The choice of the Dubai International Airport as the airlines hub has also played a significant role in the firms success. must. Why More Companies Should Allow Employees to Work Remotely? The report by Bamber, Hoffer, and Nordenflycht shows that Emirates Airline has improved its efficiency by embracing technology at the booking offices, luggage management, and flight checking to avoid long queues at the airport (45). While the company was still at its infant stages, it was supported by some established airlines in the region particularly the Pakistan International Airlines. In order to evaluate the strategic management of Emirates, it is necessary to analyze macro-environmental factors that influence the development of the business focusing on political, economic, social, technological, legal, and environmental forces. The firm also trains its employees on the English language proficiency and management. The service providers, including airports, also belong to this group of stakeholders in relation to Emirates. Moreover, the firm is also in the process of upgrading its cabin amenities and changing the level of service provision within the economy class. The Strategies applied by Emirates airlines The major finding is that the formulation and implementation of appropriate Forecasting can enable businesses determine future capacities, inventory, and cost. Emirates Airlines Differentiation Strategy. Despite the notion that cost and differentiation advantages are reciprocally exclusive, the company should be able to maintain both. 22). Strategic Management Project: Emirates Airlines. In the global competitive markets including Dubai, the many airline and transport companies offer the consumers with a considerable power due to the availability of the services. The bottom line of all the strategies is the cost control strategy the firm has adopted in the recent years. Emirates Differentiation Strategy by Glen Molkenthin For example, the firm has automated a number of its services such as flight, car, and restaurant booking. The cabin crew is in a position to respond to dynamic customer and operational needs. Currently, Dubai International Airport plays a critical role in Emirates effort to establish new routes. Thus, it has developed an extensive airline partnership. This will reduce the airlines carbon emission (International Air Transport Association par. A report released by CAPA shows that the majority of the worlds airline companies are cautious of their capacity. Graeme, Wilson. Design and implementation of a human capital oriented balanced scorecard in an engineering service unit, Munchen: GRIN Verlag, 2007. The partnership has significant improved Emirates ability to serve customers beyond its destinations. The decision to adopt this dimension was informed by recognition of the importance of ensuring that its employees have adequate skills in order to provide optimal customer service. The above table shows that Emirates Airlines has experienced an increment in its carrying capacity over the past two years compared to the other major airlines, which have experienced a significant decline. Gecevska emphasizes that an organizations products and services should satisfy the customers requirements with reference to price, style, timing, performance, and function (323). One of the areas that the firm has focused on relates to integrating emerging Information Communication Technologies within its flights. Most countries in the region have experienced expansion in their economic growth, which have a positive influence in the overall income. 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. About process selection and facility layout operations management. Emirates Airlines has selected technology as its core market differentiation variable. 3). Emirates remains to be one of the most successful airlines in the Middle East. In line with its technological commitment, Emirates Airlines has implemented a knowledge-driven in-flight service [KIS] system. The airlines aviation college trains employees on different aspects, which include electronic, computer engineering, business management, aerospace engineering, and travel and tourism. In addition, Dubai will also be portrayed as stipulated in the objectives. In addition, in the same year, the firm operated a fleet of one hundred and seventy airliners of Boeing as well as Airbus models. Fourth, labor, fuel and aircrafts constitute the major inputs in the airline industry. Emirates business class lounge. The Emirates Group. The debt to equity ratio has decreased significantly in the last two financial years. The system aims at improving the airlines operational efficiency. The firms success has also emanated from its commitment in controlling the quality of services. Momadu, Ahmed. 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. WebStrategy Evaluation of. For the global and business strategies to attain the specified objectives, the firms must adopt both long-term and short-term financial, marketing and operational strategies enhanced by appropriate information systems and sound human resources management. In order to enhance its competitiveness, it is imperative for Emirates Airlines to consider the following issues. 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. WebThe 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 Emirates Airline - Strategic Analysis | Free Essay Example The Importance Of Differentiation Strategies For Airlines In fact, the company has continued to record financial growth since 2010 particularly in revenues and market capitalization. THE EMIRATES AIRLINES STRATEGIES - Grade Valley The plan involves the expansion of the companys business network by linking people all over the world. 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. One way of doing this is to uniquely modify its services to meet needs of its diversified customers (Winur and Winur 53). However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. The firm has adopted a comprehensive environmental policy, which has enhanced its ability to operate in an environmentally sustainable manner. 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. From the above analysis, it is evident that Dubai International Airport acts as an optimal location for Emirates Airlines. According to Black, the UAE is experiencing an increment in demand for air travel (par. 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. Airlines Industry-Emirates Airlines1 Strategic Management Assignment-2. 4). This aspect has played a critical role in improving the employees morale. The additional advantage is the high-skilled international personnel. Emirates Airlines collects data on the number of passengers it has carried within a particular period, for example one year. Engels, 2014. On the contrary, the company has also been affected by the rapid changes in technology that result in increased competition. If the significant fluctuations in the oil prices and changes in the financial markets are expected, the aviation industry in the UAE is at risk of having high losses because the currently followed strategy is oriented to the context of the rapidly developing economy. The company can benefit while concentrating more on the liberalization of its main strategy to address the needs of new markets. Through differentiation, the firm has been in a position to nurture a high level of customer loyalty. Product Emirates , owns fleet of 120 wide bodied aircrafts and flies to 108 destinations in 60 countries over 6 continents. The main financial strategy of the airline is to keep its costs under scrutiny particularly the cost of operations. Emirates Airlines operations are based on a number of shared values. However, the service costs customers an additional AED 25 on the regular trolley and AED 75 on flatbed trolley. Print. 1). 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. Moreover, an organization has to ensure that an optimal degree of contact is established. Emirates have many distinctive competencies, and their progress depends on providing the luxury services globally. In 2012 alone, the Emirates Airlines carried over thirty-four million passengers. Flying the flag for Dubai. Emirates Airlines Low Cost Strategy | ipl.org Mishra, David. (2020, July 9). The airline has implemented effective customer service programs such as in-flight entertainment, luggage assistance and high quality meals during the flights. Consequently, the firm has been in a position to address the consumers needs to stay connected while in the sky. Topic name: Strategy Evaluation of Airlines Industry-Emirates Airlines. Environmental laws also influenced policies of Emirates regarding the waste management and decreases in the water and energy consumption. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. 2). The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. In fact, the strategies implements a broad target competitive range that entails the utilization of both cost and differentiation advantages. Today, Emirates provides its services in more than 70 countries all over the globe, and its staff is more than 55,000 employees (Emirates Home par. 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). 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). Copyright 2023 - IvyPanda is operated by, Emirates Airlines Differentiation and Innovation, Bella Amore's Entrepreneur Operation Plan, Tesla Corporate Social Responsibility: Issues, Activities, and Strategy | Essay Example, Etihad Airlines' Products, Market and Expansion, Waiting Times and Formation of Queues in Banks, Naturalistic Observation of Racial, Gender and Social Class Stereotyping in Serving Clients in Public Catering. The financial strength the company has achieved over the years will enable the company attain strategic position in the industry. If you want to get in touch with our media team, please mail us on: If you're a customer and you have a general question about our services or would like some help, please Emirates Airlines is committed towards improving its capacity. Labor issues affect the employees productivity as well as the companies general output. Retrieved from https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. WebEmirate uses the premium pricing strategy because it offers luxurious and high quality services that merit more money as compared to other airlines. The airline serves over 150 cities, which are located in 74 different countries. The companys headquarter is in the city of Dubai and it employs over 28,000 people from all over the world (Graeme 36). student. The firm perceives competition to be a critical element in shaping and maintaining its organizational identity and competitiveness (Longernecker 45). The Exceptional Performance Strategies of Emirate Airlines. Competitiveness Review: An International Business Journal 21.5 (2011): 471-486. In essence, excellent quality customer services, efficiency, cost effectiveness should be the benchmark for evaluating the global expansion strategy of the company. Operations management is concerned with an organizations design and management of its services, supply chains, and products. The system was implemented through partnership amongst Hewlett-Packard, Microsoft, and the Emirates Group Information Technology department. Emirates Airlines does not only deal with passengers but also cargo, which is handled by Emirates SkyCargo. For instance, the company boasts of having largest revenues, fleet as well as the number customers served in the Middle East. "Emirates Airline's Differentiation and Innovation." 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. (2023, January 10). Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. This will improve its effectiveness and efficiency as a hub for the major airlines, such as Emirates. A Strategic study of Emirates Airlines 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. The firm introduced a new revenue forecasting and optimization system known as PROFI during its 2010/2011 financial year. The external opportunities and threats will be examined though the application of PESTLE analysis. In addition, the company has taken advantage of the both regional and global opportunities while utilizing its both internal and external strengths to increase its competitive advantage. Emirates Airlines is the part of the Emirates Group headquartered in Dubai, the United Arab Emirates (UAE). London: Trident Press, 2013. Web. Technology provides new ways through which customer satisfaction within the airline industry is enhanced. Wit, Bob, and Ron Meyer. Customers can now book their air tickets remotely as long as they have the internet access. 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. Products move through a number of stages in the course of their existence. Finally, the focus is on providing distinctive VIP services. . Strategy Evaluation Emirates Airlines Company' Operations Management Practices. Moreover, the layout of the airline into different departments has enabled the airline to be effective in formulating and implementing its short term and long-term operations. The success of the bid will see the Emirates profit soar. Longernecker, Justin. The airline has also implemented an AeroMobile system, which provides customers with an opportunity to use their mobile phone (Emirates 8). According to Cohen, Emirates Airlines is considered as one of the most innovative and forward-thinking airline companies (65). and the flag carrier BusinessEssay, 29 Nov. 2022, business-essay.com/emirates-airlines-business-strategy/. One way of doing this is to uniquely modify its services to meet Therefore, firms products and services should meet the customers requirements. As a result, new entrants can compete only in the sector while providing low-cost services and flights. Emirates Airlines is one of the rapidly developing airline companies in the world. Further, the delivery of airline gas is verified through the market forces. The tool provides customers with an opportunity to book complex itineraries. Having a good differentiation strategy creates (2023) 'Emirates Airlines Company' Operations Management Practices'. The airports strategic position enables Emirates Airline to serve over 90% of the total passenger population through its non-stop flights. This is IvyPanda's free database of academic paper samples. For example, the airline has increased the size of its fleet and launched new routes. 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. IvyPanda. Nataraja, Sundaram, and Abdulrahman Al-Aali. In addition, the labor force comprising the pilots, ground personnel as well as crew is usually unionized thereby offering the aircraft manufacturing companies reasonable bargaining power. 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. Web. At the macro-environment level, operations and the strategic development of Emirates are most influenced by political, economic, and technological forces. Print. The strategy is in contrast to the competitors who segregate the price of air ticket from the meals offered in-flight. The other problem is the considerable dependence on the governments support and oil prices in the global market. "Strategic Management Project: Emirates Airlines." (2021, July 23). 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). 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. 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