Project

Managing People for Service Advantage

Goal: Examines successful HR strategies for frontline employees.

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Jochen Wirtz
added 15 research items
Singapore Airlines (SIA) has achieved the holy grail of strategic success: sustainable competitive advantage. Even though the airline industry is extremely tough to compete in, given its disastrous business cycle, overcapacity, difficulty of differentiation, high-risk profile and structural unattractiveness, SIA has consistently outperformed its competitors throughout its three and a half decade history. One key element of SIA’s competitive success is that it manages to navigate skillfully between poles that most companies think of as distinct: delivering service excellence in a cost-effective way, at cost levels so low that they are comparable to those of budget airlines in the U.S.A. and Europe (in 2005-6 for example the cost per available seat kilometer was S$7.9 cents, or US$5.2 cents). Our focus in this chapter is how human resource practices, a crucial aspect of any service business, contribute to SIA’s success. Effective alignment of functional strategies such as HR, marketing, or operations with the business level strategy is a key challenge in implementing business-level strategies, such as effective differentiation at SIA (through service excellence and innovation) combined with superior levels of operational efficiency. Within this article we will outline how.
Jochen Wirtz
added a project goal
Examines successful HR strategies for frontline employees.