By 2004, Singapore International Airlines (SIA) are exemplary implementation of profitability and quality of service. He based his strategy on the principles of differentiated positioning using his image, geographic location, and outstanding service as a cornerstone of its strategy. The case has enough data to run in a rich discussion of the industry factors affecting profitability, but a complement to in-depth look at the model of strategy, SIA was built in order to compete in the airline business. In recent years, many environmental shocks such as SARS, which challenged the viability of the model. The company entered the capital alliance with Virgin, which destroyed a lot of value. This was challenged by the entry of many airlines in the domestic market. The case is closed with a solution that SIA needed to do that, as it was beginning to turn inexpensive competitors, and whether it makes sense to move away from its differentiated approach premium.
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by Kannan Ramaswamy Source: Thunderbird School of Global Management 13 pages. Publication Date: June 22, 2004. Prod. #: TB0133-PDF-ENG