In the case of Singapore Airlines (SIA), the top management was confronted with the dilemma of whether investing in customers service innovation or trimming costs in an all-round way when the entire airline industry was compromised by 9/11 attacks. Among a host of service improvement plans such as adjustments to routes, new aircrafts purchase, and seat capacity adjustment, the installation of spacebed was the top program that needed to be evaluated to catch up with key competitor's move.
[...] Singapore Airlines: Case analysis In the case of Singapore Airlines the top management was confronted with the dilemma of whether investing in customers service innovation or trimming costs in an all-round way when the entire airline industry was compromised by 9/11 attacks. Among a host of service improvement plans such as adjustments to routes, new aircrafts purchase, and seat capacity adjustment, the installation of spacebed was the top program that needed to be evaluated to catch up with key competitor's move. [...]
[...] In addition, the company constantly enhanced customer loyalty by updating customer satisfaction measurement programs as well as cabin crew training programs. However, passenger's plummeting airline traffic came as a big setback in implementing the spacebed program. At that moment, it was an imperative issue whether to carry on the project that had already cost a couple of million R&D dollars. Meanwhile, another subject was on the table regarding how SIA should maintain profitability without losing current premium passengers, which in turn affected the company's brand perceptions. [...]
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