4). An organization can base its differentiation strategy upon different elements. The companys headquarter is in the city of Dubai and it employs over 28,000 people from all over the world (Graeme 36). Consequently, the airline adheres to the customers dietary requirements. Rivals of Emirates such as Gulf Air Company and Qatar Airways Group are also oriented to expanding markets, and the competition within the airline industry increases. Attaining an optimal market position is critical in a firms effort to remain competitive. Exploring Corporate Strategy, New York: Prentice Hall, 2008. Momadu, Ahmed. (2021) 'Strategic Management Project: Emirates Airlines'. The firm intends to transform Dubai into a long haul and global aviation hub (CAPA Centre for Aviation par. The firms growth has emanated from the adoption of effective competitive strategies. Emirates Airlines is one of the most profitable and rapidly developing airlines in the world. The less extent to which labor issues have affected the company presents an opportunity for the company to expand while constantly improving the welfare of its workforce. Most of the Asian countries where the airline operates encourage trade through agreements relation to the aviation industry. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. By partnering with local airlines in different geographical regions, Emirates can be able to gain the confidence of customers in these regions. Customers sometimes prefer to travel using their local airlines. By partnering with such airlines, Emirates will be marketing its brand to such customers and gain their confidence. document.write(new Date().getFullYear());
Moreover, the firm is ranked amongst the top 10 largest airlines with reference to the number of passenger carried, fleet size, and revenue (Emirates par. . Moreover, the airport authority intends to hasten the construction of the new Al Maktoum International Airport. In essence, excellent quality customer services, efficiency, cost effectiveness should be the benchmark for evaluating the global expansion strategy of the company. Moreover, the firm implemented Apple computer technology in its fleet. In addition, the social situation in the UAE allows recruiting employees at comparably lower costs than it is in developed countries. 2013. Moreover, the airline adheres to the statutory maintenance programme set up by the UAE government. Moreover, its growth has emerged from integration of effective competitive strategies. The plan involves the expansion of the companys business network by linking people all over the world. Moreover, the firm is also in the process of upgrading its cabin amenities and changing the level of service provision within the economy class. Emirates Airlines was founded in 1985 in the United Arabs Emirates (UAE). The operations of the company cover the Middle East, America, Europe as well as Asia. The management team has instituted a comprehensive customer care policy. Moreover, customers can personalize their travel plans by using the multi-city tool. For example, the cargo and passenger flights have different terminals. In fact, with no binding trade agreements, most of the governments protected their domestic airlines from external competitive threat. The airline is experiencing an annual growth rate of 16% with regard to passenger capacity. Moreover, the porters assist customers to take their taxi or bus on arrival. Pfeifer, Timothy. 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 airport provides the airline with an opportunity to connect to different continents, hence serving a large number of customers. "Strategic Management Project: Emirates Airlines." These facilities enable Emirates Airlines to be effective in certifying the customers travel documents. The Airline industry in the Middle East is undergoing significant transformation because of increase in demand for air travel. 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. The companys business strategy should also encompass both the cost and differentiation advantages leading to the sustainability of the companys long-term strategies. Retrieved from https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. 9). In addition, the competitors pioneer low cost budgets thereby making the Emirates Airline Company less competitive (Taye, 2006). However, new economic policies are emerging with most countries streamlining their economic strategies to suit their airline industry. The airport also acts as a hub to other international carriers. 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). Moreover, the marketing strategy is also based on the services delivery. New technology ups Emirates travel experience 2013. 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. 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. The main problem is the possible inappropriateness of the current management and marketing strategies to address the needs of customers in the rapidly changing political and economic environments. The Report: Dubai 2014. Emirates. Emirates Airlines has also invested in an effective flight-planning system known as Flex Tracks. Dubai Airports Company operates the airport and it serves Dubai. 9). New York, NY: Routledge. The external opportunities and threats will be examined though the application of PESTLE analysis. Most of the governments in the Middle East and Asia pacific where the airline operates initially operated within the protective policies. IvyPanda, 9 July 2020, ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. In an effort to ensure a high level of synergy, the airline has adopted an effective layout with regard to the various departments. Retrieved from https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. The Emirates Airlines major aim is to strive in order to increase mobility and connecting people all over the globe. To guarantee the effective long-term performance, Emirates needs to address the increasing competition within the market and the negative impacts of political and economic factors. The airlines aviation college trains employees on different aspects, which include electronic, computer engineering, business management, aerospace engineering, and travel and tourism. The company differentiates in the market developing the close relations with suppliers of aircrafts, including Boeing, and it is concentrated on building the high-quality infrastructure while investing in airports and additional services. In fact, the entrants in the industry introduce advanced technologies. The other influential group of stakeholders is those ones who also need to be kept satisfied, but their level of interest is lower in contrast to the power level. This service costs customers an additional AED 20. Print. This has played a fundamental role in improving the customers level of satisfaction. 2). The other recommendation is associated with the necessity to address the increasing competition in the industry. The other problem is the considerable dependence on the governments support and oil prices in the global market. London: Media Prima, 2014. Qualitative approaches to forecasting relate to the Delphi approach, scenario writing, and interactive or subjective approaches. 1). According to Black, the UAE is experiencing an increment in demand for air travel (par. ensure the integrity of our platform while keeping your private information safe. As a result, low cost carriers are surfacing and intensifying competition. Emirates Airlines intends to position itself as a customer-centric organization. For instance, the company boasts of having largest revenues, fleet as well as the number customers served in the Middle East. According to the Airlines management team, the airport will continue to serve as its home for the next 15 years. Operations Management (OM) is a fundamental component in the success of businesses. BusinessEssay. As Emirates Airline distinguishes its fleet from other competitors like Qatar and Etihad Airlines, the airline creates value for itself. Web. professional specifically for you? Moreover, the firms employees are committed in ensuring that their activities do not contribute to environmental pollution (Emirates par. On the contrary, the firm is committed towards seeking new opportunities to do things in a better way. The attainment of the aims, goals and objectives of the company depends on the manner in which the company incorporates all these strategies into both long-term and short-term corporate strategies. The airlines management team ensures that the training program is continuous (Emirates 1). The power of the government is also comparably high, and the authorities interest in the progress and strategies of Emirates is also high. The main suppliers in this context are aircraft producers (Davahran and Yazdanifard 3). Harvard Business Review, 6(2), 85-93. The main financial strategy of the airline is to keep its costs under scrutiny particularly the cost of operations. These unique services have their disadvantages such as increased costs of operations. 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. BusinessEssay. The financial liability mostly incurred during the financial crisis has been cited as the major point of the company weakness. class strategic resource management assignment help service "Emirates Airlines Company' Operations Management Practices." In essence, the companys mission strives to bring individuals closer to their destinations while inspire the employees thoughts and ideas (Lancaster, 2013). Nataraja, Sundaram, and Abdulrahman Al-Aali. Applied transport economics: policy, management and decision making, London: Kogan Page, 2005. Emirates Airline's Differentiation and Innovation. The purpose of this report is to provide the results of the Emirates strategic case analysis with the focus on the PESTLE analysis, the Five Forces analysis, the SWOT analysis, and the Stakeholder analysis. Yip, G. S. (2002). The global business environment has become very dynamic due to the intensity of competition and change in consumer behavior (Morelli 4). The special equipments have also contributed towards improvement in the airlines cargo capacity. The impact of buyers on the industry development is also high because Emirates is directly oriented to satisfying needs and expectations of their customers. During its 2012/2013 financial year, Emirates announced a plan to include three additional destinations in its routes. In other words, the substitutes include road, rail and water transports. 3). Wit and Meyer define differentiation to include the process through which an organization seeks to be unique (269). This reduced the airlines carbon emission by 5,528 tons. Emirates two longest serving pilots, with over 34 years of service, joined the airline on the same day in 1989. For instance, the growth in revenue in 2011 was 26% from the previous year while the total revenue in 2012 was 44% representing 15.6 billion increases in total revenue in 2012. London: Trident Press, 2013. July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. The Middle East, 1(2), 51-52. Starting a new airline by penetrating into the competitive market would require capital resources, combined with an effective market entry strategy that helps in establishing a strong position. To achieve this, the firm is focused towards improvement in the level of its service provision. Currently, the firm is ranked as the leader with regard to the number of its A380s, which are the largest aircrafts in the world. Airlines such as Emirates and Singapore Airlines The company will be able to win market share based on discounted pricing. On the other hand, American Airlines capacity had declined with a margin of 8%. Numerous full and low cost airline companies are entering the market in an effort to maximize their profitability. These stakeholders for Emirates are customers because their interests and satisfaction are the highest priority for the company. Strategic management, Sydney: Excel Books, 2004. WebDifferentiation/Low Cost Leadership/Focus Emirates Airlines is an airline that focuses on satisfying their customers and providing the best services on board and off board. The companys vision is based on the idea that customers need to receive high-quality services, and much attention should be paid to gaining the customer loyalty and developing the positive relationship with the community. Through employee training, the firm has equipped its workforce with sufficient skills to serve customers. The growths in revenue have increased the company financial strength that has enabled its achievement in the global expansion strategies. The The database is updated daily, so anyone can easily find a relevant essay example. 9). Furthermore, the airline is focused in developing and designing greener engines. 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. In fact, the company has continued to record financial growth since 2010 particularly in revenues and market capitalization. "Emirates Airlines Business Strategy." IvyPanda. Moreover, it is fundamental for businesses to ensure that their products and services capture the customers imaginations. An organization can have two main types of competitive advantage and they relate to differentiation and low cost. The growth stage is characterized by intense competition emanating from the large numbers of new entrants who are attracted by to a particular industry. However, it is imperative for organizations to ensure that their differentiation strategies are effectively formulated and implemented. The handbook of airline operations. The Dubai International Airport is connected to road D89, which is the longest intra-city road in the region. (2022, November 29). For the global and business strategies to attain the specified objectives, the firms must adopt both long-term and short-term financial, marketing and operational strategies enhanced by appropriate information systems and sound human resources management. This decision was arrived at after recognition of the Airports Authority effort to expand the airports capacity by 20%. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. The company does not serve needs of middle-class passengers while reducing the number of potential customers. Mishra, David. It targets those customers who demand better services regardless of price. The tool provides customers with an opportunity to book complex itineraries. The high financial liability has restricted the companys flexibility in terms of growth and implementation of both short-term and long-term strategies. At the macro-environment level, operations and the strategic development of Emirates are most influenced by political, economic, and technological forces. In this regard, the firm has realized significant steps in averting competition. Therefore, the company actively uses the latest innovations in the field, and the focus is on new technologies to support operations of the company globally. Considering the high rate of technological change, Emirates Airlines undertakes a continuous review of the prevailing technological changes in order to improve its operational efficiency. 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. Well write a 100%plagiarism-free paper this fast! In order to utilize the moving-average method in forecasting, it is imperative for the collected data to follow a rather liner trend. Consequently, the firm has been in a position to address the consumers needs to stay connected while in the sky. The partnership has significant improved Emirates ability to serve customers beyond its destinations. While the company was still at its infant stages, it was supported by some established airlines in the region particularly the Pakistan International Airlines. 18). The company financial performance have improved over the years despite the 2008/2009 financial crisis as well as weather drawbacks experienced in the major Western European markets. The main principle of Emirates has to underlie in service and quality. From this point, it is important to provide recommendations for Emirates regarding the improvement of the strategic development in the long-term perspective. Customers can choose among different services proposed by a number of companies in the industry (Oxford Business Group 54). Consequently, customers can easily access Emirates Airlines. Moreover, the firm has expanded its fleet size in an effort to serve the prevailing market demand. Lastly, extreme rivalry among competitors exists presently. Strategic Management Project: Emirates Airlines. Entering the airline industry is considerably undemanding because there are no significant bottlenecks especially in the United Arab Emirates where there is open airspace. If you want to get in touch with our media team, please mail us on: If you're a customer and you have a general question about our services or would like some help, please
One of these tools includes the Plan-Do-Check-Act tool or the Deming Cycle. BusinessEssay, 10 Jan. 2023, business-essay.com/emirates-airlines-company-operations-management-practices/. Aisi asserts that the technology places flight, staff, and passenger-related information into the hands of the Emirates cabin crew (par. "Strategic Management Project: Emirates Airlines." Print. As indicated before, the firms major objective is to increase its global presence and become the leading airlines services provider both at the regional and global markets. Design and implementation of a human capital oriented balanced scorecard in an engineering service unit, Munchen: GRIN Verlag, 2007. Therefore, it should be imperative for the company to adopt strategies that enhance the attainments of the global expansion trends (Butler & Keller, 2011). Emirates Airlines Value Chain Analysis can be used in the competitive strategic decision-making process. The increases indicate the growth in gross, operating and net margins of the company. Moreover, the airport has a well-designed VIP pavilion. The company strategy of building a global brand includes sponsoring sports activities particularly the major world teams as well as building the sports infrastructure including stadiums. Quality is a critical aspect in the success of an organization. Moreover, the airline was awarded as the best airline with regard to the provision of in-flight entertainment. As such, the firm offers flight services to the tourists as well as businesspersons to the destination. BusinessEssay. Thus, today Emirates is the widely known brand that has a feature of adapting to the market needs. The firm perceives competition to be a critical element in shaping and maintaining its organizational identity and competitiveness (Longernecker 45). For example, the firm has hired a team of dedicated porters who assist customers carry their bags when checking in and when picking their bags on arrival. Bamber, Georhe, James Hoffer, and Dennis Nordenflycht. In this strategy, company provides different services to the passengers such as first class private seat. Emirates Airlines has adopted differentiation as its core competitive strategy. By taking into account these aspects, the airline is in a position to undertake effective planning with regard to capacity (Ingram par. Print. The airline has designed a comprehensive baggage service. Emirates tops airline service quality survey 2010. We will write a custom Assessment on Emirates Airlines Differentiation and Innovation specifically for you for only 11.00 9.35/page. In this regard, the firms uncertainties emanating from reliance on a single market in the volatile airline industry is significantly toned down. According to Black, the airline industry in the UAE is expected to undergo a rampant growth (par. The new routes might be characterized by fluctuations in the level of demand. During its 2012 financial year, the Emirates Airlines capacity was estimated to have increased with a margin of 30% from 2010. 12). Departmentalization has remarkably stimulated Emirates growth and expansion. Compared with most of the global airlines that averagely use over thirty percent of their revenue on wages expenses, the reduced wages cost put the airline a better position within the global competitive stage. CAA has implemented effective security and safety mechanisms. Sambidge, Andy. Moreover, operations management is concerned with how an organization utilizes its resources in order to deliver optimal services to customers (Eigenmann 45). Emirates was the first to execute current innovation like cellular telephone use on board, web The marketing strategy includes popularizing its brand within the region and in the global market. Specifically, the airline has adopted the business and global integration strategies driven by economic and technological factors to expand into the global markets (Yip, 2002). The accumulation of debts and reduction in net of operating cash pose serious bottlenecks for Emirates Airline Company to settle its borrowings. Moreover, the firm ensures that the new aircrafts are fitted with new technologies in order to meet the customers requirements and this aspect shows the firms commitment in planning for its short and long-term capacity. Airlines such as Emirates and Singapore Airlines have been able to charge a premium price for their services by offering a unique product. Abeyratne, Ruwantissa. One of the areas that the firm has focused on relates to improvement on its internal systems efficiency. Print. ERP systems contribute towards improvement in forecasting accuracy because an organization can access accurate that can be used in forecasting. To achieve the aims, the company has put in place various objectives that include. This is IvyPanda's free database of academic paper samples. This will remarkably improve the attractiveness of the airport to international airlines. 13.8 billions in its annual budget for acquiring new aircrafts and handling facilities. However, with increased globalization in terms of trade and specifically in the aviation industry, the airlines are now open to competition where economic models are applied to sustain the competitive advantage. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. Further, in the surfacing where the company is making its entry such as Africa, the consumers have no much choice thus have less possession of bargaining power. From the above analysis, one can assert that Emirates Airlines has managed to attain an optimal market position over the past two decades. Tonya Russell Emirates is reportedly one of the first major airlines to have started unbundling its business class offering back in 2019. The main threats for the further strategic development of Emirates are the progress of the rival companies in the air transportation or aviation industry; the changes in the fuel prices influencing the economy of the UAE; and the worsening of the current political and economic crises globally influencing the buying capacity of customers. Moreover, the airline ensures that its aircrafts are of high quality and safe. The global airline industry is experiencing a high rate of growth. Therefore, it is fundamental for airline companies in the country to plan their capacity. Designing product/service systems; a methodical exploration. Design Issues 18.3 (2002): 3-17. Clients have opportunities to use private suites and entertainment systems on board. 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. The current objectives of the firm can only be attained if the company adopted the new business and corporate strategies that enhances global integration. Web. Finally, the focus is on providing distinctive VIP services. The recent financial crisis caused by the political situation affected economies of developed and developing countries and the airline industry. Eigenmann, Uman. 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. 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. In addition, Dubai will also be portrayed as stipulated in the objectives. The rivals in the airline industry market are active, and Emirates need to focus on expanding their services and selecting more routes because such approach guarantees the stable leading positions in the market. Emirates: Emirates continues rollout of in-flight product innovations 2012. The new technology will enable the firm to forecast and optimize on price and seat inventory. Flying the flag for Dubai. The growth will be stimulated by the attractiveness of the UAE as a business and investment destination. In a bid to survive in such an industry, it is essential for businesses to integrate effective competitive strategies. The product lifecycle is an important source of insight on the progress of a product or service in the market. Ingram, David. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. At the current stage, the company serves interests of high-income customers, but it is possible to pay more attention to the diversification and enter new markets while addressing expectations of new categories of passengers (Nataraja, and Al-Aali 480).
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emirates airlines differentiation strategy