assert that these competitive advantages lead to the development of three main generic strategies, which include focus, cost leadership, and differentiation (508). This aspect has enabled it to maintain a high level of corporate transparency. In its scope, the paper looks into the various fundamental 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. Emirates Airline: The Secrets of the Legends Success 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. To maintain this success, Momadu advises that this firm will need to remain innovative in its operations (11). For instance, the company boasts of having largest revenues, fleet as well as the number customers served in the Middle East. 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. 12) emphasizes that the UAE airline industry has been characterized by impressing results over the past 40 years. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. This service costs customers an additional AED 20. Emirates does not participate in airline alliances at the global level because of the specifics of their strategy. Its efficiency with regard to training on engineering has enabled Emirates to be successful in maintaining the aircrafts. 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. The airport is located at Al Garhoud in Dubai. Emirates Airline.docx - OPERATIONS MANAGEMENT In this context, Emirates depends not only on the changes in the national economy but also on changes in the global markets and aviation industry (Rahman, Azad, and Mostari 25). The company due to its financial strength has opportunities for acquisitions, joint ventures and partnerships with other firms thereby expanding its operation networks. At the current stage, Emirates focuses on serving the high-income passengers, but the discussion of the other group of perspective middle-income customers is also important. Consequently, it provides Emirates Airlines with an opportunity to serve a large number of customers. 2020. These unique services have their disadvantages such as increased costs of operations. Therefore, the airport will provide Emirates Airways with an opportunity to differentiate its service provision by incorporating new and large airbuses in its fleet. Differentiation. In fact, the marketing strategies are achieved through various means particularly the brand position and delivery of quality services (Lancaster, 2013). 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. 9). In order to evaluate the strategic management of Emirates, it is necessary to analyze macro-environmental factors that influence the development of the business focusing on political, economic, social, technological, legal, and environmental forces. 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. 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 firm is investing in continuous service improvement and development in an effort to cement its market dominance. The strategies will be evaluated depending on the level of achievements of the company global expansion objectives. Print. During its 2012/2013 financial year, Emirates announced a plan to include three additional destinations in its routes. An organization can base its differentiation strategy upon different elements. Sources Gateway to entry. Retrieved from https://ivypanda.com/essays/emirates-airlines-differentiation-and-innovation/. WebStrategy Evaluation of. The impact of buyers on the industry development is also high because Emirates is directly oriented to satisfying needs and expectations of their customers. The moving-average method is very effective in determining seasonal fluctuations of a particular element. The airline has been keen on differentiating its products from those which are by the rival firms. Textbook of pharmaceutical industrial management, New Delhi: Elsevier, 2010. For example, the airline has increased the size of its fleet and launched new routes. The firm intends to transform Dubai into a long haul and global aviation hub (CAPA Centre for Aviation par. Despite the fact that the current political situation in the Middle Eastern region is discussed as unstable, these political forces have the limited effect on the progress of Emirates. 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. Moreover, departmentalization has also enabled Emirates to attain decentralization. Up In the Air: How Airlines Can Improve Performance by Engaging Their Employees. Emirates professional specifically for you? "Emirates Airlines Business Strategy." According to Tim Clark, the airline is able to save an average of 62 litters for every minute. IvyPanda. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Emirates Airlines was founded in 1985 in the United Arabs Emirates (UAE). 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. What Is A Differentiation Strategy? (With Examples) - Zippia In addition, Dubai will also be portrayed as stipulated in the objectives. However, the airline is contemplating introducing a crew-transport-optimization programme and a hybrid baggage tractor. You are free to use it for research and reference purposes in order to write your own paper; however, you Print. . International Air Transport Association: CEO interview; The Emirates Airline make it happen attitude 2012. The airline also selected Dubai International Airport due to its level of safety and security. In line with the above services, Emirates Airlines appreciates the importance of offering customers high quality meals. Print. 1). The airport is also served by effective ground transportation systems, which include rail, road, taxi, and buses. Consequently, the firm has been in a position to introduce new products and services. We use cookies to optimize the website, no personal information is stored. This decision was arrived at after recognition of the Airports Authority effort to expand the airports capacity by 20%. 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. WebEmirates Airlines Strategies: Emirates Airlines has a good and effective business model which is very helpful to gain company objectives and help to company become leader in The buses are strategically located at the airports arrival and departure terminals. 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. Print. 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. DUBAI, U.A.E Emirates will continue with its growth trajectory, in In addition, the company should strategize on how it should enjoy economies of scale by purchasing airliners en-mass. In the process of procuring the new aircrafts, the firm ensures that they are of high quality. This aspect has played a critical role in improving the employees morale. The company mission requires increased innovativeness and be proactive to any eventuality. Web1.1.4 Formulate effective firm-specific strategies. Emirates Airlines also accesses the services of Dubai Metro, which has stations located at terminal 3 and 1. In addition, the firm experienced a reduction of its net operating cash to thirteen percent in the year two thousand and twelve. The passenger terminal building is comprised of parking bays, handling areas, and concourse. 3). "Emirates Airline's Differentiation and Innovation." However, the firm has listed the meals that can be provided to customers. 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. One way of doing this is to uniquely modify its services to meet Its innovation strategy is not limited to fleet expansion as it also extends to its workforce. Consequently, the firm has been in a position to address the consumers needs to stay connected while in the sky. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. The constant improvement of the provided services quality is a priority for Emirates. Eigenmann, Uman. Project management a systems approach to planning, scheduling and controlling, New York: John Wiley and Sons, 2006. BusinessEssay. 1). Finally, the focus is on providing distinctive VIP services. The customers associate Emirates with the high-class services, safety, innovation, and comfort. Considering the high rate of technological change, Emirates Airlines undertakes a continuous review of the prevailing technological changes in order to improve its operational efficiency. For example, the firm is committed towards caring for its employees, the community that it serves, and the environment. The company further develops the course for expanding the markets. Emirates Airlines is committed towards developing a high level of customer satisfaction. The Airline industry in the Middle East is undergoing significant transformation because of increase in demand for air travel. Small business management; an entrepreneurial emphasis, Mason: Thomson, 2006. 18). From this point, it is important to provide recommendations for Emirates regarding the improvement of the strategic development in the long-term perspective. "Emirates Airline's Differentiation and Innovation." 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. (2022) 'Emirates Airlines Business Strategy'. Further, in the surfacing where the company is making its entry such as Africa, the consumers have no much choice thus have less possession of bargaining power. 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. The company was established in 1985 after the government of Dubai set aside over $10 Million as a capital to be invested in the national carrier services. student. This has played a critical role in improving the airlines ability to handle additional workload. 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. The global business environment has become very dynamic due to the intensity of competition and change in consumer behavior (Morelli 4). The company remains to be the marketing leader in the industry while applying the differentiation strategy and The firms success has also emanated from its commitment in controlling the quality of services. The above analysis shows that Emirates Airlines is ready to cope with the growth in the aviation industry in the Middle East. Exploring Corporate Strategy, New York: Prentice Hall, 2008. Need a custom Assessment sample written from scratch by 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). The ASK is used to determine an airlines capacity. Significant expansions continue to be realized in the aviation industry. 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 active political cooperation of the UAE with the countries from the mentioned regions contributed significantly to the development of the aviation sector. Gecevska emphasizes that an organizations products and services should satisfy the customers requirements with reference to price, style, timing, performance, and function (323). Emirates Airlines has also invested in an effective flight-planning system known as Flex Tracks. (2021, July 23). In 2012, Emirates Airlines invested in a new Graphical User Interface, which was developed by Panasonic. 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). Emirates Airlines collects data on the number of passengers it has carried within a particular period, for example one year. The firm leverages on technology in order to deliver a unique customer experience. The bottom line of all the strategies is the cost control strategy the firm has adopted in the recent years. Chennai 360: Emirates harnesses new technologies to deliver better travel experiences 2013. growth is a vital internal tool for delivering continuous customer care and support to meet the companys mission and differentiation strategy for a competitive advantage through care. Five Forces of Emirates Airline Sundaresan, S. (2013). Emirates Strategy Analysis However, Emirates tries to keep leading positions in the country and region while changing the marketing strategies and orienting to other consumer categories.