Topic > Singapore Airlines - 1888

IntroductionSingapore Airlines (SIA) was created in 1972 and was entirely state-owned. The company expanded rapidly, and with a strategy of focusing on customer needs while providing exceptional in-flight service, the airline quickly became a worthy competitor in the market. During its formative period in the 1970s, SIA developed all the characteristics that made it one of the most successful and consistently profitable airlines in the world. Through constant investment in staff skills and other resources, the company has achieved a sustainable competitive advantage, as well as a reputation for classy elegance. This document reveals the strategies used by SIA, with information on their sustainability and sources of advantage, how these strategies have changed over the years and how to continue. The presentation slides accompanying this document are found in the appendices.1. Then and Now: Strategic Stability and Change at SIAThis paragraph contains an evaluation of the 1972 value strategies and the current value strategy and evaluates the changes made. A description of the 1972 strategy will be provided next; the current strategy will be discussed. The marketing strategy envisioned by the creation of SIA focused on customer needs by providing exceptional flight service. This required the on-board staff to be of excellent quality. At SIA there has been a constant emphasis on training (including social training and etiquette) and customer service. Since then, exceptional onboard service has become part of the company's culture and image. All this suggests a strongly product-oriented strategy, a value strategy that Treacy and Wiersema (1993) define as product leadership. Competitive advantage came from a good product; high profitability in the 1970s was aided by low labor costs in Singapore. The improvements made since 1972 are primarily improvements to the "travel" product: better in-flight entertainment, an upgrade of ground services, more flight destinations through the "Star Alliance" network, and improved seats and space on board. However, there are also improvements in other areas besides product improvement: 2 types of loyalty programs have been introduced, premium passenger preferences are archived and complaint management has been improved over the years. The differentiation of the types of passengers and the expectation that they will fly again with SIA, building customer loyalty through complaint management and loyalty programs, suggest the move to a strategy based on the value of customer intimacy. As service and CRM become increasingly integrated into SIA, customer intimacy is strategically integrated into the organization.