In-flight service sia's differentiation strategy was based on in-flight service on board the airline provided some of the best food, and most importantly, served it with warm smiles. The differentiation marketing strategy exploited by sia is based on service and the image of singapore girl is a key part of this brand image the singapore girl stands for friendly customer orientated staff delivering superior customer service. A strategy of sia to differentiate itself within a highly competitive market is encompassed around in-flight service the focus on human capital investment is apparent with the.
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. Strategy and differentiation differentiation advantage: when a firm is able to obtain from its differentiation a price premium in the market that exceeds the cost of providing the differentiation commodities: lacking physical differentiation. Differentiation strategy, and decided that the strategy should be based on in-flight service as an asian airline, sia chose to focus on asian traditions of providing.
We must create a comfortable and pleasured way as a differentiation strategy secondly, sia will take place providing services such as free drinks, headphone and other amenities, etc by the time, we are trying to go further as well. At sia, the hr management practices enable the development of service excellence, customer orientation, adaptability and cost consciousness capabilities, that in turn support the dual generic strategy of differentiation and low cost, which in turn is the appropriate strategy for the environment of airlines. Effective alignment of functional strategies such as hr, marketing, or operations with the business level strategy is a key challenge in implementing business-level strategies, such as effective differentiation at sia (through service excellence and innovation) combined with superior levels of operational efficiency. Singapore airlines 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. Yap kim wah strategic synergies changi airport devoloping staff holistically training in sia is almost next to godliness'' senior managers at sia beliefs differentiation and cost leadership investments in.
Acs assessor strategy review page 5 review recommendations - the sia acs team recommendation 9: undertake training workshops for acs potential and existing companies. Table of contents the concept of strategy singapore airlines (sia) global integration vs national differentiation strategy and organization within the. Management of marketing strategy does contribute significantly to sia achieving the status as one of the best, if not the best, airline in the world by ensuring that systems serve business needs and continue to do so despite changing environment. Singapore airlines has long stood as a model of service excellence but the rise of upstart competitors has brought new challenges in the industry, and pressure on sia's bottom line associate professor nitin pangarkar says this demands a change of approach by the airline if it is to retain its leading position. A strategy of differentiation implies high quality offering and significant investment in innovation, staff development and branding which results to high cost sia achieves these but with a low cost.
These two points of differentiation—service and low costs—are the twin elements of sia's repeatable model it maintains service levels through recruitment procedures, intense training, and a well-developed culture, all combined with regular innovation, such as offering on-demand entertainment in all classes. We examine how 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. In sia's case, the crew resource management performance delivers the improvement of service excellence, customer s' expectation, values of cost consciousness and adapting to changing market abilities, which as a result, support the differentiation strategy of innovation and service and cost effectiveness (managing hr for service excellence.
3 introduction weexploresingaporeairlinesasarevelatorycaseofhowsustainablecompetitive advantagecanbeachievedviamanagingparadoxestoeffectively. Just as well‐known as its product/service differentiation strategy, as well as its creative service and service excellence, but certainly less familiar, is sia's profitability track record since its inception in 1972 some 25 years ago, sia has had an uninterrupted profit track record. Of late, there's been a surge in airlines highlighting their flight attendants, like we saw with airberlin's weather girl on tvand now, the most famous flight attendants of all - the singapore girls, are back at the forefront of a renewed singapore airlines brand strategy. The beauty of sia's dual strategy is how it has adhered to maintaining low cost with rigor and discipline creating best-in-class quality at every customer touch point, through the years the sia group reported on 14-may-2015 a 58% increase in operating profit for the year ending 31-mar-2015 (fy2015) to sgd409 million (usd318 million.
Strategy can go awry if management fails to translate that strategy into operational plans, structural designs, systems of motivation and communication, control systems, and other necessary means of implementation. The purpose of this paper is to advice the management of singapore airline (sia) which strategy they should follow by doing so we start with discussing what the most important trends in the airline industry are. Singapore airlines (sia) is a prime example of a business that uses dynamic tension to deliver high-end, innovative, differentiated services and still be efficient and cost-effective sia has garnered numerous awards for their world-class service in their coach, business, and first class offerings.