BUSINESS STRATEGY OF SINGAPORE AIRLINE

1.0 INTRODUCTION

“Quality service to customers is a fundamental

objective and aspiration of SIA”

–SIA, 2007–

Over the last two decades, Singapore Airlines has grown from a regional airline into one of the world’s leading passenger and cargo carriers (SIA, 2007). In an attempt to survive, many of the companies which are operating in the same industry tried to examine and investigate the approaches or tactics which are using by Singapore Airlines (SIA, 2007). Finally it became clear and understandable that SIA are more competitive because of its operations strategy; that is, all the resources in Singapore Airlines are specifically designing in order to directly support SIA’s overall strategic plan which is “Compete on service” (R. Johnson, S. Chambers, C. Harland, A. Harrison, and N. Slack, 2007). Here as a consultant, would like to describe the plans and decisions which are taken by SIA in order to uphold its long-range plan (which is stated above) as well as compete in the market.

2.0 SIA’s Operations Strategy

“Excellence in customer and in-flight service

has been integral to SIA’s success”

–SIA, 2007–

From the earliest days, SIA has developed a reputation for being an industry trend-setter as well as doing things differently than its competitors who are in the same industry line (SIA, 2007). For example: – SIA was the first airline which puts into practice free drinks, a choice of meals which prepared by gourmet chefs and complimentary headsets for its passengers in 1970s to magnetize travelers’ attention and interest on SIA (R. Johnson, S. Chambers, C. Harland, A. Harrison, and N. Slack, 2007). On the other hand, SIA was the first airline which developed a plan, idea, or strategy to implement in-flight entertainment system in its selected aircrafts. Accordingly, SIA was wasted a few millions in the 1990s in order to install KrisWorld movies, KrisWorld television with a choice of twelve channels (includes comedy, drama, music & arts, sports, young Ones, international, lifestyle, business, documentary), KrisWorld music from jazz to classic with a choice of twelve channels, KrisWorld games and applications (such as Bejeweled 2, Sudoku, Bookworm, Zuma, Think Tanks, Luxor, Timon & Pumbaa’s, Burper, Water Pipes, Dynomite, and Seven Seas), KrisWorld Pc to enable the travelers to work on their business documents, KrisWorld entertainment devices (such as headphones, screens, and headsets), as well as KrisWorld communication or satellite-based in-flight telephones to make flying more enjoyable for its passengers, pull in more travelers especially kids, and also to stand out from the competitors (SIA, 2007). Moreover, SIA is the first inventor and performer of the most innovative live teletext news service (KrisNews) and also for an interactive in-flight shopping service for its aircrafts (SIA, 2007). These creative and innovative developments by SIA, ultimately won numerous awards for “The best airline” (R. Johnson, S. Chambers, C. Harland, A. Harrison, and N. Slack, 2007).

On the contrary, SIA was the first airline which bought over a group of best chefs to serve superlative in-flight cuisine for its passengers (R. Johnson, S. Chambers, C. Harland, A. Harrison, and N. Slack, 2007) as well as it was the earliest airline which tried to fulfill the needs of individual customers by introduce the special meal service with lighter and healthier options plus the unique in-flight meal service which is specially introduced for young flyers and enabled them to choose their desired meals up to 24 hours before the flight departure (Mapsofworld, 2007). Besides that, SIA started to update its menus monthly and even weekly to create an impression among its frequent travelers and also to keep track of flyers tastes (R. Johnson, S. Chambers, C. Harland, A. Harrison, and N. Slack, 2007). These were the main line of attack for SIA to compete among its competitors in the market and also to shore up its business strategy.

Rather than developing in-flight services, SIA also puts in countless efforts to improve the facilities and service at Changi airport with innovative technologies. For example: – SIA was the first airline which applied the leading-edge wireless gatelink technology within the airport in order to share data successfully with aircraft, passenger terminals, maintenance operations, baggage handling, ground-support equipment and so on (Boieng, 2007). At the end of the day, it increases SIA’s operational efficiency and improved SIA’s on-time performance (Boieng, 2007). In contrast, SIA introduced four training centers (Cabin Crew, Flight Operations, Commercial and Management Development) within the company in order continuously motivate the employees to improve and update their performance as well as SIA started to apprise their employees for performance (Altoviya, 2004). Therefore employees in SIA are taking special care to learn what’s best for the customers and business, and gained the good name for their superior customer service. Additionally, SIA starts to publish a variety of department newsletters and a monthly company-wide magazine in order to keep their employees (who are functioning in the different countries and cultures) in the correct track (Altoviya, 2004). Besides, a “staff ideas in action” scheme was implemented by SIA in order to gather continues suggestions from their employees for the further developments and improvements and SIA decided to provide “The Deputy Chairman’s Award” for the employees who have the innovative thoughts and performance (Altoviya, 2004). These is one of the supporting plan by SIA in order to achievement effectively its business strategy.

2.0 Recommendation

In accordance with the research, Singapore Airlines is doing very good in the market if weigh against to its competitors (SIA, 2007). However, continues improvements and changes are necessity for Singapore Airlines in order to survive in our fast changing as well as challenging world. Here as a consultant, would like to recommend a number of suggestions for Singapore Airlines as a stepping-stone for its future developments.

Firstly, Singapore Airlines should keep an eye on the external environment carefully in order to identify the opportunities and threats in the business, remain competitive, as well as to react and make decisions quickly and appropriately towards the unpredictable and changing environment. To achieve this, Singapore Airline should select and arrange good quality managers into various departments in order to deal with the various forces in the business environment (Jennifer M.George 2000, pp 73-92) For example:-

· legal and public relations department is responsible for examining and overseeing the changes in laws and regulations

· The finance and accounting department is responsible for investigating and evaluating the regional economy of SIA

· Research and development department is responsible for monitoring and studying the changes in technology

· Social and cultural relations department is responsible for scanning and identifying the pressures in the social structure of a society and the national culture

On the other hand, chief executive officer in Singapore Airlines must employ a group of researchers whose only task is scanning journals, articles, magazines, newspapers, publications, bulletins, reviews, forums, online information and so on (Jennifer M.George 2000, pp 73-92). By scanning, SIA may perhaps become aware of the countless unseen information and it will be very useful and helpful for managers in order to understand and make appropriate decisions for the future functioning or operations.

On the contrary, SIA should dismiss or set aside the number of motiveless or ineffective managers and employees (James A. F. Stoner and R.Edward Freeman 1992, pp.74-80). By doing this, SIA be able to offer its full attentions as well as additional motivations, encouragements, and inspirations for the remaining good quality managers and employees. This can eventually improve SIA’s on time performance and also can keep away from spending money and wasting time for the worthless managers and employees. Besides that, Singapore Airlines must work together with external organizations, individuals, or groups in order to gather valuable and helpful information for the further improvements and developments in the future (Jennifer M.George 2000, pp 73-92). This can be done by exchanging communications and sharing data with the external organizations. For example:- Singapore Airlines should act as a team with Southwest Airlines in order to understand, examine, and identify the exclusive business, operations, marketing, and finance strategy of Southwest Airline. By do this, Singapore Airlines be able to develop their plans to compete in the market, as well as can make better SIA’s decision making towards its functional strategies.

In addition, price is become more sensitive matter in this growing world and most of the customers are turning to be price conscious although the product they wanting is with high quality and excellent services. In view of that, SIA is charging higher price than its competitors for its airline tickets due to the ongoing innovative and creative improvements and developments in their services (SIA, 2007). This may reduce the number of passengers or flyers in the Singapore Airlines and also customers may perhaps choose its competitors for economical journey. As a result, SIA should fix a reasonable price for its tickets with redesign or develop its services with a less expensive cost in order to target a wide segment markets. Besides that, a number of rules and regulations in SIA should change to be more complexity in order to prevent loses in the profit of the company. For example: – SIA should charge a few amount on the passengers who are give up their seats at the last minutes. By doing this, SIA can put a stop to the customers who are canceling their flights tickets at the last minutes. On the other hand, a number of rules and regulations should change to be trouble-free in order to magnetize more passengers and also draw in customers attentions. For example: – money should be return to the customers who are giving up their seats minimum one week earlier than the fixed traveling date. By doing this, SIA can attract passengers who are book their tickets without conformation as well as flyers who cancel the tickets for the urgent matters.

Finally, advertisements are playing an important role in very single organization. For example: – advertisements are helps to reduce sales resistance, develop a readiness to accept a product, as well as create desires or demand for the commodity (Adrian, 2007). According, SIA can be develop more in the society with giving continues and special attentions to the advertising segment. Innovative and creative advertisements regarding the services of Singapore Airlines will always impress the memory of people as well as its very fast can catch the attentions of more people.

3.0 Conclusion

In order to remain the competitive, a company should have a proper operations strategy. Improper or inaccurate operations strategies by a company will affect its long-range plane or business strategy. As a result, managers in an organization should always ensure the decisions which are taking must be supportive for the company’s business strategy.