Factors Leading to the Success of Singapore Airlines

Introduction

Singapore Airlines (SIA) has been known by every people, it depends on the excellent services and highlight customers care developing the business. Singapore Airlines operates a hub airport at Singapore Changi International Airport, it owns significant market in Southeast Asia, East Asia, South Asia, and “Kangaroo route”. The company also operates trans-Pacific routes, including two of the world’s longest non-stop commercial flights from Singapore to New York, Singapore to Los Angeles, which are used Airbus. This company is the first to use the “Big Mac” Airbus A380 aircraft, which to service the customers. SIA has been extended to aviation-related businesses, such as aircraft handling and engineering. The report of this company could clearly show that Singapore Airlines Limited ranked highest in the world, is the eighth largest airline in Asia, and the number of international passengers ranked the world’s sixth largest airline.

Singapore Airlines has been evaluated as one of the most comfortable and safest airline, it is known as the safest airline company with the youngest aircraft group, and the average age of the aircraft is 6.6 years. Singapore Airlines has the feature which design to solve meals aircraft and quality issues advisory group of airlines in the world of airlines. Singapore Airlines International Culinary Panel was founded in 1998, whose members are well-known chefs around the world, to design rich SIA passengers world-class airline meals. In addition, Singapore Airlines First and Business Class passengers enjoy the “Book the Cook” service in the 24 hours prior to departure. Customers could choose the favored food in the 20 kinds of food, which could satisfy the customers who have personal taste.

In this article, I will discuss which factors could lead to the success of Singapore Airlines. The aspect of internal and external elements is my important direct in the analysis of Singapore Airlines. This is proposal, which is the part of this project. In this proposal, it include the literature review, objective, methodology. In the literature review, it will show some important quoted ideas, and these ideas could be better to support why the company could successful. The objective will illustrate the aim of this project, and some questions which I will list. The methodology could show the way, which is to show my process of collecting information, it include the primary data, secondary data and others.

Literature review

• Spend management

Heracleous, L and Wirtz, J (2010) said that Singapore airlines has its special and effective rules which is the 4-3-3 rule of spending. This rule means this company has 40% on training, 30% on revising processes and procedures, and 30% on creating new products and services every year. This could be better to prove that this company have a great spend management, the spend manager could accurately calculate which way could make this company have a better performance. Pandit, Kand Marmanis, H (2008) said that Spend Management is a business function in which businesses gain visibility, establish controls – consisting of system controls and organisation policies, in order to manage their business spend.

Pandit, Kirit; Marmanis, H. (2008),Spend Analysis: The Window into Strategic Sourcing,J. Ross Publishing,ISBN1-932159-93-2

• High standard

Heracleous, L and Wirtz, J (2010) also said that SIA’S service processes, like those of most other airlines, are highly standardized. High standard is another factors which could push this company to be success. Heracleous, L, Wirtz, J and Johnston, R (2004) said that SIA does not aim to be a lot better but just a bit better in every one of them than its competitors. A bit better than competitors could prove the high standard in this company.

• Customer care and Innovation

Hercleous, L and Wirtz, J (2004) said that the central to high-volume service operation could leads to predictability, safety, and lower costs in the company. It also leads to customer satisfaction. In addition, SIA is a pragmatic innovator, quickly stopping the use of technologies that customers don’t like. This could prove that this company have the innovation and customers care. Chong mark (2007) said that the service has won a great awareness in the world, and its service has some capabilities which are innovation offerings and modern fleet. He also said that Singapore airlines focuses on the in-flight experience, which is the personal service and service-related comforts.

• The brand awareness

Chong mark (2007) said that Singapore Airlines (SIA) is a globally renowned brand and one of the most pro¬t table airlines in the world. Hoyer and Brown (1990) said thatthe process of consumers’ choice will be dominated by the brand awareness. Subjects with no brand awareness tended to sample more brands and selected the high-quality brand on the final choice significantly more often than those with brand awareness. So Singapore airlines has a good brand awareness, which could lead to highlight business of more passengers. From the report of DATAMONITOR (2011), Singapore airlines also has strong brand image, and it is the “world’s most admired airline” and ranked the 27th on the Fortune World’s Most Admired Companies rankings in 2010. It has a strong brand and is a leader in the aviation industry, in terms of innovation, safety and service excellence.

Wayne D. Hoyer and Steven P. Brown

Journal of Consumer Research
Vol. 17, No. 2 (Sep., 1990), pp. 141-148

• The internal and external target of Singapore airlines

Chong (2007) said that the employee communication program of Singapore airlines is based on the mission and value of corporate. The mission is ‘be a global company dedicated to providing air transportation services of the highest quality and to maximizing returns for the bene¬t of its shareholders and employees’, the value of company is to be the excellence, safety and customer care, which focus on the customers. For the employees, the value is integrity and teamwork. Therefore, Singapore airlines is not only to emphasis on the customers, but also to focus on the environment of internal development. Heracleous, Wirtz and Johnston (2004) said that the culture of Singapore airlines encourages the innovation of functions, such as in-flight services, ground services and loyalty marketing. It also develop a lot of subsystems, which is not only the customer service system, and the system of staff, such as the reward system. This company also focuses on the employees, managers and staff are well aware of the profit and cost-effective.

• The strategy of Singapore airlines

Cendroski, Scott (2010) said that the key to Singapore Air’s success: ignoring the crowd. In the downturn, while its competitors focused on cutting prices, it slashed flights. DATAMONITOR (2011) illustrate Singapore Airlines has a diversified geographical spread. The group provides services such as passenger transportation, logistics, and maintenance, repair, and overhaul (MRO) services. The group operates across various regions such as East Asia, Europe, South West Pacific, West Asia, Africa, and the Americas. In addition, this company has young aircraft fleet, the airline operations of the group include passenger and cargo air transportation. It holds the youngest fleet of aircraft. The passenger fleet operated by Singapore Airlines comprised 108 aircraft, with an average age of six years and three months. This company have a clearly strategy, which could achieve the maximum profit in the airline industry.

Research questions and objectives

The reason why the Singapore airlines could attract many people will be analysed in this project. And this company have a successful business in the airline industry. Moreover, the characteristic of Singapore airlines will list in this project. The customers care, the innovation of internal company, some differentiation of this company and the suitability of environment will also be researched. In addition, which resources of Singapore airlines could push this company to have a great business, which factor is important and could keep this company having competitive advantage? Which competitive advantage could develop the sustainable competitive advantage? Which factor could make this company maintain a great profit?

The aim of this project is to illustrate the elements which could lead to the success of Singapore airlines. It mainly describes the internal and external environment of company which push this company for achieving the success. Analysing the marketing, customers care and innovation is the significant part in this project. It will use the PEST and SMART methods to report this company. Moreover, using the critical mind to finish this article is the important step. Using the SWPT to analysis the external and internal environment of this company is an efficient way for elaborating the success. In the Singapore airlines, the rules of this company, the services, the culture of this company, the communication, customers care and the airplane are all the indispensable roles in the process of success. This project is focus on these elements for being better to illustrate and analyze the success of Singapore airlines.

Methodology

• The primary data and secondary data

Generally, observation, interviews and questionnaires are three main primary data collection methods (Sekaran, 2000).This project has used the type of questionnaire by the way of interview. Moreover, it aims to different groups, which are mainly students, workers and some foreigners. These questionnaires have 100 parts which has distributed at the weekend in the campus and airport of Bristol. As the result, the number of students is the biggest, and the most of these students are come from other countries, which could conveniently collect the data. This is the primary data.

In aspect of the secondary data, the information has been searched in the library of UWE, the resources mainly come from the searching system of on-line library in the UWE, and collecting relevant data is the important part in the process. Edit and summary is the last step. And there is another resources which are come from the Singapore annual report, the website of Singapore airlines and others relevant of this company academic websites.

The survey has covered about 10 days, collection of information is essential, then editing the information and making questionnaire is my next step, the information about high street was collected through the Internet, and think about which information should be used in questionnaires.

¬ The quantitative and qualitative

Quantitative research involves the collection of information that can be expressed using a numerical measure (Brassington and Pettitt, 2003). Qualitative research, on the other hand, usually involves the collection of non-numerical data that in open to interpretation, such as customer’s opinions, where there is no intention of establishing statistical validity (Brassington and Pettitt, 2003).

These questionnaires have used the method of qualitative and quantitative. The type of opened and closed also use in the questions. Qualitative research occupied 60 percent of the questionnaire. It show the percentage of option. The advantage of quantitative is that collect conveniently relevant information, these information could directly show which one is popular in the mind of people. Quantitative research has been used in the opened questions. Qualitative aims to gather an in-depth understanding of human behaviour, this way could match the opened questions, people can freely illustrate the detail of their views.

The questionnaires is my important stage which to collect the advice of passengers as my primary data. Distinguishing the quantitative research and qualitative research is important thing. Moreover, this project will use PLEST structure to analysis.

Conclusion

Through above of illustration of proposal, it could clearly show the direction of this project. Frome the literature review, it elaborates that Singapore airlines has more competitive advantages than other competitors, some resources could prove the differentiation of this company. The research questions and objectives could show detail of project which I will analyse it in the future. It also could illustrate the direction of this project. The methodology could describe the researching process of this project, and the sources of data. It also could demonstrate how can collect the data. It also could show which way of collection will be used in the process of collecting data.

Reference

1. Pandit K; Marmanis H. (2008),Spend Analysis: The Window into Strategic Sourcing,J. Ross Publishing
2. Wayne D. and Steven P. (1990) Brown Journal of Consumer Research. 17(2), pp. 141-148.
3. AirlinesIndustryProfile:Singapore. Oct2012, p1-31. 31p.
4. Heracleous, L. and Wirtz, J. (2010) Singapore Airlines’ Balancing Ac.Harvard Business Review. 88 (7/8), pp. 145-149.
5. Chong, M. (2007) The Role of Internal Communication and Training in Infusing Corporate Values and Delivering Brand Promise: Singapore Airlines’ Experience.Corporate Reputation Review. 10 (3), pp. 201-212.
6. Heracleous, L. and Wirtz, J. and Johnston, R. (2005) Kung-Fu Service Development at Singapore Airlines.Business Strategy Review. 16 (4), pp. 26-31.
7. Cendrowski, S. (2010) SINGAPORE AIRLINES.Fortune International. 161 (8), p. 12-12.
8. Singapore Airlines Limited (2011) DATAMONITOR: Singapore Airlines Limited. Singapore Airlines, Ltd. SWOT Analysis
9. Heracleous, L. and Wirtz, J. and Johnston, R. (2004) Cost-effective service excellence: lessons from singapore airlines.Business Strategy Review. 15 (1), pp. 33-38.
10. Brassington, F. and Pettitt, S. (2003)Principles of Marketing. 2nd ed. : Financial Times Prentice Hall.
11. Ramaswamy, K. (2002) Singapore International Airlines: Strategy with a smile.Thunderbird International Business Review. 44 (4), pp. 533-555
12. SingaporeAirlines, Business Traveller (Asia-Pacific Edition). Oct2011, p45-45. 1p. 3
13. Montlake, S. (2012) Singapore Airlines Tries To Stretch The Budget Carrier Model.Forbes.com., pp. 42-42.
14. Chan, D. (2000) The story of Singapore Airlines and the Singapore Girl.Journal of Management Development. 19 (6), p. 456.
15. Wirtz, J., Heracleous, L. and Pangarkar, N. (2008) Managing human resources for service excellence and cost effectiveness at Singapore Airlines.Managing Service Quality. 18 (1), pp. 4-19.
16. Ionides, N., Vaz, N. and Pangarkar, N. (2009) Singapore Airlines revamps site to improve user experience.New Media Age., pp. 05-05.
17. Wirtz, J. and Johnston, R. (2003) Singapore Airlines: what it takes to sustain service excellence – a senior management perspective.Managing Service Quality. 13 (1), pp. 10-19.