BUS349C Strategic Management: Singapore Airlines Value Chain Report

This report provides a comprehensive analysis of Singapore Airlines' (SIA) internal value chain. It examines SIA's operational strategies, highlighting how they leverage their international network for sales, air staff, and subcontractors. The report details SIA's marketing and sales approaches, including their use of the internet and travel agents to provide customer information and booking services. Furthermore, it explores SIA's service differentiation strategy, focusing on innovation, customer service, in-flight catering, and product innovation. The analysis also covers SIA's infrastructure upgrades, technology development through digital innovation, and human resource management strategies, including rigorous selection processes, training, and employee rewards. The report references key academic sources to support its findings and provides a detailed overview of SIA's business environment, including PESTEL analysis, Porter's Five Forces, and the Value Chain Analysis, to understand the airline's competitive advantages and market position.

Running head: INTERNAL VALUE CHAIN OF SINGAPORE AIRLINES
Internal Value Chain of Singapore Airlines
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1INTERNAL VALUE CHAIN OF SINGAPORE AIRLINES
Porter’s Internal Value Chain Analysis
Operations
Singapore Airlines (SIA) has been able to upgrade innovation within operational
system by taking recourse to international network pertaining to sales, air staff, agent and that
of the subcontractors (Singaporeair.com 2018). SIA has integrated the technology
infrastructure by signing an agreement with IBM that can help in meeting their goal
pertaining to core business.
Marketing & Sales
Internet was made use of by SIA that can help the customers to gather more
information pertaining to the airlines. The customers can look at the prices and they can book
the air travel. The customers can take the help of travel agents who are connected to
Customer Reservation System for gleaning more information pertaining to the website.
Service
Singapore Airlines has adopted a differentiation strategy that can help the brand in
setting apart from the competitors. SIA provides unique services in terms of innovation and
customer service. SIA has remained true to the brand attributes that have helped in the
driving of the brand. SIA provides excellent services in the field of in-flight catering along
with product innovation (Simatupang, Pairach and Sharon 2017). In-flight catering helps in
providing delicious dining option for the passengers. The different services provided help in
supporting the staff in the aspect of innovation along with execution of the services.
Infrastructure
Singapore Airlines has been able to redefine comfort and luxury for all the flyers of
First, Business and the Economy Class. SIA has upgraded infrastructure along with interior

2INTERNAL VALUE CHAIN OF SINGAPORE AIRLINES
of the cabin that have helped in drawing customers towards the Airlines. The airlines has
installed advanced seats along with entertainment system within the cabins that have helped
in providing an enjoyable experience for the customers.
Technology Development
Singapore Airlines has made use of Digital Innovation Blueprint by making
partnerships with Agency for Science, Technology and Research, Economic Development
Board and National University of Singapore. SIA has built open innovation culture with the
help of the involvement of the staff in various kinds of digital projects. SIA supports the
employees with the help of digital training (Jarach 2017). Digital Innovation Lab has been set
up in SIA that can help the workers by the stimulation of new ideas. It helps in facilitating
collaboration within the creative environment. SIA will take the blueprint to the next level
with the help of collaborative partnerships.
Human Resource Management
Singapore Airlines adopts a rigorous approach in relation to the HR strategy and the
process of selection is strict. The new employees are provided with training and the new crew
are thoroughly monitored in first six months that helps in improving the services of SIA. SIA
has check trainers who looks after the working of the team and who help in generation of
feedback in relation to the development of the team (Bustinza et al. 2015). SIA offers
different kinds of reward along with recognition that helps in maintaining reputation
pertaining to the brand. Effective teams can pave the path for service excellence. The team
leader of SIA plays the role of a counsellor and the employees seek advice from him.

3INTERNAL VALUE CHAIN OF SINGAPORE AIRLINES
References:
Bustinza, Oscar F., Ali Ziaee Bigdeli, Tim Baines, and Cindy Elliot. "Servitization and
competitive advantage: the importance of organizational structure and value chain
position." Research-Technology Management 58, no. 5 (2015): 53-60.
Jarach, David. Airport marketing: Strategies to cope with the new millennium environment.
Routledge, 2017.
Simatupang, Togar M., Pairach Piboonrungroj, and Sharon J. Williams. "The emergence of
value chain thinking." International Journal of Value Chain Management 8, no. 1 (2017): 40-
57.
Singaporeair.com, 2018. "Singapore Airlines Official Website | Book International Flight
Tickets". Singaporeair.Com. http://www.singaporeair.com/en_UK/es/home.