All the firms operations depart from terminal 3 at the Dubai International Airport. From the above analysis, one can assert that Emirates Airlines has managed to attain an optimal market position over the past two decades. Management: concepts, practice and cases, New Delhi: Tata, 2010. Web. Flying the flag for Dubai. Customer satisfaction is worthless, customer loyalty is priceless: how to make them love you, keep you coming back, and tell everyone they know, Austin: Bad Press, 1998. This service is available to both departing and arriving passengers. 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. One of the main strengths of the company is the support of the government that resulted in many trade agreements for the company abroad. In 2013, the Emirates Airlines capacity increased with 5.4 million passengers. Its efficiency with regard to training on engineering has enabled Emirates to be successful in maintaining the aircrafts. The major finding is that the formulation and implementation of appropriate Oxford Business Group: Report Dubai. Differentiation strategy enables an organization to gain sufficient competitive advantage because it acts as a defense mechanism against competitors. Thus, 60% of the companys costs are associated with investing into the research and development department (The Emirates Group 4). The firm is investing in continuous service improvement and development in an effort to cement its market dominance. The time series method is comprised of different components, which include cyclical variation, irregular variation, seasonal variation, and the secular trend. Emirates Airlines Company Operations Management Currently, the airline operates over 4,400 vehicles in Dubai. The database is updated daily, so anyone can easily find a relevant essay example. Airlines such as Emirates and Singapore Airlines have been able to charge a premium price for their services by offering a unique product. "Emirates Airlines Business Strategy." Emirates Airlines accounts for approximately 64% of all passengers in the Middle East. Emirates Airlines has integrated differentiation as its core competitive strategy. The airline has adopted strategies that ensure environmental sustainability and improves the corporate image. The process of designing and developing new services in Emirates Airlines is undertaken under the auspices of the engineering department. "Emirates Airlines Company' Operations Management Practices." 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. The company aircrafts carry the EXPO 2020 logo to ensure the promotion of the cause. The buses also provide travelers with transport facilities to over 80 hotels and restaurants located within Dubais city centre. 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. Besides, technology should also be adopted while designing the global expansion strategy for the company. 1). The management team has instituted a comprehensive customer care policy. CAPA Centre for Aviation: Worlds largest airlines cautious with capacity; some big moves in global airline ranking 2012. BusinessEssay. Customers can also check Emirates flight timetable online. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/, IvyPanda. Moreover, positioning enables a firm to survive in an industry characterized by ineffective structure. 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. 1. Jannie, David. Emirates Airlines has adopted differentiation as its core competitive strategy. The airline has designed a comprehensive baggage service. Through departmentalization, the airline has been able to nurture a high level of managerial specialization. 2021. At the current stage, the main focus is on entering the regional markets covered by the North American companies (The Emirates Group 5). The firm is in the process of constructing seven business and first class lounges in Dubai International Airport. The airline has implemented effective customer service programs such as in-flight entertainment, luggage assistance and high quality meals during the flights. 2010. Airlines Industry-Emirates Airlines1 Strategic Management Assignment-2. assert that these competitive advantages lead to the development of three main generic strategies, which include focus, cost leadership, and differentiation (508). Project management a systems approach to planning, scheduling and controlling, New York: John Wiley and Sons, 2006. 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 maiden flight, EK600, was from Dubai to Karachi. These stages include product or service development, introduction phase, growth stage, maturity, and decline as illustrated by figure 1 below. The firm is ranked as the third largest airline company in the world. These values include social and environmental responsibility, adherence to business ethics and respecting the needs of the various stakeholders such as customers and employees. The airline has also implemented an AeroMobile system, which provides customers with an opportunity to use their mobile phone (Emirates 8). WebEmirates airline has done this through differentiation. In this strategy, company provides different services to the passengers such as first class private seat. The airlines training programs are held at the Emirates Aviation College, which is located in Dubai. For example, the airline is able to identify how it can expand operations by establishing sub-departments. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. For example, the KIS tablet has enabled the firms crew, who are over 17,000, to interact with one another. Subsequently, Emirates will be able to operate at the new airport by 2025. 1). Quality is a critical aspect in the success of an organization. One of the factors that the firm has focused on in an effort to protect the environment relates to fuel efficiency (International Air Transport Association par. Such policies remain a threat to the airlines expansion strategies. Since its inception, the firm has been committed towards improving its capacity, which is evidenced by the rate of its expansion with regard to fleet size. Strategic Management Project: Emirates Airlines Report The global airline industry is experiencing a high rate of growth. The firm has adopted a comprehensive environmental policy, which has enhanced its ability to operate in an environmentally sustainable manner. The airline seeks to remain unique in the market, thus helping it to standout from its competitors. 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. Designing product/service systems; a methodical exploration. Design Issues 18.3 (2002): 3-17. The airport covers an area of 8,640 acres. Disabled customers, sportsmen and women travelling with baggage are also eligible for a higher baggage allowance (Emirates par. The In principle, the collaborations lead to mergers among the entrants and become a force that poses great challenge to the Emirates Airlines in terms of competition. London: Trident Press, 2013. 2015. Wit and Meyer argue that the fundamental basis of above-average performance in the long run is sustainable competitive advantage (268). Mukherjee, Peterson. The high financial liability has restricted the companys flexibility in terms of growth and implementation of both short-term and long-term strategies. Doganis, R. (2002). In spite of the fact that the threat of substitutes in the airline industry is rather low, it is high while discussing Emirates as the global company proposing the transportation services (Nataraja and Al-Aali 474). The firm will be in a position to establish the trend with regard to change in the volume of its customer base. Terminal 4, set to open in 2015, will also help to address overall capacity requirements at the airport. Web. Subsequently, the firm will be able to widen its fare system by introducing diverse booking classes with different prices and restrictions. The airport is also served by effective ground transportation systems, which include rail, road, taxi, and buses. The company has one of the largest fleets in the industry, and it focuses on applying the latest technologies to its development. Speaking today at the Aviation Festival Middle East, Anand Lakshminarayanan, Divisional Vice President Route Planning and Economics said: "Countries recognise the importance of seamless global traffic flows and the multiplier effect to their own economies, and this has been instrumental in our own growth as an airline that attracts business and tourism opportunities. 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 charges per bag as illustrated below. As a result, the firm has been in a position to achieve a high level of operational efficiency (Kerzner 34). This will aid in elimination of redundancy and improvement in the level of its productivity. Its innovation strategy is not limited to fleet expansion as it also extends to its workforce. This confirms the high demand for large aircrafts in the region in order to meet the growing air traffic. Nigam, Shailendra. The airlines commitment towards attaining an optimal market position is evidenced by the rate at which the firm is expanding its fleet size. 1). 15). 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 2011, Emirates Airline has adopted a consistent marketing strategy, which premises in three pillars. This will improve its effectiveness and efficiency as a hub for the major airlines, such as Emirates. "Emirates Airlines Company' Operations Management Practices." Graeme, Wilson. Within one year, the airline was able to save 57 hours with regard to trip time and 628 tons of fuel. The firm is also committed to taking advantage of business opportunities that emerge from the business environment. This service costs customers an additional AED 20. 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. (2020, July 9). (2020, July 9). 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. IvyPanda. Harvard Business Review, 6(2), 85-93. 9). 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. IvyPanda, 23 July 2021, ivypanda.com/essays/strategic-management-project-emirates-airlines/. The growth in the net profit margin was up by 1.8%, which is an increase from 8.1% to 9.9% from the previous year. 5). Emirates operates in the airline industry while proposing the high-quality and even luxury services. Emirates Airline is one of the largest companies in the Middle East. BusinessEssay. 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 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. Through differentiation, the firm has been in a position to nurture a high level of customer loyalty. The growth will be stimulated by the attractiveness of the UAE as a business and investment destination. Retrieved from https://business-essay.com/emirates-airlines-business-strategy/, BusinessEssay. The capability of the company to settle its debts is also depicted in the growth of equity. WebStrategies a) Differentiation Strategy By increasing the flight service to unserved and poorly served routes on which high demand currently existing or can be develop is what Emirates should be looking into. Emirates Airline The innovation is another factor to explain the popularity of Emirates. Having a good differentiation strategy creates The firm introduced a new revenue forecasting and optimization system known as PROFI during its 2010/2011 financial year. BusinessEssay. The airline has equipped all its aircrafts seats with an SMS and email service. Moreover, the airline ensures that its aircrafts are of high quality and safe. The firm projects that its customer base will increase into the future. The success and profitability of the company depend on the effective policies adopted by the Dubai government and on the provided financial support for the company. The trade agreements have opened new opportunities for the airline particularly within the global market. 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 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. Emirates Airlines appreciates the importance of continuous innovation. 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 focuses on attracting multicultural employees in order to address needs and interests of all consumers. https://business-essay.com/emirates-airlines-business-strategy/. The airlines management team ensures that the training program is continuous (Emirates 1). For example, the firm is committed towards caring for its employees, the community that it serves, and the environment. The first pillar involves marketing the companys hub 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. We utilize security vendors that protect and These facilities enable Emirates Airlines to be effective in certifying the customers travel documents. These recommendations are important to contribute to enhancing the companys long-term performance. The special equipments have also contributed towards improvement in the airlines cargo capacity. (2021) 'Strategic Management Project: Emirates Airlines'. Consequently, the airline adheres to the customers dietary requirements. Print. Bamber, Georhe, James Hoffer, and Dennis Nordenflycht. Such initiatives improve the company image. For example, the airline has integrated an online booking system. The airport is equipped with optimal infrastructure such as airport-traffic control systems, terminals, and passenger terminals. In essence, the firm has been increasingly entering into strategic alliances with leading companies as well as acquiring emerging companies. Aisi asserts that the technology places flight, staff, and passenger-related information into the hands of the Emirates cabin crew (par. 2). As such, the firm offers flight services to the tourists as well as businesspersons to the destination. The company remains to be the marketing leader in the industry while applying the differentiation strategy and Thus, it has developed an extensive airline partnership. The Board meets quarterly for a brainstorming session on how to improve the firms internal systems. IvyPanda. Retrieved from https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. The airlines process selection and facility layout also entails automating its operations. 1). For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. 9 July. BusinessEssay. During its 2011/2012 financial report, Emirates Airlines carried over 34 million passengers and 1.8 million tonnes of goods. Web. Finally, the focus is on providing distinctive VIP services. The Emirates Airlines major aim is to strive in order to increase mobility and connecting people all over the globe. https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/, IvyPanda. The choice of the Dubai International Airport as the airlines hub has also played a significant role in the firms success. The financial objective of the company is to attain effectiveness and efficiency in all the operations of the company. All Rights Reserved. (2023) 'Emirates Airlines Company' Operations Management Practices'. 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. We will write a custom Report on Strategic Management Project: Emirates Airlines specifically for you for only 11.00 9.35/page. The database is updated daily, so anyone can easily find a relevant essay example. Moreover, the firm implemented Apple computer technology in its fleet. Emirates Airline Overview. In marketing strategy, the company must continue improving its image. 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). IvyPanda. The airline serves over 150 cities, which are located in 74 different countries. WebDifferentiation/Low Cost Leadership/Focus Emirates Airlines is an airline that focuses on satisfying their customers and providing the best services on board and off board. The company does not serve needs of middle-class passengers while reducing the number of potential customers. The competition in the industry increases and recommendations for Emirates should also include the market expansion. (2023, January 10). In fact, the transition in the industry may lead to further consolidation of airline industries. This has played a critical role in enhancing the customers level of satisfaction. Emirates expects to fly 70 million passengers in 2020, and the airline together with its partners in Dubai are already progressing on plans to ensure the right infrastructure is in place to support and capitalise on this growth. 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 The firm has pursued global integration in the past two years as a business model for expansion into the new markets. 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. 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. Product Emirates , owns fleet of 120 wide bodied aircrafts and flies to 108 destinations in 60 countries over 6 continents. Emirates Airlines can be positioned in the growth phase as evidenced by the high rate at which the airline is establishing new services. In line with its technological commitment, Emirates Airlines has implemented a knowledge-driven in-flight service [KIS] system. 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. 3). Competitive Strategy. professional specifically for you? The firm also trains its employees on the English language proficiency and management. Gateway to entry. The interdependent nature of the various departments has led to improvement in the level of knowledge sharing amongst the employees. Abeyratne, Ruwantissa. In addition, the company operates in a region where labor issues rarely arise. Your privacy is extremely important to us. The main principle of Emirates has to underlie in service and quality. 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). 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 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. Emirates Airlines does not only deal with passengers but also cargo, which is handled by Emirates SkyCargo. 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. WebThe pricing strategy of the Emirates Airlines will focus on setting the list price, credit terms, payment period and discounts. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Moreover, the firm ensures that the new aircrafts are fitted with new technologies in order to meet the customers requirements and this aspect shows the firms commitment in planning for its short and long-term capacity. The growths in revenue have increased the company financial strength that has enabled its achievement in the global expansion strategies. Emirates Strategy Emirates However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. The brand is popular because of the companys strategy to propose customers the high-quality services based on the work of the latest technology and skilled staff (The Emirates Group 8). The constant improvement of the provided services quality is a priority for Emirates. Emirates regularly launch the environmental projects and participate in the governmental programs oriented to protecting natural resources in the country (Emirates Home par. The accumulation of debts and reduction in net of operating cash pose serious bottlenecks for Emirates Airline Company to settle its borrowings. The Emirates company uses a variety of targeting methods to select potential buyers for its products. Subsequently, the firm is able to provide new technological solutions hence optimizing its performance. However, the airline is contemplating introducing a crew-transport-optimization programme and a hybrid baggage tractor. 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. In the last financial year, the company has achieved its strongest cash flow recording the highest cash generated from operating activities. To attain its global expansion strategy, the company has adopted the marketing plans that aim to position its brand among the major world airlines. Further, the firms global presence and the evenly extended income bases warranties the company non-reliance on a single source of market revenue. The increase in the profit margins indicates the financial strength as well as capabilities of the company. ERP systems contribute towards improvement in forecasting accuracy because an organization can access accurate that can be used in forecasting.
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