According to an anonymous Singaporean Airlines advertising manager, the Singapore Girl dressed in a tight version of the Peranakan sarong kebaya became Singapore Airlines “unique selling proposition” (Harvard Business School 1989). This advertising manager went on to explain:

SIA [Singapore Airlines] is an Asian airline, and Asia has a long tradition of gentle, courteous service. The Asian woman does not feel she is demeaning herself by fulfilling the role of the gracious, charming and helpful hostess. What we hope to do is translate that tradition of service into an in-flight reality. (1989)

Thus the author implies that young Singaporean women clad in a tight Peranakan sarong- kebaya enjoy their sexualized subservient status and are comfortable in fulfilling a traditional role in the author’s definition of “Asian” culture. The use of Peranakan traditional costume by Singaporean Airlines stewardesses is coupled with their demure service oriented approach to evoke a sense of sexualized Eastern exoticism. While very few Singaporeans have seemed to question the sexist and Orientalist implications of the Singapore Girl’s image, other Singaporeans openly voice their opinions that the Singapore Girl provides a selective, racialized representation of the city-state of Singapore.

Anton Patel, who identifies himself as an Indian Singaporean, questions Singapore Airlines’ promotion of a Chinese girl wearing Nyonya costume as representative of all Singaporeans on the Dear Singaporean Website (2000). He explains that the selective representation of the Singaporean Girl as Chinese projects the image that Singapore is a nation whose population is composed of a monolithic Chinese ethnic group. He contrasts the image projected by Singaporean Airlines with the Malaysian tourist slogan and notes that the latter promotes a more inclusive “Asian” identity rather than a specific racialized Chinese identity:

Recently, Singapore Airlines (SIA) has aired a newer version of its “Singapore Girl, A Great Way to Fly” commercials on CNN. And it got me thinking, having seen SIA’s Singapore Girl ads for the past 15 years or so, why is it always that an ethnic Chinese girl is used to promote the Airline? In the past 15 years or so of SIA commercials, I have yet to see a Malay, Eurasian or Indian girl dressed in the sarong kebaya appearing in their commercials. The ad reads “Singapore Girl, a great way to fly”: not “Chinese girl a great way to fly”. These ads are aired internationally and they have a tendency to give the impression that Singapore comprises of a monolithic ethnic group. . . Contrast this with Malaysia’s tourism drive . . . their theme “Malaysia: Truly Asian”. Their trailer goes something to this effect: . . . “a country of diversity, Malay, Chinese, and Indian: Malaysia, truly Asian.” (Patel 2000)

Although Patel criticizes Singaporean Airlines’ for its use of Chinese models as representatives of the state Singapore, he fails to question Singapore Airlines’ appropriation of Peranakan costume and by extension Peranakan identity for the promotion of Singapore Airlines and the Singaporean nation. The Singapore Girl, in Nyonya costume, has been constructed by Singapore

Airlines as the ultimate hostess, embodying the qualities of grace, beauty, and charm while fulfilling a “traditional” service role. Her image has been constructed not only to appeal to Western travelers seeking the exotic East, but also to Singaporeans traveling abroad as an evocation of home.

While the sarong-kebaya continues to be strongly associated with a Nyonya identity in museum displays and fashion shows, the Singaporean Airlines stewardess’ use of sarong-kebaya has come to be affiliated in the minds of most Singaporeans less with a Peranakan identity and more with a Singaporean one. The uniform of the Singapore Girl, a modified costume of a marginalized Peranakan identity, has become a representation of the Singaporean nation for tourists as well as Singaporean nationals.

Singapore Airlines frequently communicates the value of its product through print media, television commercials, sponsorships (such as Sydney’s City2Surf race, the Singapore Youth Olympics Games and the Giant Panda Collaborative Programme) and publicity. It adopts the tag-line, “Singapore Airlines – A Great Way to Fly”, in all its promotions to convey the quality of the Singapore Airlines brand. It also occasionally uses “A standard of service that even other airlines talk about.

From its inception, SIA has invested substantially in its brand. In 1972, SIA worked with an advertising agency to “present Singapore Airlines as a competent, modern, international airline of Asian origin, offering the best in-flight service in the world”. During its initial drive to penetrate the United States market, SIA invested up to 10% of its projected revenue on advertising, compared to the industry average of between 2% to 3%. On average, SIA spent S$35 million per year on advertising during its first 21 years.

In its early days, the airline would run between three to four commercials per year based on the Singapore Girl concept of a stewardess-driven service culture. Genuine SIA cabin crew were used in advertisements to promote the Singapore Girl’s carefully defined set of aesthetic and warm personality traits as being representative of SIA’s style of service. The Singapore Girl is now one of the airline’s most recognisable trademarks despite some criticisms of sexism and subservience in the image.

For example, Singapore Airlines has generated much brand awareness and increased the perceived value of its products and services through its experimentation of new services from the time of its inception in 1972. It was the first to introduce hot towels, hot gourmet meals, video-on-demand, and complimentary beverages and headsets. It was the first to introduce the inflight telephone services with its KrisFone in the 1990s. It was also the first, in 1998, to introduce a panel of internationally-renowned chefs such as Matthew Moran and Gordon Ramsay to develop inflight meals. It was also the first to provide inflight email services, email check-in and text message flight alerts.

Singapore Airlines also has one of the youngest fleet of aircrafts in the world (average age of each plane is 74 months compared to 160 months for other airlines). The constant investment in new aircrafts such as the larger, quieter first double-decker A380 and the more fuel-efficient B787 (Dreamliner) has allowed to save on costs such as fuel (15-20%) and maintenance, placing it in a sustainable competitive advantage. Its airlines spend less time in the hangar allowing them to spend more time in the air (13 hours per day compared to an industry average of 11.3 hours) and thus generate more revenue. The cost per available seat kilometre is just 4.58 cents compared to other airlines which range from 5-16 cents. Singapore Airlines also has little debt and has never posted an annual loss, which are strengths of the company.

     Singapore Airlines has even developed a personality for its brand through the Singapore Girl, which is at the heart of its all advertising and its product – it is now a trademark and brand for Singapore Airlines. The iconic Malay sarong kebaya (that can be blue, green, red or burgundy depending on the rank) encapsulates the Asian hospitality and for me is associated with the luxury, quality and comfort of Singapore Airlines. Whenever I board a Singapore Airlines flight, it is guaranteed that I will be greeted almost incessantly with warm smiles by the well-dressed, elegant, courteous Singapore Girls with their hair tied neatly in a bun or in French Twists, their nails painted red and their eye shadows painted blue to match their uniforms. The attention to detail is just amazing – all flight attendants must bring a spare kebaya for all flights in case of spillage, tear etc. This attention to detail is lacking in all almost all other airlines I have flown, particularly the non-Asian airlines – they stand on the side without helping passengers stow the luggage, do not greet passengers, some look out of shape, wear ugly uniforms and just have a range of messy, inconsistent hairstyles. However, the cabin crew of many Asian airlines such as Malaysia Airlines, Cathay Pacific, Japan Airlines and Asiana Airlines are also very attentive to detail.

Singapore Airlines is also heavily increasing its brand awareness and increasing the perceived value of its brand through being the first to use new aircrafts. It was the first to fly the new Airbus A380 in 2007. This certainly was a marketing tool which Singapore Airlines used to increase its brand equity. I recall being in Singapore and seeing billboards and signs at the airport, along Orchard Road, magazines and on television promoting Singapore Airlines as being the “first to fly A380”. It even extended to the napkins and cards which I received on the plane – it was everywhere! Singapore Airlines was also one of the first to fly the Boeing 747 and Boeing 777. It went so far as to name sub-brand its aircraft – 747-Megatop and 777-Jubilee to further differentiate itself from its competitors

Singapore Airlines has consistently been one of the most profitable airlines globally, and has always had the reputation of a trendsetter and industry challenger. There are several good

reasons for this. Most relates directly to the strong brand management driven primarily by the Singapore Airlines boardroom and top-management, and the healthy brand equity as the result of a dedicated, professional brand strategy throughout a diversified, global organisation.

Singapore Airlines (SIA) began in 1947 as Malayan (later Malaysian) Airlines in a joint venture between the Malaysian and Singapore governments, serving primarily the South East Asian region. In 1965, Singapore separated from Malaysia, and later the two governments agreed to set up separate airlines. Singapore Airlines was born in 1972.

Singapore Airlines was in a different position than most other airlines at the time. There were no domestic routes to serve it was forced to immediately start competing with international airlines for routes, getting access to airports, securing flight slots and landing rights, and attracting a new customer base. Unlike most state-owned entities, Singapore Airlines was subject to heavy competition from the onset and this tough start created a driving spirit to compete and also a dedication to branding, especially in the boardroom. These factors have prevailed within the organization since then, and served the airline very well.

Its 9 key attributes of reputation were examined and ranked, namely:

1) Innovation, : They have pioneered many in-flight experiential and entertainment innovations, and strived to be best-in-class. SIA was the first to introduce hot meals, free alcoholic and non-alcoholic beverages, hot towels with a unique and patented scent, personal entertainment systems, and video-on-demand in all cabins. The company keeps driving innovation as an important part of the brand, and the cabin ambience and combined experience are key factors of their success.

Singapore girl strategy :

The personalization of the Singapore Airlines brand is the mixed male and female cabin crew, where especially the flight stewardesses commonly referred to as Singapore Girls have become very well-known. SIA engaged French haute-couture designer Pierre Balmain at the inauguration of the airline in 1972. He designed a special version of the Malay sarong kebaya as the uniform which later became one of the most recognized signatures of the airline. A very designated and visual part of the entire brand experience.

The Singapore Girl strategy turned out to be a very powerful idea and has become a successful brand icon with an almost mythical status and aura around her. The Singapore Girl encapsulates Asian values and hospitality, and could be described as caring, warm, gentle, elegant and serene. It is a brilliant personification of SIA's commitment to service and quality excellence. The icon has become so strong that Madame Tussaud's Museum in London started to display the Singapore Girl in 1994 as the first commercial figure ever.

Singapore Airlines also runs one of the most comprehensive and rigorous training programs for cabin and flight crew in the industry to make sure the SIA brand experience is fully and consistently delivered.

The social status of the Singapore Girl has also reached near-celebrity in Asia. This has allowed Singapore Airlines to be highly selective in the recruiting process for talent which has added further to the strength of the brand icon and the myth around it.

An even more remarkable accomplishment when you take into account Singapore's size - it is one of the world's smallest nations that is not much bigger than the average metro area of any major city. With no domestic market, SIA had to rely on the international market from its inception (it started as Malayan Airlines in 1947), in an industry known to be extremely fickle, prone to rising fuel prices and economic downturns.So how did it do it? Its main weapon of choice: the Singapore Girl!SIA's version of the flight attendant - aptly called the Singapore Girl - started off with a uniform inspired by the Malay traditional sarong kebaya designed by French haute-couture designer Pierre Balmain in 1972. This simple product differentiation idea was so successful that it became an inseparable visual part of the brand experience.The visual presence of the Singapore Girl is indeed a pleasure, as she stands out, gliding by in her distinctive unique uniform at airports around the world. However, it's the behind-the-scene story of how it was conceived and sustained that is even more fascinating; from the countless processes in maintenance, operations, human resources delivered by thousands of staff manning call centers, ticketing counters, airport lounges, baggage handling centers and hangars. The Singapore Girl is merely the tip of the iceberg that plays a crucial role of bringing a sense of calm and cheerfulness to tired passengers and conceals all the complexities of running an airline.The Singapore Girl strategy has an almost mythical status and aura about her. She is the personification of all Asian values and hospitality, best described as caring, warm, gentle, graceful, elegant and sincere. A living, breathing icon that links SIA's commitment to service excellence.SIA is renowned for its rigorous and comprehensive cabin crew training. Its attention to detail is legendary. It has a brand manual that extends beyond how to move and walk in the body-hugging uniform into what shade of lipstick and nail polish (and recommended brands). It frowns upon loud personal jewelry and dangling earrings and limits flight attendants to wearing simple earrings and an elegant watch (preferably an upscale brand). It has approved hairdos and foundation shade, and advises on how to politely refuse to serve yet another "Singapore Sling" beverage to a passenger on the verge of inebriation. SIA "protects" its Singapore Girl so vehemently that once she slips into her uniform, a Singapore Girl is not allowed to take public transportation, but is limited to taxis and limos.The Singapore Girl clearly has contributed immensely to the success of SIA's brand strategy and its entire positioning around customer and service excellence.

Everything about Singapore Airlines exudes youthfulness, from its industry-recognized youngest fleet with an average age of six years to the Singapore Girl, whose average age is 25 years. All female flight attendants stop flying when they are 32, and are transferred to become ground staff. Cruel and politically incorrect perhaps - in other countries - but not for a company whose brand rests on the youthful, ever nimble and efficient Singapore Girl. Only a handful of people realize that all models in SIA commercials are actual Singapore Girls, and not professional models. A successful image it has been developing and perfecting for almost 40 years. Tapping into the fountain of youth is a means of SIA's brand survival.I'd like borrow the tagline it used to launch the Airbus 380, the world's largest commercial jetliner: "Singapore Airlines, bringing back the romance of travel". SIA maximized this marketing opportunity brilliantly when it introduced a slew of innovations, including "Sky Suites", the world's most luxurious commercial airline experience. Positioned above First Class, offering personalized enclosed space, with a seat that transforms into a twin bed.In the context of Yale neuroscientist Dr. Paul MacLean's Three-Brain Theory, where the Cortex, Limbic and Reptilian digest meanings of brand experience into Functional, Emotional and Symbolic Values, respectively, SIA passes with flying colors.Touching all three brains, translating into the compelling meanings of: "I'm in the company of a great team of professionals with new aircraft with an excellent safety record, and I will get to my end destination on time" (Cortex/Functional Value)."I belong to a special club of well-to-do business travelers who value their precious time and enjoy the perks of a successful lifestyle" - Business Class Passengers (Limbic/Emotional Value), to the most powerful: "This flight takes me on a journey of romance where I relive my fantasy of being pampered, looked after, spoiled rotten, nourished, loved and cared for by my mother, only she's this beautiful young lady who's pampering me with such grace and knows exactly what I need, even before I utter a single word." - Sky Suite/First Class Passenger (reptilian/Symbolic Value).Singapore Airlines' ability to connect, engage and nurture loyalty with customers on such a personal level should be an inspiration to any business.

(2) People management/ customer service,

(3) Use of corporate assets,

(4) Social responsibility,

(5) Quality of management,

(6) Financial soundness, : Singapore Airlines' brand strategy is, in theory, a relatively high-cost strategy. Each brand benefit requires significant investment, careful management and detailed

implementation programs to live up to the brand promise. Singapore Airlines has carefully built a financial and fixed cost infrastructure which allows them to continue investing to support the brand while challenging the competition on costs.

First, the strong cash position allows Singapore Airlines to internally fund purchases of new equipment and airplanes, and limit interest costs. SIA is not locked into long-term leases, and can easily accommodate newer, more efficient equipment which minimizes maintenance costs and avoid aircraft downtime.

A second benefit of SIA's infrastructure is the age of their fleet. Maintaining the youngest generation of aircrafts provides SIA with some of the lowest fuel costs in the industry. This is very significant since 15-20% of an airlines' total costs derive from fuel. On top of this, SIA carefully hedges up to 50% of their fuel contracts two years in advance to avoid cyclical and often large volatility in fuel prices.

Finally, the financial and cash position has allowed SIA to weather the short-term dips in the industry better than the competition.

(7) Long-term investment,

singapore Airlines has maintained its position as one of the best-known and best-performing brands in Asia, and remains one of the few consistent performers in an industry where established brands are struggling to stay alive. SIA has followed a very simple management formula to achieve outstanding results:

Revenues: Command a price premium through consistent brand benefits and avoid reactionary pricing behaviour in order to condition the customer not to wait for price matching.

Costs: Tight control of costs though ownership of the most cost-efficient aircrafts, hedging against fuel price increases, and agile management of the entire company etc.

Profits: Run the business with a long-term outlook. Be consistent. Stay true to the brand.

(8) Quality of products/services and

(9) Global competitiveness. : technology : On the technology side, Singapore Airlines still maintains the youngest fleet of aircraft amongst all major air carriers, and keeps to the stringent

policy of replacing older aircrafts for newer, better models. They have always been first in line to take delivery of new aircraft types like Boeing 747 jumbo jets, Boeing 777, and they will become the first airline to fly the Airbus Super jumbo A-380 in 2006. Even the aircrafts are sub-branded like 747-Megatop and 777-Jubilee to further distinguish SIA and its brand from competitors. Singapore Airlines also flew Concorde between Singapore and London in the late 70'ties in collaboration with British Airways (BA). The aircraft was painted with SIA's colours and logos on one side, and BA's on the other, and it carried crew from both airlines.

The strategy behind the technology program is clear: It enhances cost efficiency to use the latest aircrafts and at the same time, Singapore Airlines uses these events for marketing purposes. An example of this was the new non-stop services to Los Angeles and New York launched in 2004, which attracted huge publicity in global media and kept the innovation promise of the brand alive. The special aircrafts for these long-range routes (Airbus A340-500) are sub-branded Leadership to further distinguish the brand promise.

change is inevitable yet SIA will always be well-equipped with the needed characteristics to sustain its advantageous position and expand high quality standard management.

INTRODUCTION

Organizations today operate in an environment characterized by hypercompetition (D’ Aveni, 1995). While organizations strive to survive the challenges of the niche market they operate, different environmental factors came into surface and have changed the way organizations perform their tasks. The airline industry all over the world is now living in an interesting era.  More and more people have been using the services of the industry for every purpose they want and for their travel satisfaction. The process of change from the old economy to the new global economy has brought a tremendous changes and developments to aviation, aerospace and airport industries. Part of the changes brought by the competition of these industries globally is the new economics, new market structure, new marketing strategy as well as the new structures of each and every industry within this field.  Nowadays, people are more willing to use these aerospace, aviation and airport industries especially those individuals who wanted their travel to be convenient and satisfying, which makes all such industries to be in demand. Further, the emergence of the new markets and their demands has made the aviation, aerospace and airport industries to use the management and marketing strategies in order to survive with the stiff competition in the niche market. Thus, most of these industries are being careful on how to utilize its management and marketing strategy to achieve their individual objectives. 

Considering the current state of affairs of the global marketplace, several market players are there in advantageous position while others are struggling to cope up against business challenges including competition and forces of globalization. In this dynamic global economy, the list of companies resorting to organizational change is endless. Organizational change is a

normal business response as part of and a result of struggles between contradictory forces and change management practice is related with endeavoring to manage competing demands within the business niche. Singapore Airlines (SIA) is among the surviving companies that surpasses the challenges of a very unstable industry. One of the strongest brands in Asia, leaders in service and competitive airline companies in the world, Singapore Airlines consistently maintains its position as supported by its long duration of serving its clients. It successfully increases its profitability, with $2.13 billion profits attributable to equity holders for the financial year 2006-07 or 71.6% growth from the past year. The Airline operates to approximately a hundred cities and 65 destinations across the globe. SIA's success has contributed to rapid economic development in Singapore. The Airline is an important generator of skilled employment, a channel for the introduction of high technology into the local economy, and a force to the emergence of higher value-added services and manufacturing in Singapore. Tapping its strong market position and financial background, SIA has so much bargaining power that it can exchange aircraft orders for aerospace jobs with the world’s largest aircraft company (Yeung, 1998). Singapore Airlines is well known as having the youngest fleet and best service among all airlines in the world. The distinctions for SIA have a long way to go considering that the Airline is a leader in airline high quality service and innovation of firsts.

CULTURAL FORCES THAT MAKE THE BRAND SUCCESSFUL

KEY BRAND ELEMENTS

1.Brand Position Who is addressed by company’s branded products or services. What the company does and

for whom The company’s unique value and how customers benefit from products and/or services Key competitive differentiators, what makes the brand be chosen, be different from its

competitors2.Brand Promise The ONE most important thing that the brand promises to deliver to its customers  Every

time! What customers and partners should expect from every interaction, how should they feel as

brand’s customers

While other airlines have also pursued high service/quality brand strategies, none has been able to match Singapore Airlines in consistency, commitment, and true permeation of the brand in every facet. SIA has been able to maintain their brand advantage by not wavering from their brand strategy. This is a particularly difficult position to maintain in a highly cyclical industry where the competition seems to react on a daily basis to changes in performance. This type of commitment takes dedication from the board, CEO and senior management team, and strong faith in the brand's ability to pull through bad times. The management team and shareholders must maintain a longer term outlook to avoid making short-term, reactionary decisions which dilute the brand.

For example, pressure on US airlines stemming from low-cost carrier competition has caused a number of the full-service airlines to begin charging for on-board services which used to be free. Historically, business travellers were willing to pay a premium for full-service airlines, essentially because they provided these services. By abandoning their customer service strategy, even on restricted flights, the premium US airlines are diluting their brand in search of short-term profitability. This is creating a circular effect where the premium airlines are losing cost-sensitive customers to low-cost airlines, which causes them to reduce price to retain these customers. This in turn creates more cost pressure. This cost pressure causes them to start reducing the premium services which made them distinct from the low-cost airlines in the first place.

Singapore Airlines has been able to deliver some of the best results in the industry by avoiding this type of reactionary behaviour.

The true mark of a strong brand is its ability to remain consistent and relevant, regardless of economic condition, and more importantly stay true to its brand promise and connect with customers.This is a very special league of brands, which includes names like Coca-Cola, Apple, Nokia, BMW, IKEA, Louis Vuitton, Madonna (yes, she's a brand too!), Samsung, Toyota and Singapore Airlines.Recognized as the world's most profitable airline, Singapore Airlines firmly belongs in this league.

 3.Brand Personality What the brand is to be known for Personality traits that customers, partners, and employees use to describe the company.

What comes to the (potential) customer’s mind when addressed about the brand4.Brand Story The company’s history and how the history adds value and credibility to the brand

A summary of products/services/solutionsSINGAPORE GIRL5.Brand Associations Physical artifacts: name, logo, colors, taglines, fonts, imagery Ideally, it must reflect the all the above statements about the brand and the company share.

The livery of Singapore Airlines includes the "bird" (also known as the Silver Kris) logo on the tailfin, which has remained unchanged since Singapore Airlines' inception, but the logotype and stripes used since 1972 were changed in 1988 to the ones still in use today. The livery had a recent change, which saw the "Singapore Airlines" logotype enlarged and moved towards the front, in a similar fashion to the livery variant used on the Airbus A380, but the stripes and the "bird" remained the same.

BRAND POSITIONING AND COMMUNICATION

Singapore Airlines has been as consistent in its communication vehicles as in its brand strategy. The primary message "Singapore Airlines - A Great Way to Fly" has been consistently conveyed in exclusive print media and also in selected TV-commercials of very high production value to underline the quality aspirations of brand. All communication messages are featured through the iconic Singapore Girl in different themes and settings.

When Singapore Airlines recently launched their comfortable Space Bed seats in business class, they ran a 60-second commercial of a highly emotional and mythical character to underline the aspiration of the brand and the Singapore Girl, and to set their airline brand apart from competition.

Interestingly, Singapore Airlines has chosen to focus on one aspect of the experiential brand strategy - in-flight hospitality and warmth featured by the Singapore Girl - rather than trying to communicate the entire brand benefits through its messages. A dangerous trap, which many other brands often fall into in their efforts to communicate all at once. This has led to a focused and consistent message for SIA during the last 32 years. This in itself is a great achievement for any brand.

The Singapore Girl has contributed immensely to the success of Singapore Airlines' brand strategy and its entire positioning around customer and service excellence.

MAJOR COMPETITORS

ADVERTISING ANALYSIS

BRAND POTENTIAL

PROBLEMS AFFECTING SINGAPORE AIRLINES

Despite the current success experienced by SIA, there are still problems and challenges that affect its line of services. These problems and challenges are rooted in demanding customers with high expectations and competitive pressures including technology innovations, labor issues, and terrorism among other factors of the increasingly competitive marketplace.

 

Serving Customers with High Expectations

            Most companies find it impossible to create any kind of sustainable competitive advantage based on product or service alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage. Hessan and Whitely (1996, p.8) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself. Aiming for competitive advantage, the decision of the management on how to put on the products and services in the market becomes a significant strategic question particularly on what kind of customer experience is offered.

Consumers are considered as the fuel of any business venture. They are the ones who purchase the products and/or services of the company. According to Rintama¨ki and colleagues (2007), the customers are always the one who identify what is valuable and what is not. With this fact alone, companies like SIA are limited in creating value propositions deliberately aimed at sustaining customers in their value-creating consumption activities (Vargo and Lusch, 2004). Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) (Kim et al., 2002). Understanding their behavior is the most elementary solution in providing their varying demands and expectations.

 

Competitive Pressures

Aside from considering customers’ high expectations, SIA is facing other competitive pressures such as technology innovations, travel cost, and labor issues. Technology (or scientific)

innovations, according to Edquist (1997), is the introduction of new-fangled ideas, goods, services, and practices which are essentially intended to be constructive. Technology has always been a major means for creating new physical and human environments. It is possible to ask whether technology will also destroy the global civilization that human beings have created (Heath and Luff, 2000). The utilization of technologies is the involvement of its use in improving the traditional operations and machineries of most organizations and at the same time the technical skills of every individual. These technological advancements have brought people especially those in the business world to utilize a strategy that would be helpful in enhancing the business value of any organization (Ramsdell, 2001). The intricacies of achieving business achievement through increased efficiency and competitiveness, combined with innovative applications of information technology (IT) has heightened the awareness of both IT and business managers towards more strategically oriented approaches for planning and management (Luftman et al., 1993).         On this case, it is practically the introduction of latest advances in technology and its standard applications. The provided technological capabilities to businesses like SIA is the intrinsic ability to distribute available resources within the context of the operations provided the deliberate target of coming up with competitive products and services (Cantwell, 1994; Cohen and Levinthal, 1990; Teece and Pisano, 1994). Ironically, SIA is a global leader in innovations. In the recent years, SIA launched the newest cabin products designed to improve the in-flight experience in all cabin classes particularly on the case of Boeing 777-300ER. The increasing worldwide awareness on the protection of the environment is another challenge in the innovative capability of SIA. Airlines are threatened with the advances of information and communication technologies (ICT) such as video conferencing due to the possibility of decreasing the need to travel. Technology is dynamic. More so, SIA is obliged to continuously evaluate its technological inclination in reference to providing the array of customers with varying needs and high levels of expectations.

Travel cost is among the most imperative problem that SIA is facing. Pricing is a marketing issue. Marketing can be considered as one of the most important element underpinning successful business creation (Hills, 1994). Provided that the airline niche market battles on the most effective pricing strategy, the unique marketing strategy on providing their consumers reasonable and affordable costs of flight with a quality service is the biggest menace. The pressures in the airline industry stemming from low-cost carrier competition caused a number of the full-service airlines to begin charging for on-board services which used to be free. This is a violation to the commitment of providing quality customer service. Also, the economic recession in various areas of operations as well as the changing lifestyle of the customers are among the immediate considerations.

On the labor issues, the need to continuously train members of the staff based on the high expectations of customers is to be addressed. While competition becomes even more complex, training subordinates is a potent solution to cope up with the emerging challenges of the global workforce. Training is usually done prior to actual employment yet it extends beyond the requirement for both organizational and subordinates’ competitiveness and competency.

According to Hornsby and Kuratko (2005), training and development activities can help companies acquire a staff with the right combination of skills and motivations which a company needs to be competitive. Most organizations and their management invest on human resources as human capital is known to be a resource-based competitive advantage. Training remains one of the key aspects necessary for high quality service delivery (Lowe et al., 2007, p.38). Schermermon (2001) identified training benefits as it improves communication between groups and individuals; aids in orientation for new employees and those taking new jobs through transfer or promotion; provides information on equal opportunity and affirmative action; provides information on other governmental laws and administrative policies; and improves interpersonal skills. In this case, airline industry professionals need training and education to ensure their adequacy and preparations to serve their role. Given the appropriate training programs for subordinates, it is tantamount to productivity and success yet requires significant amount of financial resources.

With the identified problems in the case of SIA, the question of consideration, development, and management of change is necessary. According to Conner (1994), major changes are occurring in most of today’s organizations. Perhaps the space between the new organization design and implementing it into actuality is the whole coverage of organizational change and development. The subsequent discussion is based in the case presented by Jick (1993).

1. Could the Airline contain costs without sacrificing service?

The ability of SIA to extend superior service to its customers is the only possible source of competitive advantage. Current financial conditions of SIA will remain outstanding while consistently holding and developing its high quality customer service. This is attributed to the policy of steady organic growth, strong organizational culture, effective HR function, and overall strategy and commitment of management towards balance in growth and quality service.

SIA recognizes the changes that affect their business operations. The varying needs and demands of the airline market and the consumers are the driving factors to incessantly move towards progression (Hitt et al., 2003). The policy of steady organic growth is the rejection of the managers to the idea that consolidation will lead to an industry consisting of a handful of megacarriers and a few industry players. In the early years of the Singapore Girl carrier, the members of the corporate management are afraid that growth within the organizational environment is fast paced. Even if SIA is financially capable, it did not immediately take hold of the opportunity of acquisition. Strategic management planning is evident to SIA and its executives. In the end of 1999, SIA bought 49% of the Virgin Atlantic Airways. The reason behind this acquisition is the reputation of SIA and Virgin as string players in innovation and high standard service. SIA also expand to promising and new markets (e.g. the US) and strategic alliances (e.g. Swissair and Delta). Everything in SIA is a product of long-term planning and strategic management. Thus, the financial resources of the company is directed to productive

ventures rather than futile and aggressive spendings and aimless decision making directed to temporary solutions toward difficulties in their operations.

Committed to developing continuous and outstanding airline services, SIA invested on standardization of service, efficiency of transfers, and realization of their core principles. It is, however, impossible to believe that financial cost is unnecessary on these actions. There are significant amount of money involved and spent yet it is not as high as expected. One of the most admired corporate managerial attributes of SIA is its ability to be cost efficient in undertaking its given programmes. For instance, the launching of the Outstanding Service on the Ground (OSG) or ground service programme is focused on improving reservations, ticketing, and general airport services. Training is supposedly directed to airport personnel who are directly in contact to clients. SIA purchased technological systems that will speed up or automate manual works. Being a leader in innovations, SIA invested on technology advancements. The ground service is the springboard for the other corporate plans and programmes. These programmes no longer involve financial resources but the inherent managerial abilities and HR functions. In relation to efficient transfer, each airport unit was given standards reflecting the values of punctuality, baggage handling, speed and friendliness of check-in, efficiency of seat assignment, number of compliments and complaints from customers and professionalism in handling delays. There was additional standard given to the region’s hub – Changi, wherein managers are obliged to achieve the mentioned standards as awards are given to stations that perform the finest. Motivation among employees is palpable in line to SIA’s commitment to high standard service. The emphasis on the core principles of SIA: “Show You Care”, “Dare To Care”, and “Be Service Entrepreneurs” among its workforce is a cost-efficient mechanism. It only includes standard (i.e. oral or written) inculcation or instruction among the direct personnel involved such the pilots, flight attendants, stewards and stewardesses, and airport staff members. To supplement the achievement of these pillars in service, seminars, trainings, reminders, and reinforcement mechanisms through monthly reports, publication, monitoring, recognition, and other activities including posters decorated in staff quarters are implemented. This is another remarkable effort of the management to motivate their workers in general. The effective application of the three pillars in service reaped its fruitful benefits through increased financial performance and expansion of operations. SIA recognize that behind these successes were policies as well as practices that were deliberately and systematically developed and similarly implemented by management.

 

2. Were security and service inevitably in conflict with each other?

Provided the core competencies of SIA, chances are less in terms of conflict in security and service. The brand strategy of SIA is, in theory, a relatively high-cost strategy. The management decided on a fully branded product/service differentiation strategy from the very beginning. Innovation, best technology, genuine quality and excellent customer service were to

become the major drivers of the brand. With these attributes, the question of corporate security and service surfaces. There will still be minor issues and challenges that will be faced by SIA but the established corporate structure and leadership is the key to solve such. Leaders play a key role in change implementation. It can be argued that the effective planning and management of change require careful consideration of the impact of structural changes on middle managerial work roles and work satisfaction levels. Drucker (1995) sees leaders as the basic resource for an organisation as well as the key factor for a healthy growing economy and supply, which is critical to the survival and further development of any organisations. For example, the management expertise of Chew Choon Seng as the CEO of the Airline is unquestionable. Like any other business leader, Seng is supported by clear corporate governance initiatives that possess outstanding ability to cope with uncertainty, position in information network, and control over physical and financial resources. The leadership emphasises on achieving consistency and stability by following procedures and practices, high level of conformity and collaboration among employees, and focused efficiency and consistency are the key objectives.

 

3. Could it grow, yet maintain its high service standards?

            Airlines worldwide have been trying to strike a balance between cooperation and competition. SIA will definitely grow and maintain its high standards. This is supported by the continuous progressive performance in the current market. In its 61-year history, SIA is committed to their brand attributes. According to their corporate history posted in their web domain, SIA have pioneered many in-flight experiential and entertainment innovations, and strived to be best-in-class. SIA was the first to bring in various assortments of services like hot meals, free alcoholic and non-alcoholic beverages, hot towels with a unique and patented scent, personal entertainment systems, and video-on-demand in all cabins (Roll, 2004). The company keeps driving innovation as an important part of the brand, and the cabin ambience and combined experience are key factors of their success. As stated earlier, SIA launched its new generation cabin products while continuously delivering operational efficiency, environmental improvements and customer benefits. Today, SIA faces a future of firsts. This means that there will be more new offerings to come directly aimed to improve their services. SIA made Aviation milestone when they became the first to operate the world's largest aircraft – the A380 in October 25 last year between Singapore and Sydney. In addition, SIA introduced its Suites - in a class beyond First, together with cabin improvements in all other classes while still providing excellent service. Accordingly, the future promises to bring more firsts like these because SIA continually strives to drive quality service through innovation.

 

4. Could it in fact further improve its already high quality of service?

According to Kay (1995), the success of an organization is based on its distinctive capabilities that are continuously developed all throughout the organizations life cycle. SIA, with its given core competencies and current competitive position will undoubtedly further improve in its high quality service. By looking on the three pillars of service, it is definitely as lifetime commitment on their part. The high quality service of SIA is their main selling point. They will continue to improve by striving for more customer service innovations that will generally cater to high expectations or demands. In customer welfare, consumer feedback system must be reinforced. The resolution of customer complaints and problems, for example, is a key for companies like SIA to be able to maintain the loyalty. Dissatisfied customers are more likely to tell people about their experience than satisfied customers are (Ganey and Hall, 1997). The possibilities are coming and there are high stakes to pay and numerous risks to take. In SIA, the challenge is on beyond doubt.

 

Recommendations

According to Moran and Avergun (1997, p.146), “Change consists of a series of closer and closer approximation of increasingly ambiguous goals which are embraced by more and more members of the organization. For this reason, change often seems endless and confusing. Often those involved in the change process feel overwhelmed and powerless.” Looking on the main troubles of SIA, innovations should be deliberate and continuous. The need to be innovative and the need to explore new approaches in the future are integral parts of the company’s culture. Daft (2003) pointed out that managing global environment requires managers the ability to manage change through innovation and creativity. Moreover, labor trends, changes and issues must be addressed immediately. In general, it is suggested that organization’s HR policies are responsive to the needs and welfare of the whole workforce. The HRM role must be proactive rather than reactive, that is, serving the employers and employees needs and welfare as directed to the achievement of competitive advantage. It should not only on the basis of attracting the best employees but taking care, developing and grooming them as organization’s indispensable assets. Also, SIA should keep up on their research and development (R&D) initiatives as it is an important way of determining future forces that will directly or indirectly affect the overall business environment. R&D programs must be directed to the progress and growth of the company. This will also help in developing more products that will address the competition in the market. In implementing marketing strategies, there is a need for continuing optimization – the ability to assess a myriad of possibilities in order to find the best one or near best one (Hoctor and Thierauf, 2003). In cooperation with the other elements of marketing and business management, strategies must be evaluated and improved. In building the impression of people about the company, SIA must reach out to a broader target market and must project an image relevant to every members of the society. Its corporate and social responsibility must be defined according to the expected demands of the community it operates.

 

FUTURE OPPORTUNITIES

The last three years has seen a dramatic shift in the airline industry. There have been major shakeouts and loose consolidation amongst premium, full-service players and a wide expansion in the low-cost carrier market - also in the closely regulated Asian airspace. Air travel has become a commodity and most major routes are saturated with fierce competition. The low-cost carriers have significantly influenced consumer behaviour for cheap price bargains among leisure travellers and increasingly among business travellers.

Singapore Airlines has already jumped ahead, launching their own carrier for local and short-haul routes, Tiger Airways, to stay at the forefront of competition. The aim is to avoid dilution of the core premium brand, Singapore Airlines.

Singapore Airlines strongly embedded positioning and commitment to the brand has positioned it well to compete in the new landscape. The challenge is to stay true to the brand and keep delivering on the fairly high-cost promise of quality, innovation and service. This requires heavy, on-going investments and healthy cash-flows which can only be achieved though a continuous price-premium strategy and satisfactory passenger load factors. In other words, customers' perception of the price/value equation, their future buying behaviour (partly to be influenced by the low-cost carriers) and loyalty among other factors are crucial for the future.

In most industries, there are always segments willing to pay for quality brands. Therefore, the question is not whether there are customers in the market, but rather the ability for Singapore Airlines to constantly nurture the brand promise, keep innovating and capture the overall value of the brand in the minds of the customers.

The strong brand equity of Singapore Airlines is one of the most valuable assets for the company and its cash-rich balance sheet. Singapore Airlines is a leading business case from Asia demonstrating the importance of strategic branding, and they should serve as great inspiration for other Asian boardrooms trying to build and manage their own brands.

Singapore Airlines is among the top companies globally that is truly able to control the brand through every interaction and experience. SIA has become a hugely rewarded innovator and industry leader: A great way to fly.