Strategy and Organization at Singapore Airlines

3678 WordsNov 8, 200715 Pages
Case September 18 2006 Contents Introduction 3 Most important trends in the airline industry 3 The position of Singapore Airlines and reasons for prior success 4 Current strategy according to Rust, Norman and Dickson 6 The major issues Singapore Airlines is facing 7 Is Singapore Airlines current strategy sustainable for the future? 7 SWOT analysis 8 Future strategy for Singapore Airlines 9 References 10 Introduction 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. Subsequently we look at the current position of SIA and…show more content…
In the early 1990 's top-tier customers wanted to be treated consistently on every flight. Now these customers desire individual pampering. As consequence of September 11, 2001 one can observe several trends like a decline of passenger traffic as well as higher demand of safety arrangements. It is not certain whether this will be temporarily or if it will last longer. At this moment it is uncertain how the aviation industry will develop in years to come. The position of Singapore Airlines and reasons for prior success If one looks at numerous lists like the Zagat International Airline Survey of February 2001 you could say Singapore Airlines (SIA) is the best Airline Company in the world. In the segments overall, comfort, service and food they are not only the best in the premium class but also in the economy class. These high qualifications are a result of a life long philosophy that started since the beginning of SIA in 1972. SIA has always pursued a position of product leader corresponding to Treacy and Wiersema (1993). The product of airline companies can be described as the service of taking the customer from one place to another true air. SIA has always tried to do this in the best way possible. With the newest airplanes and a high level of service they have gained product leadership. This section explains the prior success of SIA. In the beginning of SIA it was hard for airline companies to differentiate itself. All airline
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