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Singapore Airlines Business Model

Autor:   •  February 3, 2018  •  827 Words (4 Pages)  •  328 Views

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Finally, their brand icon ‘ Singapore Girl you’re a great way to fly ‘is perhaps one of the most recognised icons worldwide, owing to the succesful campaigning for the last 32 years.

Value Proposition

Superior service and low costs – these are the twin elements of Singapore Airlines value proposition.

It maintains service levels through recruitment procedures, intense training, and a well-developed culture, all combined with regular innovation, such as offering on-demand entertainment in all classes.

It maintains low costs through measures such as rigorous standardization, low maintenance costs and outsourcing of ticketing, payroll and other non-core activities. The two interlocking forms of differentiation propel the company’s success. Its cost position without the service levels would substantially reduce loyalty. Its service without the cost advantage would compromise its ability to out-earn and out-invest competitors.

Customer Relationship

The core belief of Singapore Airlines is that they don’t want to satisfy their customers, rather they want to delight them. Due to this, Singapore Airlines spends openly behind their staff training, so as to provide their customers with the best possible service.

Singapore Airlines has always been after innovative measures to delight their customers. They were the first to serve free alcoholic and non-alcoholic drinks, a choice of meals which were prepared by gourmet chefs and complimentary headsets for its passengers. They were also the first airline which developed a plan, idea, or strategy to implement in-flight entertainment system in its selected aircrafts. They were the first inventor and performer of the most innovative live teletext news service (KrisNews) and also for an interactive in-flight shopping service for its aircrafts. These creative and innovative developments by SIA, ultimately won numerous awards for “The best airline.”

Customer Segment

Singapore Airlines targets the most profitable section of the society, namely, upper class business and leisure travelers, with high incomes, a taste for quality service, and those whose value comfort over price. Such customers are usually behaviorally loyal, and stick to certain service that suites their taste. Singapore Airlines therefore tries to retain this segment by offering attractive frequent flyer benefits.



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