Please review the case study and then answer the questions below based on the case information. Your submission should be written in an essay format with proper MLA citations included for all additional resources. For information on using MLA, see the Syllabus & Course Info page of the course.Pursuing a ‘hybrid’ competitive strategy: Singapore Airlines It could be argued that none of Porter’s categories should be regarded as alternatives and that in reality to categorize competitive strategy in this way is simplistic and possibly misleading. However it does in a clear and simple way force managers to seriously consider the basis on which they are competing and to adjust their competitive strategy if it is necessary to do so. Some authors have argued that it is possible to achieve cost leadership and differentiation at the same time (without being ‘stuck in the middle’) in a so-called hybrid or dual strategy. Heracleous and Wirtz (2010) for example argue that Singapore Airlines might be a successful example of such a strategy. SIA has combined the supposedly incompatible strategies of differentiation – which it pursues through service excellence and continuous innovation – and cost leadership. The airline is well known for its quality having won numerous awards including the World’s Best Airline award from Condé Nast Traveller and Skytrax’s Airline of the Year. What is less well known is
its cost leadership. Using International Air Transport Association data, Heracleous and Wirtz analysis of the years 2001 to 2009 show that SIA’s costs per available seat kilometre (ASK) were just 4.58 cents. This compared with costs for full-service European airlines of 8 to 16 cents, for U.S. airlines of 7 to 8 cents, and for its Asian competitors of 5 to 7 cents. One reason for this cost leadership performance lies in the age of its fleet. SIA has invested heavily in its aircraft. For instance, in 2009 its aircraft were 74 months old, on average, less than half the industry average of 160 months, which triggers a virtious cycle: Because mechanical failures are rare, fewer take-offs are delayed, more arrivals are on time, and fewer flights are cancelled. New planes are also more fuel-efficient and need less repair and maintenance. Consequently the planes are able to spend more time flying and thus earning revenue. In 2008 the airline averaged 13 hours flying per day versus the industry average of 11.3 hours. Finally customers of course tend to like newer planes thereby boosting sales. Questions:Explain why Singapore Airlines might be considered to be pursuing a hybrid competitive strategy in this case.Consider other examples of a hybrid strategy from your knowledge of tourism, hospitality, and entertainment organizations. Summarize at least one example and consider whether such a strategy is sustainable.