Developing a Competitive Advantage - A Singapore Airlines Case study

Developing a Competitive Advantage - A Singapore Airlines Case study

Introduction

There are a few brands that are able to capture public recognition and stand out as the best brands from those of the rest. For instance, Earl Grey Tea is famous for its name and taste. Rolls Royce is famous for its luxury and Parker pens are famous for their functionality. Premium brands are respected and known widely. Singapore Airlines is one of these premium brands known worldwide for its best services in terms of customer services and customer satisfaction. It is famous and known for its products, offers and service standards. The service standards can be symbolized by the uniform worn by the flight attendants which has a design reflecting Asian culture.

In the contemporary society, customer service and customer retention are the basis on which a brand is differentiated from that of another product. This can be well explained by taking the example of airline services where passengers reside and travel for several hours. For these hours, a passenger wants relaxation and comfort. The airline owner must make sure that these needs of the passenger are catered while he is travelling using a certain airline service. The customer must be provided with all that he wants while he is on board.

Singapore Airlines wishes and aims for providing its customers with A-level customer services. SIA often asks its customers about their wants and needs while they are flying to their destinations. The following case highlights how SIA has achieved and still achieving competitive advantage in the airline industry.

Discussion

SIA was launched in 1972 after operating as Malaysian-Singapore Airways. The network of Singapore Airlines has expanded over to 93 destinations worldwide and it serves Asia, Europe, Middle East, North America and Africa. Silk Air, a regional subsidiary serves 21 destinations in 8 countries. The airline has also established several strategic alliances with many other airlines to serve other markets of the world, where it is restricted from landing i.e. transatlantic regions. One important factor to consider here is that Singapore Airline has its own aircrafts that are managed and operated well, where many other airlines lease their fleet. It has the youngest fleet for any major airline service with aircrafts being used for not more than five years. The fleet keeps on changing, and improvements are made to avoid operational damages.

SWOT Analysis

Every business has to carry out its SWOT analysis to determine its standing in the operational environment. It is an important tool for recognizing strengths, weaknesses, opportunities and threats of the business arena.

Strengths and Weaknesses

The key strengths lie in the location of Singapore as a major crossroad. Singapore is a small country that has remained an important aspect of economic stories of the world for over 25 years. The success of the country lies in its strengths to develop trading links with the global economy. After the independence of the British colony in 1965, it marketed its services ...