Business Strategy class : Final Assignment
Case Study : Singapore Airlines
By Melissa Issad
The objective of this paper is to analyze the strategy of Singapore Airlines, its competitive advantage and how they implement such a strategy.
First, we will start with a definition of the case study and the main stakeholders of Singapore Airlines. After that, in order to describe their strategy we will realize a SWOT analysis and a description of their competitive advantage. We will conclude with the strategy implementation.
Officially launched in 1972, SIA’s network reaches 93 destinations on 42 countries serving all the continents. In partnership with its regional subsidiary SilkAir serving 21 countries, they created major alliances serving other
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It works on offering better with the cheapest price. But, this stays unique and paradoxal with its cost reductions techniques. Trying to understand SIA’s unique strategy because it regroups two strategies as Porter defines them (Porter, 1996), it is explained in the Harvard Business Report Review report on SIA: “This triggers a virtuous cycle. Because mechanical failures are rare, fewer takeoffs are delayed, more arrivals are on time, and fewer flights are canceled. New planes are more fuel efficient and need less repair and maintenance… repairs accounted for 4% of SIA’s total costs compared with 5.9% for United Air Lines and 4.8% for American Airlines. SIA’s aircraft spend more time in the air: 13 hours, on average, per day versus the industry average of 11.3 hours. And, of course, customers like newer planes better.”(Heracleous, 2010).
Regarding the strategy implementation of SIA, we can summarize its following success factors:
Levels Success factors Objectives
Information • Premium quality is competitive advantage
• Service to customers is the success key
• Regional partnerships are essential
• HR management and training is crucial I know
Training • Innovate all the time
• Reduce costs in an intelligent way
• Look for new partnerships and alliances
• Manage its own fleet I can
Motivation • Manage the growth of the company and multi-level hierarchy
• Take into account the growth of the gulf and Chinese airlines
• Keep the leadership and achieve standardization and personalization of its
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