Page 185 - (DK) The Business Book

WORKING WITH A VISION 183

Singapore Airlines’ customer service
ethic is personified by “The Singapore
Girl,” who portrays the idea of Asian
hospitality. Her image has become
a successful brand icon.

These include being the first airline
to implement baggage charges;
working to eliminate the need for
check-in desks (by offering online
check-in facilities); and charging for
options such as seat reservation
and priority boarding. This
consistent search for new ways to
transform costs is the essence of
the cost-leadership strategy. In the
12 months ending March 31, 2013,
Ryanair transported nearly 80
million passengers and announced
record profits of $753 million, Singapore Airlines recognizes that around service excellence mean
despite a rise in fuel costs. innovation is short-lived in the that customers are more than
Singapore Airlines (SIA) by airline industry. New features and happy to pay a premium price.
contrast, pursues a differentiation ideas can easily be copied by other Porter’s generic business
strategy. The brand’s major drivers airlines, so it continues to invest strategies can be used by any
are groundbreaking technology, heavily in innovation and technology company to achieve a competitive
innovation, quality, and excellent as an integral part of achieving its advantage. However, the
customer service. It maintains the differentiation strategy. The airline competitive environment consists
youngest fleet of aircraft among runs a comprehensive and rigorous of more than just present rivals;
major air carriers, and keeps to a training program for cabin- and changes in the industry and
stringent policy of replacing older flight-crew to ensure the customer’s environment add to a constantly
aircraft with newer, better models. in-flight experience is consistently changing business context. For this
SIA has always been first to take excellent. The success of its brand reason, strategy choice must be
delivery of new aircraft types. strategy and its entire positioning regularly reviewed and checked. ■

Ice cream with a difference

Quirky flavor names—such as Consumers are prepared to
Imagine Whirled Peace, Chubby pay a premium price because
Hubby, and Brownie Chew of the ice cream’s all-natural,
Gooder—set Ben & Jerry’s ice high-quality ingredients and
creams apart. Ben Cohen and innovative flavors—months of
Jerry Greenfield started the research go into perfecting the
company in 1978 and wanted it to taste. The company’s strategy to
be alternative. According to Jerry, differentiate itself from the
“if it’s not fun, why do it?” Ben competition extends beyond the
claims to have no sense of taste, product. The organization is
so he relied on texture (what he active in social campaigns such
Ben & Jerry’s ice cream is now part called “mouth feel”)—big chunks as gay marriage, buys only from
of the Unilever brand, but continues of added ingredients such as fruit, fair-trade suppliers, and
to use the differentiation strategy it chocolate, or cookies therefore considers environmental aspects
adopted to become a market leader. became the brand’s signature. in production and delivery.