《Singapore airlines balancing act》.pdf

HBR.ORG The Globe Singapore Airlines’ Balancing Act Asia’s premier carrier successfully executes a here’s something about Singapore costs than most European and American Airlines. Over the past four decades, budget carriers, which ranged from 4 to 8 dual strategy: It off ers Tit has earned a stellar reputation in cents and 5 to 6 cents respectively. world-class service the i ercely competitive commercial avia- It’s intriguing that SIA has combined and is a cost leader. tion business by providing customers with the supposedly incompatible strategies of by Loizos Heracleous high-quality service and dominating the dif erentiation—which it pursues through business-travel segments. SIA has won the service excellence and continuous innova- and Jochen Wirtz World’s Best Airline award from Condé Nast tion—and cost leadership. Few enterprises Traveler 21 out of the 22 times it has been have executed a dual strategy profitably; awarded and Skytrax’s Airline of the Year indeed, management experts such as Mi- award three times over the past decade. chael Porter argue that it’s impossible to do What’s not so well known is that despite so for a