The firm has pursued global integration in the past two years as a business model for expansion into the new markets. As a result, the stiff competition typically leads to surplus seat capacity in competitive markets. Consequently, it is paramount for firms in the industry to consider improving their capacity in order to take advantage of the prevailing market advantage (CAPA Centre for Aviation par. The airline also selected Dubai International Airport due to its level of safety and security. 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. For example, the airline ensures that its departmental heads possess special skills and knowledge to handle the operations of the department. The UAE policies regarding the protection of the environment are rather strict, and Emirates is one of those companies that concentrates on the development of effective and working sustainable programs. WebEmirates Airlines has integrated differentiation as its core competitive strategy. Web. For example, it makes managers realize that their products or service may die and hence the need to ensure that the products or services are constantly rejuvenated. Moreover, the firm has introduced 10 new routes. The buses also provide travelers with transport facilities to over 80 hotels and restaurants located within Dubais city centre. "Emirates Airline's Differentiation and Innovation." Environmental laws also influenced policies of Emirates regarding the waste management and decreases in the water and energy consumption. In addition to short distance buses, the airport is serviced by long-distance business services. Web. The global business environment has become very dynamic due to the intensity of competition and change in consumer behavior (Morelli 4). The company should also associate itself with the leading food companies to ensure high quality of meals. Need a custom Report sample written from scratch by The International Air Transport Association (par. In addition, the firm experienced a reduction of its net operating cash to thirteen percent in the year two thousand and twelve. The Middle East, 1(2), 51-52. The International Air Transport Association further opines that the industrys growth will continue into the future. 2). This is IvyPanda's free database of academic paper samples. Such initiatives improve the company image. During its 2011/2012 financial years, Emirates announced a plan to boost its capacity with regard to international long-haul flights. The plan involves the expansion of the companys business network by linking people all over the world. The global airline industry is experiencing a high rate of growth. 2022. However, it is imperative for organizations to ensure that their differentiation strategies are effectively formulated and implemented. Qualitative approaches to forecasting relate to the Delphi approach, scenario writing, and interactive or subjective approaches. The Pakistani government offered the airline the first international flight. All Rights Reserved. The firms training program is not only focused on ensuring that the employees provide customers with high quality services, but it is also aimed at improving the employees talent. This will lead to improvement in the airlines capacity to serve its key routes such as the Tokyo-Narita route. Emirates Airlines Business Strategy. 1). In the process of procuring the new aircrafts, the firm ensures that they are of high quality. Mukherjee asserts that managers are charged with the responsibility of ensuring that their organizations provide customers with high quality products and services (206). According to the firms management team, the airline will not only focus on increasing the frequency of its flights on the existing routes and expanding its network but will also focus on improving its fleet size by purchasing A380 Superjumbo aircraft. In order to attain cost control advantages, various strategies are supposed to be employed by the company. Emirates Airlines has integrated differentiation as its core competitive strategy. BusinessEssay. The active political cooperation of the UAE with the countries from the mentioned regions contributed significantly to the development of the aviation sector. 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. This approach will be efficient and provide positive outcomes while being connected with the approach of decreasing overall operational costs. In 2012, Emirates Airlines invested in a new Graphical User Interface, which was developed by Panasonic. It is possible to speak about more than 6 million of loyal customers using services of the company (Nataraja and Al-Aali 472). For example, the airport is fitted with optimal immigration-processing systems. 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. Web. 2). Most of the wastes are recycled and most of the airline environmental sustainability programs are managed under the corporate responsibility strategy. The Civil Aviation Authority (CAA) of Dubai is charged with the responsibility of managing safety and security. 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). This assessment on Emirates Airlines Differentiation and Innovation was written and submitted by your fellow 3). 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). Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. The mission of Etihad Airways is to maximize its profitability through the implementation of operational methods that enhance its yield, minimize its transit periods, maximum load factors, continuous and instant communication flow to the stakeholders, administration, and improved customer service. The marketing strategy includes popularizing its brand within the region and in the global market. 10 January. The recent financial crisis caused by the political situation affected economies of developed and developing countries and the airline industry. These values include social and environmental responsibility, adherence to business ethics and respecting the needs of the various stakeholders such as customers and employees. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. Gotimer, Jeffery. Customers can choose among different services proposed by a number of companies in the industry (Oxford Business Group 54). The financial objective of the company is to attain effectiveness and efficiency in all the operations of the company. The handbook of airline operations. As Emirates Airline distinguishes its fleet from other competitors like Qatar and Etihad Airlines, the airline creates value for itself. The airline has established a number of subsidiaries, which include Emirates Tours, Arabian Adventures, Emirates Holidays, and Congress Solutions International. https://business-essay.com/emirates-airlines-company-operations-management-practices/. This will reduce the airlines carbon emission (International Air Transport Association par. Emirates Airlines Value Chain Analysis can be used in the competitive strategic decision-making process. The innovation is another factor to explain the popularity of Emirates. Another approach is the improvement of employee productivity with the help of enhanced training sessions. 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. Over the years, the Emirates Airline Company has built up a considerable amount of debt. Bamber, Georhe, James Hoffer, and Dennis Nordenflycht. July 9, 2020. https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. A differentiation strategy focuses on what makes your business unique from others in the same industry or market. Lastly, extreme rivalry among competitors exists presently. The bottom line of all the strategies is the cost control strategy the firm has adopted in the recent years. For example, the cargo and passenger flights have different terminals. 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. Today, Emirates provides its services in more than 70 countries all over the globe, and its staff is more than 55,000 employees (Emirates Home par. Currently, the airline operates over 4,400 vehicles in Dubai. The increases indicate the growth in gross, operating and net margins of the company. In fact, by the end of March 2012, the companys long-term liabilities were approximated at $7300 million. 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. 23 July. Emirates is the largest airline in the UAE that operates in more than 70 countries all over the globe. In addition, the company aims to expand globally and offer services in other regions beyond Middle East. Emirates Airlines does not only deal with passengers but also cargo, which is handled by Emirates SkyCargo. The growths in both the profit margins and the returns on the shareholders capital have been consistent since the 2009 financial year. The operating profit was 1.6 billion increases in 2011 financial year alone. Moreover, there are different techniques that can be utilized under the time series method. The data is then used to predict the future. Moreover, the firm has expanded its fleet size in an effort to serve the prevailing market demand. 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. Oxford Business Group: Report Dubai. Since 2011, Emirates Airline has adopted a consistent marketing strategy, which premises in three pillars. The buses are strategically located at the airports arrival and departure terminals. United Arab Emirates yearbook 2005. These stakeholders are suppliers. One of the aspects that the firm has taken into account relates to employee training and development. The report by Bamber, Hoffer, and Nordenflycht shows that Emirates Airline has improved its efficiency by embracing technology at the booking offices, luggage management, and flight checking to avoid long queues at the airport (45). 9). Despite the fact that the current political situation in the Middle Eastern region is discussed as unstable, these political forces have the limited effect on the progress of Emirates. 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. In an effort to improve the quality of its services, Emirates Airlines has adopted different quality management tools. Business forecasting, New York: Routledge, 2009. The Importance of Managing Customer Service, Safety Quality and Benchmarking of Airports and Airlines to Enhance the Performance and Customer Loyalty. Global Journal of Management and Business Research 14.4 (2014): 1-9. As a result, more people choose Emirates to fly in the country, and they also use the air transportation for flights to the USA, the European countries, and to the Western countries (The Emirates Group 4). Copyright 2023 - IvyPanda is operated by, Strategic Management Project: Emirates Airlines, http://www.theemiratesgroup.com/english/images/04_EK_Overview_tcm409-560539.pdf, The Key Components at American Enterprise Architecture, Emirates Airline: Connecting the Unconnected, Emirates Airlines' Activity and Consumer Perception, International Services Marketing - Emirates Airlines, Emirates and Qantas Airlines Merger Analysis, Emirates Airlines Company Financial Analysis, Emirates Airlines' Environments and Competitors, Green Energy Brand Strategy: Chinese E-Car Consumer Behaviour. In fact, with no binding trade agreements, most of the governments protected their domestic airlines from external competitive threat. Web. Emirates remains to be one of the most successful airlines in the Middle East. Therefore, the airline can utilize the opportunities brought about by globalization to expand into the new markets. Forecasting can enable businesses determine future capacities, inventory, and cost. Wit and Meyer define differentiation to include the process through which an organization seeks to be unique (269). For instance, by using cheap labor, the company will be capable of lowering labor costs by more than 30 percent. The airline has been enjoying the political stability particularly at the regional market. This has led to improvement in the employees level of creativity, motivation and commitment hence enhancing the firms performance. IvyPanda. Integration of effective operations management has also enabled the firm to attain a high level of success. The elements of process selection and facilities planning are comprised of a number of decisions, which include technological choice and process planning (Ghuman 3). The other recommendation is associated with the necessity to address the increasing competition in the industry. Emirates has been able to maintain its competitive advantage by offering a differentiated product and focusing on Since the EXPOs attract diverse stakeholders, investors, and tourists, the company associates itself with the initiative by sponsoring the bid. The company remains to be the marketing leader in the industry while applying the differentiation strategy and providing the high-class luxury services for the VIP clients and wider population (Emirates Home par. You can download the latest annual report or read our previous reports for detailed information on our commercial results and strategies. In 2013, the airline was named as the best airline in the world. Therefore, it is fundamental for airline companies in the country to plan their capacity. Moreover, positioning enables a firm to survive in an industry characterized by ineffective structure. Pfeifer, Timothy. The firms Engineering Projects section is comprised of employees who are experts in designing and developing new services.
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