The Singapore Airlines Group
Essay Preview: The Singapore Airlines Group
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Singapore Airlines (SIA) is renowned as one of the important players in the airline industry worldwide. However, SIAs competitive advantages are diluted gradually because competitions within existing competitiors become more intensive, factors such as competitive pricing, barriers to operate new routes, cost effectiveness, service homogeneous and imitation, etc.
In order to deal with those issues, SIA should investigate their existing resources and capabilities to beter utilize their strengths. Therefore, we generalize their resources and capabilities first, and then discuss what their distinctve competencies as well as sustaintable competitive advantages are.
The following table summarize all the key internal factors that SIA possessed:
1. Physical R/C
Number of destinations
Latest, most updated aircraft
Ability to gain new market and destinations
Non stop flight service
Comfortable environment – quietest cabin
Global satellite and fax telephone service
Complimentary bag of toiletries
Virgins Transatlantic network
Alliance for low-price trip – Aeroineas Argentianas
SIA Engineering Companys capacity
2. Financial R/C
Sufficient financial resource
Managing the investment in Training
Managing the investment in Technology
Acquisition of virgin, air new Zealand
3. Human R/C
Pilot Training program
Stewardess- Singapore Girl
High Quality Service Staff
Influence of labor union
Low labor cost
Systematic Training Mechanism
Motivation on staff performance programs
4. Technological R/C
Highly automated systems – Passenger handling capacity and facilitated
Training simulation system
Ware catering washing system
APIS – Advanced Passenger Information System
Internet check-in 1996
Centralized baggage “tracing” unit
Life- saving equipment
Reservation System – Global Travel Information Services
5. Reputational R/C
“Reaction” of the result survey/compliant
Focus group research
Relationship with government
Here, we will justify what resources and capabilities are distinctive competences and sustainable competitive advantages (SCAs):
They possess the latest, modern, youngest fleets that physically provide better safety, comfortable environment; better fuel efficiency and flying range to achieve cost reduction. This is a distinctive competence because this approach requires a high financial support and it is very hard to buy a fleet of aircrafts without a huge funding. In addition, it could be considered as a strong SCA because it is quite hard to update “all” aircrafts into the youngest and modern fleet. It could only be achieved by having a huge amount of funds to invest.
The in-flight entertainment is a distinctive competence because they can provide the latest news, good games, and a number of abundant channels selected. The degree of freedom that passengers have is quite rare at that time. However, it is a weak SCA because it is easy to be imitated by others. Also, others can achieve the purpose of using this system even though the ways and the context of entertainment are different.
The global satellite and fax service is a distinctive service because the service demanded is first fulfilled by SIA. At that time, these are new standards and so SIA possesses a cutting-edge technology that others dont have. However, it is a weak SCA because it is again easy to be imitated. Competitors could simply acquire those facilities these would no longer be a sustainable advantage.
The engineering group contains technologies that other airlines ground service hasnt. The scale and the capability is achieved to a SCA that they have.
For the financial resources and capabilities, SIA has the distinctive competency since SIA has strong capital resources that are very valuable and it is also difficult to find a competitor that has such financial power. Therefore, we think that the financial resource