emirates airlines differentiation strategy

In 2010, Emirates Airlines was ranked first with regard to quality provision (Sambidge par. 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 addition, during several years, Emirates realizes the strategy oriented to buying more aircrafts and expanding the fleet. However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. According to Tim Clark, the airline is able to save an average of 62 litters for every minute. 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. Strategic Management of Emirates Airlines | Proceedings of the PDF file. What Is Emirates Marketing Strategy? In other words, most of these countries revenues per capita are higher and thus capable of using air transport. According to the Airlines management team, the airport will continue to serve as its home for the next 15 years. The increases indicate the growth in gross, operating and net margins of the company. Harvard Business Review, 4(2), 87-94. Print. Consequently, firms select the most valued attributes as its market differentiation variables. For example, the airline has integrated an online booking system. 2). 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. Products move through a number of stages in the course of their existence. The airline brand positioning is founded on the delivery of high quality services and is perceived as the youngest company with advanced fleet and quality services aimed at satisfying the needs of the customers. Moreover, the firm has integrated other ground transport systems such as through buses, cars, and rail. The charges per bag as illustrated below. Exploring Corporate Strategy, New York: Prentice Hall, 2008. Emirates Airline.docx - OPERATIONS MANAGEMENT This report on Strategic Management Project: Emirates Airlines was written and submitted by your fellow Subsequently, the firm is able to provide new technological solutions hence optimizing its performance. The firms passenger capacity increased to 39 million during its 2012/2013 financial year. For example, the KIS tablet has enabled the firms crew, who are over 17,000, to interact with one another. The firm has pursued global integration in the past two years as a business model for expansion into the new markets. While the company was still at its infant stages, it was supported by some established airlines in the region particularly the Pakistan International Airlines. 2). The Emirates Airlines major aim is to strive in order to increase mobility and connecting people all over the globe. Web. Emirates Airline Overview. IvyPanda. In addition, the returns on the shareholders funds also grew from 21.6% to 28.3% representing 6.8% growth. The airline continues to work on various initiatives, in partnership with Dubai International Airport, to help ease slot congestion. The data is then used to predict the future. 1. The SWOT (strengths, weaknesses, opportunities, and threats) analysis is important to demonstrate what internal factors can influence the strategic development of the company. The other recommendation is associated with the necessity to address the increasing competition in the industry. 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. This has played a critical role in enhancing the customers level of satisfaction. According to Black, the UAE is experiencing an increment in demand for air travel (par. These stakeholders for Emirates are customers because their interests and satisfaction are the highest priority for the company. The operations of the new technology team entail ensuring that the firms technologies align with the prevailing technological innovation in the industry. Accept cookies to experience the full functionality of this page. All the locations where the company operates form the spread of the firms income. Through employee training, the firm has equipped its workforce with sufficient skills to serve customers. We utilize security vendors that protect and The firm has added 34 new aircrafts to its fleet. 16). Chennai 360: Emirates harnesses new technologies to deliver better travel experiences 2013. The firm introduced a new revenue forecasting and optimization system known as PROFI during its 2010/2011 financial year. London: Media Prima, 2014. The airline has adopted strategies that ensure environmental sustainability and improves the corporate image. Airlines of the United Arab Emirates: Emirates, Etihad Airways, Emirates Sky-cargo, Air Arabia, Daallo Airlines, Rak Airways, Fly-Dubai, Rus Aviation. As a result, Emirates operates in the context of the open skies policy promoted by the government of Dubai, and its commercial potential is constantly increasing (Oxford Business Group 28). The firms Engineering Projects section is comprised of employees who are experts in designing and developing new services. Your privacy is extremely important to us. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. One way of doing this is to uniquely modify its services to meet BusinessEssay. The selected organization employs a differentiation strategy which enables it to constantly improve Emirates Airlines projects to fly 70 million passengers by 2020. Sambidge, Andy. The firm also trains its employees on the English language proficiency and management. Differentiation Strategies Subsequently, it is imperative for the firm to plan whether its current infrastructure such as aircrafts and airbuses will support this growth (Emirates par. Further, the company continues to face cutthroat competition emanating from the mergers among the competitors. The airline has established a number of subsidiaries, which include Emirates Tours, Arabian Adventures, Emirates Holidays, and Congress Solutions International. This enables the airline to optimize on its routes and to plan its flights with high efficiency. 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. In essence, excellent quality customer services, efficiency, cost effectiveness should be the benchmark for evaluating the global expansion strategy of the company. 2). Current legal policies and norms regarding operations of the airline industry in the UAE can be viewed as supporting the further growth of Emirates. 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. Bamber, Georhe, James Hoffer, and Dennis Nordenflycht. As Emirates Airline distinguishes its fleet from other competitors like Qatar and Etihad Airlines, the airline creates value for itself. Purpose The purpose of this paper is to investigate the strategies and competitive advantages of Emirate Airlines that have led to exceptional performance In most cases, the firm undertakes in-house training in order to uphold the differentiation strategy. The airline has highly skilled employees that are rarely demand for higher wages. The financial objective of the company is to attain effectiveness and efficiency in all the operations of the company. Up In the Air: How Airlines Can Improve Performance by Engaging Their Employees. Emirates Airlines Company Operations Management Practices, custom Emirates Airlines Company Operations Management Practices, Sears Company's Transaction Processing System, Red Bull Company's Global Marketing Strategy, Emirates Marketing Strategy and Success Factors, Abu Dhabi National Oil Company: Market Analysis, Automotive Fun and Service Company: Business Plan, Salesforce Companys Customer Relationship Management, IPhone 5: Operation Management and Supply Chain, Holiday Seekers and Small World Companies: Management Plan, Whole Foods Market Companys Strategic Audit, BlackBerry Business Strategy [Compared to Apple & Motorola], Emirates Airlines hits new heights with 52% rise in profit, About process selection and facility layout operations management, Percentage change Aug. 2012 versus Aug. 2011, Percentage change Aug. 2012 versus Aug. 2010. Departmentalization has remarkably stimulated Emirates growth and expansion. Designing product/service systems; a methodical exploration. Design Issues 18.3 (2002): 3-17. Currently, the firm is ranked as the leader with regard to the number of its A380s, which are the largest aircrafts in the world. Product lifecycle through innovation and competitive business competitive business environment, Turin: University of Maribor, 2010. In fact, new competitors often collaborate with each other in their operations thereby benefiting from the economies of scale. 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. The accumulation of debts and reduction in net of operating cash pose serious bottlenecks for Emirates Airline Company to settle its borrowings. Therefore, it is important for the firm to forecast the demand in order to plan effectively (International Air Transport Association par. The firm has used technology to gain competitive advantage over other airlines. The new routes has emanated from addition of more Airbus 380s. IvyPanda. 3). Marketing strategy. The exceptional performance strategies of Emirate Airlines The firms success over the years can be attributed to its ethical foundations. Time series approach to forecasting is very effective in making future decisions. Ghuman, Kennedy. of the United Arab The operations of the company cover the Middle East, America, Europe as well as Asia. Emirates Strategy visit our help centre For example, the airline ensures that its departmental heads possess special skills and knowledge to handle the operations of the department. Currently, Dubai International Airport plays a critical role in Emirates effort to establish new routes. 5). 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 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. The airline has also formulated effective ground operation measures, which have enhanced its ability to reduce carbon emissions emanating from the diverse ground operations. 2). 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. For instance, the company boasts of having largest revenues, fleet as well as the number customers served in the Middle East. professional specifically for you? These recommendations can be discussed as effective to contribute to the improvement of the companys long-term performance. The company will be able to win market share based on discounted pricing. 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). IvyPanda, 23 July 2021, ivypanda.com/essays/strategic-management-project-emirates-airlines/. BusinessEssay. The airlines commitment towards attaining an optimal market position is evidenced by the rate at which the firm is expanding its fleet size. The firm is ranked as the third largest airline company in the world. Customers can also access additional allowances depending on their Emirates Skwards membership, which includes gold, silver or platinum membership. 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. On the same note, the companys customers continue to increase at an annual rate of fourteen percent. The Pakistan International Airlines supported the new airline with managerial and technical skills necessary to bring up the company from the ground (Yip, 2002). Emirates Strategy Analysis The company aircrafts carry the EXPO 2020 logo to ensure the promotion of the cause. 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. We will write a custom Assessment on Emirates Airlines Differentiation and Innovation specifically for you for only 11.00 9.35/page. Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. 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). 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). IvyPanda. According to Hoshmand, managers can use time series to make current decisions and plans (1). November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. Qualitative approaches to forecasting relate to the Delphi approach, scenario writing, and interactive or subjective approaches. Specifically, the firm should adopt the moving-average method of forecasting. In other words, the financial capabilities increase the company competitiveness within both the regional and the global market. This paper explores and examines the competitive advantage of Emirate Airlines. At the current stage, the main focus is on entering the regional markets covered by the North American companies (The Emirates Group 5). The above analysis shows that Emirates Airlines is ready to cope with the growth in the aviation industry in the Middle East. In this strategy, company provides different services to the passengers such as first class private seat. One way of doing this is to uniquely modify its services to meet needs of its diversified customers (Winur and Winur 53). Emirates Airlines Strategic Planning & Marketing Such policies remain a threat to the airlines expansion strategies. In fact, by the end of March 2012, the companys long-term liabilities were approximated at $7300 million. On the contrary, the firm is committed towards seeking new opportunities to do things in a better way. Total quality management: an integrated approach, New Delhi: Excel Books, 2005. Shah, Biren. Airlines such as Emirates and Singapore Airlines have been able to charge a premium price for their services by offering a unique product. The airline has positioned itself as the pioneer with regard to sustainable air travel. Most of the governments in the Middle East and Asia pacific where the airline operates initially operated within the protective policies. Emirates Airlines business operations are extended across various markets. 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. The largest airline 2010. During its 2012/2013 financial year, Emirates announced a plan to include three additional destinations in its routes. Additionally, the company should offer free food to its customers. On the other hand, the operational issues relate to inventory management, material handling and traffic, scheduling, and production amongst others (Shah 112). Web. Other infrastructures relate to taxiways and flower centers. By organizing its operations into different departments, Emirates Airlines has been able to boost the employees morale hence leading to improvement in the organizations operational efficiency. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. The Porters Fiver Forces analysis is important to study how specific features of the industrys development can be used to increase the competitive advantage of Emirates. As a result, the issue of diversity is important for the company. 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. The airline has equipped all its aircrafts seats with an SMS and email service. 9). 1). Tonya Russell Emirates is reportedly one of the first major airlines to have started unbundling its business class offering back in 2019. Web. Wit and Meyer argue that the fundamental basis of above-average performance in the long run is sustainable competitive advantage (268). The company follows the strategy of a pioneer in providing services while addressing individual needs of clients and improving the technological platform. WebThe pricing strategy of the Emirates Airlines will focus on setting the list price, credit terms, payment period and discounts. 15). 2015. The firm is entirely owned by the Dubai government and it ranks as the largest airline company in the Middle East. Emirates Airlines Business Strategy. Some of the airlines that have shown interest on the airport include the discount carriers, Wizz Air and Jazeera Airways. The firm has experienced a significant increment in the level of its profitability over the past 25 years. On the contrary, the company has also been affected by the rapid changes in technology that result in increased competition. The airport provides the airline with an opportunity to connect to different continents, hence serving a large number of customers. Therefore, the government of Dubai and the UAE authorities need to be not only regularly informed on the progress of the airline industry but also be kept satisfied (Emirates Home par. It is possible to speak about more than 6 million of loyal customers using services of the company (Nataraja and Al-Aali 472). Consequently, the road provides customers easy access to the airport. (2023, January 10). Actually, the strategy has seen the company acquire significant market share thereby expanding its operational complex. Print. These facilities enable Emirates Airlines to be effective in certifying the customers travel documents. 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. The firm intends to establish new destinations. The firms success has arisen from integration and adoption of effective management practices. Print. The airline also intends to enhance its customers efficiency while travelling across different destinations. Online booking has improved the effectiveness and efficiency with which the Airline delivers unique experience to customers. Its innovation strategy is not limited to fleet expansion as it also extends to its workforce. Emirates has been able to maintain its competitive advantage by offering a differentiated product and focusing on In fact, the rivalry is evident in the pricing where severe undercutting is common. The strategy is in contrast to the competitors who segregate the price of air ticket from the meals offered in-flight. Moreover, the firm has introduced 10 new routes. The threats of intense competition as well as mergers among the surfacing companies emanate from a number of aspects. Longernecker, Justin. The figure below shows a comparison of the major airlines capacity from 2010 to 2012. Subsequently, the airline is able to guarantee its customers security with regard to their cargo. WebEmirates Airlines Strategies The long-haul, low cost carrier strategy Emirates is differentiated as a legacy airline where advanced technology, staff skills and ancillary In addition, the company should strategize on how it should enjoy economies of scale by purchasing airliners en-mass. 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. Wit, Bob, and Ron Meyer. Emirates have many distinctive competencies, and their progress depends on providing the luxury services globally. This will remarkably improve the attractiveness of the airport to international airlines. This approach will lead to improving the policies regarding customer services and to appearing the budget routes for travelers from different countries. The growths in both the profit margins and the returns on the shareholders capital have been consistent since the 2009 financial year. Need a custom Report sample written from scratch by 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. 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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