Economic benefits, Managerial Economics

Assignment Help:

Singapore Airlines  is facing the possibility of a new competitor " Qantas " to enter the Singaporean market, especially in premium market, Singapore Airlines is dominant on the market entirely(Qantas flies into row with regional rival 2011). According to Australian Financial review report, Qantas's proposal is encountering serious interaction and attention by the Government of Singapore(Francis 2011). Qantas issue raises many questions about the seriousness of the Singapore government and the legislative authorities, as well as on the future of Singapore Airlines. This essay is based on the Liu model in the analysis and diagnosis of the relationship between Singapore Airlines and the Singapore government.

When we talk about the relationship between Singapore Airlines and the Singapore government, then it is different from talking about the relationship between a multinational company with host government, which means that the national company will depend on a different strategy from the foreign  company's strategy. The relationship between the parties may see more competition and a little cooperation, Low absorptive capacity of the market argument will lead the Singapore Airlines to form a lobby to pressure the legislative and executive powers in order to develop legislation and laws that prevent the entry of a foreign competitor, Or at the very least, provide a certain level of protection to Singapore Airlines from any foreign competitor aspires to enter the Singaporean market to take advantage of local resources.

However, Singapore government may  allow to  a foreign competitor to enter their market if they were in need of organizational and technological skills and access to foreign resources in order to achieve integration of resources. Singapore government may not have the justification for that from viewpoint of sky reporter Jameson ( Jameson 2011) about Qantas. In premium market, Singapore Airlines far outweighs Qantas lines. The Singaporean government has to find a justification in the host Qantas if they argue that allowing to Qantas to enter the Singaporean market and the acquisition of 51% by Singaporeans, better than giving an opportunity for the Malaysian government to take advantage of that. In addition, that the entry of Qantas to the Malaysian market instead of the Singaporean market does not mean that Singapore Airlines will not be affected at the same time, Qantas will be outside the control of the Singapore government.

Some politicians argue that the entry of a foreign competitor does not serve the interests of Singapore, they cite the position of the former prime minister which refuse to enter a foreign competitor of Singapore Airlines to premium market. And argue that there is no economic benefits and political gains from enter Qantas to Singapore market, also mentioned to Jetstar Asia experience which owned by Choo but it run by Jetstar. According to resources dependence theory the relationship between Singapore Airline and Singapore government Singapore will be cooperative with government in an attempt to acquire red Q In the case of the agreement provides for Singaporeans to acquire 51% of the company, thus red Q will transform from a rival company to a subsidiary. And in an attempt to create a new budget Airlines which started seriously thinking of create Scoot Airlines.


Related Discussions:- Economic benefits

Show the example on transaction cost theory, Q. Show the example on transac...

Q. Show the example on transaction cost theory? Coase begins from standpoint that markets could in theory carry out all production and that what needs to be illustrated is th

Disguised unemployment, Disguised unemployment Situation where some pe...

Disguised unemployment Situation where some people are employed apparently, but if they are withdrawn form this job, total production remains the same. In most developing coun

Advertising budget, Analyse The Method By Which a Firm Can Allocate The Giv...

Analyse The Method By Which a Firm Can Allocate The Given Advertising Budget Between Different Media Of Advertisement

Explanation of business cycle, Causes There are a number of explanatio...

Causes There are a number of explanations of the business cycle but changes in the level of investment seem to be the most likely.  In the simplest Keynesian model an increase

Advantages of indirect taxes, Advantages a. They are less costly to ...

Advantages a. They are less costly to administer because the producers and sellers themselves deposit them with the government. b. If levied on goods with inelastic deman

Calculate the equal amounts of capital and labor, The production function o...

The production function of the personal computers for DISK Company is given by Q = 10 KL where Q is the number of computers produced per day, K s the hours of machine time,

Theory of consumer behaviour, Theory of Consumer Behaviour Through the...

Theory of Consumer Behaviour Through the study of theory of consumer behaviour we can be able to explain why consumers buy more at a lower price than at a higher price or put

Marginal revenue (mr), Marginal Revenue (MR) This is the increase in T...

Marginal Revenue (MR) This is the increase in Total Revenue resulting from the sale of an extra unit of output.  Thus, if TR n-1 is Total Revenue from the sale of (n-1) units

Determine the concept of law of demand, Determine the concept of Law of dem...

Determine the concept of Law of demand We have considered numerous factors which fashion the demand for a commodity. As explained the first and most important factor which determ

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd