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Scoot Airlines Case Solution

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The company’s current strategy is to continue focusing on medium to long haul destinations and create distinct place for itself. However, there should be a small change in this strategy as there might be instance when the planes are on ground due to low activity on these routes. In such instances the company must use idle capacity to move planes on shorter routes such as the one they started to Bangkok (Gallezo-Estaura, 2012). This will still be aligned with goal of the company because the core targets will still rest with medium to long haul destinations and the company can also develop a second business segment using this approach.

Following questions are answered in this case study solution

  1. Strategy Formulation 

  • Current Strategies that Require Changes

  • Possible New Strategic Initiatives

  1. Strategy Implementation

Case Analysis for Scoot Airlines Case Solution

• Possible New Strategic Initiatives

This section discusses two main strategic alternatives for the company and also evaluates them with critical perspective. Two main alternatives include

  • expanding the network by reaching out to more destinations

  • creating new partnerships and strengthening current ones

Market expansions are good because the company gets a new pool of customers to target. However, markets that are farther such as Australia or America will require more investment whereas expansion to nearby locations such as China will be easier. Another disadvantage of this option is that the new markets have their own set of dynamics and the company has to foresee how they can remain competitive while going with this option (CAPA, 2015).  

New partnerships might require the company to give up certain control aspects but this option will help company in market expansions by incurring lower costs (CAPA, 2015). Both these options are still consistent with the strategic intent and mission of the company to remain long haul flight provider for the young people.  

2. Strategy Implementation

Some of the possible aspects of strategy implementation as far as Scoot Airlines is concerned have been provided here. Further, the aspects have been accompanied with evidence from literature to show their significance. This will help the airline in ensuring that strategies outlined earlier are implemented in an efficient and comprehensive manner.

Leadership and its role in strategy implementation are crucial. This is because those in leadership positions have the clout to not only influence behavior but guide through their example. So for instance if the leadership shows how important a strategy is by using the right communication messages or by responsible actions, then it is likely that the employees and other followers will translate this into personal commitment. This will then ensure that such a strategy gets properly implemented because everyone at the organization recognizes its importance and works hard to achieve success (Fairholm, 2009). For Scoot Airlines, this means that leaders which includes middle and senior level management has to realize why these strategic alternatives are important and commit themselves to these otherwise it will become very difficult to convince others in getting them implemented.    

Organizational performance gets affected on frequent basis as a result of poor execution when strategy implementation is taking place. Merely leadership is not important because strategy implementation is the core function of technical staff who has to perform day to day operations. This is because they are the ones who handle problems and deal with their consequences. So if they are in habit of executing strategies as required then company performance should improve (Sorooshian, Norzima, Yusof, & Rosnah, 2010). In the case of Scoot Airlines, if the employees involved in customer service, or flight operations etc. are not executing the new strategies as needed then implementation will be weak and the entire strategy formulation process will become futile.    

Bringing new strategies into workplace sometimes requires companies to go through transformational change. Transformational change is needed because companies become accustomed to their old habits and both top and bottom level management becomes resistant to change. In such a scenario, when new strategies are implemented resistance ends up stifling their growth. This shows that leadership as well as employees in company need to realize that there has to be a corresponding transformational change in company’s goals and values that helps company in staying true to its strategic intent and yet manages to implement the new strategies (Avolio, Zhu, Koh, & Bhatia, 2004).

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