London: Oxford Business Group Publishing, 2014. To attain its global expansion strategy, the company has adopted the marketing plans that aim to position its brand among the major world airlines. The active political cooperation of the UAE with the countries from the mentioned regions contributed significantly to the development of the aviation sector. The increase in the level of profitability arises from growth in the volume of passengers. The figures represent the number of passengers in millions. Moreover, the company financial strength is also indicated by the strong cash flows the company has been generating over the years since 2009. The level of these stakeholders impact on the strategic progress of Emirates is different. WebStrategies a) Differentiation Strategy By increasing the flight service to unserved and poorly served routes on which high demand currently existing or can be develop is what Emirates should be looking into. The firm is in the process of constructing seven business and first class lounges in Dubai International Airport. This reduced the airlines carbon emission by 5,528 tons. Although the public activities of Emirates are high, the company does not pay much attention to communicating with the press while choosing the other media to promote its services (Fig. (2022, November 29). The Emirates Airlines operations are based at Dubai International Airport, which is a public facility. Having a good differentiation strategy creates Subsequently, the airport will be able to serve 90 million passengers. Such policies remain a threat to the airlines expansion strategies. Emirates. Print. student. Online booking has improved the effectiveness and efficiency with which the Airline delivers unique experience to customers. The airline has also been committed towards improvement of its capacity by boosting the Available Seat Kilometers [ASK], which is one of the variables used in determining an airlines carrying capacity. Emirates Airline is one of the largest companies in the Middle East. One of the main sources of competitive advantage that an organization can leverage on at the growth stage relates to establishment of an effective distribution strategy. The airline has also formulated effective ground operation measures, which have enhanced its ability to reduce carbon emissions emanating from the diverse ground operations. Complete Marketing Strategy of Emirates Airlines | IIDE Emirates Airlines is the part of the Emirates Group headquartered in Dubai, the United Arab Emirates (UAE). Print. Emirates Airline's Differentiation and Innovation - 328 In the course of its operation, Emirates Airlines has adopted a comprehensive facility planning ad process selection. The global business environment has become very dynamic due to the intensity of competition and change in consumer behavior (Morelli 4). Over 250,000 Australians visited Dubai last year, largely reflecting the convergence of both airlines networks. In other words, the company should adopt the strategic approaches that efficient, cost effective and differentiate the air carrier from the competitors as well as take into cognizance the quality services to the targeted customers. In addition, the returns on the shareholders funds also grew from 21.6% to 28.3% representing 6.8% growth. Since its inception, the airline has managed to penetrate the six continents. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/, IvyPanda. Quality is a critical aspect in the success of an organization. The choice of Dubai International Airport, as the airlines hub, was subject to a number of factors. Need a custom Assessment sample written from scratch by According to Abeyratne, it is estimated that this firm carries over 27.5 million passengers and 1.6 million tons of cargo every year using its fleet of A 330-380 aircrafts (94). Your privacy is extremely important to us. 12) emphasizes that the UAE airline industry has been characterized by impressing results over the past 40 years. Global Integration The main factors that determine the global success of a multinational include technological and economic factors among others. 2023. "Strategic Management Project: Emirates Airlines." 1). The firms success over the years can be attributed to its ethical foundations. The organization of the terminals has provided Emirates Airlines with an opportunity to serve diverse customer groups. Customer satisfaction is worthless, customer loyalty is priceless: how to make them love you, keep you coming back, and tell everyone they know, Austin: Bad Press, 1998. Entering the airline industry is considerably undemanding because there are no significant bottlenecks especially in the United Arab Emirates where there is open airspace. All Rights Reserved. Strategic Challenges for Emirates Airline - Academic Master As Emirates Airline distinguishes its fleet from other competitors like Qatar and Etihad Airlines, the airline creates value for itself. Gateway to entry. The UAE are discussed among the most rapidly developing countries in the Middle Eastern region. In the global front, the airline traffic has reduced significantly due to economic downturn. This will remarkably improve the attractiveness of the airport to international airlines. IvyPanda. Black, David. The airline has also implemented an AeroMobile system, which provides customers with an opportunity to use their mobile phone (Emirates 8). Emirates expects to fly 70 million passengers in 2020, and the airline together with its partners in Dubai are already progressing on plans to ensure the right infrastructure is in place to support and capitalise on this growth. This approach will be efficient and provide positive outcomes while being connected with the approach of decreasing overall operational costs. Operations Management (OM) is a fundamental component in the success of businesses. Currently, the firm is ranked as the leader with regard to the number of its A380s, which are the largest aircrafts in the world. The buses are strategically located at the airports arrival and departure terminals. Well write a 100%plagiarism-free paper this fast! In addition, strategic opportunities are also associated with using more advanced technologies in order to compete effectively in the global aviation market. 3). For example, the airline has integrated an online booking system. Print. The success and profitability of the company depend on the effective policies adopted by the Dubai government and on the provided financial support for the company. This report on Strategic Management Project: Emirates Airlines was written and submitted by your fellow Emirates Airlines collects data on the number of passengers it has carried within a particular period, for example one year. The Emirates Group. The International Air Transport Association further opines that the industrys growth will continue into the future. The airport is also equipped with effective passenger and cargo facilities. The airlines commitment towards attaining an optimal market position is evidenced by the rate at which the firm is expanding its fleet size. Consequently, the likelihood of an organization achieving future success is enhanced. The airport is also served by effective ground transportation systems, which include rail, road, taxi, and buses. The large technological base is important for Emirates because the company operates in many countries, and services in all regions need to be provided in time and in the most efficient manner (Oxford Business Group 32). The airlines efficiency in providing customers with high quality services is evidenced by its JAR 145 and ISO9002 accreditation. If the significant fluctuations in the oil prices and changes in the financial markets are expected, the aviation industry in the UAE is at risk of having high losses because the currently followed strategy is oriented to the context of the rapidly developing economy. Based on the major global expansion aim, the firm business objectives and goals include. In 2013, the airline was named as the best airline in the world. This aspect has enabled the firm to develop and attain an optimal market position compared to other international carriers. From this point, it is important to provide recommendations for Emirates regarding the improvement of the strategic development in the long-term perspective. The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. Emirates Airlines intends to position itself as a customer-centric organization. 9 July. In order to meet the customers dynamic needs and services, it is imperative for businesses to integrate the concept of product and service design in their operations management. 3). The Emirates Airlines major aim is to strive in order to increase mobility and connecting people all over the globe. The main suppliers in this context are aircraft producers (Davahran and Yazdanifard 3). https://business-essay.com/emirates-airlines-company-operations-management-practices/. Print. Moreover, the company uses only the latest technologies to address the customers expectations (Nataraja and Al-Aali 476). The competitive advantage in Emirates is based on traditional four blocks: Efficiency is guaranteed through following developed recruitment and compensation policies oriented to decreasing labor costs. Consequently, the airline adheres to the customers dietary requirements. Business forecasting, New York: Routledge, 2009. The internal opportunities and threats will be examined through the SWOT analysis. The company believes that the strategy will enable the airline search for appropriate measures to control costs and improve its effectiveness in its services delivery. The company can benefit while concentrating more on the liberalization of its main strategy to address the needs of new markets. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. However, the airline is contemplating introducing a crew-transport-optimization programme and a hybrid baggage tractor. To achieve this, the firm is focused towards improvement in the level of its service provision. Consequently, the road provides customers easy access to the airport. Through the KIS system, the airline has been in a position to offer customers personalized services. On the other hand, quantitative approaches entail analyzing historical data within a particular time series. However, new economic policies are emerging with most countries streamlining their economic strategies to suit their airline industry. Exploring the Key Success Factors for Young Differentiation. Emirates Airlines business operations are extended across various markets. In order to enhance its competitiveness, it is imperative for Emirates Airlines to consider the following issues. The threat of new entrants in this industry is minimal because of the necessity to have significant capitals, propose differentiated services, and gain the customer loyalty within the short terms. The companys headquarter is in the city of Dubai and it employs over 28,000 people from all over the world (Graeme 36). The tool enables the firm to identify market needs, design and test a potential solution to the identified need, determine how effective the solution is, and implement the solutions (Emirates 8). At the current stage, Emirates focuses on serving the high-income passengers, but the discussion of the other group of perspective middle-income customers is also important. Most of the governments in the Middle East and Asia pacific where the airline operates initially operated within the protective policies. (2022, November 29). It targets those customers who demand better services regardless of price. ensure the integrity of our platform while keeping your private information safe. One more weakness is the limited application of the diversification strategy. Time series approach to forecasting is very effective in making future decisions. Web. Upon its entry in the UAE airline industry, the firm had a fleet size of only two aircrafts, which included a 300 B4 Airbus and a leased 737 Boeing; however, the firm has been constantly expanding its network. The new technology will enable the firm to forecast and optimize on price and seat inventory. In order to evaluate the strategic management of Emirates, it is necessary to analyze macro-environmental factors that influence the development of the business focusing on political, economic, social, technological, legal, and environmental forces. Moreover, it should have a specific rhythmic pattern with regard to fluctuations. The trade agreements have set favorable political stage for the airlines operations within the region and beyond. Today, we fly the worlds biggest fleets of Airbus A380s and Boeing 777s, offering our customers the comforts of the latest and most efficient wide-body aircraft in the skies. Moore, Carlos, Justin Longenecker, William Petty, and Leslie Palich. Momadu, Ahmed. Current legal policies and norms regarding operations of the airline industry in the UAE can be viewed as supporting the further growth of Emirates. However, choosing the right competitive strategy (cost leadership, differentiation or focus) requires knowledge of own and rivals cost structure. WebEmirates Airlines has integrated differentiation as its core competitive strategy.
This paper explores and examines the competitive advantage of Emirate Airlines. The company does not serve needs of middle-class passengers while reducing the number of potential customers. In a bid to survive in such an industry, it is essential for businesses to integrate effective competitive strategies. 1). This will improve the firms ability to serve the 70 million customers across the six continents. Emirates Airlines has also invested in an effective flight-planning system known as Flex Tracks. Finally, the focus is on providing distinctive VIP services. The main financial strategy of the airline is to keep its costs under scrutiny particularly the cost of operations. However, customers are requested to book the special meals in advance, at least 24 hours. From the above analysis, it is evident that Dubai International Airport acts as an optimal location for Emirates Airlines. Print. Web. BusinessEssay. The International Air Transport Association (par. In other words, the substitutes include road, rail and water transports. The company was established in 1985 after the government of Dubai set aside over $10 Million as a capital to be invested in the national carrier services. The Importance Of Differentiation Strategies For Airlines The remarkable record of Emirate Airlines: Product Through Investment Corporation of Dubai, the government channeled the money to be invested in the start up and expansion of the airline. It has best air fleet, co-operative staff, well-trained engineering and support team and well-known brand. The airline plans to increase its aircrafts to over 250 by 2020. For instance, the company boasts of having largest revenues, fleet as well as the number customers served in the Middle East. The growth in the net profit margin was up by 1.8%, which is an increase from 8.1% to 9.9% from the previous year. Moreover, the airline ensures that its aircrafts are of high quality and safe. Print. In marketing strategy, the company must continue improving its image. The advancements in technology have brought about new opportunities, increase the customer base and have enabled the airline to expand rapidly into new markets. For example, departmentalization has contributed towards improvement in the level of job satisfaction amongst employees. Moreover, the layout of the airline into different departments has enabled the airline to be effective in formulating and implementing its short term and long-term operations. Emirates Airlines is one of the rapidly developing airline companies in the world. ERP systems contribute towards improvement in forecasting accuracy because an organization can access accurate that can be used in forecasting. Using such data, the firm will be in a position to forecast on how it will adjust its capacity in the future. However, the firm has listed the meals that can be provided to customers. In addition, the company should strategize on how it should enjoy economies of scale by purchasing airliners en-mass. New technology ups Emirates travel experience 2013. The selected organization employs a differentiation strategy which enables it to constantly improve Differentiation Strategies Abeyratne, Ruwantissa. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. The airport acts as a trading link between the developed and the emerging economies. BusinessEssay. Davahran, Ngaveena, and Rashad Yazdanifard. The company further develops the course for expanding the markets. In most cases, the firm undertakes in-house training in order to uphold the differentiation strategy. Subsequently, the firm will be able to widen its fare system by introducing diverse booking classes with different prices and restrictions. Departmentalization has remarkably stimulated Emirates growth and expansion. Small business management; an entrepreneurial emphasis, Mason: Thomson, 2006. Despite the notion that cost and differentiation advantages are reciprocally exclusive, the company should be able to maintain both. In 2012 alone, the Emirates Airlines carried over thirty-four million passengers. Moreover, the firm implemented Apple computer technology in its fleet. PDF file. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. The designing process is comprised of a number of teams, which include the in-flight, team, the entertainment team, the new technology team, and the cabin interiors team (Emirates par. (2021) 'Strategic Management Project: Emirates Airlines'. Emirates Airlines Business Strategy | Business Paper Example Further, up to date technology such as video-conferencing aids virtual alliance thereby thinning the needs of travelling.
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