Emirates Airlines has adopted differentiation as its core competitive strategy. We will not deviate from our hub strategy and our future aircraft deliveries and orders are predicated on our non-stop services, connecting city pairs around the globe.". The database is updated daily, so anyone can easily find a relevant essay example. The debt to equity ratio has decreased significantly in the last two financial years. General Information 2. The firm is entirely owned by the Dubai government and it ranks as the largest airline company in the Middle East. MIT Sloan Management: What is operations management 2010. The firms process selection and facility layout exercises are comprised of a number of elements, which include work design, facilities and equipment selection, layout, evaluating technological change, product and service design, and forecasting. New entrants, threats of substitute, bargaining power for customers as well as bargaining power for suppliers and current rivalry are the sources of competitive forces. IvyPanda, 9 July 2020, ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. One of the main strengths of the company is the support of the government that resulted in many trade agreements for the company abroad. The Aviation Festival Middle East is a platform for airlines, airports and the aviation industry to address strategies for growth and development. These values include social and environmental responsibility, adherence to business ethics and respecting the needs of the various stakeholders such as customers and employees. 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. 29 November. 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. By improving its fleet, Emirates will improve its capacity with regard to hub-to-hub routes. Technology provides new ways through which customer satisfaction within the airline industry is enhanced. Airlines such as Emirates and Singapore Airlines have been able to charge a premium price for their services by offering a unique product. For example, the airline has integrated an online booking system. The airlines meals meet the customers dietary, medical and religious requirements. Cohen, Elherm. The interdependent nature of the various departments has led to improvement in the level of knowledge sharing amongst the employees. Firms in the service sector can greatly benefit from effective forecasting (Hoshmand 4). (2022) 'Emirates Airlines Business Strategy'. Numerous full and low cost airline companies are entering the market in an effort to maximize their profitability. Therefore, it is fundamental for airline companies in the country to plan their capacity. July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. Through the KIS system, the airline has been in a position to offer customers personalized services. The Pakistani government offered the airline the first international flight. In this context, Emirates depends not only on the changes in the national economy but also on changes in the global markets and aviation industry (Rahman, Azad, and Mostari 25). Emirates is the largest airline in the UAE that operates in more than 70 countries all over the globe. This will lead to improvement in the airlines capacity to serve its key routes such as the Tokyo-Narita route. In other words, the substitutes include road, rail and water transports. The Airline also integrated a new Enterprise Resource Planning system. 9). The new technology has played a critical role in enabling the firm to provide customers with unrivalled and high levels of customer services. However, the prevailing market changes calls for improvement in the airlines capacity. In 2012 alone, the Emirates Airlines carried over thirty-four million passengers. Print. The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. Other infrastructures relate to taxiways and flower centers. The airlines success is evidenced by the high growth and market expansion. Moreover, the airline ensures that its aircrafts are of high quality and safe. The Board meets quarterly for a brainstorming session on how to improve the firms internal systems. To develop sufficient competitiveness, it is imperative for Emirates to consider the most effective strategy to manage its capacity. Thus, 60% of the companys costs are associated with investing into the research and development department (The Emirates Group 4). IvyPanda, 23 July 2021, ivypanda.com/essays/strategic-management-project-emirates-airlines/. Consequently, it provides Emirates Airlines with an opportunity to serve a large number of customers. In this regard, the firm has realized significant steps in averting competition. The weaknesses in the strategy of Emirates are associated with the high reliance on the economic situation as the external factor and on changes in financial and oil markets. Fourth, labor, fuel and aircrafts constitute the major inputs in the airline industry. The other problem is the considerable dependence on the governments support and oil prices in the global market. Butler, G. F. & Keller, M. R. (2011). As a result, the company allows hiring employees with diverse backgrounds and spends more attention to spending resources on their training rather than compensation (Nataraja and Al-Aali 474). The airline has been keen on differentiating its products from those which are by the rival firms. The level of these stakeholders impact on the strategic progress of Emirates is different. Subsequently, the firm is able to provide new technological solutions hence optimizing its performance. 2013. The airline develops the competitive advantage focusing on the independent positioning in the market to prevent the dependence on the alliance partners (Emirates Home par. BusinessEssay. Service design entails the process of organizing, planning human resource, communication, and allocation of material components in an effort to enhance the delivery of service (Gotimer 129). The UAE are discussed among the most rapidly developing countries in the Middle Eastern region. The airline also provides customers an opportunity to explore Dubai by storing their baggage before the flight. Web. In addition to the above services, the airline also provides customers with a baggage wrapping service in order to protect the customers luggage when travelling. The moving-average method is very effective in determining seasonal fluctuations of a particular element. The main financial strategy of the airline is to keep its costs under scrutiny particularly the cost of operations. On the contrary, the firm is committed towards seeking new opportunities to do things in a better way. The company has also employed some of the best engineers, pilots, waitresses, and other cabin crew members who understand how to offer unique services to clients. 2008. According to Chennai 360, Emirates Airlines is not only concerned with getting customers from point A to point B (par. In line with its technological commitment, Emirates Airlines has implemented a knowledge-driven in-flight service [KIS] system. Further, the delivery of airline gas is verified through the market forces. According to Black, the airline industry in the UAE is expected to undergo a rampant growth (par. All the firms operations depart from terminal 3 at the Dubai International Airport. "Emirates Airlines Business Strategy." 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. Its investment in new product and service development has enabled the airline to gain global market reputation for its optimal services (Emirates par. 14). Emirates Airlines can be positioned in the growth phase as evidenced by the high rate at which the airline is establishing new services. Emirates Airlines appreciates the importance of continuous innovation. As Emirates Airline distinguishes its fleet from other competitors like Qatar and Etihad Airlines, the airline creates value for itself. Emirates. growth is a vital internal tool for delivering continuous customer care and support to meet the companys mission and differentiation strategy for a competitive advantage through care. 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. It is the part of the Emirates Group and headquartered in Dubai, the United Arab Emirates. 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. In this Marketing Strategy of Emirates Airlines, we will talk about the marketing strategies of Emirates, Emirates marketing mix, competitors analysis, Therefore, product success depends on an organizations ability to outdo the prevailing market competition. In addition, the returns on the shareholders funds also grew from 21.6% to 28.3% representing 6.8% growth. It is possible to speak about more than 6 million of loyal customers using services of the company (Nataraja and Al-Aali 472). The firm should utilize this data in forecasting the future. Emirates Airlines has also invested in an effective flight-planning system known as Flex Tracks. 2). During its 2012/2013 financial year, the firm allocated Dh. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. The competition in the industry increases and recommendations for Emirates should also include the market expansion. First, the growth in the airline industry has encouraged the entry of new investors into the industry. 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. In addition, in the same year, the firm operated a fleet of one hundred and seventy airliners of Boeing as well as Airbus models. The operations of the company cover the Middle East, America, Europe as well as Asia. The firm projects that its customer base will increase into the future. This paper explores and examines the competitive advantage of Emirate Airlines. This aspect has enabled the firm to develop and attain an optimal market position compared to other international carriers. Print. The group of stakeholders that needs to be kept informed includes the prospective customers, the public, and the community because the increase in the brand recognition and the customer loyalty will directly lead to the increases in the number of passengers. The airport recently expanded the runways in an order to handle the Airbus A380 (International Air Transport Association par. Time series approach to forecasting assumes that the past trends with regard to a firms performance will continue. New technology ups Emirates travel experience 2013. The airline has gained insight on how to manage and improve its capacity. Automation of the firms services also allows the firms customers to check the flight status online and manage their flight booking. One of these tools includes the Plan-Do-Check-Act tool or the Deming Cycle. Competitive Strategy. The strategy is in contrast to the competitors who segregate the price of air ticket from the meals offered in-flight. As a result, new entrants can compete only in the sector while providing low-cost services and flights. The airline remained the property of the Government of Dubai. The choice of Dubai International Airport, as the airlines hub, was subject to a number of factors. United Arab Emirates yearbook 2005. During its 2012 financial year, the Emirates Airlines capacity was estimated to have increased with a margin of 30% from 2010. Therefore, the airline can utilize the opportunities brought about by globalization to expand into the new markets. 2). Such policies remain a threat to the airlines expansion strategies. (2021, July 23). The data is then used to predict the future. In addition, during several years, Emirates realizes the strategy oriented to buying more aircrafts and expanding the fleet. The most influential are stakeholders that need to be managed closely because their levels of the power and interest are high. The firm competes amongst 23 companies in the Middle East. The major finding is that the formulation and implementation of appropriate Abeyratne, Ruwantissa. The impact of suppliers in the industry is high because changes in suppliers prices and propositions influence the quality and costs of provided airline services directly. If Emirates Airlines decides to choose the price penetration strategy, it will have to set the lower price than competitors. Each passenger can now choose the kind of music to listen to or a movie to watch while in the plane. According to Rao, process selection and facility layout refer to the process through which an organization determines how it will produce its products or services (32). Therefore, Emirates is the leading airline in the Gulf region and the Middle Eastern region. The internal opportunities and threats will be examined through the SWOT analysis. Print. 2). Emirates does not participate in airline alliances at the global level because of the specifics of their strategy. New York, NY: Routledge. The airport acts as a trading link between the developed and the emerging economies. The airline also collaborates with other partners hence enhancing its capacity to utilize flexible air-traffic routes. Moreover, its growth has emerged from integration of effective competitive strategies. Moreover, the company financial strength is also indicated by the strong cash flows the company has been generating over the years since 2009. 9). Nataraja, Sundaram, and Abdulrahman Al-Aali. Emirates should utilize quantitative approach to forecasting. Moreover, the firm implemented Apple computer technology in its fleet. On the same note, the companys customers continue to increase at an annual rate of fourteen percent. Print. This service is available to both departing and arriving passengers. The airline serves over 150 cities, which are located in 74 different countries. In this context, more attention should be paid to the formulation of the effective adaptation strategy to enter more markets and to compete with rivals effectively (Davahran and Yazdanifard 3). Print. Flying the flag for Dubai. Cole, Staurt. Subsequently, the airline is able to guarantee its customers security with regard to their cargo. Operations management: critical perspective on business, New Delhi: Global India Publications, 2009. The airline has adopted strategies that ensure environmental sustainability and improves the corporate image. The chart below shows the airlines operating statistics during 2009/2010 and 2010/2011 financial years. Management: concepts, practice and cases, New Delhi: Tata, 2010. For example, the airport is fitted with optimal immigration-processing systems. The trade agreements have opened new opportunities for the airline particularly within the global market. Moreover, the airport has a well-designed VIP pavilion. The firm leverages on technology in order to deliver a unique customer experience. The Emirates Group. 6). The airports strategic position enables Emirates Airline to serve over 90% of the total passenger population through its non-stop flights. The customer loyalty depends on the fact that Emirates provides the most customer-friendly services in the industry with the high responsiveness while allowing easy check-ins and other advantages of the e-ticketing system and comfortable lounges (The Emirates Group 3). 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. Wit and Meyer define differentiation to include the process through which an organization seeks to be unique (269). The company will obviously continue to expand into new markets. Emirates Airlines Business Strategy. Additionally, the company should offer free food to its customers. Thirdly, in the airline industry, the consumer power varies with presented choices. Retrieved from https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. Customers can now book their air tickets remotely as long as they have the internet access. 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. The airport is also served by effective ground transportation systems, which include rail, road, taxi, and buses. The airlines management team ensures that the training program is continuous (Emirates 1). For example, the firm has automated a number of its services such as flight, car, and restaurant booking. The organization of the terminals has provided Emirates Airlines with an opportunity to serve diverse customer groups. Mukherjee asserts that managers are charged with the responsibility of ensuring that their organizations provide customers with high quality products and services (206). The firm has integrated three main baggage allowances as illustrated below. In fact, by the end of March 2012, the companys long-term liabilities were approximated at $7300 million. WebEmirate uses the premium pricing strategy because it offers luxurious and high quality services that merit more money as compared to other airlines. First, the airport is strategically located and it serves as the hub for most airline companies in the Middle East such as the Emirates SkyCargo, Flydubai, and Emirates Airlines. Your privacy is extremely important to us. The airport also acts as a hub to other international carriers. In marketing strategy, the company must continue improving its image. 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. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. Although the strategies followed by the company today are rather efficient, the problem is in the fact that the airline industry and market can face significant challenges in the future if the economic crisis in the Middle Eastern and Western countries develops. For instance, the company boasts of having largest revenues, fleet as well as the number customers served in the Middle East. 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. The airport is also equipped with effective passenger and cargo facilities. 16). Print. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Emirates Airlines accounts for approximately 64% of all passengers in the Middle East. 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. Entering the airline industry is considerably undemanding because there are no significant bottlenecks especially in the United Arab Emirates where there is open airspace. In addition, the company has taken advantage of the both regional and global opportunities while utilizing its both internal and external strengths to increase its competitive advantage. 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 Emirates Airlines is committed towards developing a high level of customer satisfaction. At the current stage, the main focus is on entering the regional markets covered by the North American companies (The Emirates Group 5). The International Air Transport Association further opines that the industrys growth will continue into the future. The strategies and objectives of the company should be reviewed annually to ensure relevance to the need of the customers. The airline company develops according to norms and tendencies of the local and global aviation industry and markets. 2023. 1. The airline has been enjoying the political stability particularly at the regional market. 18). This will reduce the airlines carbon emission (International Air Transport Association par. Some modules are disabled because cookies are declined. "Emirates Airline's Differentiation and Innovation." This has played a critical role in enhancing the customers level of satisfaction. The global airline industry is highly competitive and this company is always under pressure to deliver superior services to manage the rivalry in the market (Jannie 78). The firms success over the years can be attributed to its ethical foundations. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. IvyPanda. During its 2012/2013 financial year, Emirates announced a plan to include three additional destinations in its routes. Aisi, Anthony. Exploring Corporate Strategy, New York: Prentice Hall, 2008. Quality is a critical aspect in the success of an organization. Moreover, there are different techniques that can be utilized under the time series method. One of the aspects that the firm has taken into account relates to employee training and development. The current objectives of the firm can only be attained if the company adopted the new business and corporate strategies that enhances global integration. Need a custom Report sample written from scratch by The International Air Transport Association (par. ensure the integrity of our platform while keeping your private information safe. The firm has experienced a significant increment in the level of its profitability over the past 25 years. However, the firm has listed the meals that can be provided to customers. IvyPanda. The firm also trains its employees on the English language proficiency and management. 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. 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. (2020, July 9). Subsequently, it is imperative for the firm to plan whether its current infrastructure such as aircrafts and airbuses will support this growth (Emirates par. The Hello Tomorrow plan is among the most innovative marketing strategies that the company should adopt to attain some of the major objectives. The advancements in technology have brought about new opportunities, increase the customer base and have enabled the airline to expand rapidly into new markets. In fact, the transition in the industry may lead to further consolidation of airline industries. In a bid to survive in such an industry, it is essential for businesses to integrate effective competitive strategies. He cited India as an examplewhere Emirates services have brought positive economic benefits, where the 185 weekly frequencies allotted to the airline directly contribute $825 million to the local economy, according to a study by the National Council of Applied Economic Research (NCAER). Wit, Bob, and Ron Meyer. WebDifferentiation in the airline companies can be achieved via offering the latest and modern services like the royal treatment, big seats, advancements aircrafts and the online ticketing. The companys business strategy should also encompass both the cost and differentiation advantages leading to the sustainability of the companys long-term strategies. In the global competitive markets including Dubai, the many airline and transport companies offer the consumers with a considerable power due to the availability of the services. Customers can also check Emirates flight timetable online. In addition, the financial strength is critical in the firms global expansion strategy. One of the factors that the firm has focused on in an effort to protect the environment relates to fuel efficiency (International Air Transport Association par. 10 Oct. 2015. One of the areas that the firm has focused on relates to integrating emerging Information Communication Technologies within its flights. The first recommendation is to revise the differentiation strategy and pay more attention to the diversification strategy in order to make the companys approach more adaptable to the changes in the airline industry and markets. The growth in profit margins the recent financial years indicates the manner in which the company is efficient in attaining its corporate goals, strategies and objectives. The database is updated daily, so anyone can easily find a relevant essay example. In the global front, the airline traffic has reduced significantly due to economic downturn. 12) emphasizes that the UAE airline industry has been characterized by impressing results over the past 40 years. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. 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. 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. Having a good differentiation strategy creates Flying off course: the economics of international airlines. The firms growth has emanated from the adoption of effective competitive strategies. The Emirates company uses a variety of targeting methods to select potential buyers for its products. To maintain this success, Momadu advises that this firm will need to remain innovative in its operations (11). In an effort to ensure a high level of synergy, the airline has adopted an effective layout with regard to the various departments. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. During its 2011/2012 financial report, Emirates Airlines carried over 34 million passengers and 1.8 million tonnes of goods. The firms passenger capacity increased to 39 million during its 2012/2013 financial year. Emirates Airline Differentiation Strategy Glen Molkenthin Structure Structure 1. Time series refers to data that is collected within a particular period. 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, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. professional specifically for you? In order to attain cost control advantages, various strategies are supposed to be employed by the company. New York: Cengage, 2015. visit our help centre Consequently, the road provides customers easy access to the airport.
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