Singapore Airlines' Balancing Act
Heracleous, Loizos and Wirtz , Jochen. (2010) Singapore Airlines' Balancing Act. Harvard Business Review, Vol.88 (August). pp. 145-149. ISSN 0017-8012Full text not available from this repository.
Official URL: http://hbr.org/2010/07/the-globe-singapore-airline...
Singapore Airlines is widely regarded as an exemplar of excellence in an industry whose service standards are tumbling. What's not so well known is that the company is also one of the civil aviation industry's cost leaders. SIA's success in executing a dual strategy of differentiation and cost leadership is unusual. Indeed, management experts, such as Michael Porter, argue that it's impossible to do so for a sustained period since dual strategies entail contradictory investments and organizational processes. Yet SIA, and a few other emerging-economy companies, view the dualities as opposites that form part of a whole. SIA executes its dual strategy by managing four paradoxes: Achieving service excellence cost-effectively, fostering centralized and decentralized innovation, being a technology leader and follower, and using standardization to achieve personalization. The results speak for themselves: SIA has delivered healthy financial returns; it has never had an annual loss; and except for the initial capitalization, the Asian airline has funded its growth itself while paying dividends every year.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management|
|Divisions:||Faculty of Social Sciences > Warwick Business School > Marketing & Strategic Management
Faculty of Social Sciences > Warwick Business School
|Journal or Publication Title:||Harvard Business Review|
|Publisher:||Harvard Business School Publishing|
|Number of Pages:||5|
|Page Range:||pp. 145-149|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Restricted or Subscription Access|
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