For example, departmentalization has contributed towards improvement in the level of job satisfaction amongst employees. The Emirates Airlines operations are based at Dubai International Airport, which is a public facility. To position itself as a customer-centric organization, Emirates Airlines has appreciated the importance of effective baggage management. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Harvard Business Review, 6(2), 85-93. During its 2011/2012 financial year, the airline was able to increase its international destinations from 102 destinations to 111 destinations. Need a custom Report sample written from scratch by IvyPanda. 9 July. IvyPanda. In essence, the companys mission strives to bring individuals closer to their destinations while inspire the employees thoughts and ideas (Lancaster, 2013). In this regard, the firm has realized significant steps in averting competition. Its investment in new product and service development has enabled the airline to gain global market reputation for its optimal services (Emirates par. This aspect has played a critical role in improving the employees morale. The firm has experienced a significant increment in the level of its profitability over the past 25 years. Consequently, the firm has been in a position to introduce new products and services. Competitive Strategy. BusinessEssay. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. Strategic management of emirates airline 2). Labor issues affect the employees productivity as well as the companies general output. Airlines of the United Arab Emirates: Emirates, Etihad Airways, Emirates Sky-cargo, Air Arabia, Daallo Airlines, Rak Airways, Fly-Dubai, Rus Aviation. Emirates Airlines appreciates the importance of continuous innovation. The Civil Aviation Authority (CAA) of Dubai is charged with the responsibility of managing safety and security. The growth of the economy in the region has presented the airline with an opportunity to expand steadily. Morelli, Nicola. Therefore, product success depends on an organizations ability to outdo the prevailing market competition. Pfeifer, Timothy. Emirates Airlines has adopted differentiation as its core competitive strategy. Gotimer emphasizes that product design is driven by the need to nurture a high level of customer satisfaction (128). 2023. The airport has integrated an effective flight management system. 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 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. In this regard, the firms uncertainties emanating from reliance on a single market in the volatile airline industry is significantly toned down. 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. Moreover, customers have an obligation to advice the cabin crew on their health conditions such as allergies. The other problem is the considerable dependence on the governments support and oil prices in the global market. The firms Engineering Projects section is comprised of employees who are experts in designing and developing new services. The airline also selected Dubai International Airport due to its level of safety and security. On the other hand, quantitative approaches entail analyzing historical data within a particular time series. The firm has amassed over 400 awards for its excellent performance. Differentiation. Firms in the service sector can greatly benefit from effective forecasting (Hoshmand 4). At the current stage, the main focus is on entering the regional markets covered by the North American companies (The Emirates Group 5). Emirates Differentiation Strategy by Glen Molkenthin 2). Further, the firms global presence and the evenly extended income bases warranties the company non-reliance on a single source of market revenue. Emirates Airlines Company' Operations Management Practices. 2). The firm is investing in continuous service improvement and development in an effort to cement its market dominance. All the locations where the company operates form the spread of the firms income. The company strategies revolve around achieving the global expansion. The management team has instituted a comprehensive customer care policy. "Strategic Management Project: Emirates Airlines." The development of an assortment of key projects in Dubai creates a center of attention amongst tourists and investors. 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 At the current stage, the company is able to adapt the strategy to the influential external factors, but the problem is in the fact that more approaches can be necessary for the future. Emirates growth strategy on track. Consequently, firms select the most valued attributes as its market differentiation variables. 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. . The airline collaborates with aircraft manufacturers in an effort to design and develop lighter and fuel-efficient aircraft, such as Boeing 777 and the Airbus A380 (Emirates par. For example, it makes managers realize that their products or service may die and hence the need to ensure that the products or services are constantly rejuvenated. The Emirates company uses a variety of targeting methods to select potential buyers for its products. professional specifically for you? Johnson, Gerry, Kevan Scholes, and Richard Whittington. 23). Emirates Airlines can be positioned in the growth phase as evidenced by the high rate at which the airline is establishing new services. The Dubai International Airport is connected to road D89, which is the longest intra-city road in the region. Moreover, the airline ensures that its aircrafts are of high quality and safe. On behalf of Emirates, Lakshminarayanan discussed profitable network growth, aero-political access, airport constraints and commercial partnerships. 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. IvyPanda, 9 July 2020, ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. The Importance Of Differentiation Strategies For Airlines Most countries in the region have experienced expansion in their economic growth, which have a positive influence in the overall income. On the other hand, American Airlines capacity had declined with a margin of 8%. 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. 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. 3). They include least square method, linear method, and the moving average method. The operations of the new technology team entail ensuring that the firms technologies align with the prevailing technological innovation in the industry. Chennai 360: Emirates harnesses new technologies to deliver better travel experiences 2013. The firm has designed a simple online check-in system as illustrated below. The financial strength the company has achieved over the years will enable the company attain strategic position in the industry. A Strategic study of Emirates Airlines In an effort to improve the quality of its services, Emirates Airlines has adopted different quality management tools. The plan involves the expansion of the companys business network by linking people all over the world. 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. Therefore, the airport will provide Emirates Airways with an opportunity to differentiate its service provision by incorporating new and large airbuses in its fleet. According to Tim Clark, the airline is able to save an average of 62 litters for every minute. Sundaresan, S. (2013). Print. "Emirates Airline's Differentiation and Innovation." 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). Since the first investment, the company has grown to become self-financing. This aspect has enabled the firm to provide customers with optimal services. A differentiation strategy focuses on what makes your business unique from others in the same industry or market. The airline has adopted strategies that ensure environmental sustainability and improves the corporate image. The group of stakeholders that needs to be kept informed includes the prospective customers, the public, and the community because the increase in the brand recognition and the customer loyalty will directly lead to the increases in the number of passengers. The growth stage is characterized by intense competition emanating from the large numbers of new entrants who are attracted by to a particular industry. Accept cookies to experience the full functionality of this page. Lastly, extreme rivalry among competitors exists presently. The most apparent strategy entails offering glamour in the first class bookings including showers and beds. (2020, July 9). It is estimated that the company accounts for approximately 40% of all flights in Dubai International Airport. Web. Subsequently, the airport will be able to serve 90 million passengers. The firm has adopted a comprehensive environmental policy, which has enhanced its ability to operate in an environmentally sustainable manner. Well write a 100%plagiarism-free paper this fast! This unique strategy explains why this company remained profitable in 2008 global economic recession when other firms around the world experienced economic problems. This will improve its effectiveness and efficiency as a hub for the major airlines, such as Emirates. Forecasting can enable businesses determine future capacities, inventory, and cost. In addition, the social situation in the UAE allows recruiting employees at comparably lower costs than it is in developed countries. Thus, 60% of the companys costs are associated with investing into the research and development department (The Emirates Group 4). 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 differentiation strategy applied by Emirates Airline majorly focuses on providing a product that is unique from the competitors. Consumers are bound to be loyal to the airline as they see changes that are line with their demands. In fact, people are offered with the prospect of not travelling at all by air. The firms destinations are located across the six continents of the world. The company should also associate itself with the leading food companies to ensure high quality of meals. In its process strategy, the firm makes a decision with regard to different aspects, which include how to implement a high level of flexibility, adjust to changes emanating from technological, volume, and design changes. In this Marketing Strategy of Emirates Airlines, we will talk about the marketing strategies of Emirates, Emirates marketing mix, competitors analysis, Therefore, it should be imperative for the company to adopt strategies that enhance the attainments of the global expansion trends (Butler & Keller, 2011). Aviation week, 3(1), 15-18. 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). 29 November. For example, the airport is fitted with optimal immigration-processing systems. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. Print. Its efficiency with regard to training on engineering has enabled Emirates to be successful in maintaining the aircrafts. Despite the notion that cost and differentiation advantages are reciprocally exclusive, the company should be able to maintain both. Moreover, the airport authority intends to hasten the construction of the new Al Maktoum International Airport. In this strategy, company provides different services to the passengers such as first class private seat. July 9, 2020. https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. Through automation, the firm has been in a position to provide customers with high quality services. 3). In 2012 alone, the Emirates Airlines carried over thirty-four million passengers. The airline has gained insight on how to manage and improve its capacity. Many pilots have grown with the airline. We use cookies to optimize the website, no personal information is stored. The strategies and objectives of the company should be reviewed annually to ensure relevance to the need of the customers. The positive consequences of this process are the creation of the more open airline industry and more possibilities for increasing the competitive advantage globally. The product lifecycle is an important source of insight on the progress of a product or service in the market. To achieve this, the firm is focused towards improvement in the level of its service provision. IvyPanda. In fact, the company operates in over seventy nations serving over a hundred and twenty destinations globally. In principle, the firms strong market presence in leading airline markets presents the corporation with a fundamental competitive periphery over its rival competitors. The firm perceives competition to be a critical element in shaping and maintaining its organizational identity and competitiveness (Longernecker 45). BusinessEssay, 29 Nov. 2022, business-essay.com/emirates-airlines-business-strategy/. Emirates Airlines Differentiation Strategy. IvyPanda. Besides, technology should also be adopted while designing the global expansion strategy for the company. The UAE airline industry is characterized by intense competition due to its high market potential. Emirates Airlines also accesses the services of Dubai Metro, which has stations located at terminal 3 and 1. Engels, 2014. Automation of the firms services also allows the firms customers to check the flight status online and manage their flight booking. Subsequently, the firm considers its staff as its most valuable organizational asset. 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). The airline continues to work on various initiatives, in partnership with Dubai International Airport, to help ease slot congestion. Emirates Airline Differentiation Strategy Glen Molkenthin Structure Structure 1. 1). Emirates Airlines selected Dubai International Airport due to the level of its services, safety, infrastructure, terminals, and effective ground transportation. The companys business strategy should also encompass both the cost and differentiation advantages leading to the sustainability of the companys long-term strategies. Emirates Airlines management team is of the opinion that the internal and external stakeholders will play a critical role in shaping its future. In line with its technological commitment, Emirates Airlines has implemented a knowledge-driven in-flight service [KIS] system. These facilities enable Emirates Airlines to be effective in certifying the customers travel documents. The elements of process selection and facilities planning are comprised of a number of decisions, which include technological choice and process planning (Ghuman 3). 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. Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. Furthermore, the airline is focused in developing and designing greener engines. Most of the governments in the Middle East and Asia pacific where the airline operates initially operated within the protective policies. The purpose of this report is to provide the results of the Emirates strategic case analysis with the focus on the PESTLE analysis, the Five Forces analysis, the SWOT analysis, and the Stakeholder analysis. The firm intends to establish new destinations. Operations Management (OM) is a fundamental component in the success of businesses. The increases indicate the growth in gross, operating and net margins of the company. The firms commitment towards market growth is evidenced by the rate at which the firm is introducing new aircrafts. 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). ERP systems contribute towards improvement in forecasting accuracy because an organization can access accurate that can be used in forecasting. The firms operations entail providing customers with commercial air transport services. For example, terminal 1 and 3 are served by the Red Line. Moore, Carlos, Justin Longenecker, William Petty, and Leslie Palich. Differentiation strategy enables an organization to gain sufficient competitive advantage because it acts as a defense mechanism against competitors. 18). The airline serves over 150 cities, which are located in 74 different countries. Example of such practices include relate to operations management, marketing and quality management. You are free to use it for research and reference purposes in order to write your own paper; however, you Print. Emirates Airlines Company' Operations Management Practices. 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. BusinessEssay. 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). Therefore, it is fundamental for airline companies in the country to plan their capacity. A report released by CAPA shows that the majority of the worlds airline companies are cautious of their capacity. In fact, by the end of March 2012, the companys long-term liabilities were approximated at $7300 million. 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. 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. The improvement will improve the airports capacity to 200 million passengers annually. However, the level of benefits remains to be high in the region and corresponding with the social policies in the UAE. London: Trident Press, 2013. Shah, Biren. Tonya Russell Emirates is reportedly one of the first major airlines to have started unbundling its business class offering back in 2019. The large technological base is important for Emirates because the company operates in many countries, and services in all regions need to be provided in time and in the most efficient manner (Oxford Business Group 32). July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. 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. Secondly, over short expanses, alternative substitutes to air travel are in wide ranges. The airlines training programs are held at the Emirates Aviation College, which is located in Dubai. In 2001, the firm ordered 58 new aircrafts, which comprised Boeing and Airbus models. 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. Most of the Asian countries where the airline operates encourage trade through agreements relation to the aviation industry. Rahman, Khadiza, Sumi Azad, and Sabnam Mostari. 2). From this point, it is important to provide recommendations for Emirates regarding the improvement of the strategic development in the long-term perspective. Flying the flag for Dubai. Graeme, Wilson. Some of the airlines that have shown interest on the airport include the discount carriers, Wizz Air and Jazeera Airways. Its headquarters are located at Garhoud, Dubai. 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. Current legal policies and norms regarding operations of the airline industry in the UAE can be viewed as supporting the further growth of Emirates. However, the prevailing market changes calls for improvement in the airlines capacity. By partnering with local airlines in different geographical regions, Emirates can be able to gain the confidence of customers in these regions. Customers sometimes prefer to travel using their local airlines. By partnering with such airlines, Emirates will be marketing its brand to such customers and gain their confidence. The chart below shows the airlines operating statistics during 2009/2010 and 2010/2011 financial years. 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. Emirates Airlines intends to position itself as a customer-centric organization. Moreover, the airline was awarded as the best airline with regard to the provision of in-flight entertainment. assert that these competitive advantages lead to the development of three main generic strategies, which include focus, cost leadership, and differentiation (508). The constant improvement of the provided services quality is a priority for Emirates. Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. Topic name: Strategy Evaluation of Airlines Industry-Emirates Airlines. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. Need a custom Assessment sample written from scratch by Mukherjee, Peterson. The strength in the cash flow indicates the strength of the company in its liquidity ratios enabling the company to finance its short-term operations. The success of the bid will see the Emirates profit soar. The partnership has significant improved Emirates ability to serve customers beyond its destinations. The airline has also formulated effective ground operation measures, which have enhanced its ability to reduce carbon emissions emanating from the diverse ground operations. 1. This approach will allow widening the overall scope of services provided and the businesss impact in the world. "Emirates Airline's Differentiation and Innovation." Web. The cost control strategy is aimed at ensuring and growth, enhanced quality and performance in terms of services delivery as well as long-term sustainability (Lancaster, 2013). The airlines process selection and facility layout also entails automating its operations. Emirates The Airline of the Future. The airline has also implemented an AeroMobile system, which provides customers with an opportunity to use their mobile phone (Emirates 8). Gotimer, Jeffery. Emirates growth strategy on track 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. In a bid to achieve this goal, the airline procures its aircrafts from renowned aircraft manufacturing companies such as Boeing. In 2013, the airline was named as the best airline in the world. Qualitative approaches to forecasting relate to the Delphi approach, scenario writing, and interactive or subjective approaches. In other words, most of these countries revenues per capita are higher and thus capable of using air transport. This margin represents a 16% increment compared to its 2012 financial year. This approach will lead to improving the policies regarding customer services and to appearing the budget routes for travelers from different countries. It targets those customers who demand better services regardless of price. Emirates have many distinctive competencies, and their progress depends on providing the luxury services globally. Product Emirates , owns fleet of 120 wide bodied aircrafts and flies to 108 destinations in 60 countries over 6 continents. The new ERP system will enable Emirates to consolidate its data across the world. 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. In essence, the firm has been increasingly entering into strategic alliances with leading companies as well as acquiring emerging companies. Subsequently, the airline is able to guarantee its customers security with regard to their cargo. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. The airline has been keen on differentiating its products from those which are by the rival firms. In order to utilize the moving-average method in forecasting, it is imperative for the collected data to follow a rather liner trend. 6). 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. Ingram, David. (2020) 'Emirates Airline's Differentiation and Innovation'. The maintenance process entails inspecting the engines, the aircrafts internal systems and the wheels amongst other parts. IvyPanda. For example, the airline is able to identify how it can expand operations by establishing sub-departments. In addition, the UAE have also signed trade agreements with other countries outside the region including US and most of the European countries. This will reduce the airlines carbon emission (International Air Transport Association par. The threats of intense competition as well as mergers among the surfacing companies emanate from a number of aspects. 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. Retrieved from https://business-essay.com/emirates-airlines-company-operations-management-practices/, BusinessEssay. Up In the Air: How Airlines Can Improve Performance by Engaging Their Employees. Further, the company continues to face cutthroat competition emanating from the mergers among the competitors. The figures represent the number of passengers in millions. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. Environmental laws also influenced policies of Emirates regarding the waste management and decreases in the water and energy consumption. Departmentalization has remarkably stimulated Emirates growth and expansion. The firm competes amongst 23 companies in the Middle East. Emirates Airlines was founded in 1985 in the United Arabs Emirates (UAE). Fourth, labor, fuel and aircrafts constitute the major inputs in the airline industry.
Dobre Brothers Girlfriend Names,
Benzoin Resin Uses Spiritual,
What Happened To Nick Panos Kindig,
Articles E