Question

How has its success become vulnerable? Why is it difficult to maintain a leadership position for a company like SIA and continuously improve?

Answer 1

Considering the SIA ‘s success and which was achieved due to the higher level of customer service and maintaining the higher quality of inflight services and being innovative having flexible policies for the workforce. All of these factors attracted customer which in turn increased the expectations and demands but end up in many competitors who tried imitating the services and led to labor shortage. Hence, SIA success becomes vulnerable to maintain the higher expectations and maintaining higher standards of the quality service. It became difficult to maintain a leadership position for a company like SIA and continuously improve because of the two factors such as e-commerce and knowledge gain from the customers continuous demands and insights and SIA to be as a top player by implementing the dual strategy of differentiation along with the service excellence and innovation as well as of cost leadership. SIA tried through higher investments in human capital, continuous improvement and design for customer service and fleet investment strategy with lot of cost focus. Thus, the SIA’s business model supported through strategic and operational alignments.