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Box case 1.5

Singapore Airlines – sustainable competitive advantage

Singapore International Airlines (SIA) has often been voted the world’s best
airline in surveys by travel magazines such as Condé Nast Traveler and the
quality of its services is legendary. Its business strategy is based on a solid
service product and attention to every detail of way it is delivered. A first-tomarket
innovation strategy has been an important part of SIA’s approach for
years.

The SIA product itself – air travel – is reliable and the range of routes
offered has been extended through alliances with other airlines. The way the
service is delivered by SIA is designed to achieve maximum customer satisfaction
and includes both people and technology-related ideas. Cabin staff are
renowned for being friendly and helpful and this has been strongly promoted
through the Singapore Girl advertising. Staff receive longer and more detailed training than that offered by other airlines. For example, all cabin trainees
spend time in homes for the aged in order to understand the problems faced
by older travellers (a growing segment worldwide). Technology is also
constantly updated and the aircraft fleet is one of the most modern in the
industry. Having more modern aircraft has helped SIA differentiate their
service product; passenger areas have larger than average seating, and a
French fashion house designed the décor and all of the service ware (including
the tableware). In-flight services have been constantly enhanced and the
list of firsts here is long: first in-flight telephones; first in-flight fax machines;
first Dolby surround sound and personal video screens in coach class. SIA has
also led in the introduction of electronic tickets, but it is also flexible in allowing
flight confirmations by telephone, fax or email.

It is interesting to note that competitors have quickly copied the technology-
based innovations, whereas the quality of the service provided by staff
has been harder for competitors to follow. In managing service innovation, a
key question to ask is which dimensions of innovation can bring a sustainable
competitive advantage?