emirates airlines differentiation strategy

The firms success over the years can be attributed to its ethical foundations. An organization can have two main types of competitive advantage and they relate to differentiation and low cost. In marketing strategy, the company must continue improving its image. Emirates Airlines intends to position itself as a customer-centric organization. Print. The reduced cost in terms of wages falls within the reduced cost strategy of the airline and is significant in increasing the global competitiveness. The airport also acts as a hub to other international carriers. The airline began to operate in the 1980s, and it is the ownership of the government of Dubai. In addition, the company aims to expand globally and offer services in other regions beyond Middle East. The airline plans to increase its aircrafts to over 250 by 2020. WebIn examining the success strategies that Emirates Airlines, it is of particular interest to assess the market structure and the operation activities that the organization is putting up in response to the market demands. It targets those customers who demand better services regardless of price. Some of the airlines that have shown interest on the airport include the discount carriers, Wizz Air and Jazeera Airways. Consequently, it provides Emirates Airlines with an opportunity to serve a large number of customers. The company will be able to win market share based on discounted pricing. The airline is experiencing an annual growth rate of 16% with regard to passenger capacity. 13). Moreover, the company uses only the latest technologies to address the customers expectations (Nataraja and Al-Aali 476). https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/, IvyPanda. The airline has implemented effective customer service programs such as in-flight entertainment, luggage assistance and high quality meals during the flights. During its 2011/2012 financial years, Emirates announced a plan to boost its capacity with regard to international long-haul flights. WebThe pricing strategy of the Emirates Airlines will focus on setting the list price, credit terms, payment period and discounts. Print. July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. (2020, July 9). Momadu, Ahmed. The firm has positioned itself as a legacy by integrating innovative technology. In fact, the strategies implements a broad target competitive range that entails the utilization of both cost and differentiation advantages. 1. Emirates should utilize quantitative approach to forecasting. 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). The less influential group includes the press (Emirates Home par. THE EMIRATES AIRLINES STRATEGIES - Grade Valley 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 effort is geared towards ensuring that this firm offers top quality services to its clients at all times. The learning and development department undertakes the employee training process. assert that these competitive advantages lead to the development of three main generic strategies, which include focus, cost leadership, and differentiation (508). CSR for HR: A necessary partnership for advancing responsible business practices, Greenleaf: Sheffield, 2010. Oxford Business Group. Most of the Asian countries where the airline operates encourage trade through agreements relation to the aviation industry. A differentiation strategy focuses on what makes your business unique from others in the same industry or market. Thus, it has developed an extensive airline partnership. In 2010, Emirates Airlines was ranked first with regard to quality provision (Sambidge par. Designing product/service systems; a methodical exploration. Design Issues 18.3 (2002): 3-17. As such, the firm offers flight services to the tourists as well as businesspersons to the destination. Emirates Airline Overview. Print. Currently, the firm operates over 230 aircrafts. The special equipments have also contributed towards improvement in the airlines cargo 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. Time series approach to forecasting assumes that the past trends with regard to a firms performance will continue. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. The Emirates Group. The main threats for the further strategic development of Emirates are the progress of the rival companies in the air transportation or aviation industry; the changes in the fuel prices influencing the economy of the UAE; and the worsening of the current political and economic crises globally influencing the buying capacity of customers. Moreover, customers have an obligation to advice the cabin crew on their health conditions such as allergies. We will write a custom Report on Strategic Management Project: Emirates Airlines specifically for you for only 11.00 9.35/page. For example, the airline has increased the size of its fleet and launched new routes. ensure the integrity of our platform while keeping your private information safe. Emirates Airline - Strategic Analysis | Free Essay Example In the last financial year, the company has achieved its strongest cash flow recording the highest cash generated from operating activities. Therefore, the airport will provide Emirates Airways with an opportunity to differentiate its service provision by incorporating new and large airbuses in its fleet. This report on Strategic Management Project: Emirates Airlines was written and submitted by your fellow The most apparent strategy entails offering glamour in the first class bookings including showers and beds. 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). Within one year, the airline was able to save 57 hours with regard to trip time and 628 tons of fuel. "Emirates Airlines Business Strategy." The firms operations entail providing customers with commercial air transport services. class strategic resource management assignment help service Strategy Evaluation 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). Moreover, the porters assist customers to take their taxi or bus on arrival. 2). Moreover, operations management is concerned with how an organization utilizes its resources in order to deliver optimal services to customers (Eigenmann 45). This will remarkably improve the attractiveness of the airport to international airlines. Operations management: critical perspective on business, New Delhi: Global India Publications, 2009. The firm has improved its in-flight entertainment services (Pfeifer 334) by integrating new and emerging in-flight technologies such as Wi-Fi. In an effort to serve the growing market demand, the airline has ordered 198 new aircrafts at a cost of $ 71 billion, which are yet to be delivered. Subsequently, the firm considers its staff as its most valuable organizational asset. We will write a custom Assessment on Emirates Airlines Differentiation and Innovation specifically for you for only 11.00 9.35/page. Marketing strategy. Emirates can develop and increase its competitiveness while focusing on entering low-cost markets, targeting middle-class passengers, and expanding services in the larger number of countries. Through Investment Corporation of Dubai, the government channeled the money to be invested in the start up and expansion of the airline. 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. The Aviation Festival Middle East is a platform for airlines, airports and the aviation industry to address strategies for growth and development. The airports strategic position enables Emirates Airline to serve over 90% of the total passenger population through its non-stop flights. The company was established in 1985 after the government of Dubai set aside over $10 Million as a capital to be invested in the national carrier services. According to Tim Clark, the airline is able to save an average of 62 litters for every minute. The firm has integrated technology as its differentiation variable. The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. 2). It is possible to speak about more than 6 million of loyal customers using services of the company (Nataraja and Al-Aali 472). Over the years, the airline has been keen on the amount of the carbon emissions and has ensured that most of its carriers are fuel-efficient and reduces the amount of waste to the atmosphere (Doganis, 2002). July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. The choice of Dubai International Airport, as the airlines hub, was subject to a number of factors. However, new economic policies are emerging with most countries streamlining their economic strategies to suit their airline industry. Automation of the firms services also allows the firms customers to check the flight status online and manage their flight booking. As a result, the issue of diversity is important for the company. Abeyratne, Ruwantissa. The Hello Tomorrow plan is among the most innovative marketing strategies that the company should adopt to attain some of the major objectives. However, the service costs customers an additional AED 25 on the regular trolley and AED 75 on flatbed trolley. According to Hoshmand, managers can use time series to make current decisions and plans (1). 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. These stakeholders for Emirates are customers because their interests and satisfaction are the highest priority for the company. To develop sufficient competitiveness, it is imperative for Emirates to consider the most effective strategy to manage its capacity. Emirates Airlines also accesses the services of Dubai Metro, which has stations located at terminal 3 and 1. The airport provides the airline with an opportunity to connect to different continents, hence serving a large number of customers. The airlines commitment towards attaining an optimal market position is evidenced by the rate at which the firm is expanding its fleet size. For example, the KIS tablet has enabled the firms crew, who are over 17,000, to interact with one another. In other words, the company strategies aim at attaining the global competitiveness in the aviation industry. Stakeholders in the airline industry are numerous. Despite the notion that cost and differentiation advantages are reciprocally exclusive, the company should be able to maintain both. In this strategy, company provides different services to the passengers such as first class private seat. Emirates Airlines has organized its operations into a number of operational areas commonly known as departments as illustrated herein. 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. Print. These recommendations are important to contribute to enhancing the companys long-term performance. Specifically, the firm should adopt the moving-average method of forecasting. The strategy is in contrast to the competitors who segregate the price of air ticket from the meals offered in-flight. London: Media Prima, 2014. The company further develops the course for expanding the markets. Upon its entry in the UAE airline industry, the firm had a fleet size of only two aircrafts, which included a 300 B4 Airbus and a leased 737 Boeing; however, the firm has been constantly expanding its network. Consequently, the firm is continuously evaluating how it can leverage on new technologies in order to improve the customers travel experience and its operational efficiency at every point of its operation (Chennai 360 par. The constant improvement of the provided services quality is a priority for Emirates. Much attention is paid to training the personnel and to guaranteeing the safety of clients during flights (Nataraja and Al-Aali 476). Moreover, an organization has to ensure that an optimal degree of contact is established. However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. Strategic Management Project: Emirates Airlines. The plan involves the expansion of the companys business network by linking people all over the world. Emirates regularly launch the environmental projects and participate in the governmental programs oriented to protecting natural resources in the country (Emirates Home par. On the contrary, global operations open up the airline for increased competition from well-established multinational airlines. The costs associated with buying new aircrafts for the fleet are rather high for Emirates today. This decision was arrived at after recognition of the Airports Authority effort to expand the airports capacity by 20%. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. Moreover, the airport authority intends to hasten the construction of the new Al Maktoum International Airport. Taye, T. (2006). Subsequently, the airline has implemented the most generous baggage policies in the world. Web. The strategies will be evaluated depending on the level of achievements of the company global expansion objectives.

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