2). The company refers to the development of the technological base using the most innovative fleet and infrastructure or supporting services; to the development of the diverse human resource base; to the strategic use of finances; and to the improvement of the brand recognition. Time series approach to forecasting assumes that the past trends with regard to a firms performance will continue. 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. The firm has integrated effective programmable automations in order to provide its customers with high quality services. The threats of intense competition as well as mergers among the surfacing companies emanate from a number of aspects. The companys main objective is to be the market leader in the region and beyond. This approach will be efficient and provide positive outcomes while being connected with the approach of decreasing overall operational costs. Print. Emirates is the largest airline in the UAE that operates in more than 70 countries all over the globe. Pfeifer, Timothy. These stages include product or service development, introduction phase, growth stage, maturity, and decline as illustrated by figure 1 below. Emirates Airlines selected Dubai International Airport due to the level of its services, safety, infrastructure, terminals, and effective ground transportation. The company has one of the largest fleets in the industry, and it focuses on applying the latest technologies to its development. Operations management: critical perspective on business, New Delhi: Global India Publications, 2009. Changes in clients interests and attitudes influence the progress of the business because today more passengers choose low-cost services, and they are focused on discounts (Rahman, Azad, and Mostari 24). However, customers are requested to book the special meals in advance, at least 24 hours. Print. Retrieved from https://business-essay.com/emirates-airlines-business-strategy/, BusinessEssay. The recent financial crisis caused by the political situation affected economies of developed and developing countries and the airline industry. The firms success has also emanated from its commitment in controlling the quality of services. The global airline industry is experiencing a high rate of growth. They include least square method, linear method, and the moving average method. The airlines commitment to operate in an environmentally sustainable manner is also evidenced by the fact that the airline has designed effective systems that reduces flight time. Emirates Airlines collects data on the number of passengers it has carried within a particular period, for example one year. These stakeholders for Emirates are customers because their interests and satisfaction are the highest priority for the company. The financial strength the company has achieved over the years will enable the company attain strategic position in the industry. 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. The Emirates Airlines major aim is to strive in order to increase mobility and connecting people all over the globe. From the above analysis, it is evident that Dubai International Airport acts as an optimal location for Emirates Airlines. The firm competes amongst 23 companies in the Middle East. Subsequently, the airport will be able to serve 90 million passengers. DUBAI, U.A.E Emirates will continue with its growth trajectory, in spite of global challenges like regional political instability, pandemic health issues in Africa and softening economic demand from dropping oil prices. The capability of the company to settle its debts is also depicted in the growth of equity. The Aviation Festival Middle East is a platform for airlines, airports and the aviation industry to address strategies for growth and development. Web. Emirates has been able to maintain its competitive advantage by offering a differentiated product and focusing on Airlines such as Emirates and Singapore Airlines have been able to charge a premium price for their services by offering a unique product. Moreover, the airport has a well-designed VIP pavilion. (2023, January 10). https://business-essay.com/emirates-airlines-business-strategy/. Airlines of the United Arab Emirates: Emirates, Etihad Airways, Emirates Sky-cargo, Air Arabia, Daallo Airlines, Rak Airways, Fly-Dubai, Rus Aviation. Doganis, R. (2002). The figure below shows a comparison of the major airlines capacity from 2010 to 2012. Using such data, the firm will be in a position to forecast on how it will adjust its capacity in the future. Web. Mukherjee, Peterson. Print. 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. 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. Emirates Airlines Strategic Planning & Marketing Specifically, the firm should adopt the moving-average method of forecasting. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. The firm is ranked as the third largest airline company in the world. To achieve this, the firm is focused towards improvement in the level of its service provision. 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. Therefore, it has significantly enhanced their capability to serve over 35 million customers annually; hence, one can assert that the technology has contributed towards the creation of an optimal customer experience. 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. A company that applies a The bags are wrapped using a strong transparent plastic hence maintaining their condition. 22). Design and implementation of a human capital oriented balanced scorecard in an engineering service unit, Munchen: GRIN Verlag, 2007. The Exceptional Performance Strategies of Emirate Airlines. Competitiveness Review: An International Business Journal 21.5 (2011): 471-486. 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). 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. In fact, people are offered with the prospect of not travelling at all by air. In 2013, the airline was named as the best airline in the world. Strategic Management of Emirates Airlines | Proceedings of the In marketing strategy, the company must continue improving its image. Lancaster, P. (2013). Based on the major global expansion aim, the firm business objectives and goals include. These recommendations are important to contribute to enhancing the companys long-term performance. Etihad Airways Vision, Values, & Strategic Purpose During its 2011/2012 financial years, Emirates announced a plan to boost its capacity with regard to international long-haul flights. In this context, passengers often choose cheaper services while planning their business or holidays trips. 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. Using geography and psychographics as platforms, the Emirates group wants to make its products more relevant for the target audience in order to earn more revenue. On the contrary, the firm is committed towards seeking new opportunities to do things in a better way. The increases indicate the growth in gross, operating and net margins of the company. Web. Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. Johnson et al. (PDF) GLOBAL STRATEGIES OF THE AIRLINE INDUSTRY: A 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. 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. In addition, the returns on the shareholders funds also grew from 21.6% to 28.3% representing 6.8% growth. In fact, the Metro has continuously played an essential role as a tourist attraction destination while others are underway and will significantly boost the number of tourists. The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. 1. For example, the airport is fitted with optimal immigration-processing systems. Consequently, the firm has emerged as a globally recognized tourism and travel airline company. (2020) 'Emirates Airline's Differentiation and Innovation'. As a result, the technological platform is expected to be developed, and the companys leaders pay much attention to recent researches in the field and invest in the most promising technologies. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. The firm also trains its employees on the English language proficiency and management. During its 2012 financial year, the Emirates Airlines capacity was estimated to have increased with a margin of 30% from 2010. This approach will allow widening the overall scope of services provided and the businesss impact in the world. The firm perceives competition to be a critical element in shaping and maintaining its organizational identity and competitiveness (Longernecker 45). 9). 2021. Some modules are disabled because cookies are declined. An organization can base its differentiation strategy upon different elements. Purpose The purpose of this paper is to investigate the strategies and competitive advantages of Emirate Airlines that have led to exceptional performance The major undertaking strategies are given below: Emirates aimed to expand its service throughout the world and hence increase its seat capacity with large aircraft. The policy entails providing customers with optimal services while on ground and during the flight. July 9, 2020. https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. 2). During its 2011/2012 financial year, the airline was able to increase its international destinations from 102 destinations to 111 destinations. During its 2011/2012 financial report, Emirates Airlines carried over 34 million passengers and 1.8 million tonnes of goods. Morelli, Nicola. The internal opportunities and threats will be examined through the SWOT analysis. In fact, new competitors often collaborate with each other in their operations thereby benefiting from the economies of scale. The firm should utilize this data in forecasting the future. Print. Emirates two longest serving pilots, with over 34 years of service, joined the airline on the same day in 1989. The partnership has significant improved Emirates ability to serve customers beyond its destinations. Operations management is concerned with an organizations design and management of its services, supply chains, and products. The exceptional performance strategies of Emirate Airlines For example, terminal 1 and 3 are served by the Red Line. Retrieved from https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. In the global front, the airline traffic has reduced significantly due to economic downturn. 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. 1). Since the first investment, the company has grown to become self-financing. Subsequently, the firm considers its staff as its most valuable organizational asset. In 2001, the firm ordered 58 new aircrafts, which comprised Boeing and Airbus models. 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. Emirates growth strategy on track. This margin represents a 16% increment compared to its 2012 financial year. 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 firms success has arisen from integration and adoption of effective management practices. 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. IvyPanda. Airline companies can be differentiated by offering latest and modern services like big comfortable seats, advance aircrafts and new e-ticketing system. These all thing not only distinguish the companies also helpful to attractive new customers for the company. (e.g. British Airways). Web. The airline has been enjoying the political stability particularly at the regional market. Need a custom Report sample written from scratch by BusinessEssay. During its 2012/2013 financial year, the firm allocated Dh. Online booking has improved the effectiveness and efficiency with which the Airline delivers unique experience to customers. In other words, the financial capabilities increase the company competitiveness within both the regional and the global market. The strategy is in contrast to the competitors who segregate the price of air ticket from the meals offered in-flight. Well write a 100%plagiarism-free paper this fast! Customers can now book their air tickets remotely as long as they have the internet access. 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. Strategic management of emirates airline professional specifically for you? Finally, the focus is on providing distinctive VIP services. However, choosing the right competitive strategy (cost leadership, differentiation or focus) requires knowledge of own and rivals cost structure. This approach will lead to improving the policies regarding customer services and to appearing the budget routes for travelers from different countries. Through departmentalization, the airline has been able to nurture a high level of managerial specialization. The advancements in technology have brought about new opportunities, increase the customer base and have enabled the airline to expand rapidly into new markets. The strategy is in line with countrys bid to host world major EXPOs 2020 and beyond. The remarkable record of Emirate Airlines: Product differentiation and cost control deliver exceptional performance Strategic Direction ISSN: 0258-0543 Article publication date: 10 February 2012 Permissions Downloads 9328 Abstract Purpose On the other hand, quantitative approaches entail analyzing historical data within a particular time series. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. 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. 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. The brand is popular because of the companys strategy to propose customers the high-quality services based on the work of the latest technology and skilled staff (The Emirates Group 8). Differentiation strategy is based on the market variables that are greatly valued by buyers. In principle, the firms strong market presence in leading airline markets presents the corporation with a fundamental competitive periphery over its rival competitors. "Emirates Airlines Company' Operations Management Practices." BusinessEssay. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. We inspire travelers around the world with our growing network of worldwide destinations, industry leading inflight entertainment, regionally inspired cuisine, and world-class service. Labor issues affect the employees productivity as well as the companies general output. The airports strategic position enables Emirates Airline to serve over 90% of the total passenger population through its non-stop flights. At the macro-environment level, operations and the strategic development of Emirates are most influenced by political, economic, and technological forces.
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