emirates airlines differentiation strategy

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. Differentiation strategy is based on the market variables that are greatly valued by buyers. In fact, with no binding trade agreements, most of the governments protected their domestic airlines from external competitive threat. The new ERP system will enable Emirates to consolidate its data across the world. Emirates Airlines The Middle East, 1(2), 51-52. Despite the notion that cost and differentiation advantages are reciprocally exclusive, the company should be able to maintain both. Strategy process, content, context; an international perspective, Hampshire: Cengage Learning, 2010. A Competitive Analysis of Airline Industry: A Case Study on Biman Bangladesh Airlines. Journal of Business and Management 17.4 (2015): 23-33. Tonya Russell Emirates is reportedly one of the first major airlines to have started unbundling its business class offering back in 2019. Emirates Airlines management team is of the opinion that the internal and external stakeholders will play a critical role in shaping its future. London: Oxford Business Group Publishing, 2014. In line with the above services, Emirates Airlines appreciates the importance of offering customers high quality meals. Exploring the Key Success Factors for Young Despite the view that the airline is wholly owned by the Dubai government, the firm is independent in its operation. 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. Consequently, it is paramount for firms in the industry to consider improving their capacity in order to take advantage of the prevailing market advantage (CAPA Centre for Aviation par. The view from Dubai: international and industry affairs Emirates Airlines. 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. Web. Moreover, the marketing strategy is also based on the services delivery. 1). Moreover, the firm implemented Apple computer technology in its fleet. Further, the company continues to face cutthroat competition emanating from the mergers among the competitors. Print. About process selection and facility layout operations management. The report also aims to identify the potential problems in the strategic development of Emirates and propose recommendations to improve the future performance. The company can benefit while concentrating more on the liberalization of its main strategy to address the needs of new markets. 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 On the contrary, the company has also been affected by the rapid changes in technology that result in increased competition. The main motivation for market entry is the high market potential. 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. The price of the air ticket is usually slightly high but the strategy creates the perception that the meals are free. The improvement will improve the airports capacity to 200 million passengers annually. 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. (2023, January 10). Total quality management: an integrated approach, New Delhi: Excel Books, 2005. professional specifically for you? One more weakness is the limited application of the diversification strategy. WebThe pricing strategy of the Emirates Airlines will focus on setting the list price, credit terms, payment period and discounts. The airport recently expanded the runways in an order to handle the Airbus A380 (International Air Transport Association par. 2). Time series refers to data that is collected within a particular period. For example, the airline is able to identify how it can expand operations by establishing sub-departments. For example, the airline ensures that its departmental heads possess special skills and knowledge to handle the operations of the department. WebEmirates Airlines Strategies The long-haul, low cost carrier strategy Emirates is differentiated as a legacy airline where advanced technology, staff skills and ancillary Emirates Differentiation Strategy by Glen Molkenthin The company mission requires increased innovativeness and be proactive to any eventuality. Emirates Airlines can be positioned in the growth phase as evidenced by the high rate at which the airline is establishing new services. Emirates Airlines has adopted differentiation as its core competitive strategy. Besides, technology should also be adopted while designing the global expansion strategy for the company. 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. These stages include product or service development, introduction phase, growth stage, maturity, and decline as illustrated by figure 1 below. 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 concept of departmentalization has also enhanced the airlines operational efficiency. Print. The rivals in the airline industry market are active, and Emirates need to focus on expanding their services and selecting more routes because such approach guarantees the stable leading positions in the market. 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). BusinessEssay. Customers can also access additional allowances depending on their Emirates Skwards membership, which includes gold, silver or platinum membership. The runways are equipped with effective technologies, which enable the airlines to land and takeoff safely even under poor weather. 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. The figure below shows a comparison of the major airlines capacity from 2010 to 2012. The firm has amassed over 400 awards for its excellent performance. 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. The airline serves over 150 cities, which are located in 74 different countries. 10 January. Mishra defines operations management as the management of the conversion process, which converts land, labor, capital, and management inputs into desired outputs of goods and services (88). In a bid to ensure that the employees are adequately trained, the airline has developed a strong and dedicated employee training team. Through Investment Corporation of Dubai, the government channeled the money to be invested in the start up and expansion of the airline. Many airlines have been successful in using differentiation strategies to maintain a competitive advantage. 1). The companys main objective is to be the market leader in the region and beyond. The firm has added 34 new aircrafts to its fleet. The growth of the economy in the region has presented the airline with an opportunity to expand steadily. Emirates Airlines Company Operations Management Accept cookies to experience the full functionality of this page. In fact, the transition in the industry may lead to further consolidation of airline industries. (2021) 'Strategic Management Project: Emirates Airlines'. 2). The expansion can also be done through strategic alliances. 9). Emirates Airlines is the part of the Emirates Group headquartered in Dubai, the United Arab Emirates (UAE). This approach will allow widening the overall scope of services provided and the businesss impact in the world. The airline has established a number of subsidiaries, which include Emirates Tours, Arabian Adventures, Emirates Holidays, and Congress Solutions International. Emirates Airlines is committed towards developing a high level of customer satisfaction. Emirates business class lounge. Consequently, it provides Emirates Airlines with an opportunity to serve a large number of customers. 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 also provides customers an opportunity to explore Dubai by storing their baggage before the flight. The main threats for the further strategic development of Emirates are the progress of the rival companies in the air transportation or aviation industry; the changes in the fuel prices influencing the economy of the UAE; and the worsening of the current political and economic crises globally influencing the buying capacity of customers. Moreover, the firms employees are committed in ensuring that their activities do not contribute to environmental pollution (Emirates par. Print. These recommendations can be discussed as effective to contribute to the improvement of the companys long-term performance. 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. The company strategies revolve around achieving the global expansion. January 10, 2023. https://business-essay.com/emirates-airlines-company-operations-management-practices/. Print. In this context, more attention should be paid to the formulation of the effective adaptation strategy to enter more markets and to compete with rivals effectively (Davahran and Yazdanifard 3). Davahran, Ngaveena, and Rashad Yazdanifard. 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. Airlines such as Emirates and Singapore Airlines have been able to charge a premium price for their services by offering a unique product. We utilize security vendors that protect and Consequently, the firm has been in a position to address the consumers needs to stay connected while in the sky. Emirates focuses on attracting multicultural employees in order to address needs and interests of all consumers. 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. For example, terminal 1 and 3 are served by the Red Line. The financial liability mostly incurred during the financial crisis has been cited as the major point of the company weakness. Emirates Airlines Company' Operations Management Practices. According to Black, the UAE is experiencing an increment in demand for air travel (par. The airline seeks to remain unique in the market, thus helping it to standout from its competitors. The company further develops the course for expanding the markets. Gecevska, Valentina. This will reduce the airlines carbon emission (International Air Transport Association par. The strategies will be evaluated depending on the level of achievements of the company global expansion objectives. In other words, the company has been decreasingly financing its expenditures from borrowings and loans. 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). 29 November. The cost controls should be the major aim of the financial strategy (Sundaresan, 2013). The product lifecycle is an important source of insight on the progress of a product or service in the market. In fact, the strategies implements a broad target competitive range that entails the utilization of both cost and differentiation advantages. Hoshmand, Reza. Emirates Airlines +(850) 952-9577 Booking Reservation Number Further, the firms global presence and the evenly extended income bases warranties the company non-reliance on a single source of market revenue. Emirates Differentiation Strategy. The airline has positioned itself as the pioneer with regard to sustainable air travel. Cohen, Elherm. In other words, local as well as global competitors with low fare budgets make the firm less viable. Emirates Airlines also accesses the services of Dubai Metro, which has stations located at terminal 3 and 1. Print. All Rights Reserved. International Air Transport Association: CEO interview; The Emirates Airline make it happen attitude 2012. Operations management is concerned with an organizations design and management of its services, supply chains, and products. Emirates endeavor to maintain the array of sources of competitive advantage in the context of cost control and distinctiveness that have led to cost and differentiation advantages. Numerous full and low cost airline companies are entering the market in an effort to maximize their profitability. To maintain this success, Momadu advises that this firm will need to remain innovative in its operations (11). In fact, the company has continued to record financial growth since 2010 particularly in revenues and market capitalization. These unique services have their disadvantages such as increased costs of operations. For example, the airport is fitted with optimal immigration-processing systems. Emirates Airline.docx - OPERATIONS MANAGEMENT The exceptional performance strategies of Emirate Airlines In fact, most of the services are provided at the clients convenience through the application of technology. Currently, the firm has a total human resource base of over 28,000 employees, which makes it the largest employer in the Gulf region. Strategic Management Project: Emirates Airlines Report Subsequently, it is imperative for the firm to plan whether its current infrastructure such as aircrafts and airbuses will support this growth (Emirates par.

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