Analysis of Singapore Airlines and its Competitive Advantage

                The industry I have chosen is Aviation and the firm under consideration is Singapore Airlines.  Before moving on to the Singapore Airlines, we should know what competitive advantage is. Competitive advantage in layman terms is the cutting edge of a company or firm on its competitors in the industry. It can be operational, product or market wise advantage. The airline industry globally is a competitive industry and services are the key factor of differentiation for any company to excel.  Some companies go for cost-cutting and operate in a niche that focuses on low ticket prices whereas some go for the premium services with the value-added pricing model. But few strive to use IT and efficient HR to deliver a hybrid model focusing on services and price.

        Companies in the aviation industry have similar business models that include transportation, ticketing and customer services. There is very less margin for any company to maneuver and do something out of the box which leaves the companies with the idea of value-added services and class differentiation that affect the prices and not every customer can afford. Singapore airlines, unlike these other company, aim to provide the highest form of services in the most affordable way by keeping their cost low and delivery excellent. This is one of the kinds in the industry.

            Singapore Airlines has major competition within the industry but it has been able to uphold its superior standard and maintain its strategic advantage.  The areas of success for Singapore Airlines are customer relationship as well as the management of HR operational staff. For any services based company effective management of HR is the key to long-term success.  Singapore airline has been able to maintain and uphold its standards and is doing well in this regard.

        The airline industry has a disastrous business cycle and operates on multiple fronts when it comes to the ticketing. The company’s website, offices, as well as IATA, powered systems are used for ticketing. This makes the industry in overcapacity and high-risk profile. But to Singapore International Airlines delight they have outperformed their competitors and continue to maintain the sustained competitive advantage (Wirtz & Heracleous, 2008).

        Moving on to what the real competitive advantage does Singapore Airlines has is widespread. It is the bouquet of their values that has given them the edge.  The 4 point agenda is:

  Delivering the highest quality customer services which are safe, reliable and economical

  Financially generate earnings that reflect well on shares and provide sufficient resources for investment and dividend return to shareholders.

   The motivation of employees across the company with shared values so they can contribute to the company’s objectives.

   Use all resources to maximize productivity.

When these 4 points are embedded as one policy it covers all the major aspects for the company’s success. Singapore Airlines is based on innovation and development. They haven’t put their innovating wings to rest even after being far ahead of their competition.

        For the customer services part, they need a process of training and sustainable excellence that have set them apart. Singapore airlines focus on the cabin crew aspect and use them for branding their airline. The Singapore Airline’s Singapore girl (used for the cabin crew) goes hand in hand with the airline and has become a point of recognition for the airline. This is unlike another brand of airlines that focus on their company and services but not the staff. For example, Emirates airline focuses on its core services and air jets but not on the cabin crew whereas the Singapore Airline takes pride in their cabin crew is well trained and empowered ("Sustainability in operations | Environment | About us | Emirates", 2018).  The staff is empowered to take decisions best in the interest of airline and the customer. The customer is the king policy is applied in the core operations. The front line service is a core part of the brand that represents what the Singapore airlines stand for. They have been able to create the good perception in the minds of the customer. This should be kept in mind for creating such a great team to deliver at the front line it is the HR excellence at the back end (Wirtz & Heracleous, 2008). The policy for recruitment and training program is comprehensive ensuring the right values and skills are given to the employees.

        The cabin crew undergoes 4 months extensive training program which is the longest and extensive in the industry. Apart from this, the flight crew goes on 29 months comprehensive program that is online before being promoted to the first officer. This training not only does provide the customer-friendly aspect but the flight safety aspect too.  This adds to the one of competitive advantage of Singapore airlines (Wirtz & Heracleous, 2008).

        Focus on the high-performance delivery teams is also one of the cutting edge advantages that Singapore Airlines possess. There 6600 crew members are divided into teams of 13 individuals. These 13 people teams fly and serve together which makes them compatible and gel up in a way that is good for Singapore Airlines. The team leaders act as a mentor to weigh on strength and weaknesses of the group & individuals so they can be counseled. To maintain the operational excellence and service intact they have check trainers to get feedback of the team and recommend suggestions for team development. This kind of measures helps Singapore Airlines maintains their competitive advantage in operational standards.

            One of the things that for many may not fall into the competitive advantage but for Singapore airlines is their culture. It is unlikely for many gulfs and Asian based countries and company but Singapore’s model is for success. The culture is centered on the employees and is based on their experiences and success stories. They have given the staff training and the right tools to carry out operations in an effective way. But that is what most airlines do but what makes Singapore airlines different and a success story? The trust it has placed in its employees is with an extensive training program. They are allowed to make decisions independently as the front line staff has to frequently call the shots in this industry. Rather than co-coordinating with the manager first and taking a decision, which takes a lot of time, the front line staff is empowered enough to take a decision on its own. This is effective and doesn’t disrupt operations saving costs and adds value to the airline operations.  This kind of employee empowerment is unparalleled in the airline industry. Southwest Airlines in the USA are known for its operational excellence and swift delivery of services but this kind of employee empowerment is not there (Muduli & Kaura, 2011). This all adds to the competitive advantage of the Singapore airlines.

            Concluding from here if it is to be observed the Singapore Airlines have focused itself on the core areas of delivery of services and maintaining good customer relationships. Their competitive advantage is their employees and the HR department. All of the other successes are associated with the HR policies and employees (Wirtz & Heracleous, 2008).

        The question now is their model and competitive advantage sustainable for a longer period of time? This can be answered correctly by reflecting on the historical data of the airline. The historical data of Singapore airlines show that the employee retention rate is the highest in the industry. It is safe to say that the Singapore Airline has a fair chance of maintaining its competitive advantage and sustain it. It is forever investing in employees and its core operations.  Since the last four decades, they have managed to achieve more than that of the completion and other players in the aviation industry can dream of that is cost-effective service excellence and sustained superior performance. Singapore airlines unlike spending large on marketing campaigns have truly let their excellent services do the talk. Their employees are satisfied and well rewarded which makes them their mouthpiece outside duty hours.  The competitive advantage of Singapore Airlines cannot be narrowed down to one but many as stated earlier it is a bouquet of their operations, customer relationship management, and HR policies. Any company that goes to imitate the model has to invest a great capital in the training process and in the fast-paced industry, nobody has time to really start over.  However, in their own ways, they are trying to achieve the benchmark set by Singapore Airlines.  Singapore Airlines is safe for the future but they need to innovate and be on toes by increasing the benchmark. Their HR management is a still a benchmark for others and not the market standard.

        Studying Singapore Airlines gives us insight about how the competitive advantage for any company comes from its core values and operations. This shows that how one can create their competitive advantage and differentiate from the industry by just investing in the right areas. Singapore Airlines with changing times adapted their core competency but never left it rather worked on it to become better. Competitive advantage can be sustained if it comes from within organizational core competencies

References on Analysis of Singapore Airlines and its Competitive Advantage

Muduli, D., & Kaura, M. (2011). Southwest Airlines Success: A Case Study Analysis. BVIMR Management Egde, 4(2), 115-118.

Sustainability in operations | Environment | About us | Emirates. (2018). Retrieved from https://www.emirates.com/english/about-us/environment/sustainability-operations.aspx

Wirtz, J., & Heracleous, L. (2008). Managing human resources for service excellence and cost effectiveness at Singapore Airlines. Managing Service Quality, 18(1).