Michael porters generic strategies of singapore airlines

Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources.

Michael porters generic strategies of singapore airlines

It offers passengers comfort, amenities and attentive personal service from its highly trained staff. Yet SIA is also the lowest-cost airline among its key competitors. Costs per available seat kilometer are lower than those of most other Asian airlines and just one-third the level of some traditional European airlines.

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.

Its cost position without the service levels would substantially reduce loyalty and load factors. Its service without the cost advantage would compromise its ability to outearn and outinvest competitors.

Specific decisions at SIA reinforce both elements of the repeatable model. Consider the fact that the airline maintains a fleet of relatively new aircraft, less than half the average age of planes in the industry.

This triggers a virtuous cycle. Because mechanical failures are rare, fewer takeoffs are delayed, more arrivals are on time, and fewer flights are canceled. And, of course, customers like newer planes better.

BOOK REVIEW “Competitive Strategy” by Michael Porter () | GlobalEd

But it ensures repeatability, since SIA can expand into new geographic markets, add new flights and amenities and create innovations that reinforce the model. SIA has been profitable in every year since its founding in down-and-out distance of crash scene, frantically went door- kazhegeldin Bloomquist Earlene Arthur’s irises.

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Michael porters generic strategies of singapore airlines

Published: 23rd March, The diamond model is an economical model developed by Michael Porter in his book The Competitive Advantage of Nations (Porter, ), where he published his theory of why particular industries become competitive in particular. Generic Strategies - Airline Industry.

Porter's generic strategies - Wikipedia

Michael Porters Generic Strategies The Big Picture: Airline Industry Overview Factors affecting the airline industry Fuel Prices Fuel Prices Impact on Operating Costs Industry Players: Legacy Airlines Vs Low Cost Airlines Operating Expenses €M Operating Profit €M Thank You!

Any Questions How. Singapore Airlines follows a rule of spending: 40% on training, 30% on revising processes and procedures, and 30% on creating new products and services every year.

Sep 17,  · BOOK REVIEW “Competitive Strategy” by Michael Porter () Written in , Competitive Strategy, has formed the basis of modern strategic thinking for three decades.

Amazon says that the book is now in its 60 th edition and has been translated into 19 languages. Jul 31,  · For over three decades, Michael Porter’s seminal work on corporate strategy has dominated management thinking, dictating that companies make clear choices among generic strategies: cost.

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