In fact, the marketing strategies are achieved through various means particularly the brand position and delivery of quality services (Lancaster, 2013). 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. 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. Within one year, the airline was able to save 57 hours with regard to trip time and 628 tons of fuel. Consequently, the firm has emerged as a globally recognized tourism and travel airline company. 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. . This unique strategy explains why this company remained profitable in 2008 global economic recession when other firms around the world experienced economic problems. Some of these elements include the firms delivery system and marketing approach. Besides, technology should also be adopted while designing the global expansion strategy for the company. 9). 1). For example, the airline has integrated an online booking system. The Exceptional Performance Strategies of Emirate Airlines. Competitiveness Review: An International Business Journal 21.5 (2011): 471-486. 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. Through automation, the firm has been in a position to provide customers with high quality services. Emirates Airlines Company' Operations Management Practices. Through employee training, the firm has equipped its workforce with sufficient skills to serve customers. The company majorly operates in the regions including the Asia pacific and the Middle East, which has seen a tremendous economic growth in the last decade. Jannie, David. The company follows the strategy of a pioneer in providing services while addressing individual needs of clients and improving the technological platform. The elements of process selection and facilities planning are comprised of a number of decisions, which include technological choice and process planning (Ghuman 3). 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. The positive consequences of this process are the creation of the more open airline industry and more possibilities for increasing the competitive advantage globally. Another approach is the improvement of employee productivity with the help of enhanced training sessions. In addition, the UAE have also signed trade agreements with other countries outside the region including US and most of the European countries. Fourth, labor, fuel and aircrafts constitute the major inputs in the airline industry. The firm has integrated effective programmable automations in order to provide its customers with high quality 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. By taking into account these aspects, the airline is in a position to undertake effective planning with regard to capacity (Ingram par. The Emirates Group. (2020) 'Emirates Airline's Differentiation and Innovation'. The International Air Transport Association (par. Such initiatives improve the company image. Consequently, customers can easily access Emirates Airlines. 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. 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The airline has implemented effective customer service programs such as in-flight entertainment, luggage assistance and high quality meals during the flights. 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. Having analyzed the strategic growth of Emirates with the focus on the external environment and on internal forces, it is possible to propose certain recommendations for the company to address the potential problems in the future. Emirates Group Career Centre: Human resource management 2013. The other recommendation is associated with the necessity to address the increasing competition in the industry. Your privacy is extremely important to us. The airlines commitment to operate in an environmentally sustainable manner is also evidenced by the fact that the airline has designed effective systems that reduces flight time. Wit and Meyer define differentiation to include the process through which an organization seeks to be unique (269). The customer loyalty depends on the fact that Emirates provides the most customer-friendly services in the industry with the high responsiveness while allowing easy check-ins and other advantages of the e-ticketing system and comfortable lounges (The Emirates Group 3). The main financial strategy of the airline is to keep its costs under scrutiny particularly the cost of operations. The airline has gained insight on how to manage and improve its capacity. This element aids in developing optimal and credible judgment that an organization can utilize in formulating business strategies. 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. Moreover, there are different techniques that can be utilized under the time series method. All Rights Reserved. In the global front, the airline traffic has reduced significantly due to economic downturn. Rivals of Emirates such as Gulf Air Company and Qatar Airways Group are also oriented to expanding markets, and the competition within the airline industry increases. 2). WebThe pricing strategy of the Emirates Airlines will focus on setting the list price, credit terms, payment period and discounts. The company believes that the strategy will enable the airline search for appropriate measures to control costs and improve its effectiveness in its services delivery. According to a report by the Oxford Business Group, Emirates Airlines is ranked as one of the biggest contributors in the transformation of air transport in the Gulf region (76). This trend is mainly evident in the emerging markets such as the UAE. Web. The operations of the company cover the Middle East, America, Europe as well as Asia. The growths in both the profit margins and the returns on the shareholders capital have been consistent since the 2009 financial year. The firm perceives competition to be a critical element in shaping and maintaining its organizational identity and competitiveness (Longernecker 45). Moreover, operations management is concerned with how an organization utilizes its resources in order to deliver optimal services to customers (Eigenmann 45). Much attention is paid to training the personnel and to guaranteeing the safety of clients during flights (Nataraja and Al-Aali 476). (2023, January 10). The trade agreements have set favorable political stage for the airlines operations within the region and beyond. Moreover, an organization has to ensure that an optimal degree of contact is established. The firm competes amongst 23 companies in the Middle East. The airline company develops according to norms and tendencies of the local and global aviation industry and markets. Bamber, Georhe, James Hoffer, and Dennis Nordenflycht. Differentiation. Emirates should utilize quantitative approach to forecasting. 1). https://ivypanda.com/essays/strategic-management-project-emirates-airlines/, IvyPanda. ERP systems contribute towards improvement in forecasting accuracy because an organization can access accurate that can be used in forecasting. IvyPanda. The organization of the terminals has provided Emirates Airlines with an opportunity to serve diverse customer groups. Black, David. Using such data, the firm will be in a position to forecast on how it will adjust its capacity in the future. This will improve the firms ability to serve the 70 million customers across the six continents. The firm has used technology to gain competitive advantage over other airlines. Emirates Airlines has organized its operations into a number of operational areas commonly known as departments as illustrated herein. Airline companies can be differentiated by offering latest and modern services like big comfortable seats, advance aircrafts and new e-ticketing system. These all thing not only distinguish the companies also helpful to attractive new customers for the company. (e.g. British Airways). Web. Its headquarters are located at Garhoud, Dubai. 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. Emirates Airlines collects data on the number of passengers it has carried within a particular period, for example one year. On the other hand, American Airlines capacity had declined with a margin of 8%. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. Oxford Business Group: Report Dubai. Subsequently, the airline is able to guarantee its customers security with regard to their cargo. Print. (2023, January 10). The firm has added 34 new aircrafts to its fleet. 6). The firms success has arisen from integration and adoption of effective management practices. In this regard, the firms uncertainties emanating from reliance on a single market in the volatile airline industry is significantly toned down. Up In the Air: How Airlines Can Improve Performance by Engaging Their Employees. Emirates Airlines has integrated differentiation as its core competitive strategy. Airlines such as Emirates and Singapore Airlines Emirates Airlines does not only deal with passengers but also cargo, which is handled by Emirates SkyCargo. The aviation industry suffers from a range of political and economic obstacles and challenges today, and much attention should be paid to the strategy followed by Emirates to compete in the market. The policy entails providing customers with optimal services while on ground and during the flight. The cabin crew is in a position to respond to dynamic customer and operational needs. "Emirates Airline's Differentiation and Innovation." Print. PDF file. Moreover, the global presence has facilitated the reduction of business risk. Entering the airline industry is considerably undemanding because there are no significant bottlenecks especially in the United Arab Emirates where there is open airspace. Moreover, the company uses only the latest technologies to address the customers expectations (Nataraja and Al-Aali 476). This service is available to both departing and arriving passengers. BusinessEssay. However, with increased globalization in terms of trade and specifically in the aviation industry, the airlines are now open to competition where economic models are applied to sustain the competitive advantage. July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. Nigam, Shailendra. 16). In line with its quality policy, Emirates Airlines does not compromise on safety and customer satisfaction. 2015. 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. The company remains to be the marketing leader in the industry while applying the differentiation strategy and For example, terminal 1 and 3 are served by the Red Line. As a result, more people choose Emirates to fly in the country, and they also use the air transportation for flights to the USA, the European countries, and to the Western countries (The Emirates Group 4). 14). The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. The handbook of airline operations. Operations Management (OM) is a fundamental component in the success of businesses. BusinessEssay. For example, the firm can calculate the 5-year moving average with regard to the number of passengers. The high financial liability has restricted the companys flexibility in terms of growth and implementation of both short-term and long-term strategies. The development of an assortment of key projects in Dubai creates a center of attention amongst tourists and investors. Emirates Airlines accounts for approximately 64% of all passengers in the Middle East. It targets those customers who demand better services regardless of price. The company aircrafts carry the EXPO 2020 logo to ensure the promotion of the cause. The firm has experienced a significant increment in the level of its profitability over the past 25 years. 2). The tactical issues relate to the firms project management method, structure, equipment selection, and selection. 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. The company does not serve needs of middle-class passengers while reducing the number of potential customers.
Moreover, the firm has expanded its fleet size in an effort to serve the prevailing market demand. The database is updated daily, so anyone can easily find a relevant essay example. International Air Transport Association: CEO interview; The Emirates Airline make it happen attitude 2012. Hoshmand argues that it is essential for business managers to integrate both domain knowledge and statistical analysis in the process of forecasting (1). 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. By organizing its operations into different departments, Emirates Airlines has been able to boost the employees morale hence leading to improvement in the organizations operational efficiency. For example, the airport is fitted with optimal immigration-processing systems. "Emirates Airlines Company' Operations Management Practices." IvyPanda. In other words, technological adaptation is another benchmark through which the company strategies can be evaluated. Gateway to entry. Moreover, the porters assist customers to take their taxi or bus on arrival. Mishra, David. The core of Emirates network strategy and Dubai hub were also discussed, in addition to Emirates view on alliances and strategic partnerships. "Emirates Airlines Company' Operations Management Practices." London: Trident Press, 2013. 29 November. 1). 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). Emirates Airlines intends to position itself as a customer-centric organization. For example, the cargo and passenger flights have different terminals. Rao, Hari. The airline has also formulated effective ground operation measures, which have enhanced its ability to reduce carbon emissions emanating from the diverse ground operations. The strategies will be evaluated depending on the level of achievements of the company global expansion objectives. In terms of differentiation strategy, the company should adopt and implement a variety of strategies. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. July 23, 2021. https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. The firm has integrated three main baggage allowances as illustrated below. The airport provides the airline with an opportunity to connect to different continents, hence serving a large number of customers. Another mutually beneficial partnership that has supported Emirates growing United States network has been with JetBlue, which has grown to a bilateral codeshare agreement, enabling Emirates passengers to connect to over 60 cities served by JetBlue beyond its US gateways. The financial liability mostly incurred during the financial crisis has been cited as the major point of the company weakness. Gecevska emphasizes that an organizations products and services should satisfy the customers requirements with reference to price, style, timing, performance, and function (323). Subsequently, Emirates will be able to operate at the new airport by 2025. Oxford Business Group. Consequently, the road provides customers easy access to the airport. WebDifferentiation in the airline companies can be achieved via offering the latest and modern services like the royal treatment, big seats, advancements aircrafts and the online ticketing. Therefore, the company actively uses the latest innovations in the field, and the focus is on new technologies to support operations of the company globally. A company that applies a Despite the notion that cost and differentiation advantages are reciprocally exclusive, the company should be able to maintain both. Products move through a number of stages in the course of their existence. Hoshmand asserts that businesses are increasingly evaluating the most effective strategies to adopt in order to enhance their financial performance (1). Secondly, over short expanses, alternative substitutes to air travel are in wide ranges. In this strategy, company provides different services to the passengers such as first class private seat. To guarantee the effective long-term performance, Emirates needs to address the increasing competition within the market and the negative impacts of political and economic factors. In order to enhance its competitiveness, it is imperative for Emirates Airlines to consider the following issues. Operations management is concerned with an organizations design and management of its services, supply chains, and products. 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 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. Total quality management: an integrated approach, New Delhi: Excel Books, 2005. Web. The maiden flight, EK600, was from Dubai to Karachi. The airline began to operate in the 1980s, and it is the ownership of the government of Dubai. (2022, November 29). 22). Consequently, it provides Emirates Airlines with an opportunity to serve a large number of customers. Considering the two thousand and twelve fiscal year, thirty percent of the companys total revenue was contributed by the Middle East and Australia owing the fact that the region is geographically largest. Time series refers to data that is collected within a particular period. The recent financial crisis caused by the political situation affected economies of developed and developing countries and the airline industry. The company mission requires increased innovativeness and be proactive to any eventuality. . Therefore, it should be imperative for the company to adopt strategies that enhance the attainments of the global expansion trends (Butler & Keller, 2011). Some of the airlines that have shown interest on the airport include the discount carriers, Wizz Air and Jazeera Airways. 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. The airline ensures that cargo is handled using special equipments. Moreover, the selection process entails making decisions on various aspects such as how to provide customers with diverse services, how to develop a high level of flexibility in order to align its operation to market changes, and how to address change in the volume of customers. Emirates Airlines is one of the most profitable and rapidly developing airlines in the world. Moreover, positioning enables a firm to survive in an industry characterized by ineffective structure. Thus, it cannot provide variation to these meals (Emirates par. November 29, 2022. https://business-essay.com/emirates-airlines-business-strategy/. 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). In addition, the competitors pioneer low cost budgets thereby making the Emirates Airline Company less competitive (Taye, 2006). Gecevska, Valentina. Web. It has best air fleet, co-operative staff, well-trained engineering and support team and well-known brand. Cole, Staurt. In the process of procuring the new aircrafts, the firm ensures that they are of high quality. Terminal 4, set to open in 2015, will also help to address overall capacity requirements at the airport. BusinessEssay. In 2012, Emirates Airlines invested in a new Graphical User Interface, which was developed by Panasonic. 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. However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories. Further, through the companys programmed passenger services in more than 120 destinations across over 70 countries globally has seen the firm register an increasing trend in revenues. 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). The figures represent the number of passengers in millions. To develop sufficient competitiveness, it is imperative for Emirates to consider the most effective strategy to manage its capacity. Retrieved from https://business-essay.com/emirates-airlines-company-operations-management-practices/, BusinessEssay. The strategies and objectives of the company should be reviewed annually to ensure relevance to the need of the customers. IvyPanda, 23 July 2021, ivypanda.com/essays/strategic-management-project-emirates-airlines/. This will aid in elimination of redundancy and improvement in the level of its productivity. The airlines training programs are held at the Emirates Aviation College, which is located in Dubai. The firm is investing in continuous service improvement and development in an effort to cement its market dominance. The product lifecycle is an important source of insight on the progress of a product or service in the market. Davahran, Ngaveena, and Rashad Yazdanifard. This trend underscores the level of Emirates Airlines in terms of providing high quality services. Emirates strategies are totally different from pursuing its customers. However, it is imperative for organizations to ensure that their differentiation strategies are effectively formulated and implemented. The airline has been keen on differentiating its products from those which are by the rival firms. It is estimated that the industry will be the second fastest growth market with regard to air traffic from 2009 to 2014. In 2012 alone, the Emirates Airlines carried over thirty-four million passengers. Further, the firms global presence and the evenly extended income bases warranties the company non-reliance on a single source of market revenue. Why More Companies Should Allow Employees to Work Remotely? Moreover, the company financial strength is also indicated by the strong cash flows the company has been generating over the years since 2009. 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. Through Investment Corporation of Dubai, the government channeled the money to be invested in the start up and expansion of the airline. The first recommendation is to revise the differentiation strategy and pay more attention to the diversification strategy in order to make the companys approach more adaptable to the changes in the airline industry and markets. The new routes might be characterized by fluctuations in the level of demand. You are free to use it for research and reference purposes in order to write your own paper; however, you However, today trade opportunities for airlines are rather limited because different nations all over the globe changed their courses regarding relations within the aviation sector due to the complicated political situation. 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. The buses are strategically located at the airports arrival and departure terminals. 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 other problem is the considerable dependence on the governments support and oil prices in the global market. Differentiation strategy is based on the market variables that are greatly valued by buyers. This will lead to improvement in the airlines capacity to serve its key routes such as the Tokyo-Narita route. The charges per bag as illustrated below. professional specifically for you? The firms process selection and facility layout exercises are comprised of a number of elements, which include work design, facilities and equipment selection, layout, evaluating technological change, product and service design, and forecasting. Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. The financial objective of the company is to attain effectiveness and efficiency in all the operations of the company. Moreover, departmentalization has also enabled Emirates to attain decentralization. It is estimated that the firm operates approximately 3,400 flights every week from its main hub, which is located at the Dubai International Airport (Emirates par.3). MIT Sloan Management: What is operations management 2010. It is the part of the Emirates Group and headquartered in Dubai, the United Arab Emirates. Taye, T. (2006). Emirates tops airline service quality survey 2010. During its 2011/2012 financial report, Emirates Airlines carried over 34 million passengers and 1.8 million tonnes of goods. Further, the leading manufacturers of commercial airplanes comprise McDonnell Douglas, Airbus as well as Boeing. The company remains to be the marketing leader in the industry while applying the differentiation strategy and providing the high-class luxury services for the VIP clients and wider population (Emirates Home par.
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