Introduction
While an organization can be regarded as successful, various factors may contribute to its vulnerability. Attracting many customers is profitable but can lead to increased consumer demand. Consequently, an organization may find it difficult to satisfy its consumer base. Moreover, firms are vulnerable to unprecedented natural calamities such as COVID-19, among others. Therefore, while SIA has adopted various successful mechanisms, the increased consumers and unpredictable business environment risk its success.
SIA’s Success Vulnerability
SIA’s success is becoming vulnerable due to the increasing customer demand, worsening business and competition environment, and internal organizational pressure. SIA has consistently promised and delivered quality services to its clients. Consequently, travelers expect more excellent services any time they return to the airline, as portrayed in Luke 12:48: To whom much is given, much is expected (You Version, 2019). The majority of SIA’s clients have ignored the existence of competitors when comparing services offered. Instead, service quality comparison by the clients is done within SIA, making it difficult for the airline to gauge its competitiveness in the industry.
Business environment factors are crucial in determining a firm’s performance. External factors affecting SIA include natural pandemics, such as the spread of the SARS virus (Siddiquei & Khan, 2020). Additionally, economic factors such as skyrocketing fuel prices negatively affect SIA. Business competition among airline companies threatened SIA’s performance and growth. Moreover, other companies have slashed traveling costs, attracting SIA’s clients (Jick, 2011). The worsened business and competition environment threatens organizational performance.
Although increased customer demands and worsened business and competition threaten SIA’s performance, internal pressure affects its routine operations. The labor shortage in Singapore forced the company to seek services beyond borders. While the recruitment of multiethnic employees was significant, it posed various challenges within the organization. The employees lacked shared values and dedication to SIA’s quality service. Some of the employees felt superior to others, while some were dedicated to the company’s mission and vision. Disunity among the employees leads to poor service delivery, encumbering organizational growth (Broeng, 2022). Therefore, internal pressures, a competitive market, increased customer demand, and a worsening business environment made SIA’s success vulnerable.
Conclusion
SIA is one of the most successful airline companies in the world. The company has adopted various strategic mechanisms that have significantly contributed to its success. The increased number of customers has led to subsequent customers’ increased expectations. Additionally, the existing business environment is becoming competitive due to the adoption of effective strategies by SIA’s competitors. Therefore, SIA should adopt strategies that would strengthen its success.
References
Broeng, S. (2022). Lost in the present moment—an action research study on employee experience of involvement in change processes in the public sector in Denmark.Organisational and Social Dynamics, 22(1), 66-82. Web.
Jick, T. (2011). Singapore Airlines Continuing Service Improvement. Columbia Business School.
Siddiquei, M. I., & Khan, W. (2020). Economic implications of coronavirus.Journal of Public Affairs, 20(4), e2169. Web.
You Version. (2019). Ecclesiastes 4, New King James Version (NKJV). Web.
You Version. (2019). Luke 12, New King James Version (NKJV). Web.
You Version. (2019). Proverbs 14, New King James Version (NKJV). Web.