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    Singapore Airlines (SIA)

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    Roger Jhon Bravo
    Singapore Airlines has achieved sustained superior performance relative to its competitors through dual strategies of differentiation through excellent customer service and innovation, as well as cost leadership. It is difficult for competitors to imitate SIA's whole business system, which is internally consistent, self-reinforcing, and held together by robust, customer-focused processes and cultural values. SIA treats customers' high expectations, driven by its strong brand image, as opportunities for innovation. It closely monitors customer feedback and benchmarks itself against the best service companies across industries to continuously improve and maintain its position as a top service organization, not just airline.

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    Singapore Airlines (SIA)

    Uploaded by

    Roger Jhon Bravo
    55 views2 pages
    Singapore Airlines has achieved sustained superior performance relative to its competitors through dual strategies of differentiation through excellent customer service and innovation, as well as cost leadership. It is difficult for competitors to imitate SIA's whole business system, which is internally consistent, self-reinforcing, and held together by robust, customer-focused processes and cultural values. SIA treats customers' high expectations, driven by its strong brand image, as opportunities for innovation. It closely monitors customer feedback and benchmarks itself against the best service companies across industries to continuously improve and maintain its position as a top service organization, not just airline.

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    Singapore Airlines has achieved sustained superior performance relative to its competitors through dual strategies of differentiation through excellent customer service and innovation, as well as cost leadership. It is difficult for competitors to imitate SIA's whole business system, which is internally consistent, self-reinforcing, and held together by robust, customer-focused processes and cultural values. SIA treats customers' high expectations, driven by its strong brand image, as opportunities for innovation. It closely monitors customer feedback and benchmarks itself against the best service companies across industries to continuously improve and maintain its position as a top service organization, not just airline.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    55 views2 pages

    Singapore Airlines (SIA)

    Uploaded by

    Roger Jhon Bravo
    Singapore Airlines has achieved sustained superior performance relative to its competitors through dual strategies of differentiation through excellent customer service and innovation, as well as cost leadership. It is difficult for competitors to imitate SIA's whole business system, which is internally consistent, self-reinforcing, and held together by robust, customer-focused processes and cultural values. SIA treats customers' high expectations, driven by its strong brand image, as opportunities for innovation. It closely monitors customer feedback and benchmarks itself against the best service companies across industries to continuously improve and maintain its position as a top service organization, not just airline.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    John B.

    Tamargo
    MBA1
    Production and Operation Management

    Singapore Airlines (SIA)


    Singapore Airlines has consistently outperformed its competitors throughout
    its history, in the context of an unforgiving industry environment. Singapore Airlines
    has achieved its outstanding performance and sustained its competitive advantage,
    through effectively implementing a dual strategy: differentiation through service
    excellence and innovation, together with simultaneous cost leadership in its peer
    group. The organizational elements that have allowed the company to do so,
    illustrate its strategic alignment using a vertical alignment framework, and conclude
    by highlighting the significant challenges ahead.
    Executing dual strategies is difficult thats what makes the approach so
    valuable. By being different in ways that customers like, companies that do so rise
    from the pits of commoditization and make profits even in highly competitive
    industries.
    SIA's sustained superior performance relative its peers show that it has
    achieved this, but what is it that makes it so difficult to imitate SIA? As discussed
    below, it is easier to imitate fragments of a business system rather than the whole
    system; if such system is internally consistent and self-reinforcing, held together by
    robust, customer-focused processes and the glue of cultural values, it becomes
    almost impossible to imitate.
    The stakes are raised for SIA, not only by its competitors but also by its customers.
    A company with a sky-high reputation attracts customers with sky-high
    expectations. SIA's research team has found that SIA attracts a disproportionately
    large number of very demanding customers who expect the best: "Customers adjust
    their expectations according to the brand image. When you fly on a good brand, like
    SIA, your expectations are already sky-high. And if SIA gives anything that is just
    OK, it is just OK, it is just not good enough."
    Combined with its extensive customer feedback mechanisms, SIA treats its
    customers' high expectations as a fundamental resource for innovation ideas. Weak
    signals are implied. Written comments, and even verbal comments to the flight
    crew, are taken seriously and reported back to the relevant sections of the airline.
    According to Ms. Lim Suet Kwee, senior rank trainer, " all feedback that is being
    given by customers, it is all taken very seriously because we have to look into why
    there was such a particular feedback and also are there ways where we can improve
    on that?" An additional source of intelligence is SIA's "spy flight," in which individual

    travel with competitors and report back giving detailed intelligence on competitive
    offerings.
    Lastly, SIA recognizes that its competition does not just come from within the
    industry, as a rule, SIA sets its sights high, and instead of aiming to be the best
    airline, its intention is to be the best service organization. To achieve that, SIA
    employs broad benchmarking, not just against its main competitors, but against the
    best-in-class service companies:
    It is important to realize that [our customers] are not just comparing SIA with other
    airlines. They are comparing us against many industries, and on many factors. So
    when they pick up a phone and call up our reservation, for example, they are
    actually making a mental comparison, maybe subconsciously, to the last best
    experience they had. It could be a hotel; it could be to a car rental company. If they
    had a very good experience with the hotel or car rental company and if the next call
    they make is to SIA, they will subconsciously make the comparison and say how
    come youre not as good as them? They do not say you have the best telephone
    service system out of all the other airlines Ive called. Being excellent, our
    customers, albeit subconsciously, will benchmark us against the best in almost
    everything. The new ball game for SIA is not just to be the best of the best in the
    airline industry but to work at being the best service company.

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