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Singapore Airlines' Dual Strategy: An Analysis of Organizational Change - Research Paper Example

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Singapore Airlines' Dual Strategy: An Analysis of Organizational Change

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). Moreover, it has constantly making higher profits despite the fact that air travel is on the verge of declining. SIA on Industry Challenges The airline industry confronts the challenges on “globalization, maintaining high standards of ethics and social responsibility, responding rapidly to environmental changes and customer needs, managing the digital workplace and supporting diversity” (Daft, Murphy & Willmott, 2010). Consequently, to offer the best service would mean providing the customers the latest trend in technology. Singapore Airlines was the first airline company to offer telephone service onboard for their business and first class customers. Also, SIA is exerting efforts in constant innovation such as “full-size space bed and onboard email and internet services” (Heracleous, Wirtz & Johnston, 2004). Known for its service orientation, the company ensures customer satisfaction as they deliver quality service, as opposed to their competitors. According to Kaufman (n.d.), SIA is continuously training their employees, especially those who are always interacting with customers. It centers on “career development,” organizational communications among employees, “consistent external communications,” strong attachments to customers, constant innovations, “professionalism and profits” (Kaufman, n.d.). Singapore Airlines constantly does these things to establish an exceptionally strong customer satisfaction by exceeding the customer expectations. This paper is a study of how Singapore Airlines outperformed other competitors and what are the things SIA did in providing excellent customer service cost-effectively. This is also an analysis of how organizational changes affect the firm and their customers. Analysis The Issues and the People Involved For firms to cope with current challenges, companies need to undergo organizational changes thoroughly. According to Kotter (2007), the steps to organizational transformation are: establishment of “sense of urgency,” formation of strong leading coalition, creation and communication of vision, ...Show more

Summary

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)…
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