Firm strategy, structure, and rivalry
Local conditions affect firm strategy. For example, German companies tend to be hierarchical. Italian companies tend to be smaller and are run more like extended families. Such strategy and structure helps to determine in which types of industries a nation's firms will excel. Singapore is a hierarchical paternalistic authoritarian illiberal state. Cause of Confucianism is strong; Singapore society is based on a hierarchical order of things.
Rivalry in the Singapore airline industry is strong. Local rivalry forces firms to move beyond basic advantages that the home country may enjoy, such as low factor costs. The competitive landscape has several large companies, such as Singapore Airlines, alongside smaller competitors. Rivalry is increased by the presence of low-cost carriers in the market, as these companies can compete more intensely on price. Switching costs for buyers are low, which means that it is easy for them to change to a competitor. Cause of the globalization, there are many international competitors join in the Singapore market, such as China, Japan and India, etc.
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