Singapore Airlines (SIA) is a global airline that has consistently ranked as one of the top carriers in the world. The company has a long history of success and has built a reputation for delivering high-quality service and an exceptional in-flight experience. In this essay, we will examine the strategies that have contributed to SIA's success and how the company has continued to adapt and evolve in the face of changing market conditions and industry challenges.
One of the key strategies that has contributed to SIA's success is its focus on innovation. The company has a strong track record of investing in new technologies and services that enhance the passenger experience and improve operational efficiency. For example, SIA was the first airline to introduce in-flight entertainment systems and has continued to lead the industry in this area with its state-of-the-art KrisWorld system. The company has also embraced digital technologies such as e-ticketing and mobile check-in, making it easier for passengers to book and manage their travel.
Another important aspect of SIA's strategy is its commitment to customer service. The company has a reputation for delivering a high level of service and has consistently ranked highly in customer satisfaction surveys. SIA has invested in training its staff to deliver a personalized and attentive service, and it has also invested in improving the in-flight experience with features such as luxurious seating and gourmet dining options.
SIA has also focused on expanding its global network and building strong partnerships with other airlines. The company has a strong presence in key markets such as Southeast Asia, Europe, and the United States, and it has formed partnerships with other carriers to offer passengers more route options and greater connectivity. SIA is also a member of the Star Alliance, a global airline alliance that allows passengers to earn and redeem miles on a range of airlines.
In recent years, SIA has faced significant challenges, including increased competition from low-cost carriers and the impact of global events such as the COVID-19 pandemic. To adapt to these challenges, the company has implemented cost-cutting measures and diversified its revenue streams through investments in areas such as cargo and engineering services. SIA has also focused on strengthening its balance sheet and improving liquidity through measures such as raising capital and securing government support.
Overall, Singapore Airlines has a strong track record of success thanks to its focus on innovation, customer service, and expanding its global network. The company has demonstrated a ability to adapt and evolve in the face of changing market conditions and industry challenges, and it is well-positioned to continue its success in the future.
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However, imitation is done in two ways. By adapting a differentiated segmentation approach, SIA keeps both its premium and economy travelers satisfied. They create a work environment that enhances employee job satisfaction. This has affected the profit levels of the airline as well as slowed down its growth prospects. Therefore, the fully branded service differentiation enables the organization to pursue continuous quality improvement, innovation, and cost leadership. There is the need to include a large advertising budget to buy the space and time required to include its name in the largest possible areas for customers as well as utilizing public relations to the advantage of the airlines Lindstrom, 2005 p 254. Singapore Airlines has carefully built a financial and fixed cost infrastructure which allows them to continue investing to support the brand while challenging the competition on costs.
Porter, Competitive Strategy New York: Free Press, 1980 Kannan Ramaswamy 2018 , "Singapore International Airlines: Strategy With A Smile Harvard Business Review Case Study. I think that Singapore can make use of the most number of benefits by the existing alliances and equally contributing to the partners by services or other benefits. Product — Singapore airline is a service industry that does product differentiation from others through its 2 to 4 classes Suite, First Class, Business and Economy classes with its Krisflyer loyalty membership, in flight entertainment, fast check in and limousine services and lounge usage services. For example, pressure on US airlines stemming from low-cost carrier competition has caused a number of the full-service airlines to begin charging for on-board services which used to be free. There are a number of difficulties that have plagued the airline such as overcapacity, commoditization and rivalry of brought by other low cost carriers as well as disastrous periods caused by performance below standards Doganis, 2006 p 67. Targeting The target market of SIA consists of clients that share common needs that the company serves, such as passenger air travel and cargo services Rozario, 2015.
HRM comes in handy in organisations that have a high level of employee diversity Crook 2011. The ability for job satisfaction to ensure industry leadership for Singapore Airline depends on its capacity to increase its employee job performance. More international destinations to leverage on its high value brand image Singapore Airlines Threats The threats for any business can be factors which can negatively impact its business. We are multi-national organizing with more than 28,000 staff located in cities and subsidiaries throughout the world. Research on job satisfaction identifies various factors, which increase employee commitment to their jobs and hence satisfaction. Future issues: Competitor challenges Singapore airline has succeeded in competing with other airlines business week, 2010.
To ensure that Singapore Airline customers are contended with the offered services, the company should invest in continuous training and development of its employees on the use of technology to enhance customer experience. Threat of Substitute Products- It is weak or low as the financial aspects which are required in entering the airline industry. Singapore Airlines has a satisfied customer base and is a preferred airline of passengers 4. In the quest to ensure that an organisation continues to enjoy the services of its talented employees, it has to seek strategies of ensuring that its labour force does not consider quitting either voluntary or involuntarily. The main areas of focus of the airline are management of people and planes to ensure service is better in comparison to its rivals.
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Vision of Singapore Airline: Singapore Airlines has responsibility not only to be an excellent company, but also to be an excellent citizen of the world by enhancing the lives of the people. From the outset, SIA decided to apply strategy in locating brand name and service. Apart from that, they are also the first airlines who introduce the seat configuration that brings maximum comfort to the passengers. The strategic plan for the organization will include considerations of restarting operations as air travel begins being accessible, deals for customers traveling for work or family visits, as well as deals for customers who have received a vaccine and those traveling to tourist destinations. A HR manager is responsible for the welfare of his or her workforce. Employee turnover is expensive in service sector organisations such as Singapore Airline.
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Research on HRM suggests that the top talent is critical in enhancing industry leadership. By allowing this segment of customers to have access to promotions, sales, and other deals, SIA will show dedication to its clients. The Balanced scorecard is an integrated approach to assesses performance of business strategy and how changes can be made in the areas such as — financial objectives and goals, customer preferences and choice architecture, operations management and supply chain bottleneck resolutions, and organizations learning ability and capacity building Balanced Scorecard is a resource focused strategic analysis tool. Thus, all the above-mentioned elements permit a company to meet the rigorous competition and sustain constant growth and development. Under poor and harsh supervision, many employees, including the experienced ones, may opt to quit their jobs. SIA focused fully on mainstream advertisement unlike Air Asia which taps on the Online Advertising. People remain in organisations, which ensure higher job satisfaction.
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Question marks refer to business units that can be used by SIA to ensure high growth in areas of high competition. The technology sector creates jobs for many young Nepalis who would otherwise migrate to foreign countries. SIA adopts new Technology and constantly seeks alternate energy thus living up to its a social responsibility. Innovation, best technology, genuine quality and excellent customer service were to become the major drivers of the brand. This has been representing as the icon of the service guarantee and the exciting and unforgettable flight experience. Through researching on Singapore airlines, it seems to me that the core of their success in the near future would be dependent on their innovativeness, this is because it has come to a point where all the airline are providing almost the same thing.
According to Edmans 2012 , communication is an essential tool in any institutional set up. Opportunities Singapore Airlines have the capability to expand the different business operations in different parts of the world and it will be providing a different aspect for exploring in various sectors as well. This situation has introduced the challenges for the HRM in minimising workforce negative experiences that are attributed to differences in workforce cultural diversities. The additional problem is related to the exchange rate fluctuation, which can cause issues while converting currencies. This observation suggests that employee turnover has negative financial implications to an organisation. In this respect, Mohd Zulkeflee Abd and Ilias 2011 emphasize the significance of internet services, including electronic transactions, customer service and support department, and receiving feedback from customers. Some of the low-cost flights operators such as Ryanair, an Irish low-cost airline, are more flexible in responding to increase the cost pressure on profitability which set a threat to Singapore airline operations and growing.
Singapore airline is the one that has the most profit internationally. HR managers must strive to build a positive information sharing culture in the organisation. Changes in the international political landscape has aroused political tension among the state-owned airlines which compete for growth and market share. Thirdly, Singapore airlines consistently use new airplanes for one purpose. However, the absence of clear laws is the prime cause of high employee turnover in many airline companies.
Generally, the costs of SIA are usually lower than most European and American airlines that range from 4 to 8 cents and 5 to 6 cents per kilometer travelled respectively. But basically at the bottom-line, we are trying to give the best services as we can. Most companies are reluctant in providing a safe and healthy environment for employees. The process of identifying these components of a BCG matrix are important in ensuring areas of weaknesses are important in ensuring areas of high potential are utilized while areas of difficulties are corrected to arrive at the intended goals of attaining high profitability. It provides an opportunity for the managers to ensure that they pick the right candidates with the appropriate character and competency.