Singapore Airlines (SIA) sees itself as an acknowledged company with high-quality services that strives for equality and rivalry through the open access to the transatlantic directions and exercises competitive advantages via technology, innovation, and efficiency enhancement of its human resources.
Competitive strategies
The application of an approach based on “organizational paradoxes” enables the SIA’s excellent performance in the rivalry. Heracleous and Wirtz focus on four puzzlements which have brought advantage to SIA. Among them are: “cost-effective service excellence, simultaneous decentralized and centralized innovation, being simultaneously a follower and a leader in service development, and accomplishment standardization as well as personalization in customer interactions” (150). To go farther than their rivals, SIA emphasizes on the inconsistencies that should not be fought, but accepted and explored as a powerful tool. For example, the cost-effectiveness and service excellence are two opposite poles, and struggle for the balance between them is the primary concern of the peer companies. SIA have decided not to choose between two devils but accept both as inevitable and necessary for the enterprise’s competitive advantage. To solve the problem SIA’s leaderships have established the acquisition of new fleet, investment in human resources and their training, high accountability on all levels, the straight correlation between performance and reward, and visible enhance the customer services (Johnson 4).
Employment of Competitive Advantages to Satisfying SIA’s clients
Lee and Worthington in their analysis of the effectiveness of low-cost carriers (LLC) and mainstream airlines conclude that the presence of LCCs in the market increases the rivalry among all players (19). Since the customers are sensitive to the prices and services, SIA has executed the dual strategy to solve the issue. As a client-oriented business, the company assesses the value of loyalty and has implemented steps to increase it through investment in the service superiority. Therefore, SIA’s view on the issue can be expressed in the interrelations between the customer and perfection in adjusting their needs (Heracleous & Wirtz 159). SIA is well known for its innovations in the industry. For example, the company was one of the firsts that introduced personalization in clients’ services providing customers with access to different entertainment facilities and broad food and beverages options. Moreover, SIA employed feedback policy which gives the insight on “satisfaction ratings with a product or class induce examining how to improve ratings again” (160)
Management of Human Resources
SIA’s management of human resources is based on the focus on the excellence in training and performance. According to Heracleous and Wirtz (2010), the employees should prioritize the good performance along with the reduction of costs. The company has built its culture in close relation to SIA’s history which marked by struggling for the prominent position through concentration on innovation and personal involvement (149). Moreover, SIA has extensive training programs in different areas. For the management, the company provides educational anti-corruption sessions in the various countries where SIA operates. Preparation and professional development of the flight operators, pilots, and crews are the primary concern for the company because these specialists directly deliver the services to the customers.
Social Responsibilities and Ethical Activities
According to Strengthening a Position of Leadership (2016), several branches of SIA, such as SIA Cargo and SilkAir have the efforts in the community services that cover different aspects of the local and international arena of the company’s operation. For example, Cargo supports Jurong Bird Park and Singapore Zoo which gives the recognition to the airlines and, thus, as a benefactor SIA Cargo transports animals around the globe. However, another chapter of charity which is sponsoring and volunteer assistance for Child’s Dream Foundation by SilkAir and Singapore Children’s Society is implemented in the local field it gives the company international acknowledgment as well. Backing up sports teams in their transportation and funding needs puts SIA among other air services providers such as Delta Airlines, Emirates, and Etihad Airways.
Moreover, the company intensely invests into new technologies to control the fuel emission which is the sign of environmental accountability. This strategy works in two directions: first, SIA provides the evidence of lower fuel diffusion and states its responsibility position; second, the company binds its effort in environmental area with its competitive technical advantages of the modern fleet. Although the majority of the airlines have to demonstrate sustainable improvements in the reduction of harmful emissions, SIA emphasizing its uniqueness by the following statement, “As we have always had a modern fleet, it is more difficult for us that it is for many other airlines to show significant reductions in our emissions on a year-on-year basis” (Sustainability Report 1). Social responsibilities and ethical activities symbolize that the company is accountable and customers can rely on it because it shows the care about people, wildlife, and the environment. The responsible activities allow the airlines being always on consumer’s sight and propelling itself from the pool of the rest.
To sum up, SIA’s activities in the implementation of new technologies, customer service innovation and excellence policies, and human resources development secure the company in the highly competitive industry. The efficiency of SIA’s strategy that highlights it among its peers is in a wise approach to the problems that every air service carrier faces and in resolving the paradoxes through accepting their nature and employing necessary steps.
References
Heracleous, Loizos, and Jochen Wirtz. “Singapore Airlines’ balancing act.” Harvard Business Review 88.7/8 (2010): 145-149. Print.
“Singapore Airlines: Achieving Sustainable Advantage Through Mastering Paradox”. The Journal of Applied Behavioral Science 50.2 (2014): 150-170. Print.
Johnson, B. “Reflections: A Perspective On Paradox And Its Application To Modern Management”. The Journal of Applied Behavioral Science 50.2 (2014): 206-212. Print.
Lee, Boon L. and Andrew C. Worthington. “Technical Efficiency Of Mainstream Airlines And Low-Cost Carriers: New Evidence Using Bootstrap Data Envelopment Analysis Truncated Regression”. Journal of Air Transport Management 38 (2014): 15-20. Print.
Singapore Airlines.Strengthening a Position of Leadership. Web.
Singapore Airlines. Sustainability Report. Web.