Case Study

Singapore Airlines

1- What have been SIAs main ingredients of success for decades?

SIAs three-pillar strategy is critical to its success. High-quality inflight service (e.g. well-trained

flight attendants, variety in the menus of meals), the most modern fleet (e.g. young fleet, large

and comfortable seats) and an outstanding service on the ground (e.g. high-quality service at

reservation desks) make the foundation of success. Furthermore, policies and practices

developed by management are of high importance in maintaining the three-pillar strategy.

2- How has its success become vulnerable? Why is it difficult to maintain a leadership

position for a company like SIA and continuously improve?

SIA success has become vulnerable due to the constant increase of customers demands and

expectations, new successful competitors and labor shortage in Singapore. Since SIAs

concentration is on the constant improvement of service quality, customers demands increase

every day and satisfying all expectations and needs is difficult. Moreover, SIA competitors

imitate SIAs strategies and try to improve themselves continuously. So, SIA needs innovative

ways in order to overcome these problems.

3- If you were the boss of ground agents in Manila and Denpasar, what feedback and

guidance would you give them? What would you write as a response to Denvers

complaint letter?

Regarding the agents, I would encourage them to apply flexibility in their decisions and explain

the reasoning behind their decisions to customers in detail.

In response to Denvers complain letter, first I would apologize him because his need had not

been met. Then, I would explain related rules and regulations to him and give him the rational

reason of agents decision making.

4- Which of the two approaches at the end of the case would you support and why? What do

world-class organizations need to improve and change continuously?

I would prefer the second approach because it is holistic and considers all aspects of a decision-

making process which include reasoning, flexibility, customer satisfaction, and staff

empowerment.

World-class organizations need to improve their products (services) and strategies regarding their

internal and external environmental factors (e.g. financial resources, and competitors) by

applying innovation.