably. This gives scoot an edge over budget airlines.

Its collaboration with Tigerair in the year 2012 has provided travelers with easier transit procedures.

The strong social media presence as YouTube, corporate blog face book has been a strategy of targeting the younger demographic.

Scoot’s efforts to catch with digital age has not been very good, it has not been able to keep up with its campaigns. Several times there have been so many technical issues on digital font faced by scoot.

Scoot has limited number of fleet of 6 aircrafts, causing it to only provide a choice of thirteen destinations to its consumers.

As scoot has started in the year 2011, it has a weaker brand presence. And this resulted in taking more efforts on scoot’s end to build consumers who have tried and tested other airlines.

Opportunities

Scoot is setting up new market trend, the demand for budget airlines are rapidly increasing so the consumers are more interested on taking budget airlines to travel. With an increasing demand for the importance of media in consumers lifestyles scoot’s focus is giving an edge to its competitors.

One of the biggest threats faced by scoot is the rising operational cost and inflation. It needs to take an extra care in managing its operational cost. (The scoot away, 2016)

Conclusion

This short study is based on the Scoot airline internal environment analysis, in this analysis we primarilyconclude andanalyze the internal environment of scoot its mission, vision, objectives and the organizations resources and capabilities and uses the value chain to evaluate the overall activities within the organization and how these resources and capabilities carry up the strength of the organization and also analyzing the weakness of the organization.

The analysis is beneficial for acquiring knowledge about the core competencies and the strategic capabilities of the organization scoot airlines.

The analysis seeks to give good source of knowledge and information for a better understanding of the internal environment of scoot airline.

Reference

CAPA, 2015, Scoot approaches profitability & became SEAsia’s top performing long haul LCC, Boosting SIA outlook, Viewed on 21st December 2016,

CHANNEL NEWSASIA, 2015, Scoot named best low-cost airline in Asia Pacific, viewed on 21st December 2016,

Duval,T, D, 2014, Air transport of Asia Pacific, Ashgate, Rautledge, New York.

Hauston, S, 2016, Scoot: Asia's Newest Low-Cost Airline, viewed on 21st December 2016,

Jowkenq, 2012, Singapore airlines, viewed on 21st December 2016,

ORACLE NETSUITE, 2015, Press Release, scoot soars in Netsuite cloud, Viewed on 21st December 2016,

Pearson, J, Merkert, R, 2012, Airlines-within-airlines: A business model moving east, Journal of air transport management, vol. 38, no: n.d., p.p. 21-26.

Scoot, n.d., Scoot airlines, viewed on 21st December 2016,

The scoot away, n.d., the scoot story, viewed on 21st December 2016,

The Scoot Away, n.d.,SWOT Analysis, Viewed on 21 December 2016,

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