A SWOT critique of Singapore airline service delivery systems and improvement opportunities

Singapore Airlines has built a reputation as one of the best service providers in the airline industry, and has made this reputation an integral component of its marketing strategy (Skytrax, 2012). The company scores five stars and is one of just a handful of airlines in the world to do so. In order to achieve service excellent, Singapore Airlines draws on a number of strengths. The company has cultivated strengths in safety, food service, and the in-flight experience.

When the service blueprint of an airline is considered, there are few if any weak points in the Singapore Airlines service offering. The first component is the ticket-buying process. In this Singapore Airlines offers a smooth experience, one that is comparable to competing airlines. The second component of service delivery is where the customer reaches the airport, receives the boarding pass and delivers the luggage. Singapore's hub at Changi Airport is one of the more pleasant airport experiences. Even factors out of the airline's control are smooth, such as the train that takes you to the airport. The airline has online check-in, which today is a standard feature, but the process at Singapore is relatively smooth.

The in-flight experience benefits from the airline's desire to have a superior service offering. As a full-service airline, Singapore offers food, sometimes Internet connectivity, and strives to offer superior in-person service. For food, that the executives are responsible for taste-testing the food is a unique tactic (Phong, 2011). However, given that Singaporeans live for makan, it is essential that this love of food translates to the airline, and having Singaporeans in charge of the food only makes sense. Reviews of the airline's food are positive. In-flight service is supported by extensive training of the crew, to ensure that customer issues are handled effectively.

At a more strategic level, service is given high priority. The company is responsive to the needs of customers in different regions. For example, it has its own Customer Service Plan for Americans, to meet the unique service needs of those customers, which may differ significantly from the needs of Asian clientele in a number of ways (Singapore Airlines, 2012). The company also recognizes that having first-rate infrastructure is critical to service delivery, and therefore makes modernity of its equipment, aircraft and other physical evidence a priority (Phong, 2011). This modernity remains a strength of Singapore Airlines.

Thus, Singapore Airlines excels at most service dimensions. The airline has made service its main selling card, and charges a premium for its offerings. The result of this policy is that all elements of service remain strong suits for Singapore. It is consistently rated as one of, if not the, best airlines in the world for service. The company maintains this leadership position by continually focusing on ways to improve its service offering (Phong, 2011). If it does not innovate an offering, it will adopt the innovations of competitors to ensure that it complies with industry standards and customer expectations.

There are few weaknesses with the service offering of Singapore Airlines. Arguably, the price is higher than other airlines, but this is part of the service positioning. In aiming to trade on superior service, Singapore makes the necessary investments in equipment and staff, and therefore has no real chance of being a low-cost provider. Its customers are aware of this, and specifically make the decision to pay extra.

Singapore's service offerings allow it to gain entry into markets around the world, because of the desirability of flying the airline. It has built a large market share in the Asia-Pacific region in particular with its service. Singapore Airlines now has the ability to expand beyond this, building itself as a hub between Europe, the Middle East, Asia, Australia and Africa. More offerings to North America would improve its ability to develop as a truly global airline -- instead it has cut both its Los Angeles and Newark routes for being unviable, all but eliminating it from relevance in the Americas (AP, 2012). The location in Singapore makes it less convenient for travellers as well, since this location close the equator is out of the way for travellers between Europe and locations in China, Korea or Japan. Singapore has an advantage, however, in travel between Europe and Australia, a function of the same location.

There are also threats to Singapore Airlines' service dominance. The first is the emergence of new aircraft (technological innovation) that could render the company's current physical infrastructure dated. The Boeing 787 Dreamliner and next year's Airbus 350 represent the next generation of aircraft, and these will become default offerings from premium airlines in the coming years. If Singapore does not adopt one of these aircraft, the result will be a loss of reputation and market share.

Another threat to Singapore Airlines' service quality is being surpassed by more innovative competitors. The company faces competition in particular from other airlines in Asia (e.g. Asiana, Cathay Pacific, Malaysia) and the Gulf (Qatar, Emirates, Etihad). These competitors are all seeking to capture much the same market that Singapore has, particularly the Asian airlines in the region, and the gulf airlines on Europe-Asia routes. As a result, all of these competitors are making significant investments into their aircraft and their service. An Emirates flight, for example, will have attendants speaking a dozen languages or more. Asiana's food offerings are among the best is the sky, a challenge for Singapore to match. In general, Singapore falls into the middle of the pack against these peers on some measures. If Singapore loses its leadership position in service, it will lose critical market share.

Looking at the service blue print and the service scores for Singapore Airlines, there is little room for fault with the airline's offerings. The most important strategy for the airline is to maintain a culture of service innovation. Given the Singaporean culture, this means having executives, rather than low-level workers, who are empowered to come up with decisions. Communication flows need to ensure that ideas are put to the management team for consensus-building. Only by maintaining a strong innovation mindset can Singapore address its weaknesses and build on its strengths. When dealing from a position of strength, maintaining leadership is a bigger challenge that addressing weaknesses. Understanding the competitive environment is essential, because it will allow Singapore to take advantage of its competitors' innovations as well. Such a tactic will help to maintain the service leadership that Singapore enjoys.