Over the past four decennaries. it has earned a leading repute in the ?ercely competitory commercial air power concern by supplying clients with high-quality service and ruling the business-travel sections. World’s Best Airline award from Conde Nast Traveler 21 out of the 22 times it has been awarded and Skytrax’s Airline of the Year award three times over the past decennary.
What’s non so good known is that despite the quality of its services. SIA is besides one of the industry’s most cost-efficient operators. From 2001 to 2009. its costs per available place kilometre ( ASK ) were merely 4. 58 cents. Harmonizing to a 2007 International Air Transport Association survey. costs for full-service European air hoses were 8 to 16 cents. for U. S. airlines 7 to 8 cents. and for Asian air hoses 5 to 7 cents. In fact. SIA had lower costs than most European and American budget bearers. which ranged from 4 to 8 cents and 5 to 6 cents severally.
It’s intriguing that SIA has combined the purportedly incompatible schemes of differ- Harvard University concern reappraisal • july–august 2010 entiation—which it pursues through service excellence and uninterrupted innovation—and cost leading. Few endeavors have executed a double scheme pro?tably ; so. direction experts such as Michael Porter argue that it’s impossible to make so for a sustained period since double schemes entail contradictory investings and organisational procedures.
Yet prosecuting double schemes is going an imperative. The demand for valuefor-money merchandises and services has shot up since the recent recession. peculiarly in developed states. so even manufacturers of premium offerings have to ?gure out how to catch chances in the center and the low terminal of the market.
Furthermore. transnational corporations face competition from rivals— many of them from emerging markets—that use new engineerings and concern theoretical accounts to supply good-enough offerings at attractive monetary values. Incumbents can ?ght back by cutting monetary values or further differentiating merchandises and services. but it’s frequently a losing conflict.