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Singapore Airlines' Dual Strategy: An Analysis of Organizational Change
Pages 5 (1255 words)
Singapore Airlines’ Dual Strategy An Analysis of Organizational Change Introduction The Case, Airline Industry and Singapore Airline Aviation industry is one of the booming industries in the international market despite its greatest downturns. Such factors to industry downfall are oil price hikes, rising concerns on communicable diseases, the tsunami that hits Asia in 2004 and the increasing terrorist attacks (Heracleous & Wirtz, 2009).
However, this does not change the fact that airline companies exerts much effort to minimize cost and maximize profits in return. Being in the business, specifically in the airline industry, requires constant modification and innovation to answer clients’ needs and wants. As the corporate world are in the competitive market of introducing innovation, the challenge to stabilize while exceeding customer expectation can bring about effective strategies at the management level. Porter (1998) believes that even if the industry is not performing well, any company can have higher returns just by applying the right competitive strategy. Competitive advantage mainly has two kinds: “low cost or differentiation” (Porter, 1998). For him, if “cost leadership” applies, differentiation is not anymore applicable. However, both can be applicable at the same time to Singapore Airlines (SIA). The airline offers an exceptional customer service and establishes a strong customer satisfaction while minimizing their costs incurred. In fact, SIA has been constantly leading the industry, leaving behind its competitors for the past thirty years (Heracleous, Wirtz & Johnston, 2004). ...
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