SIA had mainly using related diversification strategy at the corporate level, expanding its business into airline catering, aircraft maintenance and airport terminal service. It used dual strategy of differentiation and cost leadership, achieving cost effective service excellence by exceptionally high business efficiency.

The company had achieved high business efficiency by implementing five organisational activity systems. First, It have structured service design and development, allocate dedicated department for its product design and run through countless testing to enable a perfect quality on its final product meeting latest customer expectation.

Secondly it uses total innovation with dedicated department monitoring closely consumer trend in the next five year, concentrating on slight improvement but over broad aspect, enabling a cost effective yet highly productive innovation. The company also allows itself to be a follower on its weak point, copying other successive development, reducing the risk and cost of re-innovation.

Third, it cultivates a profit consciousness culture, educating employee on the importance of profitability and strive balance between customer satisfactions and product offering are gone through profit/cost analysis prior to launching. The company also set up system that rewards employee based on profitability inducing peer pressure on wastage and encourage team works to boost its productivity.

Fourth, the company achieve cost synergies through diversification and infrastructure of its subsidiary. Vertical integration allows the company to have better quality control, enhance knowledge and reduce cost at the same time. The company also manage its subsidiary with clear expectation and allows its subsidiary to subject to market discipline.

Finally, the company develop its staff holistically with rigorous inte