However, the airline is contemplating introducing a crew-transport-optimization programme and a hybrid baggage tractor. 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. Emirates Airlines is one of the major government owned companies in UAE. 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. 4). The capability of the company to settle its debts is also depicted in the growth of equity. In addition, the company should also be associated with excellent companies that offer complementary services to enhance quality to the customers. 15). Integration of effective operations management has also enabled the firm to attain a high level of success. visit our help centre
Consequently, firms select the most valued attributes as its market differentiation variables. In addition to the above forms of ground transportation, the airline is also served by buses, which are operated by RTA. In other words, the financial capabilities increase the company competitiveness within both the regional and the global market. In addition, the company should strategize on how it should enjoy economies of scale by purchasing airliners en-mass. Print. Emirates has been able to maintain its competitive advantage by offering a differentiated product and focusing on The airline is cognizant of the importance of creating a unique customer experience. As a result, the stiff competition typically leads to surplus seat capacity in competitive markets. Emirates two longest serving pilots, with over 34 years of service, joined the airline on the same day in 1989. According to a report by the Oxford Business Group, Emirates Airlines is ranked as one of the biggest contributors in the transformation of air transport in the Gulf region (76). In this context, passengers often choose cheaper services while planning their business or holidays trips. DUBAI, U.A.E Emirates will continue with its growth trajectory, in The companys business strategy should also encompass both the cost and differentiation advantages leading to the sustainability of the companys long-term strategies. Cole defines ASK as the measure of a flights passenger carrying capacity, which is calculated by multiplying the number of seats on an aircraft by the distance travelled in miles (187). must. The growths in both the profit margins and the returns on the shareholders capital have been consistent since the 2009 financial year. Emirates Airlines is the part of the Emirates Group headquartered in Dubai, the United Arab Emirates (UAE). In addition, Dubai will also be portrayed as stipulated in the objectives. The internal opportunities and threats will be examined through the SWOT analysis. 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. CAPA Centre for Aviation: Worlds largest airlines cautious with capacity; some big moves in global airline ranking 2012. Customers can also access additional allowances depending on their Emirates Skwards membership, which includes gold, silver or platinum membership. On the contrary, the company has also been affected by the rapid changes in technology that result in increased competition. BusinessEssay. The firm has integrated effective programmable automations in order to provide its customers with high quality services. One way of doing this is to uniquely modify its services to meet needs of its diversified customers (Winur and Winur 53). Subsequently, departmental heads have sufficient powers to control and make decisions that affect their respective departments. Therefore, it is fundamental for airline companies in the country to plan their capacity. This paper is primarily centered on the assessment of Emirates Airlines strategic management plan. For example, the airline ensures that its departmental heads possess special skills and knowledge to handle the operations of the department. Emirates Airline Overview. The firms success has arisen from integration and adoption of effective management practices. 1). Moreover, an organization has to ensure that an optimal degree of contact is established. The Emirates Group. Emirates operates in the airline industry while proposing the high-quality and even luxury services. Numerous full and low cost airline companies are entering the market in an effort to maximize their profitability. Total quality management: an integrated approach, New Delhi: Excel Books, 2005. 2). The firm introduced a new revenue forecasting and optimization system known as PROFI during its 2010/2011 financial year. Since 2011, Emirates Airline has adopted a consistent marketing strategy, which premises in three pillars. Thus, today Emirates is the widely known brand that has a feature of adapting to the market needs. The data is then used to predict the future. 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. These facilities enable Emirates Airlines to be effective in certifying the customers travel documents. The company financial performance have improved over the years despite the 2008/2009 financial crisis as well as weather drawbacks experienced in the major Western European markets. (2022, November 29). IvyPanda. The bags are wrapped using a strong transparent plastic hence maintaining their condition. The reason is that authorities reviewed their approaches to legal norms, tax policies, and laws regarding the operations in the industries supported by the government (Emirates Home par. In an effort to ensure a high level of synergy, the airline has adopted an effective layout with regard to the various departments. This will improve the firms ability to serve the 70 million customers across the six continents. 2013. Therefore, the rivalry is intense in the UAE, among the airlines of the Gulf region, and in the Middle Eastern region. The reduced cost in terms of wages falls within the reduced cost strategy of the airline and is significant in increasing the global competitiveness. 1). Emirates Airline Differentiation Strategy Glen Molkenthin Structure Structure 1. The level of competition in the airline industry among the market leaders is high, especially with references to concrete regions. The competition in the industry increases and recommendations for Emirates should also include the market expansion. The process of designing and developing new services in Emirates Airlines is undertaken under the auspices of the engineering department. Web. Moreover, the firm has expanded its fleet size in an effort to serve the prevailing market demand. However, today trade opportunities for airlines are rather limited because different nations all over the globe changed their courses regarding relations within the aviation sector due to the complicated political situation. Hoshmand argues that it is essential for business managers to integrate both domain knowledge and statistical analysis in the process of forecasting (1). Your privacy is extremely important to us. 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. 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. The runways are equipped with effective technologies, which enable the airlines to land and takeoff safely even under poor weather. In principle, the firms strong market presence in leading airline markets presents the corporation with a fundamental competitive periphery over its rival competitors. July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. The current financial situation in the region also affected the progress of the company, and it had to review its industry for the following fiscal year. The positive consequences of this process are the creation of the more open airline industry and more possibilities for increasing the competitive advantage globally. Emirates Airlines projects to fly 70 million passengers by 2020. 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 airline has designed a comprehensive baggage service. The Middle East, 1(2), 51-52. 2023. The airline serves over 150 cities, which are located in 74 different countries. The airline has implemented effective customer service programs such as in-flight entertainment, luggage assistance and high quality meals during the flights. "Emirates Airline's Differentiation and Innovation." Through departmentalization, the airline has been able to nurture a high level of managerial specialization. They established their products as ethical and handmade, whereas their competitors provide manufactured and impersonal products. They also worked to create a unique and hands-on customer experience in their stores where you can try things out and get to know the products before you buy. Emirates. The objective of the installation was to provide customers with an opportunity to listen to music through their iPods and video players. Moreover, the airline was awarded as the best airline with regard to the provision of in-flight entertainment. 9). Web. 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). Web. The airline has highly skilled employees that are rarely demand for higher wages. As a result, low cost carriers are surfacing and intensifying competition. IvyPanda. According to the Airlines management team, the airport will continue to serve as its home for the next 15 years. The cost controls should be the major aim of the financial strategy (Sundaresan, 2013). Operations management: critical perspective on business, New Delhi: Global India Publications, 2009. 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. In line with the above services, Emirates Airlines appreciates the importance of offering customers high quality meals. In marketing strategy, the company must continue improving its image. BusinessEssay, 10 Jan. 2023, business-essay.com/emirates-airlines-company-operations-management-practices/. This confirms the high demand for large aircrafts in the region in order to meet the growing air traffic. In 2001, the firm ordered 58 new aircrafts, which comprised Boeing and Airbus models. Finally, the focus is on providing distinctive VIP services. The selected organization employs a differentiation strategy which enables it to constantly improve The organization of the terminals has provided Emirates Airlines with an opportunity to serve diverse customer groups. The airline has been keen on differentiating its products from those which are by the rival firms. custom Emirates Airlines Business Strategy, Wal-Mart's Retail Strategy Plan in Canada, Etihad Airways Marketing Plan: Market Entry to Bangkok, Al Safeer Company Information Systems Management, Emirates Group Human Resources Collaboration, Unilever Company: Consulting Business-to-Business, Apple Objectives, Goals for the Future, and Mission: Procurement Analysis, Standard Oil Companys Operations and Competition, Emirates Steel Company: International Business and Globalisation, To be cost effective in all its operations, To be financially sound, stable and remain profitable in the industry, To be modern, innovative and customer oriented air travel services provider, To position the Airline as the leading carrier choice within the Gulf and the world market, To put Dubai at the center stage in modern commercial activities in the middle east, To provide excellent airline customer services in the region and beyond, To enhance the brand image and position of the airline in the aviation industry. In a bid to enhance the likelihood of success, it is imperative for businesses to forecast the future. In fact, most of the services are provided at the clients convenience through the application of technology. On the contrary, the firm is committed towards seeking new opportunities to do things in a better way. Departmentalization has remarkably stimulated Emirates growth and expansion. Over 250,000 Australians visited Dubai last year, largely reflecting the convergence of both airlines networks. Although the public activities of Emirates are high, the company does not pay much attention to communicating with the press while choosing the other media to promote its services (Fig. Therefore, the airline can utilize the opportunities brought about by globalization to expand into the new markets. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. "Emirates Airlines Company' Operations Management Practices." Rao, Hari. The International Air Transport Association further opines that the industrys growth will continue into the future. In spite of using the successful strategy that is oriented to increasing the brand loyalty and quality of services, Emirates can face problems in the future associated with the lack of the appropriate diversification strategy. The Pakistan International Airlines supported the new airline with managerial and technical skills necessary to bring up the company from the ground (Yip, 2002). 16). 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. Emirates Airlines is committed towards developing a high level of customer satisfaction. This will remarkably improve the attractiveness of the airport to international airlines. 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). All Rights Reserved. Currently, Dubai International Airport plays a critical role in Emirates effort to establish new routes. Web. "Emirates Airlines Business Strategy." 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. (2020) 'Emirates Airline's Differentiation and Innovation'. Moore, Carlos, Justin Longenecker, William Petty, and Leslie Palich. Automation of the firms services also allows the firms customers to check the flight status online and manage their flight booking. In addition, the UAE have also signed trade agreements with other countries outside the region including US and most of the European countries. The International Air Transport Association (par. In line with its safety policy, Emirates has formulated a comprehensive aircraft maintenance programme. According to Black, the airline industry in the UAE is expected to undergo a rampant growth (par. Consequently, the road provides customers easy access to the airport. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. Print. Emirates growth strategy on track. PDF file. Businesses can utilize two main approaches in their forecasting processes, which include quantitative and qualitative approaches. The effort is geared towards ensuring that this firm offers top quality services to its clients at all times. WebStrategy Evaluation of. 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 marketing strategy includes popularizing its brand within the region and in the global market. Besides, technology should also be adopted while designing the global expansion strategy for the company. The airlines process selection and facility layout also entails automating its operations. "Strategic Management Project: Emirates Airlines." 13). 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. Secondly, over short expanses, alternative substitutes to air travel are in wide ranges. An organization can have two main types of competitive advantage and they relate to differentiation and low cost. All the firms operations depart from terminal 3 at the Dubai International Airport. Product Emirates , owns fleet of 120 wide bodied aircrafts and flies to 108 destinations in 60 countries over 6 continents. Mishra defines operations management as the management of the conversion process, which converts land, labor, capital, and management inputs into desired outputs of goods and services (88). Customers can choose among different services proposed by a number of companies in the industry (Oxford Business Group 54). BusinessEssay. Morelli, Nicola. 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. 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. Topic name: Strategy Evaluation of Airlines Industry-Emirates Airlines. Differentiation strategy is based on the market variables that are greatly valued by buyers. From this point, it is important to provide recommendations for Emirates regarding the improvement of the strategic development in the long-term perspective. BusinessEssay. 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. The company can benefit while concentrating more on the liberalization of its main strategy to address the needs of new markets. The partnership has significant improved Emirates ability to serve customers beyond its destinations. The financial liability mostly incurred during the financial crisis has been cited as the major point of the company weakness. The core of Emirates network strategy and Dubai hub were also discussed, in addition to Emirates view on alliances and strategic partnerships. All the locations where the company operates form the spread of the firms income. 2). The firm projects that its customer base will increase into the future. Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. The firm is entirely owned by the Dubai government and it ranks as the largest airline company in the Middle East. "Emirates Airlines Company' Operations Management Practices." The firm will be in a position to establish the trend with regard to change in the volume of its customer base. Thus, 60% of the companys costs are associated with investing into the research and development department (The Emirates Group 4). Cole, Staurt. Emirates: Emirates continues rollout of in-flight product innovations 2012. Improving Service Quality Delivery by the Cabin Crew in Air Mauritius Ltd Using TQM, Google Inc.'s Organizational Behavior and Creativity, MDS Corporation's Training Needs Analysis, Sackrider Museum of Handbags: Hybrid Business Model. New York: Cengage, 2015. One way of doing this is to uniquely modify its services to meet Current legal policies and norms regarding operations of the airline industry in the UAE can be viewed as supporting the further growth of Emirates. Wit and Meyer argue that the fundamental basis of above-average performance in the long run is sustainable competitive advantage (268). Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. 10 January. It is estimated that the firm operates approximately 3,400 flights every week from its main hub, which is located at the Dubai International Airport (Emirates par.3). In this context, it is necessary to propose Emirates to focus more on adapting to market trends in terms of planning to address the larger group of customers. 29 November. Global Integration The main factors that determine the global success of a multinational include technological and economic factors among others. BusinessEssay. 2015. Most countries in the region have experienced expansion in their economic growth, which have a positive influence in the overall income. Therefore, it is important for the firm to forecast the demand in order to plan effectively (International Air Transport Association par. Course: Strategic Management MGT4802(GEN) Submitted to: Major General (Retired), Bir Protik Prof. Alauddin M A Wadud Submitted by: Group-1 Fabliha Anbar B18231006 Nabil The other problem is the considerable dependence on the governments support and oil prices in the global market. Print. Through automation, the firm has been in a position to provide customers with high quality services. The firm recognizes the importance of developing a strong human capital base. For example, the firm has automated a number of its services such as flight, car, and restaurant booking. Airlines of the United Arab Emirates: Emirates, Etihad Airways, Emirates Sky-cargo, Air Arabia, Daallo Airlines, Rak Airways, Fly-Dubai, Rus Aviation. According to Hoshmand, managers can use time series to make current decisions and plans (1). Emirates is the largest airline in the UAE that operates in more than 70 countries all over the globe. The flow of migrants in the UAE is high, and the job in Emirates is discussed as one of the most attractive ones. The first pillar involves marketing the companys hub In addition, the returns on the shareholders funds also grew from 21.6% to 28.3% representing 6.8% growth. Firms in the service sector can greatly benefit from effective forecasting (Hoshmand 4). Therefore, depending on the political situation in the region, Emirates had to change their business course, review activities according to recent trends in the open skies policy, and refer to the support of the Government of Dubai (Emirates Home par. Emirates remains to be one of the most successful airlines in the Middle East. Emirates needs to determine what new travel routes can be discussed as most beneficial for them in order to attract more customers as representatives of different income groups. Emirates Airlines Company' Operations Management Practices. Hoshmand asserts that businesses are increasingly evaluating the most effective strategies to adopt in order to enhance their financial performance (1). 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 firm is ranked as the third largest airline company in the world. To achieve the aims, the company has put in place various objectives that include. Kerzner, Holwad. Moreover, the marketing strategy is also based on the services delivery.
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