Applied transport economics: policy, management and decision making, London: Kogan Page, 2005. The global airline industry is experiencing a high rate of growth. In this regard, the firms uncertainties emanating from reliance on a single market in the volatile airline industry is significantly toned down. To achieve this, the firm is focused towards improvement in the level of its service provision. The process of designing and developing new services in Emirates Airlines is undertaken under the auspices of the engineering department. Print. . Since 2011, Emirates Airline has adopted a consistent marketing strategy, which premises in three pillars. Davahran, Ngaveena, and Rashad Yazdanifard. Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. Wit and Meyer argue that the fundamental basis of above-average performance in the long run is sustainable competitive advantage (268). Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. The Airline industry in the Middle East is undergoing significant transformation because of increase in demand for air travel. Currently, the airline operates over 4,400 vehicles in Dubai. The marketing strategy includes popularizing its brand within the region and in the global market. Moreover, the airport authority intends to hasten the construction of the new Al Maktoum International Airport. In 2013, the airline was named as the best airline in the world. 13.8 billions in its annual budget for acquiring new aircrafts and handling facilities. In its process strategy, the firm makes a decision with regard to different aspects, which include how to implement a high level of flexibility, adjust to changes emanating from technological, volume, and design changes. The company mission requires increased innovativeness and be proactive to any eventuality. Differentiation strategy is based on the market variables that are greatly valued by buyers. Strategic Management Project: Emirates Airlines Report 1). What Is A Differentiation Strategy? (With Examples) - Zippia Mukherjee asserts that managers are charged with the responsibility of ensuring that their organizations provide customers with high quality products and services (206). Therefore, the airline can utilize the opportunities brought about by globalization to expand into the new markets. The cost control strategy is aimed at ensuring and growth, enhanced quality and performance in terms of services delivery as well as long-term sustainability (Lancaster, 2013). 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. The system was implemented through partnership amongst Hewlett-Packard, Microsoft, and the Emirates Group Information Technology department. According to Cohen, Emirates Airlines is considered as one of the most innovative and forward-thinking airline companies (65). Through automation, the firm has been in a position to provide customers with high quality services. 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. The ASK is used to determine an airlines capacity. Another approach is the improvement of employee productivity with the help of enhanced training sessions. On the same note, the companys customers continue to increase at an annual rate of fourteen percent. 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. For example, the airline has integrated an online booking system. The airport has integrated an effective flight management system. The development of an assortment of key projects in Dubai creates a center of attention amongst tourists and investors. Business forecasting, New York: Routledge, 2009. The airline remained the property of the Government of Dubai. The reduced growth in the global air traffic poses a serious threat to the global expansion of the airline. Emirates growth strategy on track. The interdependent nature of the various departments has led to improvement in the level of knowledge sharing amongst the employees. The moving-average method is very effective in determining seasonal fluctuations of a particular element. In an effort to improve the quality of its services, Emirates Airlines has adopted different quality management tools. The airport is equipped with optimal infrastructure such as airport-traffic control systems, terminals, and passenger terminals. Print. In the process of designing a particular service, it is important for an organization to ensure that there is no variation between the service provided and the customers expectations. Wit, Bob, and Ron Meyer. For example, the airport is fitted with optimal immigration-processing systems. One of these tools includes the Plan-Do-Check-Act tool or the Deming Cycle. The manufacturers possess somewhat high power in terms of supply of the aircrafts. Having a good differentiation strategy creates Operations Management (OM) is a fundamental component in the success of businesses. Emirates Airline has increasingly gained a firm position as one of the leading global airlines in terms of the fleet size, work force as well as profitability. The chart below shows the airlines operating statistics during 2009/2010 and 2010/2011 financial years. https://business-essay.com/emirates-airlines-company-operations-management-practices/. The firm has formulated comprehensive quality policy, which guides its operation; thus, Emirates Airlines has been in a position to provide customers with high quality airline services. (2022, November 29). London: Media Prima, 2014. 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, the main focus is on entering the regional markets covered by the North American companies (The Emirates Group 5). These unique services have their disadvantages such as increased costs of operations. Emirates: Emirates continues rollout of in-flight product innovations 2012. "Strategic Management Project: Emirates Airlines." Emirates Airlines does not only deal with passengers but also cargo, which is handled by Emirates SkyCargo. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. The firms passenger capacity increased to 39 million during its 2012/2013 financial year. 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. Moreover, the flight-planning system has enabled the airline to reduce its carbon dioxide emission by a margin of 160 kilograms (International Air Transport Association par. In other words, technological adaptation is another benchmark through which the company strategies can be evaluated. WebTo protect this dominance, Emirates Airline continues to invest in services differentiation (Wu, 2010). Print. 9). Print. High prices for tickets make customers choose the alternative variants of transportation. For example, the firm can calculate the 5-year moving average with regard to the number of passengers. 2008. Cohen, Elherm. visit our help centre 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. 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). The financial strength has increased the company competitive advantage. Therefore, Emirates is the leading airline in the Gulf region and the Middle Eastern region. You are free to use it for research and reference purposes in order to write your own paper; however, you 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). 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. The down growth in the debt to equity ratio shows how the company is efficient in its debt management, increased cash flows as well as revenues. Mukherjee, Peterson. 1). The main principle of Emirates has to underlie in service and quality. document.write(new Date().getFullYear()); The innovation is another factor to explain the popularity of Emirates. Emirates Airlines Business Strategy | Business Paper Example 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. Check-in online within 24 hours and 90 minutes before flight departure. Based on the major global expansion aim, the firm business objectives and goals include. The increase in the level of profitability arises from growth in the volume of passengers. First, the growth in the airline industry has encouraged the entry of new investors into the industry. The airline is experiencing an annual growth rate of 16% with regard to passenger capacity. The International Air Transport Association further opines that the industrys growth will continue into the future. The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. However, the prevailing market changes calls for improvement in the airlines capacity. In order to attain cost control advantages, various strategies are supposed to be employed by the company. BusinessEssay, 29 Nov. 2022, business-essay.com/emirates-airlines-business-strategy/. In an effort to ensure a high level of synergy, the airline has adopted an effective layout with regard to the various departments. The airports strategic position enables Emirates Airline to serve over 90% of the total passenger population through its non-stop flights. "Emirates Airlines Company' Operations Management Practices." accessibility__clear-input__text, From a Globe to Infinite Possibilities and everywhere in between: Emirates 30 years at ATM highlight the airlines innovative offerings and latest benchmarks in travel, Emirates opens new City Check-In and Travel Store in Dubai International Financial Centre (DIFC), Emirates celebrates its aviators journeys on World Pilots Day, Emirates Group joins the United Nations Global Compact, Emirates to expand global network with launch of services to Montral in July, Emirates increases flights across the GCC and Middle East ahead of Eid Al Fitr. Print. The exceptional performance strategies of Emirate Airlines The bottom line of all the strategies is the cost control strategy the firm has adopted in the recent years. Momadu, Ahmed. Sambidge, Andy. Subsequently, the firm considers its staff as its most valuable organizational asset. The strength in the cash flow indicates the strength of the company in its liquidity ratios enabling the company to finance its short-term operations. Up In the Air: How Airlines Can Improve Performance by Engaging Their Employees. The bags are wrapped using a strong transparent plastic hence maintaining their condition. Thus, today Emirates is the widely known brand that has a feature of adapting to the market needs. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. Moore, Carlos, Justin Longenecker, William Petty, and Leslie Palich. During the decade, the company operated with references to the business and political agreements of the UAE with the countries of the Gulf region, the Asia-Pacific region, and the Western countries (Nataraja and Al-Aali 473). The companys increased brand awareness have contributed to the increased revenues, enhanced the customer loyalty, enabled constant price margins and increased the company competitiveness in the global aviation industry. Consequently, the firm has been in a position to address the consumers needs to stay connected while in the sky. Emirates operates in the airline industry while proposing the high-quality and even luxury services. Gotimer, Jeffery. The UAE are discussed among the most rapidly developing countries in the Middle Eastern region. Moreover, the marketing strategy is also based on the services delivery. BusinessEssay. The accumulation of debts and reduction in net of operating cash pose serious bottlenecks for Emirates Airline Company to settle its borrowings. The IFE team is charged with the responsibility of designing and implementing advanced in-flight entertainment systems. Currently, the firm operates over 230 aircrafts. The firms success has also emanated from its commitment in controlling the quality of services. Print. The airline continues to work on various initiatives, in partnership with Dubai International Airport, to help ease slot congestion. Web. Consequently, it is in a position to serve a large number of airlines. 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. The UAE airline industry is characterized by intense competition due to its high market potential. Accept cookies to experience the full functionality of this page. The company can benefit while concentrating more on the liberalization of its main strategy to address the needs of new markets. In line with its safety policy, Emirates has formulated a comprehensive aircraft maintenance programme. Retrieved from https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. On the other hand, the operational issues relate to inventory management, material handling and traffic, scheduling, and production amongst others (Shah 112). 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. United Arab Emirates yearbook 2005. 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. The airline has been keen on differentiating its products from those which are by the rival firms. Engels, 2014. This has played a fundamental role in improving the customers level of satisfaction. The firms commitment towards market growth is evidenced by the rate at which the firm is introducing new aircrafts. The firm should utilize this data in forecasting the future. Fifty of these aircrafts are A380. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. The cost controls should be the major aim of the financial strategy (Sundaresan, 2013). However, the level of benefits remains to be high in the region and corresponding with the social policies in the UAE. Having analyzed the strategic growth of Emirates with the focus on the external environment and on internal forces, it is possible to propose certain recommendations for the company to address the potential problems in the future. Yip, G. S. (2002). This report on Strategic Management Project: Emirates Airlines was written and submitted by your fellow Consequently, the firm has ordered 232 new aircrafts. The airport acts as a trading link between the developed and the emerging economies. All the firms operations depart from terminal 3 at the Dubai International Airport. The remarkable record of Emirate Airlines: Product However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. Oxford Business Group. The maintenance process entails inspecting the engines, the aircrafts internal systems and the wheels amongst other parts. Harvard Business Review, 6(2), 85-93. In fact, by the end of March 2012, the companys long-term liabilities were approximated at $7300 million. Aisi, Anthony. Emirates Airlines accounts for approximately 64% of all passengers in the Middle East. The SWOT (strengths, weaknesses, opportunities, and threats) analysis is important to demonstrate what internal factors can influence the strategic development of the company. "Emirates Airlines Business Strategy." For instance, by using cheap labor, the company will be capable of lowering labor costs by more than 30 percent. Emirates Airline is one of the largest companies in the Middle East. July 9, 2020. https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. Ghuman, Kennedy. Emirates Airline.docx - OPERATIONS MANAGEMENT In this Marketing Strategy of Emirates Airlines, we will talk about the marketing strategies of Emirates, Emirates marketing mix, competitors analysis, 1). Moreover, the airport has a well-designed VIP pavilion. The firms Engineering Projects section is comprised of employees who are experts in designing and developing new services. Emirates business class lounge. 18). Emirates Airline's Differentiation and Innovation. The firm is in the process of constructing seven business and first class lounges in Dubai International Airport. The management of Emirates makes efforts to come to terms with government policies while the real business agenda is executed by subsidiaries or local agents in the country (Roberts 2012). In other words, the substitutes include road, rail and water transports. Moreover, the global presence has facilitated the reduction of business risk. The partnership has significant improved Emirates ability to serve customers beyond its destinations. 14). Subsequently, Emirates will be able to operate at the new airport by 2025. The firm has integrated three main baggage allowances as illustrated below. The current objectives of the firm can only be attained if the company adopted the new business and corporate strategies that enhances global integration. The buses are strategically located at the airports arrival and departure terminals. In principle, the firms strong market presence in leading airline markets presents the corporation with a fundamental competitive periphery over its rival competitors. The firm has adopted a comprehensive environmental policy, which has enhanced its ability to operate in an environmentally sustainable manner. According to Black, the airline industry in the UAE is expected to undergo a rampant growth (par. Since its inception, the airline has managed to penetrate the six continents. Cole, Staurt. The active political cooperation of the UAE with the countries from the mentioned regions contributed significantly to the development of the aviation sector. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. 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. 1. Airlines Industry-Emirates Airlines1 Strategic Management Assignment-2. The airport recently expanded the runways in an order to handle the Airbus A380 (International Air Transport Association par. Emirates Airline's Differentiation and Innovation. Web. 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. In fact, the transition in the industry may lead to further consolidation of airline industries. On behalf of Emirates, Lakshminarayanan discussed profitable network growth, aero-political access, airport constraints and commercial partnerships. Environmental laws also influenced policies of Emirates regarding the waste management and decreases in the water and energy consumption. More problems can be associated with the political, economic, and financial crises because any changes in oil prices affect the development of the business (Rahman, Azad, and Mostari 25). Hoshmand, Reza. Product lifecycle through innovation and competitive business competitive business environment, Turin: University of Maribor, 2010. 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.
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