Singapore Airlines Case Study Essay

? Problem Identification ?

Singapore Airlines (hereafter known as SIA) has built a storied reputation for excellence in customer service, attention to detail and a progressive stance in designing strategy. It has established a well-orchestrated system that nurtures significant sources of competitive advantage that are used to support a strategy of differentiation. Currently, the single biggest challenge facing SIA is that of continuing to differentiate itself amongst its competitors. This translates into the question of how to maintain its place as the world's best airline as well as the most profitable? Having garnered a host of accolades for its outstanding level of service, whether or not SIA can hold on to its enviable position remains to be seen. While SIA has one of the most modern fleets in the industry, its service levels are likely to be imitated by other airlines. With the arrival of copycat competitors, the intensifying pressures of cost competition, and the increasing frequency of alliances in the aviation industry, SIA needs to set its focus towards how to rebuild its competitive advantages in order to differentiate itself and satisfy its customers in the three main areas of technology, customer service and brand image.

? Company Analysis ?

With its innovative in-flight services, fine cuisine, and sarong-clad flight attendants, the "Singapore Girl," Singapore Airlines (SIA) has always tried to cultivate a certain image. The airline currently operates in 63 cities in 37 countries, and the carrier has the youngest fleet of any big airline - the average age of its 46 aircraft is under five years (see Exhibit 1 in the Appendix). The Singapore government owns 57% of SIA, and the airline belongs to the Star Alliance airline marketing network.

Despite the Singapore government's 54% ownership, SIA has developed into a world-class airline since its emergence as...


Singapore Airlines

  • Length: 988 words (2.8 double-spaced pages)
  • Rating: Excellent
Open Document

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - More ↓
Physical resources and capabilities
1. Changi Airport
Government and SIA had invested in the Changi Airport together. It includes facilities such as hangar, maintenance center, and catering center, those facilities can be used by SIA, but also the customers of other airline company. So those services in Changi airport are not unique for SIA. Airport service is valuable and important for SIA or other airlines company. Low unique and high valuable, then it is not SCAs.

2. Planes: SIA have 22% 747-400 aircrafts of total production in the world. These planes are greater flying range, better fuel efficiency and quieter cabin than other airline. High unique and valuable that SIA has strong competitive power for attract consumers, and lower cost than other airline. Also if other airlines want to purchase more 747-400 that will use huge money, which is difficult.

Finance:
There are two sources for SAI finance: revenue and shareholders funds. Both are valuable because they are key factors to support the operation of SIA. Two factors that allocate to the SAI revenue are overall load and passenger seat, and they are not unique because every airline companies must contain these sales. While, SAI’s group shareholders funds even were enough to pay for most of its purchases of aircraft in future and recent past the shareholders funds had grown at a rate exceeding S$500 million every year, as well as no debt for group, so this strong financial position is unique to comparing with others. However, shareholders funds is not sustainable competitive advantage, because the process of collecting funds are not complexity, any airline companies have this kind funds, and it is easy to tacit.

Human Resource
SIA has a comprehensive human resource management system which involves training and motivates its employee. We can find the SCA of human resource from two aspects: labor cost, training.
SIA’s labor cost is the lowest among all major airlines, that not only valuable but also unique at that time. The gap between SIA and other airlines companies are not easy to cover in short time. But if other airlines make great efforts on cut down their human resource cost, they will catch up with SIA eventually since it is not too complexity, specificity and can be learn from the cumulate experience.
SIA is only one company who consecutive win the National Training Award for three years. SIA spent a lot of money in employee training program, since it believes that human is the essential factor for company successful.

How to Cite this Page

MLA Citation:
"Singapore Airlines." 123HelpMe.com. 11 Mar 2018
    <http://www.123HelpMe.com/view.asp?id=162287>.

LengthColor Rating 
Essay on Research on Singapore Airlines - Background of Singapore Airlines: Extracted from Singapore Airlines website “Singapore Airlines has come a long way since our founding in 1972, evolving from a regional airline to one of the most respected travel brands around the world. We fly one of the youngest aircraft fleets in the world to destinations spanning a network spread over six continents, with our Singapore Girl as our internationally-recognisable icon providing the high standards of care and service that customers have come to expect of us....   [tags: Company, Foundation, Customers]
:: 9 Works Cited
1542 words
(4.4 pages)
Powerful Essays[preview]
History of Singapore Airlines Essay - History Singapore Airlines, one of the best airlines in the world, began with the incorporation of Malayan Airways on May 1st, 1947. This incorporation was made by the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways. On April 2nd, 1947, a Malayan Airways flight was chartered by five businessmen from Singapore’s Kallang Airport to Kuala Lumpur, and the flight was made using an Airspeed Consul twin- engine aircraft. After this chartered flight, on May 1st, 1947, the same aircraft type realized three weekly schedules flights from Singapore Kallang Airport to Kuala Lumpur and the states Penang and Ipoh....   [tags: company, malayan airways]1562 words
(4.5 pages)
Term Papers[preview]
Singapore Airlines Recommendations to Management Essay - Singapore Airlines Recommendations to Management While performing the SWOT analysis, the several key issues are to be recommended to the management. These recommendations are intended to assist the Singapore Airlines in in keeping its pre-eminent position as it continue strives to be one of the best airline companies in the Today's airline industry. 1) The Singapore Airlines needs to keep its superiority and stay on top of the competition in the international market, despite the bad times associated with a global economy or strategies implemented by main competitors....   [tags: Business Analysis]778 words
(2.2 pages)
Strong Essays[preview]
Singapore Airlines and Its Competitors, Questions and Answers Essay - Q1. Who are the targeted customers of the company. The first targeted group of customers of Singapore Airlines are mainly people with income that can afford them to enjoy flight with excellent services and facilities. While the second group of people, mostly young adults, which have slightly lesser budget for flight tickets. They can choose to take the Tiger Airways, which Singapore Airlines holds some shares. Q2. What is the positioning strategy of the company. Four positioning strategies in terms of Quality and Price Quality/Price Higher Price Lower Price Higher quality Premium strategy Good value strategy Lower quality Overcharging strategy Economy strategy The Singapore Airlines...   [tags: SWOT, Qatar Airways, ANA All Nippon Airways]
:: 1 Works Cited
939 words
(2.7 pages)
Strong Essays[preview]
Essay on Singapore Airlines History Traced to Malaysian Airways - ... 3.5- Holistic Staff Development –AT SIA, The senior management staffs believes that ‘training is effectively important to everyone’. Everyone, no matter how senior has a training program of development plan with clear goals which is extremely beneficial to the employees (Management, 2014). Singapore airlines undergo a training for almost 15 weeks which is comparatively longer than industry average of 2 months. Even before the development starts the industry ensure that the company has hired the Right staff for the right designation....   [tags: customer service, performance, passengers]2576 words
(7.4 pages)
Research Papers[preview]
Singapore Airlines Essay - Singapore Airlines Introduction As a matter of fact, nowadays in most affluent society, where people are better able to appreciate the finer things in life, more often than not they are more willing to pay more for better quality service. They do not compromise quality for money. No doubt SIA charges a little more than other firms, on hindsight one may think that customers will not patronize SIA because of the relative higher cost, but this is not the case. The first half of this year saw Singapore entertaining more than 4.9 millions visitors....   [tags: Business Analysis Strategy]1480 words
(4.2 pages)
Strong Essays[preview]
Singapore Airlines Essays - Introduction Singapore Airlines (SIA) was created in 1972 and was fully state owned. The company expanded rapidly, and with a strategy of concentrating on customer needs by providing exceptional in-flight service, the airline quickly became a noteworthy competitor in the market. During its formative period in the 1970s, SIA developed all the hallmarks that made it one of the most successful and consistently profitable airlines in the world. Through a constant investment in personnel skills and other sources, the company has achieved a sustainable competitive advantage, as well as a reputation for classy elegance....   [tags: Business Analysis Strategy]1888 words
(5.4 pages)
Strong Essays[preview]
Deprecation At Delta Airlines And Singapore Air Lines Essay - Deprecation at Delta Airlines and Singapore Air lines Depreciation helps match the expense of using long lived assets with the revenues the assets helped to produce> what means is that Delta ns Singapore pole Air line depreciates one of its airplanes, it is trying to match the cost of air flight to the revenue that air craft helped to produce. Because air crafts can be an item used for more than one income statement period, Delta and Singapore Airlines don't recognize the air crafts entire cost as an expense immediately....   [tags: Accounting Case Study Airline Industry Delta]1506 words
(4.3 pages)
Strong Essays[preview]
The Development of Singapore Essay - Singapore is an island and a smallest country in Southeast Asia. Singapore is one of the “Four Asian Tigers” where the world major cargo seaport occurs. Despite the small size of the nation, Singapore economy have strong international trade link with capitalist mixed economy when the government intervention in the market is minimal (Economy watch, 2011). Since Singapore gained sovereignty in 1965 from Malaysia, its politics has been dominated by the People Action Party. Under the leadership of People Action Party, Singapore has a “distinct political culture: authoritarian, pragmatic, rational and legalistic.” Economic growth and political stability were maintained by the People Action Part...   [tags: Asia, Government, Economy]
:: 6 Works Cited
623 words
(1.8 pages)
Better Essays[preview]
Overview of Singapore Essays - Relocation is always an exciting experience and a challenge to the people who have no knowledge about the deployed country. Therefore, we are happy to provide any assistance for your upcoming journey. This article is aim to provide information of Singapore to help you gain your knowledge before your arrival. It includes brief introduction and some suggestions. We hope you may find it useful. History Singapore, strategically situated at the Southern tip of the Malayan Peninsula, between Malaysia and Indonesia, is an island city state with 714 sq km....   [tags: Country Overview, Geography]
:: 7 Works Cited
1774 words
(5.1 pages)
Better Essays[preview]



It also launched some program (eg. Outstanding Service on the Ground) to motivate the frontline staff. Maybe the competitors can copy the model but they can’t imitate the SIA’s culture easily. Whole training system is inseparable with SIA’s culture which is valuable and unique, also hard to imitate.

Technology:
In the customer service aspect, they are the first airline to offer Dolby Headphone and in-flight entertainment system for customers, SIA also was the first airline company to provide global satellite in flight telephone service and fax service.
For the pre flying service, such as introducing internet check in service and Centralized Baggage Tracing unit system, which enabled more effective management of mishandled baggage
All of the above are distinctive competencies of SIA at that time. But most of them are not strong sustainable, the only advantage for the SIA is just they are the first one to introduce these kind of service, but all other airline companies can provide the same kind of service in the future after they realize that customers want these kind of service.
We think that only the Centralized information system, as Centralized Baggage Tracing unit is sustainable distinctive competency of SIA, because it is more complex and mostly suitable for airline industry.

Reputation:
During the 1999-2000 year, SIA received over sixty awards worldwide in a range of categories. It was named Asia’s Best Managed Company of the Decade by the Asiamoney magazine and Asia’s Most Admired Company by the Asian Business magazine. In a survey, readers of the Conde Nast Traveler magazine declared SIA as the best airline in the world, for the 11th time in twelve years. From above evidences, we can easy to see that SIA’s reputation have a high valuable and high unique. SIA is also high specificity and tacitness, so reputation of Sustainable Competitive Advantages is high.

Summarize
U V L C S T SCA
Physical Changi Airport Low High - - - - -
747-400 plane High High Low High High High Yes(Strong)
Financial Revenue High Low - - - - -
Shareholder Funds High High Low Low Low Low No
Human Labor cost High High Low Low Low Low No
Training High High Low High High High Yes (Strong)
Technology In-flight entertainment High High Low High Low High Yes (Weak)
Internet check-in High High Low High Low Low No
Centralized Baggage Tracing unit High High Low High High High Yes (Strong)
Reputation Brand name High High High Low High High Yes (Strong)

In the future, SIA should focus the following aspects:
 Develop its own strategy that is not copied by competitors easily, for example, installing complex software programs for reservation system, ticketing, check-in facilities, etc.
 Create new routes and be careful when designing the new routes. For example, SIA may consider its own routine route that is operated for many years and join new routes according to the reasonable arrangement.
 Since fuel price, which is denominated in US dollars, is one of the major cost for airline company. So SIA may consider using its financial strategies, such as sign forward contract, hedging in the money market in order to eliminate the risk of changing in currency value.
 Persuade government to develop Singapore’s travel business so that brings potential customers for the airline’s business as well.
 Adopt Virgin’s internal culture and share two companies’ resources efficiently, for example, human resources, technologic resources, etc.



0 Replies to “Singapore Airlines Case Study Essay”

Lascia un Commento

L'indirizzo email non verrà pubblicato. I campi obbligatori sono contrassegnati *