To achieve this, the firm is focused towards improvement in the level of its service provision. High prices for tickets make customers choose the alternative variants of transportation. Therefore, Emirates is the leading airline in the Gulf region and the Middle Eastern region. Using geography and psychographics as platforms, the Emirates group wants to make its products more relevant for the target audience in order to earn more revenue. 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. This margin represents a 16% increment compared to its 2012 financial year. Currently, the airline operates over 4,400 vehicles in Dubai. 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. In addition, the company has taken advantage of the both regional and global opportunities while utilizing its both internal and external strengths to increase its competitive advantage. In most cases, the firm undertakes in-house training in order to uphold the differentiation strategy. We will write a custom Report on Strategic Management Project: Emirates Airlines specifically for you for only 11.00 9.35/page. At the current stage, the main focus is on entering the regional markets covered by the North American companies (The Emirates Group 5). The operations of the new technology team entail ensuring that the firms technologies align with the prevailing technological innovation in the industry. Therefore, product success depends on an organizations ability to outdo the prevailing market competition. The internal opportunities and threats will be examined through the SWOT analysis. As a result, the firm has been in a position to achieve a high level of operational efficiency (Kerzner 34). In addition, in the same year, the firm operated a fleet of one hundred and seventy airliners of Boeing as well as Airbus models. . The management of Emirates makes efforts to come to terms with government policies while the real business agenda is executed by subsidiaries or local agents in the country (Roberts 2012). The airport is equipped with optimal infrastructure such as airport-traffic control systems, terminals, and passenger terminals. 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). First, the growth in the airline industry has encouraged the entry of new investors into the industry. This has played a critical role in improving the airlines ability to handle additional workload. The company follows the strategy of a pioneer in providing services while addressing individual needs of clients and improving the technological platform. The bags are wrapped using a strong transparent plastic hence maintaining their condition. The airport recently expanded the runways in an order to handle the Airbus A380 (International Air Transport Association par. To achieve the aims, the company has put in place various objectives that include. However, choosing the right competitive strategy (cost leadership, differentiation or focus) requires knowledge of own and rivals cost structure. 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. 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. 5). In other words, most of these countries revenues per capita are higher and thus capable of using air transport. Numerous full and low cost airline companies are entering the market in an effort to maximize their profitability. In fact, the company operates in over seventy nations serving over a hundred and twenty destinations globally. 13). This aspect has enabled the firm to provide customers with optimal services. These stages include product or service development, introduction phase, growth stage, maturity, and decline as illustrated by figure 1 below. Therefore, it has significantly enhanced their capability to serve over 35 million customers annually; hence, one can assert that the technology has contributed towards the creation of an optimal customer experience. Consequently, it is in a position to serve a large number of airlines. "Emirates Airline's Differentiation and Innovation." 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. In an effort to improve the quality of its services, Emirates Airlines has adopted different quality management tools. Terminal 4, set to open in 2015, will also help to address overall capacity requirements at the airport. As a result, the stiff competition typically leads to surplus seat capacity in competitive markets. Forecasting can enable businesses determine future capacities, inventory, and cost. Black, David. It is possible to speak about more than 6 million of loyal customers using services of the company (Nataraja and Al-Aali 472). Most countries in the region have experienced expansion in their economic growth, which have a positive influence in the overall income. Ingram, David. Retrieved from https://ivypanda.com/essays/strategic-management-project-emirates-airlines/. The firm has used technology to gain competitive advantage over other airlines. professional specifically for you? Attaining an optimal market position is critical in a firms effort to remain competitive. In the global front, the airline traffic has reduced significantly due to economic downturn. Thirdly, in the airline industry, the consumer power varies with presented choices. Therefore, the rivalry is intense in the UAE, among the airlines of the Gulf region, and in the Middle Eastern region. Over the years, the airline has been keen on the amount of the carbon emissions and has ensured that most of its carriers are fuel-efficient and reduces the amount of waste to the atmosphere (Doganis, 2002). The flow of migrants in the UAE is high, and the job in Emirates is discussed as one of the most attractive ones. According to Tim Clark, the airline is able to save an average of 62 litters for every minute. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. Therefore, it is important for the firm to forecast the demand in order to plan effectively (International Air Transport Association par. Fourth, labor, fuel and aircrafts constitute the major inputs in the airline industry. 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The current financial situation in the region also affected the progress of the company, and it had to review its industry for the following fiscal year. 1. 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 Business Strategy. (2021) 'Strategic Management Project: Emirates Airlines'. "Strategic Management Project: Emirates Airlines." Rao, Hari. 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). One of the main sources of competitive advantage that an organization can leverage on at the growth stage relates to establishment of an effective distribution strategy. Small business management; an entrepreneurial emphasis, Mason: Thomson, 2006. Aviation week, 3(1), 15-18. The airport has integrated an effective flight management system. 18). (2022, November 29). 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. 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. Based on the major global expansion aim, the firm business objectives and goals include. The strategy has enabled the company to be stronger particularly during the financial crisis. In addition, the company operates in a region where labor issues rarely arise. Flying off course: the economics of international airlines. Moreover, departmentalization has also enabled Emirates to attain decentralization. Print. Emirates Airlines appreciates the importance of continuous innovation. 29 November. Emirates Airline Overview. The objective of the installation was to provide customers with an opportunity to listen to music through their iPods and video players. Therefore, it is fundamental for airline companies in the country to plan their capacity. The airline is cognizant of the importance of creating a unique customer experience. IvyPanda, 9 July 2020, ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. This will remarkably improve the attractiveness of the airport to international airlines. For the global and business strategies to attain the specified objectives, the firms must adopt both long-term and short-term financial, marketing and operational strategies enhanced by appropriate information systems and sound human resources management. In addition, the company works to improve the global brand recognition. 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. 1). 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. Subsequently, departmental heads have sufficient powers to control and make decisions that affect their respective departments. The company does not serve needs of middle-class passengers while reducing the number of potential customers. 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. The firms Engineering Projects section is comprised of employees who are experts in designing and developing new services. This amount is intended to enable the firm improve its services (Black par. For example, the firm is committed towards caring for its employees, the community that it serves, and the environment. The firm has designed a simple online check-in system as illustrated below. The airport also acts as a hub to other international carriers. However, it is imperative for organizations to ensure that their differentiation strategies are effectively formulated and implemented. Emirates Airlines business operations are extended across various markets. According to Black, the UAE is experiencing an increment in demand for air travel (par. Emirates should utilize quantitative approach to forecasting.
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