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Focuses on how a firm can develop organizational competencies that are difficult for others to imitate. Illustrates how a firm can create and maintain dynamic competitive advantage in an industry in which the external forces that make for success seem to be relatively easy to observe. In conjunction with an industry note on the airline industry, the case is useful for discussion about alliances. Also provides a basis for discussing issues of managerial culture and the question of how to integrate personnel from North America and Europe into the culture of a successful Asian company. Describes the external and internal challenges facing Singapore Airlines (SIA) at the end of 1990. The country environment of Singapore is briefly reviewed, focusing on its history, culture, and its political and economic environment. The development of SIA is traced with reference to Singapore's history and national policies. Provides a detailed description of SIA's strategy and its implementation. Service, fleet, cost, and ownership issues frame the detail provided on the processes of selecting and training people, the quality system, fleet management, and control of costs.