By adopting the tool, the airline has been in a position to implement optimal level of customer service. As a result, the issue of diversity is important for the company. According to Black, the airline industry in the UAE is expected to undergo a rampant growth (par. Moreover, the airport has a well-designed VIP pavilion. The firm has used technology to gain competitive advantage over other airlines. Black further asserts that Emirates Airlines has experienced the highest increment in its capacity in 2013 (par. IvyPanda. These facilities enable Emirates Airlines to be effective in certifying the customers travel documents. The airlines training programs are held at the Emirates Aviation College, which is located in Dubai. We will write a custom Assessment on Emirates Airlines Differentiation and Innovation specifically for you for only 11.00 9.35/page. The core of Emirates network strategy and Dubai hub were also discussed, in addition to Emirates view on alliances and strategic partnerships. From the above analysis, one can assert that Emirates Airlines has managed to attain an optimal market position over the past two decades. This trend is mainly evident in the emerging markets such as the UAE. Other benefits that the airline has gained from departmentalization include attainment of a high level of administrative control, intra-departmental co-ordination and fixation of responsibility on the various departmental heads. This will lead to improvement in the airlines capacity to serve its key routes such as the Tokyo-Narita route. The firm has pursued global integration in the past two years as a business model for expansion into the new markets. Emirates Airline has increasingly gained a firm position as one of the leading global airlines in terms of the fleet size, work force as well as profitability. The threat of new entrants in this industry is minimal because of the necessity to have significant capitals, propose differentiated services, and gain the customer loyalty within the short terms. Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. Subsequently, the airline is able to guarantee its customers security with regard to their cargo. and the flag carrier In essence, the firm has been increasingly entering into strategic alliances with leading companies as well as acquiring emerging companies. "Emirates Airlines Business Strategy." The UAE policies regarding the protection of the environment are rather strict, and Emirates is one of those companies that concentrates on the development of effective and working sustainable programs. Topic name: Strategy Evaluation of Airlines Industry-Emirates Airlines. If Emirates Airlines decides to choose the price penetration strategy, it will have to set the lower price than competitors. For example, departmentalization has contributed towards improvement in the level of job satisfaction amongst employees. In fact, the company has continued to record financial growth since 2010 particularly in revenues and market capitalization. Operations Management (OM) is a fundamental component in the success of businesses. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. In an effort to ensure a high level of synergy, the airline has adopted an effective layout with regard to the various departments. Print. 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). The airline has gained insight on how to manage and improve its capacity. The airline also collaborates with other partners hence enhancing its capacity to utilize flexible air-traffic routes. Despite the view that the airline is wholly owned by the Dubai government, the firm is independent in its operation. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. The buses also provide travelers with transport facilities to over 80 hotels and restaurants located within Dubais city centre. Rahman, Khadiza, Sumi Azad, and Sabnam Mostari. Strategic Management Project: Emirates Airlines Report (2020, July 9). In this regard, the firm has realized significant steps in averting competition. For example, the airline has increased the size of its fleet and launched new routes. Strategy process, content, context; an international perspective, Hampshire: Cengage Learning, 2010. In order to enhance its competitiveness, it is imperative for Emirates Airlines to consider the following issues. One of the areas that the firm has focused on relates to improvement on its internal systems efficiency. The firm has experienced a significant increment in the level of its profitability over the past 25 years. It has best air fleet, co-operative staff, well-trained engineering and support team and well-known brand. 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. This will remarkably improve the attractiveness of the airport to international airlines. 12). The firms Engineering Projects section is comprised of employees who are experts in designing and developing new services. (2020, July 9). The main principle of Emirates has to underlie in service and quality. Check-in online within 24 hours and 90 minutes before flight departure. BusinessEssay. Consequently, the firm has been in a position to introduce new products and services. In addition, the financial strength is critical in the firms global expansion strategy. Print. The firm is entirely owned by the Dubai government and it ranks as the largest airline company in the Middle East. Additionally, the company should offer free food to its customers. The process of designing and developing new services in Emirates Airlines is undertaken under the auspices of the engineering department. Numerous full and low cost airline companies are entering the market in an effort to maximize their profitability. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. An organization can base its differentiation strategy upon different elements. 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). Print. The firms operations entail providing customers with commercial air transport services. The less extent to which labor issues have affected the company presents an opportunity for the company to expand while constantly improving the welfare of its workforce. 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 The Emirates story started in 1985 when we launched operations with just two aircraft. Currently, the firm is ranked as the leader with regard to the number of its A380s, which are the largest aircrafts in the world. student. Moreover, positioning enables a firm to survive in an industry characterized by ineffective structure. 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 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. The bags are wrapped using a strong transparent plastic hence maintaining their condition. First, the growth in the airline industry has encouraged the entry of new investors into the industry. Print. Further, the company continues to face cutthroat competition emanating from the mergers among the competitors. Moreover, the firms employees are committed in ensuring that their activities do not contribute to environmental pollution (Emirates par. This approach will lead to improving the policies regarding customer services and to appearing the budget routes for travelers from different countries. The team is comprised of highly qualified training specialists, teachers, and professors. Print. 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. Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. General Information 2. However, it is imperative for organizations to ensure that their differentiation strategies are effectively formulated and implemented. https://business-essay.com/emirates-airlines-business-strategy/. 2). Moreover, it should have a specific rhythmic pattern with regard to fluctuations. Hoshmand, Reza. According to Hoshmand, managers can use time series to make current decisions and plans (1). Emirates Airlines accounts for approximately 64% of all passengers in the Middle East. Moreover, an organization has to ensure that an optimal degree of contact is established. Wit and Meyer define differentiation to include the process through which an organization seeks to be unique (269). Print. 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 airlines process selection and facility layout also entails automating its operations. One more weakness is the limited application of the diversification strategy. About process selection and facility layout operations management. Conclusion 4. The Civil Aviation Authority (CAA) of Dubai is charged with the responsibility of managing safety and security. Emirates remains to be one of the most successful airlines in the Middle East. According to the Airlines management team, the airport will continue to serve as its home for the next 15 years. Further, up to date technology such as video-conferencing aids virtual alliance thereby thinning the needs of travelling. In addition, during several years, Emirates realizes the strategy oriented to buying more aircrafts and expanding the fleet. Emirates Airlines is one of the rapidly developing airline companies in the world. Emirates Airlines appreciates the importance of continuous innovation. 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. As a result, the firm has been in a position to achieve a high level of operational efficiency (Kerzner 34). The additional advantage is the high-skilled international personnel. 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. Emirates Airlines can be positioned in the growth phase as evidenced by the high rate at which the airline is establishing new services. The database is updated daily, so anyone can easily find a relevant essay example. The airline company develops according to norms and tendencies of the local and global aviation industry and markets. In other words, local as well as global competitors with low fare budgets make the firm less viable. Moreover, the firm has integrated other ground transport systems such as through buses, cars, and rail. This assessment on Emirates Airlines Differentiation and Innovation was written and submitted by your fellow It is the part of the Emirates Group and headquartered in Dubai, the United Arab Emirates. What Is A Differentiation Strategy? (With Examples) - Zippia Moreover, the company financial strength is also indicated by the strong cash flows the company has been generating over the years since 2009. 1. 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). However, customers are requested to book the special meals in advance, at least 24 hours. One of the aspects that the firm has taken into account relates to employee training and development. Print. 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). Value Chain Activities 3. The main suppliers in this context are aircraft producers (Davahran and Yazdanifard 3). 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. Since the EXPOs attract diverse stakeholders, investors, and tourists, the company associates itself with the initiative by sponsoring the bid. Emirates. Based on the major global expansion aim, the firm business objectives and goals include. Subsequently, the firm is able to provide new technological solutions hence optimizing its performance. Emirates Airlines Business Strategy | Business Paper Example The airline has designed a comprehensive baggage service. The choice of the Dubai International Airport as the airlines hub has also played a significant role in the firms success. 12) emphasizes that the UAE airline industry has been characterized by impressing results over the past 40 years. Moreover, departmentalization has also enabled Emirates to attain decentralization. Emirates Airlines Company Operations Management In addition, the company aims to expand globally and offer services in other regions beyond Middle East. "Emirates Airline's Differentiation and Innovation." This will aid in elimination of redundancy and improvement in the level of its productivity. IvyPanda. 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. Most countries in the region have experienced expansion in their economic growth, which have a positive influence in the overall income. For example, the airline is able to identify how it can expand operations by establishing sub-departments. Thus, it cannot provide variation to these meals (Emirates par. The firm has improved its in-flight entertainment services (Pfeifer 334) by integrating new and emerging in-flight technologies such as Wi-Fi. 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. In the process of designing a particular service, it is important for an organization to ensure that there is no variation between the service provided and the customers expectations. Small business management; an entrepreneurial emphasis, Mason: Thomson, 2006. 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). Regulation of Air Transport: The Slumbering Sentinels. In this context, more attention should be paid to the formulation of the effective adaptation strategy to enter more markets and to compete with rivals effectively (Davahran and Yazdanifard 3). 13.8 billions in its annual budget for acquiring new aircrafts and handling facilities. The competition in the industry increases and recommendations for Emirates should also include the market expansion. In the last financial year, the company has achieved its strongest cash flow recording the highest cash generated from operating activities. London: Trident Press, 2013. BusinessEssay, 29 Nov. 2022, business-essay.com/emirates-airlines-business-strategy/. Since its inception, the airline has managed to penetrate the six continents. For example, the firm can calculate the 5-year moving average with regard to the number of passengers. In fact, the transition in the industry may lead to further consolidation of airline industries. "Emirates Airlines Company' Operations Management Practices." In line with its technological commitment, Emirates Airlines has implemented a knowledge-driven in-flight service [KIS] system.