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Problem Identification Singapore Airlines hereafter known as SIA has built a storied reputation for excellence in customer service attention to detail and a progressive stance in designing strategy It has established a well-orchestrated system that nurtures significant sources of competitive advantage that are used to support a strategy of differentiation Currently the single biggest challenge facing SIA is that of continuing to differentiate itself amongst its competitors This translates into the question of how to maintain its place as the worlds best airline as well as the most profitable Having garnered a host of accolades for its outstanding level of service whether or not SIA can hold on to its enviable position remains to be seen While SIA has one of the most modern fleets in the industry its service levels are likely to be imitated by other airlines With the arrival of copycat competitors the intensifying pressures of cost competition and the increasing frequency of alliances in the aviation industry SIA needs to set its focus towards how to rebuild its competitive advantages in order to differentiate itself and satisfy its customers in the three main areas of technology customer service and brand image Company Analysis With its innovative in-flight services fine cuisine and sarong-clad flight attendants the Singapore Girl Singapore Airlines SIA has always tried to cultivate a certain image The airline currently operates in 63 cities in 37 countries and the carrier has the youngest fleet of any big airline - the average age of its 46 aircraft is under five years see Exhibit 1 in the Appendix The Singapore government owns 57 of SIA and the airline belongs to the Star Alliance airline marketing network Despite the Singapore governments 54 ownership SIA has developed into a world-class airline since its emergence as an independent international carrier in 1972 It is the worlds 15th largest carrier and the most profitable with a net profit of S913 million
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