Category: Emirates Airlines

Etihad Airways and Emirates Airways are two rival airlines operating from the United Arab Emirates (UAE). This proposal looks at several components of a research project designed to look at the elements of their marketing strategies, against the backdrop of their rivalry.

Aims and Objectives

The aim of the study is to determine the factors affecting the choice of market entry models in the international market. Emirates Airlines and the Etihad Airlines have managed to break into international markets despite bitter domestic rivalry. This makes them the best candidates for the study.

The objectives of the study will be as follows:

1. To investigate the market entry models of Etihad Airlines and the Emirates Airlines.
2. To investigate the defining elements and the implications of the rivalry between the Etihad Airlines and the Emirates Airlines.
3. To determine the long term prospects of the two airlines in relation to their existing marketing strategies in the context of their rivalry

Justification for the Topic

Etihad Airways and Emirates Airlines are bitter rivals in the airline sector in the UAE. The two airlines have been competing for market share since the establishment of Etihad Airlines. The significant difference between these two airlines is that Etihad Airlines is much younger than Emirates Airlines.

Despite this, Etihad Airlines is proving to be a strong competitor for leadership in the UAE airspace. The main question this leads to is how can a young company take on an established company and become a fierce rival? Secondly, what marketing strategies do the two airlines use, and how do these strategies contribute towards their success?

Need for the Study

The need to study the rivalry between Etihad Airlines and the Emirates Airlines comes from the following reasons. First, marketing determines the success or failure of any business. Therefore, the fact that Etihad Airlines and Emirates Airlines are each successful in their own right makes them ideal candidates for a study in marketing strategy.

Secondly, Etihad Airlines has not yet broken even since its inception, and it will take a few more years before it makes profits. Emirates Airlines has been making profits throughout its history. Does this situation stem from the marketing strategies of the two airlines? Thirdly, there is need to determine the long term prospects for the two airlines given then existing rivalry.

Importance of the Study

The importance of this study is that it will provide a platform for examining the effectiveness of marketing strategies under a situation of bitter rivalry. The two airlines position themselves as luxury airlines. They also provide services in very competitive routes across the global landscape.

Their rivalry can end up with one of them collapsing and the other becoming a monopoly. On the other hand, each of the companies is a target of acquisition by its rival. These issues illustrate the importance of studying the marketing strategies of the two airlines in order to determine which one is likely to survive in the long term.

Sources of information

There are three main sources of data for this project. First, the project will examine existing data regarding the operations of the two airlines from literature. The study will also examine research papers written on various aspects of the operations of the two airlines.

It will be important to interview people who use the airlines to determine the customer satisfaction indices. Finally, it will be important to study publications by the two companies to decipher their marketing strategies.

Introduction

The Emirates Airline is one of the major airlines within the Middle East; it is known to be one of the top ten best carriers and the seventh biggest airlines worldwide.

Setting up lucrative business organization and making it stabilize within the airline industry proves very risky. However, the people working for Emirates Airlines counters the risks involved by setting up appropriate strategies through the use of Five Forces for the purposes of analyzing business environment.

Generalization of learning associations to other things is done within Emirates Airlines through the use of Porters Five Forces Strategies used to analyze the market environment.

The company ensures that their employees undergo frequent training programs within various departments to ensure continuity of excellent service provision within various business circles (Nicholas, 2009).

Learning strategies are important to marketers since they are enabled to form appropriate pictures on the kind of market and industry they are operating.

This ensures that marketers apply appropriate principles and strategies for the purposes of protecting the business from outside threats owing to high competition.

Implementation of appropriate strategies makes it easier for marketers to develop Emirates Airline as one of the market leaders. Studies done on the marketing strategies of competitive businesses prove vital since competition could be realized from other businesses not related to the airline industry.

The presence of close substitutes makes it easier for customers to switch alternatives owing to differences in prices, resulting into what is known as high elasticity of demand.

Several factors determine the companys ability to attract customers, these include; the cost switching tastes, perceived level of product differentiation and relative prices (Nicholas, 2009).

Description and explanation of an airline example related to Emirates Airlines

One of the examples related to Emirates Airlines is Northwest Airlines which is one of the domestic airlines with the ability to serve large market segmentation across nations.

Its ability to provide excellent domestic services has been made possible through close operations with other commuter airlines. There is a link provided between NWA and other airlines which provides easy connection channels for jet services within the country of operation.

The overall merger makes NWA have superior technical and operational services just like Emirates Airlines hence boasting of established common operation and maintenance points (QuickMBA, 2011).

Such strategies have been utilized by the marketing department ensuring that NWA competes favourably with major airlines owing to their up-graded and up-dated services.

The marketing department has further resorted to integrating their flights and operations. Connections between air link carriers and Northwest have been shown with clarity as online rather than interline transfers, whereby less time and lower cost on fares are involved to facilitate connections.

These strategies have made NWA just like Emirates to obtain better competitive advantage hence commanding good part of the consumer base (QuickMBA, 2011).

The prime role of NWA is assisting customers in obtaining the best services that are safe and profitable to the company. The operations are reinforced through application of modern computerized systems helps in supporting necessary working systems, providing customers with efficient customer care services.

The various customer needs are easily met through installation of computerized technology system which provides customers with variety of choices on the kind of services and products they require (QuickMBA, 2011).

Is there a difference between classical and instrumental conditions? Identify each and explain the concept within Emirates Airlines

As one of the several rapidly growing airlines, Emirates Airlines operates brand new fleets of long-range. Their classical conditions operate hand in hand with instrumental conditions.

The designs of their aircrafts appear unique for classical service purposes. They use wide body aircrafts within which they offer finest services and accommodations.

Emirates operate the largest passenger jets which includes giant Airbus A380 aircrafts for the convenience of consumers. They offer superior in-flight services and limousine services on the ground.

In-flight services comprises entertainment, private suites within first-class and operate large spas with ability to accommodate families. They ensure that travellers are granted quality experience on long flights both in business and economy classes (Nicholas, 2009).

Description of things which customers and marketers could learn by observing other behaviours

Emirates Airlines have put a lot of faith in their employees and goes extra-mile to safeguard their jobs by giving them handsome pay. This enables employees give extra contributions towards ensuring that the company operates within the best realms in the market.

The company organizes for several training programs for their employees which ensure that they continue in good shape. Emirates Airlines operates in business circles whereby financial reports are made independently, the company serves ten destinations continuously within India, dozens of cities in some Far-East and Middle East countries.

Their services extend to Africa, more than twenty cities both in Europe and Asia. This shows how dynamic their marketing strategies are since there is non of the European Airlines covering such wide market outside Europe, the same with American Airlines (Nicholas, 2009).

Conclusion

Consumers respond either positively or negatively depending on the kind of services offered by various airlines. They crave for convenient and professionally managed airlines which are concerned with comfort and safety of passengers. The focus should be in-flight services, seat designs, availability of luggage area, sanitary requirements and also entertainment systems.

References

Nicholas, K., 2009. Emirates Sets the New Standard for Airlines. Web.

QuickMBA, 2011. Global Strategic Management. Available at http://www.quickmba.com/

Introduction

The United Arab Emirates, is one of the most dynamic business locations in the world. In essence, the economies of the Arabian Gulf states are among the most dynamic in the world today. This is because wealth in these regions has been generated at what we can describe as historical rates (Rehman, 2007). This has been largely contributed by a boom in oil prices. The Gross domestic product (GDP) growth in the Gulf countries often approaches or exceeds the double digits, which have been attributed to the countries rapidly evolving demographics. In these countries, the youth make up approximately half the population which has led to high consumer demand.

In essence, the states of the Gulf Cooperation Council  the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman  have become promising places to do business.

Business firms in the UAE

In this paper, we are going to focus on business firms within the United Arab Emirates. The business firms which we are going to focus on are in the airline industry. Specifically, we are going to look at Emirates Airlines.

History of the airline

The Emirates was established in the year 1985 in Dubai. As an airline company, this firm started operating with two leased aircraft. These aircraft had only three destinations which included Karachi, Mumbai and Delhi (Doganis, 2006). The initial aircraft that were being leased by this airline was Boeing 737 and an airbus 300B4. Emirates Airlines is one of the worlds fastest-growing long haul carrier. It was recently ranked as the worlds second most profitable carrier, after Singapore Airlines. In the year 2005, the airlines profits rose by 45% to $637 million at a time when the airline industry was accumulating losses. The following year Emirates passenger volume had risen to more than 17.5 million, which was a reflection of rapid growth that was taking place in Dubai (Graham, Papatheodorou, & Forsyth, 2010). This was occasioned by the fact that Dubai was considered as a commercial hub in the Middle East. In recent history, this airline has rapidly emerged as one of the most important success stories in the airline industry.

Ownership

Emirates Airlines is part of a state-owned Emirates Group. This is a large diversified travel umbrella group which is owned by the state of Dubai. This Group emerged as a globally influential travel and tourism conglomerate that generated record profits of $ 762 million in the year 2006 (Ragaei, 1981).

Operations and strategy

In a sense, this airline enjoys a monopoly within this region. This is because the airline belongs to The Emirates Group, whose primary mission is to transform Dubai into a major economic and transport hub in the Middle East. In order to achieve this goal, Dubai has developed and pursued an open skies policy which allows over 100 airlines which are serving over 140 destinations to operate out of Dubai International Airport. The long term goal of this approach is to benefit from the traffic flows by attracting international tourists to the Dubai hub (Rehman, 2007). This is done because the Emirate Airlines is an airline which does not have a sizeable domestic market. The success of this airline has further been accelerated with the ideal geographic location of this region. In essence, this region forms a perfect link between the East and the West. Based on this, the Emirates Airlines has emerged to be a major competitor for the Singapore Airlines on long haul routes between Europe and Asia. A case in point is based on the fact that Emirates Airlines busiest city  pair markets include the Dubai  London and Dubai  Singapore (Ragaei, 1981). Furthermore, coordinating the prevailing airline policy regarding air travel has worked to benefit this airline. This strategy alongside the largest airline in Dubai has been able to establish a major hub in the name of Dubai International Airport.

The massive projects which have been taking place in Dubai have led to an increase in air traffic into this region which has benefitted the Emirates Airlines. The projections which had been adopted to attract 15 million visitors by 2010 had been realized to an extent. This increase in the tourists traffic paid off by bringing about major expansions within the region. For example, Emirates Airlines current order book stands at 124 aircrafts with a total value of approximately $30 billion (Rehman, 2007). Furthermore, it is the main launch customer for the famous A380 double-decker super Jumbo where it has placed 45 orders which cost $250 million each.

The consumer perceptions

The airline is regarded as a high class airline. This is because of the quality of the service that this airline seeks to provide its customers. This has largely been contributed by the branding that has been associated with this airline. Secondly the airline has invested in the latest technology in order to attract more clients. This has served to reassure the clients on the quality of services which the airline offers.

It is worth noting the fact that since this airline seeks to serve the tourists, the major strategy which has been employed by this airline is on quality of services. This airline has been recognized to be among the airlines which have got the best hospitality services (Nargundkar, 2010). This has in turn boosted the consumer perception with regard to the quality of service. The airline has got quality in-flight entertainment which has made it to be among a choice airline among most passengers.

The societys perspective

This airline has made a mark from the societys perspective. This has been occasioned by the number of initiatives that this airline has invested in. For instance, the management of this airline has focused on sponsoring international events and sporting organizations. This has improved the general perspective from the society (Rehman, 2007). However, in as much as this is the case, the general outlook of this airline has not changed. This is because it is considered to be a star studded airline implying that it has got slightly higher rates as compared to other airlines in the industry.

Conclusion

This airline has benefited a lot from its center of operations. This has made it to be among the best airlines in the world. It is worth noting that the operating environment within UAE has contributed a great deal to the success of this airline. In addition, the management of this company has ensured that the brand of this airline is associated with quality by investing in the state of the art technology and aircrafts. Essentially, business is all about strategy. The strategy which sustains any venture is usually based on addressing the needs of the customer.

References

Doganis, R. (2006). The Airline Business. New York: Routledge.

Graham, A., Papatheodorou, A., & Forsyth, P. (2010). Aviation and Tourism:Implications for Leisure Travel. London: Ashgate Publishing, Ltd.

Nargundkar, P. (2010). Services Marketing 3E. New Delhi: Tata McGraw-Hill Education.

Ragaei, E. M. (1981). The Economic Development of the United Arab Emirates. New York: Taylor & Francis.

Rehman, A. (2007). Dubai & Co:Global Strategies for Doing Business in the Gulf States. California: McGraw-Hill Professional.

Introduction

This research was commenced to analyze two markets (host and home) that could enhance the international development of an aviation organization. The organization that is discussed here is Emirates Airlines. This organization is particularly important due to its rapid growth in the global aviation market. Such growth is vulnerable to competition and also has a significant impact on the global economy.

The paper looks at the position of the firm in terms of strengths, weaknesses, and market competition to select the potential host market. Since the success of the organization in internationalizing its business relates more to the market environment, it becomes important to identify the most significant ones. Therefore, there is an analysis of the UAE market where the Emirates is located that focuses on political, legal, social, economic, and technological suitability.

Further, there is an analysis of the suitability of the Egyptian market from a similar perspective. The need to analyze the two markets is to identify the advantages and opportunities existing and those that can be combined to facilitate the penetration of the organization into the host market. The paper is not complete without commenting on how Emirate Airlines might position its operation within Egypt in response to the emerging business opportunities.

Emirates Airways background

Emirate Airways is the international airline of UAE and its main activity is to provide commercial air transportation services. It also provides external services such as cargo, in-flight catering, engineering, and training, not to mention its involvement in hotel and resort development. The airline is fully owned by the government of Dubai and is located at the Dubai International Airport. Due to its recent airport expansion and government initiatives, Emirate Airways uses the recently developed terminal 3 facility.

The success and growth of Emirate Airways are entitled to several important strengths. First, the overall responsibility of the King and the government for all aviation-related initiatives in Dubai and the lack of a selfish-culture as regards airport expansion ensures that the airline does not face infrastructure disadvantages for years; which increasingly suppresses the growth hopes of its competitors (Knorr & Eisenkopf 2). Second, the airline benefits from the low charges in the home country.

While landing charges are huge and identical to other airports, no carrier landing on Dubai airports is supposed to pay additional charges. The third strength is associated with Emirates strong brand recognition. Its strong emphasis on its award-winning service through in-house training and development is beaten by only a few other airlines. Finally, the airline has established numerous routes including the longest direct route from Dubai to Los Angeles indicating its ability to cover a comparatively wider passage base.

For weaknesses, it is almost impossible for a person to distinguish any. Though, disreputable unreliable as a source, several comments posted on aviation-related blogs are suggesting the slipping service standards and lack of constancy in service quality from the carrier (Knorr & Eisenkopf 2). This observation could be justified by the recent failure to succeed in winning various awards for excellent service quality such as Skytrax.

Emirates entrant into new markets was envied by major international airlines that induced established airlines in Europe and Australia including British Airways, KLM, Air France, Qantas, and Lufthansa to perceive the carrier as a major threat. Most of these airlines compete for international passengers with Emirates and impose extra pressure by accusing the carrier of receiving state subsidies. Emirate Airways also competes directly with about 23 carriers operating in the Middle East. These are particularly threatening because they share the same good management as well as cost reductions as their competitive advantages.

UAE market

Dubai, the hub for Emirate Airlines, is an administrative and business center within the United Arab Emirates. Initially, these emirates were bound by treaty to Great Britain for many years. They later allied in 1971 and have since functioned mutually to create a stable economy and political environment. UAE is located in the southeast of the Arabian Peninsula between Saudi Arabia and Oman.

The country is in the Arabian Desert and hence is characterized by desert features such as dunes and limited vegetation. However, it lies along the coast of the Persian Gulf with many islands and several mountains along its coastline. Most of the cities including Dubai and Abu Dhabi are located along with the cost.

The main focus of the UAE government is investing in its people since the inception of the nation and particularly regarded as the wealth of the nation. The people are now enjoying the benefits of high standards of education and excellent health services. Significant efforts have been made to enhance human resources, achieve the empowerment of women, and offer social well-being to the more marginalized in society. The relatively young nation has a society with a unique blend of people and cultures. With a large foreign population, the country is the most socially liberalized in the Middle East.

Islam religion has played an influential role in determining the society and culture of the UAE (Denicola 2). It is the official religion and permeates almost every part of life. Education, law, mode of dressing, and conversations to name a few are strongly influenced by the Islamic religion. Family and tribal linkages further form the basis of social structure. They are largely influential and shape individual values and behaviors.

Moreover, hospitality is an important part of the culture and applies to both professional and social circumstances. The weight placed on hospitality closely relates to the significance of relationships that everybody strives to cultivate. The official language in UAE is Arabic and all government communication must be in Arabic. However, among the expatriate societies, other different languages are accepted with English being used for all written business communications.

In UAE there are no legal political parties or elections. Power rests with Sheikhs or Emirs who govern the seven traditional emirates and select a president or the overall leader among themselves. There is a cabinet in which positions are distributed among the Sheikhdoms. The parliament or Federal National Council advises the supreme council and the cabinet, but cannot claim superiority over them.

These leaders have steered the diversification of the UAE economy to become a politically stable nation. UAE is a civil law jurisdiction highly influenced by Islamic, French, and Roman laws. The legal system has been influenced by the increasing presence of foreign law firms based on the common law. In particular, many of the laws endorsed by the ruler of individual emirates are more administrative, like the creation of state-affiliated entities.

As of 2010, the total population of UAE was estimated to be 5.6 million. The three most populated sheikdoms are Abu Dhabi, Dubai, and Sharjah with about 85 percent of the total population. Most people are concentrated in major cities with Dubai topping the list. Total GDP was estimated at AED 987.5 billion at a growth rate of 3.2 percent with the non-oil sector seeking to provide an attractive business climate. Oil dominates the economy although it contributes just a third of the overall GDP.

Due to government policies and liberalization of the economy income levels per capita are among the highest in the Middle East (Denicola 5). UAE is a major exporter of oil, machinery, and electronics while the major imports include precious metals, telecommunication equipment, and foodstuff. Imports are quota-free and there are no restrictions on exports with an exception of items of historical value. The country strictly prohibits trade with Israel.

UAE is among the most advanced nations in technology within the Middle East. In addition to automation in industries, the country has adopted technology in the transportation sector. For instance, the Dubai metro network involves high tech, electric trains that transport people within the emirate. Moreover, information technology is the core aspect of UAE policies. About 95 percent of the population in Dubai uses the internet either for professional or personal purposes.

Egypt market

Egypt has a long history of its pre-historic civilization and culture that attracts a large pool of tourists and scholars. The country is full of wonders and artifacts that were built thousands of years ago as well as features of modern civilization. It is among the first countries to develop both economically and socially in the world. Egypt is located in northeast Africa and borders Sudan, Libya, Israel, the Red Sea, and the Mediterranean Sea. Although the country is characterized by desert features of the Sahara Desert, it has a long coastline in the north and east as well as the river Nile that divides the country into two parts. Egypt is divided into four distinct sections: The Nile Valley and Delta, The Eastern Desert, The Western Desert, and The Sinai Peninsula.

The social environment and organization in Egypt are greatly influenced by the Islamic religion. Although the ancient culture still lingers in some aspects of social organizations such as family roles, the modern culture responds to Islamic beliefs.

Among other African states, Egypt has relatively higher literacy levels and most of the citizens have attained basic education. The population is principally made of Egyptians and Arabs as well as a small population of Nubians and Berber in the south and west respectively. With 95 percent of the Egyptians conforming to Islamic practices, a small population of other religion-based groups has maintained their practices. The official language is Arabic which is also used for written communication. Other languages such as French, English, and German are also used in business and education domains.

Egyptian political structure is such that the president is the head of state and is appointed by at least a third of the Peoples Assembly. The administrative body and the supreme organ is the government and consist of the council of ministers headed by the Prime Minister. The ministers are collectively responsible for the policies of the country. Until recently when the people rebelled against Mubarak rule, the political environment in Egypt was stable. However, after the resignation of Mubarak, the country is gaining political stability. The judicial system is founded on Islamic law, English common law, and the Napoleonic code system. Four judicial bodies guarantee the independence of the system.

Egypt is the most populated Arab nation with a population of about 75 million as of the year 2005 (Awad and Zohry 2). The population growth rate is about 2.25 percent with most of the population concentrated in cities, along the river Nile and the coastal region. Egypts economic stabilization plan initiated some time ago has produced substantial results in most macroeconomic sectors. GDP growth is about 8 percent which is largely driven by domestic demand.

The export growth is about 10 percent and is expected to strengthen future GDP growth. Exports mainly consist of grains, industrial raw materials such as cotton and oil, while imports include machinery, electronics, telecommunication equipment, and precious metals. The stabilized economy has resulted in higher income levels and most of the people are in the category of medium-income earners. Most of the wealth is concentrated in the urban centers and in particular within the Nile delta region.

Compared to other African states, Egypt has developed its technology environment more than them (Abdulla 21). There is a remarkable application of automation in factories as well as within major facilities such as airports. There is also increasing adoption and application of information technology in governance, business, and education domains. Despite the recent political hurdles the country is only comparable to its Arab counterparts in terms of technological investments.

Market attractiveness

Considering the long-term goal of Emirates Airways to expand globally and increase its routes, the Egyptian market is attractive. The country is an ally of UAE which is also reinforced by their commonness and Islamic orientation. It appears that the two economies have a mutual economic interest especially when it comes to exports and imports. Egypt is a major producer of foodstuffs that are much needed by the UAE, while UAE has technological potentials required by Egypt. In addition to the two countries being members of the Arab League, Egypt is geographically close to Dubai. Moreover, Africa is becoming an important region for investing in the aviation industry partly because of the raw materials produced and the increasing movement of foreign investors into the region.

To reinforce the attractiveness of the Egyptian market, Emirate Airways can use the infrastructure to link to other African nations. Indeed, like other airlines, the carrier already has its operations in Egypt and hence the market already exists. Emirates Airways just needs to establish a tight presence and exploit emerging business opportunities by increasing its activities. This can be achieved by opening new routes to important cities like Alexandria and Suez which have become educational hubs and tourism destinations. In as much as the airline wants to penetrate Northern Africa, Egypt remains the most strategic market.

Conclusion

Emirates Airlines has demonstrated tremendous growth in the recent past partly because of its business model that focuses on cost and quality service. However, the global aviation arena is characterized by established airlines that have been in operation even before the conception of Emirates. Therefore, in the case of international development, it is important to identify the strengths and weaknesses that can drive strategies for successful implementation.

Emirates has several strengths associated with Dubais favorable political environment, its quality services, and strong brand recognition. In addition to these strengths, UAE being the home market is politically stable, has resources, is geographically advantaged, has an educated population, is technologically sensitive, and is economically advantaged. These factors add to the international development of Emirates as long as they align with those of the host.

Egypt in particular is psychologically, economically, politically, and religiously close to UAE, therefore, indicating its suitability as a market of choice. Emirates can build on these similarities and exploit the opportunities arising.

Works Cited

Abdulla, Rasha. The Internet in the Arab world: Egypt and Beyond. New York, NY: Peter Lang, 2007. Print.

Awad, Alyaa and Zohry, Ayman 2005, The end of Egypt population growth in the 21^st century: challenges and aspirations. Web.

Denicola, Christopher 2005, Dubais Political and Economic Development: an Oasis in the Desert? Web.

Knorr, Andreas, and Eisenkopf, Alexander. How sustainable is Emirates Business Model. Airline Magazine, 38 (2010): 1-4. Print.

Introduction

The economy class (EC) is crammed to allow physical movement, while the business class attaches a high price tag for its comfort. The concept of the premium economy (PE) class aims to bridge the gap between the business and economy classes (Hugon-Duprat & OConnell 2015; Kuo & Jou 2017). At present selected number of airlines are offering this innovative PE class such as Singapore Airlines, Virgin Atlantics, Japan Airlines, Cathay Pacific, and British Airways to name a few (Morrell 2008; Hugon-Duprat & OConnell 2015). Though the concept of PE has picked up recently with major airlines announcing the addition of PE as an option for their passengers, the concept was initially introduced in the 1990s by the UKs Virgin Atlantic and Taiwans EVA Air. Figure 1 shows a standard layout of all classes seating of Cathay Pacific.

In a bold move, Emirates plans to offer a PE class to attract customers with tighter budgets. Emirates has long offered luxury class but the declining oil revenues have impacted the passengers budget to afford first and business class. With other airlines offering more options to the passenger with a tighter budget, Emirates looks to fill this gap and retain its customer base. In this respect, this report offers a review of PE class and its possible impact on the overall design and economy of Emirates. First, this study offers a comparative study of various types of premium classes available. Second, this report looks at the impact and suggests the routes beneficial for offering PE class.

Attributes, Merits, and Disadvantages of PE

First, it is important to understand what the Premium Economy (PE) Class is. It provides more features than the EC; however, it does not provide all the features of the business class. The PE provides 1 to 2 inches of extra pitch with wider seats than the EC. Also, PR seats recline and have adjustable headrests. The PE class offers an average pitch (legroom) of 38 inches and a seat width of 18 inches (Paris 2017). This is substantial compared to EC seats, which offer an average pitch of 30 inches and a seat width of 18 inches (Paris 2017).

Additional features as well as services come with PE depending on the policies of airlines such as larger personal video screens, additional food choices, and power port for electronic devices. Table 1 shows the basic features of PE class offered by different airlines. They vary from one airline to another. For example, almost all the airlines provide the amenity kit to PE passengers with socks and eyeshadow. However, only selected carriers to offer the privilege of early check-in, blanket, and a free meal. Further, the price of the PE is higher than EC; however, the fare difference can be 50% to 120% higher (Josephs 2016). Therefore, it can be concluded that through PE class fills the gap between the economy and business class, its implementation varies among airliners.

Table-1 Premium Economy Class features (Josephs 2016).

Characteristic Design and Economy of PE

Present Emirates fleet comprises Boeing A380, Boeing 777-300, 777-300ER, and 777-200LR. With the inclusion of PE class and fleet space remaining the same, it is likely to reduce the number of seats per row. The decrease in the number of seats can impact total fare collection. For example, presently Emirates Boeing 777-300 has a passenger capacity of 364 (12 First Class, 42 Business Class, and 310 Economy class seats). Figure 2 shows Emirates seat distribution for its Boeing 777-300. A single row of business class has 7 seats, while a single row of an EC has 10 seats.

Let us consider two design scenarios to analyze the impact of design and economy of PE:

• The case I: Consider half of the EC seats are converted into PE class.
• Case II: Half of the Business class capacity is converted into PE class.

It should be noted that a standard PE class of Being 777-300 can accommodate 8 seats in a row. Under the first scenario (Case-I), the total number of seats will reduce from 364 to 330 as the existing 33 rows of economy class seats will be converted into PE class, which will replace 155 seats (half of EC capacity) with 90 PE class seats. Therefore, the total capacity of Boeing 777-300 will reduce from 364 to 329 (12 FC+ 42 BC + 120 PE + 155EC). This will lead to loss of income coming from the economy class seats.

On the other hand, the second scenario (Case-II) will convert half of the business class seats to premium economy class. In other words, 32 out of 64 business class seats will be converted into premium economy class. This will increase the total capacity of Boeing 777-300 from 364 to 367 (12 FC+21 BC+ 24 PE+ 310 EC). The second scenario shows that converting business class increases the total number of sets marginally. On the other hand conversion of economy class seats into premium economy class reduces the total number of seats.

Route Selection

Research studies show that the premium economy class can be most effective in long-haul aircraft carriers (Wensveen & Leick 2009; Hugon-Duprat & OConnell 2015). For example, Singapore Airlines offers its premium economy on long-haul routes such as from Singapore to Paris, Munich, Manchester, Sydney, New York, and Los Angeles (Rosen 2015). Therefore based on industry practice and Emirate present routes, this report proposes the following three routes for implementing premium economy class:

• Route-1: Dubai to New York
• Route-2: Dubai to Paris
• Route-3: Dubai to Singapore

Selections of these three routes are based on multiple factors. First, these are the most frequent destination for most travelers to and from Dubai. Second, the business class travelers with a tighter budget will get an option of a premium economy that would fit in their pockets. Besides, other airlines have been offering premium class options to their passengers on these routes. Thus, Emirates offering premium class will even out the competitive edge other carriers avail in these routes. An in-depth economic analysis is provided in the following sections on the feasibility of these routes and premium economy class.

Premium Economy Seat Section and Layout

The new premium economy class should be placed in the transition zone between economy and business class as shown in figure 2. This would require minimal changes to the existing amenities such as the gallery, toilet, and service space. Nevertheless, there will be reduced space for the movement from the new premium class to business and economy class due to wider seats per row. Based on the industry-standard, the premium economy class should consider JDA Design seats, which offer leather seats, leg rests, adjustable headrest, and larger leg space (Garcia 2015; Drescher 2015). Table -2 list the detailed design feature of JDA Design premium economy seats. With the new seats, Emirates can expect 2-4-2 premium economy seats per row.

Table 2: Design features of the proposed premium economy class seat (Drescher 2015).

Feasibility

This study proposes to install the PE class by replacing 5 rows of popular EC and 2 rows of business class. Feasibility test results are presented here by considering the economic viability of the proposed configuration. Table 3 shows comparative revenue of present configuration and proposed configuration. This study only considers the change in generated revenue for the section under consideration (Figure-2) because revenue from the remaining section of the flight will remain unchanged. The primary objective of this analysis was to estimate the optimal price of a premium economy class for a break-even situation. Results show that Route-1, Route-2, and Route-3, at present, generate $78448, $65640, and $37752 with 14 business class and 40 economy class seats. Now, these 14 business class and 40 EC seats will be replaced with PE class 48 seats. From Table 3, the data price of each PE class seat can be calculated for a break-even situation. The estimated price for each PE class seats for Route-1, Route-2, and Route-3 are $1634, $1368, and $787 respectively.

Table 3: Feasibility analysis of present and proposed seating arrangement for the three selected routes.

The feasibility study shows that the price of PE class seats would be higher than the present ECs i.e. for Route-1, Route-2, and Route-3 the price would be higher than EC by 150%, 157%, and 223% respectively. Nevertheless, the new PE class will offer a lower price option to a business class traveler who has a tighter budget and looks for comfort. Also, the new PE class will attract EC travelers who look for comfort but cannot afford business class.

Findings and Conclusion

The new PE class segment is much needed to improve Emirates customer experience and retain its frequent fliers. With the decreasing oil price, most business class travelers are tight on their travel budget. With the introduction of PE class, Emirates will offer the best fit option to its customers and will be able to compete with other carriers who have already started to offer PE classes in selected routes. This study looked at the advantages and disadvantages of a premium economy class in comparison to business and economy class.

A feasibility study was conducted to estimate the economic impact of introducing the PE class. Results show that the PE class fills the gap between the comfort of the business class and the competitive price of an EC. In this respect, three routes were considered for implementing PE class based on their viability: Dubai to New York, Dubai to Paris, and Dubai to Singapore. This study proposes to select a space between economy and business class and convert it into a premium economy class. From the selected section, the Emirates collects $78448 for a round trip on the Dubai-New York route. To break-even, Emirates will need to price a single premium economy seat 150% higher than economy class. Similarly, the price of premium economy class on 2^nd (Dubai to Paris) and 3rd (Dubai to Singapore) proposed routes will be 157% and 223% higher than the economy class.

Though the price of premium economy class is slightly higher than the economy class, the passengers looking for additional comfort will be able to get the facilities at a lower cost than the business class. Besides, this new segment will help the struggling economy hit with a plunge in oil prices. Emirates has long been a major player in the luxury segment, but with changing dynamics and passenger requirements, Emirates will be at a loss if it does not implement innovative and competitive technological changes such as the premium economy class. Results clearly show that with a slight increase in price customers can avail better facilities, at the same time; Emirates need to strategize the design of new seat to facilitate better movement and optimal utilization of the available space. The study clearly shows that the phase-wise introduction of premium economy class into the present layout can benefit both the carrier and customers. As future work, this report possesses an in-depth analysis of premium economy class economic viability on shorter routes, which is majorly driven by economy class. Inclusion of premium economy class, on one hand, attracts business class passengers looking to save some money, and on the other hand, it provides much-needed gradient to the economy class passengers who look to have a better facility at a cheaper price.

Personal Learnings and Insight

The assignment was useful for understanding the requirement of the premium economy class. The assignment helped me develop analytical and reasoning skills. I was able to use my design, decision making, and research skills. This project conducted the feasibility study for only one selected section and configuration of a premium economy class. I would like to compare various other configurations. There are limited published reports on the premium economy class. Such projects require data from validated sources, which was lacking as the section is new and still developing.

Reference List

Drescher, C 2015, Singapore Airlines premium economy makes a 16-hour flight seem reasonable, Traveler, Web.

Emirates 2017, Seating charts, Web.

Garcia, M 2015, Happy medium: JPA design explains why airlines should make premium economy differentiation count  part three, Apex, Web.

Hugon-Duprat, C & OConnell, JF 2015, The rationale for implementing a premium economy class in the long haul marketsevidence from the transatlantic market, Journal of Air Transport Management, vol. 47, no. C, pp. 11-19.

Josephs, L 2016, How premium is premium economy? A guide to choosing that upgrade, airline by airline, Quartz, Web.

Kuo, CW & Jou, RC 2017, Willingness to pay for airlines premium economy class: the perspective of passengers, Journal of Air Transport Management, vol. 59, no. C, pp. 134-142.

Morrell, P 2008, Can long-haul low-cost airlines be successful? Research in Transportation Economics, vol. 24, no. 1, pp. 61-67.

Paris, N 2017, Which airline is number one for premium economy? The answer might surprise you, The Telegraph, Web.

Rosen, E 2015, Review: singapore Airlines 777-300ER in Premium Economy, The Points Guy, Web.

Wensveen, JG & Leick, R 2009, The long-haul low-cost carrier: a unique business model, Journal of Air Transport Management, vol. 15, no. 3, pp. 127-133.

Introduction

The aerospace industry grows continuously, as this segment becomes more and more attractive to different service providers. Emirates Airlines could be considered as one of the companies that were able to take advantage of the external environment and became one of the industrial leaders. Today, Emirates is an international airline with constant flights to 82 countries across the globe (The Emirates Group 2017).

It gives priority to quality, exceptional service, and its recognition worldwide (The Emirates Group 2017). Thus, even industry giants face difficulties in economic crisis and recession. Consequently, the primary goal of this paper is to evaluate its external environment, marketing strategies and tactics, and finances. Finally, recommendations are proposed to discover the ways to survive in the market within the next 20 years.

Factors on Airline Business

General Overview

To establish a foundation for discussion, it is essential to describe methods and techniques that Emirates used since its first years of operation to overcome financial difficulties such as crises. Utilizing the PESTE framework is the most suitable approach because it covers external factors from different spheres such as political, economic, social, technological, and environmental ones (Grunig & Kuhn 2015).

This analysis assists in gaining a multifaceted overview of the topic by depicting the impact of each external force. Nevertheless, before conducting the PESTE analysis, it is essential to review Emirates performance over the past three years. For example, it experienced a substantial increase in its revenues from AED 82,636 million in 2013-2014 to AED 88,819 million in 2014-2015 (The Emirates Group 2017).

In 2015-2016, sales slightly dropped (from AED 88,819 million in 2014-2015 to AED 85,044 million in 2015-2016) while at the beginning of the fiscal year 2016-2017 (AED 85,061 million), it was able to prevent this rapid decrease in revenues (The Emirates Group 2017). To summarize, Emirates experienced problems with its finances and demands since the beginning of 2015 while continuing to be one of the market leaders.

PESTE Model

According to the PESTE model, political factors have a critical impact on the financial performance of the company. For example, operations of the enterprise are highly dependent on the political stability of the country and its neighbors. In this instance, wars in Yemen and Iraq create negative perceptions of the country while making the United Arab Emirates less attractive to foreign investors and visitors (Dudley 2016).

The blockade of Qatars airspace is also a vital political aspect, as it requires changing the existent travel routs and leads to increases maintenance costs (Kamel 2017). Another possible factor is a threat of terrorism since the country actively takes part in fighting it, it and its geographical location increases its vulnerability.

Furthermore, scholars and the management of The Emirates Group link a continuous drop in revenues to an unfavorable economic environment. During these years (2015-2017), the dollar was highly unstable, and changes in its values affected the revenues of Emirates due to its dependence on currency exchange (Dudley 2016). This aspect is of high importance since the company serves customers worldwide. Consequently, a decrease in revenues can be linked to slow economic growth and recession in other countries, as the profitability of Emirates is reliant on demands in the foreign markets (Dudley 2016).

Due to the dependence of the UAEs GDP on oil sales, their low value not only affects the countrys growth but also slows the development of the companies (Dudley 2016). In this case, a combination of economic factors can cause a downward shift in sales solely, but the overall economic condition of the UAE is favorable due to its active investments in transport infrastructure. Consequently, Emirates has possibilities to recover.

Social aspects are highly linked to previous sections, and peoples attitudes towards neighboring countries of the UAE, a threat of terrorism, high prices, and low demands may affect the recognition of Emirates. However, the enterprise can maintain its image of one of the best companies in the industry that constantly aims at expansion to different international locations such as Orlando (Mouawad 2015).

As for changes in technology, it is essential to take into account this aspect since it has a direct impact on consumer behavior. For example, a new generation of Millennials tends to use mobile applications while video conferencing affects the demand in real-life meetings and, as a consequence, in traveling (Anderson 2016). Consequently, attracting new customers becomes a challenge. Speaking of environmental factors, climate changes in different countries where Emirates operates have an essential impact on its functioning, as dealing with these issues may require additional investment.

In turn, people tend to change attitudes and become more concerned about the environment and the effects of different technologies on it, and it is the primary trigger for the development of eco-friendly gadgets while revolutionizing the aerospace industry. Nevertheless, prioritizing excellence helps Emirates remain one of the market leaders while showing customers its social sustainability strategy.

Future Trends and Conclusions

Based on the analysis of the factors conducted above, potential future trends may include rising operating costs due to currency fluctuations, intensifying rivalry, and decreases in demand due to terrorism and differences in economic growth (Dudley 2016). To overcome these challenges, the company may consider establishing a new low-cost airline to regain its market shares in the countries with insufficient economic growth. At the same time, Emirates has to create collaboration with local authorities to maintain security at high levels and redesign travel routs. Currently, Emirates attracts customers with the help of the Emirates Skywards program that allows flyers to earn miles (Emirates 2017a).

Relying on its current strategy does not seem to be effective due to a constant decrease in sales since 2015 (The Emirates Group 2017). Other future trends may include the continuous rise of technology and environmental concerns, and Emirates can focus on developing interactive websites and applications. However, the company already employs these action plans and should continue using them while making adjustments that can be discovered as a priority. To conclude, Emirates has to review its current corporate strategy and take into account different environmental factors and possible threats such as terrorism and wars.

Airline Product and Marketing Strategy

Emirates Marketing Strategy and Its Comparison

In turn, it is vital to understand a connection between Emirates marketing activities and its superior financial performance, as only relying on these concepts will help understand the microeconomic environment. Emirates used a consistent marketing strategy from 2015 to 2017. The company positions itself as an excellent service provider, who cherishes quality and respects the needs of the customers (Tadros 2016).

At the same time, it promotes technology-driven customer initiatives by delivering this message via partnerships, press releases, newspapers, official websites, and social media (Tadros 2016 para. 3). Apart from representing a luxury segment, Emirates still has competitors with similar features. For example, Etihad and Qatar provide comparable quality and evoke analogous feelings among consumers while attracting customers with similar needs (Zhang 2015).

Thus, the company attempts to differentiate itself from the competitors not only by the brand equity but also by its frequent flyer program. For example, Emirates Skywards allows loyal customers to gain miles and use them to explore the world (Emirates 2017a). Overall, only with the help of these features of the marketing strategy Emirates was able to have stable revenues while experiencing only a slight decrease in sales.

Nevertheless, it is essential to review the marketing strategies of Emirates each year. For example, apart from having a well-developed social media marketing campaign, in 2015, Emirates took part in Dubai Airshow and demonstrated its aircraft and the high attention paid to the training of its pilots and flight attendants (Tadros 2015). Meanwhile, in 2015, the company also focused on improving its social media services by making them available 24/7 (Emirates 2015).

This activity showed the international focus of the company since it was available in English and Arabic at the same time. As for 2016-2017, Emirates continued sponsoring different activities such as football, tennis, horse riding, rugby, and motorsports (Emirates 2017b). A combination of these factors states that the company continued upholding its brand equity, and it helped Emirates maintain its financial performance and avoid a subsequent drop in sales.

Evaluation of Success

Nevertheless, a profound assessment of the marketing strategy has to be conducted. Emirates attracted new customers by its high quality, superior performance, prestige, safety, and international brand recognition, and customers chose this airline due to a combination of these reasons. In turn, its unique selling point pertains to its slogan Hello Tomorrow and the desire to create a special culture for its customers and employees (Goodson 2016, para. 4).

It gives people not only an opportunity to travel and expand their horizons with Emirates but also develops a positive attitude toward the future. These campaigns had a direct impact on the number of passengers carried.

For example, it increased by 8.1% from 2015-2016 to 2016-2017 while the overall capacity rose by 7.2% (The Emirates Group 2017). A combination of these factors led to the ability of the company to reach the maturation stage of the product lifecycle and have high satisfaction rates among customers. To conclude, with the help of the evaluation of the companys marketing strategy, it is possible to discover that Emirate continues to attract customers, and its changes in revenue are majorly affected by different external factors indicated above, but it should revise the existent marketing strategies by emphasizing social media to avoid a greater drop in sales.

Financial Assessment

As was mentioned earlier finding a connection between corporate strategy, marketing activities, and financial performance is important due to the interdependence between these components. Emirates current strategy implies that customers are provided with full services for the price of the fare while there are different options available. Competitors such as Qatar and Etihad use a similar framework, but Emirates can face a constantly intensifying rivalry due to its well-developed brand equity and differentiation strategy. Using this approach could be considered as the most effective in this industry, as, otherwise, the enterprise would not be viewed as one of the leaders of this market with outstanding financial performance.

When referring to its revenues, they accounted for AED 82,636 million in 2013-2014 (The Emirates Group 2017). Meanwhile, the previous sections identify that the peak in sales was recorded in 2014-2015 (AED 88,819 million), and in the subsequent years, they experienced a slight decrease (AED 85,044 million in 2015-2016; AED 85,061 million in 2016-2017) (The Emirates Group 2017). Consequently, apart from these differences, the company made profits in the last five years and tended to be stable.

As for operating expenses, they experienced a vast increase from AED 70,274 million in 2012-2013 to AED 82,926 million in 2014-2015 due to high investments of the company in its expansion (The Emirates Group 2017). It is evident that in addition to cargo and passenger transportation, the company heavily relied on acquisitions and transactions in the stock market. When comparing Emirates performance with Qatar and Etihad, the position of the company was relatively stable since Etihad had a $1.87 billion annual loss while depicting the pressure of competition faced by Gulf airlines due to terrorism, oil prices, and blockade of Qatars airspace (Kamel 2017).

Meanwhile, Qatar reported a 20% increase in its sales and earnings (Kamel 2017). Consequently, currently, only Qatar could be discovered as the major competitor of the Emirates due to its rapidly growing profit margins.

When referring to yield management, its values continued to decrease from 249 fils per RTKM in 2012-2013 (250  2013-2014; 245  2014-2015; 218  2015-2016) to 204 fils per RTKM in 2016-2017 with the total drop of 8% (The Emirates Group 2017). Similarly to Emirates, Etihads yields were reduced by 7% (Kamel 2017). This decrease was linked to fluctuations in the dollar and unfavorable socio-economic conditions that affect all companies in the Gulf region.

Additionally, Emirates operating margin was low in 2016-2017 with a value of 2.9% while in previous years it was relatively higher (3.9% in 2012-2013; 5.2% in 2013-2014; 6.6% in 2014-2015; and 9.8% in 2015-2016) (The Emirates Group 2017). Profitability ratios were also unfavorable for the company with a 6.9% drop from 2015-2016. As for liquidity, its current ratio is only 0.5%, and it implies that Emirates started to face similar issues as Etihad.

As for aircraft utilization, the total fleet used increased from 217 in 2013-2014 to 259 in 2016-2017 while the average fleet age decreased to 63 in 2016-2017 (The Emirates Group 2017). The passenger seat factor continued its drop from 79.6% in 2014-2015 to 75% in 2016-2017 while implying the problems with capacity, and a decrease in load factor from 67.3% in 2014-2015 to 65% in 2016-2017 inferred the same conclusion (The Emirates Group 2017).

Overall, Emirates is in a similar condition as Qatar and Etihad, and it should consider revising its strategy, as otherwise, it will be impossible to survive intense competition. To regain its losses in revenues, the company should consider setting performance indicators of 2014-2015 as financial benchmarks and aim at their achievement. However, it is critical to note that in 2014-2015, the economic environment was more favorable while the Gulf region was highly attractive to tourists and businessmen due to its prosperous opportunities. Now, it is important to take into account arising trends in maintenance costs and fleet newness factors while carefully planning a budget when these investments are necessary.

Conclusion and Recommendations

Conclusion

In the end, apart from being one of the well-known and popular corporations in the world, Emirates has to adapt to external changes. It is currently affected by fluctuations of currency exchange, a threat of terrorism, wars in neighboring countries, and unfavorable economic environment, a drop in oil prices, and changes in consumer buying behavior. It could be said that using a unique blend of marketing channels including social media, newspapers, sponsorships, and official websites helped the company stabilize its revenues and maintain them at a sufficient level during the economic crisis. Nevertheless, similarly to its competitors like Qatar and Etihad, the external factors mentioned above hurt its performance while causing a substantial decrease in all critical financial ratios.

Recommendations

Thus, with the assistance of the analysis of micro and macro factors, it is essential to define the action plan and propose relevant strategies to stay competitive within the next 20 years. Based on the analysis of external forces, Emirates should consider partnerships with authorities to ensure security. Meanwhile, to comply with social trends, it may be rational to establish a low-cost option of Emirates by acquiring another company, as, otherwise, it will ruin its brand equity.

As for marketing, it should continue working on its marketing scheme by proposing interactive solutions to social media and its website while constantly conducting market research. However, it should not be its central focus since the demands can be viewed as favorable, and a major decrease in revenues is caused by the external environment (see PESTLE). When suggesting recommendations to enhance financial performance, Emirates should view acquisitions as its additional sources of revenue but carefully evaluate every option before making a decision. The enterprise should review its performance in 2014-2015 and consider the aspects that can be used as benchmarks (yield, profit margin, revenues growth, sales volumes, and operational costs (have to be decreased)).

Nevertheless, adjustments including changes in maintenance costs due to technological advancement and issues with oil prices and fleet newness (purchasing new aircraft and equipment) have to be taken into account when shaping a budget and developing new travel routes to minimize costs. In the end, only taking advantage of these recommendations can help the company remain a market leader, take rising opportunities in the airline industry, and stay highly profitable even during the times of economic crisis.

Reference List

Anderson, K 2016, Technology and social trends: a biblical point of view, Christian Publishing House & Probe Ministers, Cambridge.

Dudley, D 2016, Is the Emirates growth story at the end?, Forbes. Web.

Emirates 2015, Emirates social media customer service provides 24-hour support in English and Arabic. Web.

Emirates 2017a, Emirates Skywards: change the way you see the world. Web.

Emirates 2017b, Emirates sponsorships. Web.

Goodson, S 2016, Emirates Hello Tomorrow  why it helped build the worlds favorite airline, Huffington Post. Web.

Grunig, R & Kuhn, R 2015, The strategic planning process: Analyses, options, projects, Springer, New York.

Kamel, D 2017, Etihad has $1.87 billion loss in worst blow to Gulf carriers, Bloomberg. Web.

Mouawad, J 2015, Emirates has plans to make Orlando its 10th destination, The New York Times. Web.

Tadros, R 2015, Emirates set to showcase the worlds first two-class A380 at the Dubai Airshow. Web.

Tadros, R 2016, Emirates brand value grows 17% to reach US$7.7 billion. Web.

The Emirates Group 2017, The Emirates Group annual report 2016-2017. Web.

Zhang, B 2015, Emirates is attacking its competitors by evoking the Golden Age of air travel, Business Insider. Web.

Introduction

Change management entails transformation of organizations, people or groups from the present to a future desired state. Being an organizational process aimed at improving employees attitudes in embracing and accepting total change in their place of work and entire business environment, it involves employees and their daily processes in an organization. Hence, change management basically entails managing processes within an organization.

For instance, before any forms of changes are adopted in an organization, it must first be approved by the relevant management teams. As a matter of fact, it takes time and proper planning for any changes to be executed in an organization and that is why it is referred to as a process. In most cases, change management is primarily concerned with the human resource aspect.

The latter explains why all the changes introduced and approved in an organization are usually done according to the challenges facing human resource as well as the emerging needs as set out in organizational objectives (Hiatt & Creasey 243). Therefore, domains involved in successful management include educational programs to train or improve skills of the human resources within an organization or improvement efforts aimed at boosting production in an organization.

Another aspect normally taken into consideration when implementing change management in the need of containing employee behavior which sometime entails combating their resistance towards proposed changes with the view to aligning them to a strategic and desired direction for the betterment of the organization.

Thirdly, there has always been need for effective communication when implementing change in organizations. For example, all the stakeholders, including employees should be part and parcel of change management process.

Therefore, they should be informed and also be made to take active roles in implementing the very changes. In other words the rationale for change, associated advantages and also all the likely limitations of change plus the associated budgetary expenditures should be made clear to all stakeholders. Hiatt and Creasey (246) observe that all these domains coupled with monitoring, process accomplishment and fine modification automatically lead to success in the change management process.

Vision and objectives

The emirates airline is a passenger airline services flying to numerous destinations globally. Its headquarters are located in the Middle East, specifically in the United Arab Emirates.

The company comprises of airlines flying passengers and cargo to more than one hundred destination across the world (emiratesairlinesonlinebooking.org). With this magnitude of assets and base, it has employed thousands of workers in different fields of the airline industry. Its annual growth rates have sparked the need for more employees and thus improving their yearly results.

According to The Emirate Group (par.1), the Emirates Airline Company has been made strong through its vision and objectives. Its vision is based on building a strong and highly stable team that is keen in decision making with high levels of ambition but with consideration of business ethics as a foundation of success building.

From past statistical evidence and levels of achievement, the Emirates has continued to demonstrate great care for its employees and involved stakeholders for their role in the growth of the company with emphasis on immediate environments and the communities served by the fleet of its airlines.

This is one of its great objectives that have driven growth and encouraged attraction of human resource. Another major objective is to maintain the past and connect it to the future with a view to maintain great service and improve with time signifying the best future in the airline industry.

A supporting objective based on future plans is aimed at making the airline one of the major global players by earning itself a top or front position in making the capital of the Middle East one of the top destination for visiting tourists every year. The latter has been found to be an influential trading hub for business in the world (emiratesgroup.com).

Literature review

Change management with respect to human resource in many airline companies has been directly associated with leadership styles. The type of leadership offered in any organization greatly determines the motivational levels of its employees. Due to this reason, airline companies have been cautious in choosing suitable leaders to run these organizations.

According to Doganis (244), they believe that all activities within the organization are largely determined by the involved leader-activities since all organizational duties are directly delegated to the leader. British airways, once reported that its employee motivational goals were as a result of great leadership skills that were well placed in running the organization. With only eight years in office, employee confidence and financial growth were rapidly attained.

These later led to corporate stability within the business and thus motivated company employees; a factor that led to motivated production inside the firm. The report points out that leadership must involve direct interactions between employees and the leaders for effective communication. Effective communication leads to individual contentment and thus motivates employees in duty discharge.

A similar study done on Virgin Atlantic revealed that there was great motivation within the company. Several reasons were attributed to the fact that the corporation had clearly stipulated programs aimed at boosting the morale of its employees. To begin with, it was found out that leadership confidence was crucial in running the organization.

Due to excellent leadership skills such as how employees were being treated in terms of remuneration and general working conditions, the working environment really improved. Secondly, many company employees expressed unwillingness in moving away, citing satisfaction resulting from the above factors coupled with effective communication with Virgin Atlantic (Doganis 290).

Rationale

Due to the fact that the company has enormous potential to improve its profitability, it raised a lot of hope in the strategies in the strategies that are currently being implanted in the organization. The main focus is on the robust development of human resource department alongside making sure that its clientele base if firmly in place through satisfactory service provision. As a result, there is implication of change management with specific regard to motivation within the organization.

It is thus essential to examine the companys strategic change management practices with respect to employee and customer motivation thus confidence within the company; a factor that has made it overtake other airlines in terms of flights to the Middle East region as well as the becoming known as one of the worlds most famous operating passenger and cargo airlines.

Methodology

Research design

The Emirates, being a multinational company with diversities in population representations, has numerous employees and customers from regions all over the world. With this kind of diversity, designation of suitable research design for carrying out research study in understanding how motivation is employed to keep employees energetic and faithful within the industry can prove to be a tedious task.

Therefore, the research design to be applied must take into consideration the number of employees in the organization, regional or continental representations and major international airports and offices of contacts should information from samples be needed. This will mainly help in attaining primary data for analysis.

Hence, before choosing the correct methodology, it is of great importance put these factors into consideration. This research study will therefore employ these elements of change that may affect the overall data analysis, discussions and conclusions.

Due to complexities in airline ethics, required data as well as the costs involved in carrying out such a research, a qualitative research design has been preferred for the sake of efficiency and effectiveness. Emphasis has been laid on descriptive research method for enlightenment of the required information.

This research design is highly suitable for this study because it brings to light the required information in a form that can be easily understood and analyzed. In order to explain the reasons behind employee motivation within the company, a similar method will also be of great help.

Since this research is only concerned with the explanations behind maintenance of employee and motivation management within The Emirates airlines, taking a quantitative approach might provide inappropriate results which will also be unsuitable for conclusion-drawing in regards to motivation management within this airline company.

Therefore, basing on reasons such as the cost of carrying out the study, location of research elements, regional representation and company location, a qualitative approach has been preferred in this study (Creswell 70).

Data collection

Data collection plays a very important role in implementing a research question. Having chosen a qualitative design and approach in methodology, it is also important to consider a mode of data collection. In this regard, survey becomes the most preferred method of data collection due to several reasons.

Having considered this, the choice of methodology is of the great essence. As already mentioned above, this research study will assume the descriptive design path for study and report writing purposes. As a matter of fact, this is important in attaining the required information from the study. Since individual motivation and change associated with it can only be explained by internal employees of the company, taking a case study may proof to be futile.

Naturalistic observation is also something close to impossible and if not, serious time and money consuming. Therefore it is of great advantage that this descriptive research design employs survey as the method of data collection. Survey will thus involve questionnaire for reasons of its affordability and time saving attributes.

Questionnaire  interview questions

The following are some of the likely questions that may be contained in the questionnaire. It is imperative to note that the proposed questions may be changed accordingly in order to match the expected needs of the research study.

• Are you contented working at The Emirates?
• If you were offered a chance to move on, would you immediately opt for another employer in the airline industry? Explain your choice.
• What makes you comfortable or uncomfortable at The Emirates?
• Do you feel like coming to work another day at The Emirates?
• Do you enjoy working at The Emirates?

Data analysis

Data analysis is one of the critical steps taken in materializing the research question. Under analysis section, it is vital to underscore the fact that evidence is brought to light and further conclusions can be made once data analysis has revealed the required premises. A suitable data analysis method to be employed in this research is obviously pre-determined by the method of research design and available data.

Since this study presumed a qualitative research model with non numerical data arising from questions in the questionnaire, a statistical approach has been recommended. The use of statistical software would be of great help in reducing the amounts of time that would have been consumed in manually performing the involved calculations, hence recommendation for SPSS. Data acquired from the survey questionnaires shall be run through the SPSS software package for analysis and discussion.

SPSS takes preference in data analysis in this case due to various reasons. To begin with, SPSS saves a lot of time when used to analyze large volumes of data. Computation of required indexes is automatically done and results are displayed immediately for immediate analysis.

Secondly, the package is readily available and more business and social sciences are laying recommendations in the use of the package for data analysis. This thus makes it a mandatory for students pursuing courses in business degrees and social sciences to use this statistical package in analysis form data.

Thirdly, statistical approach provides ground for wider discussions. For instance, discussions in reasons of employee contentment at the company can be broadened at length, giving wider perception for contentment, while a second item (willingness to remain at Emirates) also presents wider ground for discussion.

With such broad analysis, accurate discussion can be done and thus lead to drawing of accurate conclusions. Therefore for particular and highly accurate conclusions and recommendations, a statistical approach will be invaluable in analyzing the data collected during this research.

Findings

Contentment

• 90% of all interviewees affirmed contentment at the emirates. 5% did not respond and 5% were not contented.

Figure 1: Contentment level of employees (%)

Loyalty level

• 95% of all interviewees reiterated that they would not move away from the Emirates while the remaining 5 % said they would seek other employment opportunities.

Figure 2: Loyalty level

Reason for working for the airline company

• 60% of interviewees cited better pay as the reason why they were comfortable working for the Emirates, 30% cited leadership excellence while 10% cited home schedule accommodations.

• 80% of all the interviewees said they were willing to come to work the next day while 10% said they were not and 10% did not respond.

• 60% of all interviewees said they enjoyed working at the emirates, 25% confirmed they were not while15% did not respond.

Challenges encountered

Discussion

From the data obtained, it is evident that majority of employees at the emirates are contented working there. The five percent of employees raise concern that there is need for further studies on why they are not contented. From the response of willingness to continue working at the emirates, it is evident that most employees would not move away from the company, implying they are motivated to continue working for the organization.

In addition, majority of employees expressed willingness to continue working at the emirates. All these results give an implication of motivation within the company. Continued and sustained motivation means that the company is conscientious of change management. With sustained levels of contentment, comfort, willingness and enjoyment, the company is efficient in change management.

Recommendations, risks ad effects

From the research study, it is evident that data obtained partially explored change management. It is highly recommended that exhaustive questionnaires be applied for clearance of doubt. For instance, lack of contentment at The Emirates was not substantially accounted for. Secondly, The Emirates should regularly carry out research to find out whether new changes introduced into the system improved the motivation levels of its employees.

Conclusion

These results concur with previous researches done on change management in regards to motivation. Previous researches indicated that change management with respect to motivation was as a result of good leadership within an organization- a statement which this piece of research confirms. Secondly, better working conditions coupled with better pay were also responsible for continual motivation and enjoyment, thus source of motivation.

On the contrary, this research concludes that out of all the possible reasons given for discontent, home and cultural proximities were absent from previous researches. This indicates that this research study presents relatively new findings in managing change within organizations. Indeed, globalization has made it possible to work in any location across the world but total willingness should be sought first before accepting employment contract.

Works Cited

Creswell, John. Research design: Qualitative & quantitative approaches. New York: Sage Publications, 1994. Print.

Doganis, Rigas. Flying off course: The economics of international airlines, New York: Routledge, 2003. Print.

Emirate Airlines. Arab Emirates Airline. 2010. Web. <https://emiratesairlinesonlinebooking.org/>

Hiatt, Jeff & Creasey, Timothy. Change management: the people side of change, Madison: Prosci Learning Center, 2003. Print.

The Emirates Group. Our Vision & Values, 2011. Web. <http://www.theemiratesgroup.com/>

Introduction

Emirates airlines acquired the services of Hollywood celebrity Jennifer Aniston in order to become the companys latest brand endorser. It is an interesting partnership because UAEs flag carrier is the most successful and well-respected airline company in the world (ACC Global, 2017). Aniston on the other hand is one of the most recognizable faces in the world. It is easy to understand the Emirates decision based on Anistons popularity and global appeal (The National Staff, 2016). However, she is not the only one blessed with those attributes. Without a doubt, there are more than a dozen female celebrities that are also as easily recognizable as Aniston (Kloppers, 2017). It is therefore interesting to figure out the reasons for hiring her from a marketing and brand management perspective. After studying her latest TV commercial and appreciating its purpose and intended message with regards to the Emirates airlines brand and overarching marketing campaign, one can argue that the companys hiring of Aniston was driven by the need for a brand resonance and brand association.

Background

UAEs flag carrier took the top prize at the SkyTrax 2016 World Airline Awards (SkyTrax, 2016). It was not the first time for Emirates airlines to earn the said distinction. Aside from garnering acclaim from some of the toughest award-giving bodies on the planet, the airline company was also cited for having the best inflight entertainment system, one of the best Business and Economy sections, and cabin staff in the world. Kenneth Rapoza (2014), writing for Forbes magazine enabled ordinary mortals the inside story that helps explain Emirates rise to the top. The author pointed out that in a business class flight from New York to Abu Dhabi he was treated to a dinner prepared by a world-class catering service under the supervision of celebrity chef Wolfgang Puck (Rapoza, 2014).

In addition, he enjoyed the rest of the trip sleeping on a chair that reclines flat while cocooned in a thick and comfortable blanket (Rapoza, 2014). It is not enough to appreciate Emirates airlines corporate advantage based on onboard amenities alone. It is also important to consider the big picture or the context of the larger experience using this airline company. For example, the UAE government spearheaded an ambitious project to build the worlds biggest and most advanced and aesthetically pleasing airport in order to augment the experience of using the services of the said airline company. In addition, it is also of critical importance to make a connection between Emirates customized commercial jets and the opulence of the UAE from man-made archipelagoes shaped into palm trees to the world-renowned architectural wonder called the Burj Khalifa (Mouawad, 2011). In other words, it is difficult to ignore the companys intended message, compelling the world to acknowledge that the airline company exemplifies luxury and top-of-the-line service.

Jennifer Aniston shot to worldwide fame through the TV sitcom, Friends. The said sitcom is considered not only of the most financially successful TV productions of all time, but it is also an iconic brand that cuts through cultural and language barriers. The sitcom made her into one of the most easily recognizable female celebrities on the planet. Aniston leveraged her TV celebrity status into movie royalty power. Her popularity and the global appeal was enhanced even further when she married Brad Pitt, one of the most influential and sought after celebrity in todays global market. When her marriage to Pitt ended, she earned legions of fans as the world emphatized with her plight.

Thus, there are only a few people on this planet that captured the imagination of the general public the same way she had. There are two things to remember about Aniston in the context of brand endorsement capabilities. First, she had a gift of comedy, and just like others blessed with a great sense of comic timing she has the ability to make people laugh and at ease (Walden, 2016). More importantly, she had this aura of the girl next door and yet she makes women all over the world believe that it is not an impossible dream to become like her (Walden, 2016). Her magnetic power lies in her ability to make people believe that they can relate to her and that they are able to reach her level no matter how lofty it may seem at first.

Possible Answers

Strategic Brand Management and Brand Equity

It is important to point out that Emirates airlines wanted not only to sell a particular product but also to create a brand. Brand equity is synonymous with creating brand value and for the brand to acquire an instant recognizability factor.

Customer-based Equity and Brand Positioning via Integrated Marketing Communication

Customer-based equity aims to increase cutomer loyalty. A successful marketing campaign insulates the airline company from competitive marketing activities. At the same time, it is possible to increase profit margins. In other words, demand remains the same even as prices tend to increase.

Brand Resonance and Brand Value Chain by Understanding Market Performance

Brand resonance translates to greater customer attachment to a particular product. It is easier to achieve brand resonance if customers are able to relate to the brand endorser. In this regard, the brand ambasador creates a positive feeling within the consumers (Kardes, Cronley, & Cline, 2011). It is also imperative to figure out a way to gauge the companys market performance.

Brand Association and Co-Branding

Brand association is made possible through brand imagery and the need to make connections to the original idea linked to the product (Kardes, Cronley, & Cline, 2011). It is possible to enhance brand association using the principles of co-branding merging the brand carried by Emirates airlines and Jennifer Aniston as a top celebrity endorser.

Building Brand Equity and Brand Elements through Effective Marketing Programs

Emirates airlines must build brand equity by creating a marketing campaign that is memorable, meaningful, likable, and transferable. The marketing program must not only produce positive ideas and feelings, it must also cut through cultural and language barriers.

Capturing Customer Mindset

There is a need to find out what customers are thinking when they see the Emirates brand or an aircraft carrying the companys logo. If the association is not favorable to the company, it is imperative to find a way to alter that mental association.

Analysis

After reviewing principles associated with strategic brand management and figuring out the possible reasons behind the hiring of Anistons brand endorsement services, one can make the argument that she was chosen for the purpose of brand association and brand resonance. This assertion was based on the personal and professional history of Jennifer Aniston as well as how the target market perceived Emirates airlines. It is of critical importance to point out the significance of Anistons girl-next-door image in conjunction with the way the target market associated Emirates airlines with ideas like sophistication, opulence, and luxury. Thus, it was important to find a brand enorser that makes people feel at ease, makes them want to try the Emirates brand, and not feel intimidated by the world-class airline.

Conclusion

One can make the argument that Emirates airlines wanted to increase its market share in the Business and Economy sections of the airline market. People associate the words luxury, sophistication, and opulence to Emirates airlines. Thus, it was a clever marketing strategy to hire Aniston, because people relate to her. She exudes charm, grace, and high class, however, she makes people believe that they can attain her status with the right amount of attitude and hard work.

References

ACC Global. (2017). Competitive advantage. Web.

Kloppers, J. (2017). Brand ambassadors in the age of social media.Web.

Mouawad, J. (2011). Emirates ambitions worry European rivals.Web.

Repoza, K. (2014). Why UAE and Qatar have the wolds best airlines. Web.

Skytrax. (2016). Top 10 airlines of 2016. Web.

The National Staff. (2016).Friends star Jennifer Aniston is Emirates brand ambassador. Web.

Walden, C. (2016). Why the world cares when Jennifer Aniston says she is fed up. Web.

Introduction

Strategic human resource practices require a business firm to focus on creating value in their internal functions to increase their competitive edge in specific industries they operate in.

This requires a firm to link its organisational culture with its operational structure and business objectives to attain positive outcomes (Boxall & Purcell, 2008, p. 67).

Emirates Airlines is one of the largest companies with operations in the United Arab Emirates and other parts of the world. The companys vision focuses on sustaining strong leadership to enable it to formulate fresh ideas to keep it competitive in the industry.

The companys mission focuses on corporate responsibility by participating in different community programs that have tangible communal benefits in different parts of the world.

The purpose of this report is to highlight different aspects of strategic human resource management in Emirates Airline and how they have enabled the company to attain positive results in its operations.

This paper will discuss an overview of strategic human resource management practices in Emirates Airlines and provide an analysis on how they help it execute its objectives in the industry.

Approach to Management

Strategic HRM principles which focus on giving a firm organisational effectiveness to make it more competitive in the industry have been implemented by Emirates Airline.

The firms HR systems offer all employees positive working environments that allow them to utilise their talents to improve performance (Boxall & Purcell, 2008, p. 71).

The organizational culture is closely aligned with its mission where employees participate in making crucial decisions which are reviewed and implemented within a short time.

The firms operational systems are flexible and this ensures that various crucial functions and duties are performed in different locations to save on costs and time.

Since it is a transnational organization, the firm has a less complex organisational structure which allows all employees to interact freely. The companys resourcing practices focus on developing its own talent pool and sourcing experienced employees through the internet, recruiting agencies and the media.

Advertising of employment opportunities by the company is done through traditional media and recruitment agencies which the firm partners with. Employees are drawn from 160 different nationalities and they are given equal opportunities to build their skills and talents in the firm.

Adverts target employees with different types of skills who are able to perform a wide range of functions in the firm.

More importantly, the firm constantly looks at changing patterns in the industry that are likely to impact on its operations and updates its employment practices accordingly (Bamber, Gittell, Kochan & Von Nordenflycht, 2013, p. 55).

Some of the external pressures the firm has to consider when changing its HR policies include: legal environment, costs, technological changes, political factors and cultural factors that directly impact on its operations.

The firms management team confers with employees before policy changes are implemented and this allows both parties to share ideas about benefits and risks that are likely to be experienced by the firm.

Internal HR Management

Performance management processes enable leaders in a firm to set goals to be achieved by all employees in their workstations to register quality outcomes.

The airline encourages its employees to feel at ease whenever they are at work and this motivates them to focus more on the task at hand. Since the firm observes dynamic work practices, employees interact easily with managers to make them aware about different issues they are facing.

The firm mainly relies on long cycle performance management systems which allow it to use personnel appraisal methods with different criteria to evaluate employees.

Periodic reviews are undertaken and employees that attain positive results are awarded yearly bonuses, travel benefits and promotion opportunities (Bamber, Gittell, Kochan & Von Nordenflycht, 2013, p.60).

This approach allows managers to take note of different factors in the operating environment that affect overall organisational performance negatively.

The firms resource base is updated through both talent management and succession planning strategies. During training, employees are equipped with multiple skills to allow them to understand different duties they are expected to execute in the firm more effectively.

This makes them suitable for different functions the firm specializes in to make them more competitive in their work responsibilities.

More importantly, the firm has strong training procedures for new and old employees that increase their awareness about specific work responsibilities they are expected to execute (Exter, 2013, p. 87).

Flexible induction policies reinforce a positive work life balance in the firm and as a result, they get inspired to attain positive results in their workstations. This approach encourages employees to take the initiative to improve their own performance in the firm.

Communication, Employee Engagement and Organizational Culture

The main language that all employees use for communication is English. This allows people in the organization to interact with one another freely to form strong relationships that improve results.

The inclusive diversity policies in the firm have increased the level of integration and cohesiveness thereby allowing all stakeholders to focus more on organisational objectives.

The firm relies on both online and traditional communication platforms to engage with its employees in different locations (Nankervis, Compton, Baird & Coffey, 2011, p. 67).

Since workers perform their duties in a relaxed environment, the firm encourages them to increase their interest in other external activities that are beneficial to their development.

This allows them to exploit their talents in a dynamic organizational environment because existing structures encourage mutual exchange and collaboration.

The firms overall practices have elements of both clan and rational cultures. Clan culture is practised through employee collaborations to achieve customer service excellence in these functions; ticketing, onboard services, baggage handling, communications and customer care services.

Therefore, information sharing and team work have made it possible for the firm to stay ahead of its competitors in the industry because of the additional value offered to customers.

Rational culture is used by leaders in the firm to engage employees to improve the way internal systems are designed to improve overall performance.

As a result, middle management teams guide workers on the importance of adhering to high operational standards to elicit positive reactions from customers (OConnell & Williams, 2011, p. 52).

Therefore, managers are able to gather information to understand various issues that are likely to affect workers performance in the firm.

Employees in the firm are encouraged to interact with their colleagues outside the workplace to make them appreciate their diverse cultural backgrounds.

Employees are also encouraged to participate in various corporate responsibility activities and this has improved their perceptions towards the firms corporate values and ethical principles.

Employees are encouraged to volunteer in corporate social responsibility events where they get to learn more about the importance of sustaining positive relationships with all stakeholders.

Therefore, this has brought about a high performance culture in the firm which rewards and acknowledges people for their positive contributions to the firm (OConnell & Williams, 2011, p. 57).

Leadership Style and Change Management Processes

Leadership is a key function which every business organization must take seriously. The leadership style which is used by the airline is a combination of paternalistic and transformational leadership.

The firms leadership has infused new ways of thinking into existing organizational practices which encourage employees to use critical thinking skills to perform their duties. Most of the senior executives in the firm have worked there for a long time and they are able to anticipate different challenges before they occur.

In effect, they use knowledge-based theories to make proactive decisions which sustain the firms competitive advantage in the industry.

Since the Dubai government is a strong stakeholder in the airline, some of its leaders confer with management to find out the impact of external policies on the firms operations (Wensveen, 2007, p. 98).

The leadership model adopted by the firm focuses on both results and general behaviour to inspire employees so that they can become more diligent in their duties.

The firm was forced to change its recruiting practices several years ago to cut down on operational costs. A majority of its employees come from low wage countries and this has allowed the firm to focus on other strategic functions to increase its competitive edge.

Additionally, the implementation of an aggressive growth strategy has increased the number of global destinations it flies to (Hayton, Biron, Christiansen & Kuvaas, 2012, p.70).

More importantly, the firm was among the first airlines to place orders for the Airbus A380 as part of its fleet modernisation program to help it fly its passengers to long haul destinations.

All these growth plans have necessitated a change in the HR strategy because the firm focuses on constant process improvements to sustain its brand value in the industry.

Kotler Eight Step Process

Step 1: The firms first CEO Maurice Flanagan instituted excellence policies in 1985 after being chosen by Dubais rulers to start a globally recognized airline.

Step 2: Hiring procedures focusing on hiring expatriates from Western Europe and the U.S. Expatriates have served in senior executive positions for more than two decades and this has helped the firm to develop its internalisation strategy.

Step 3: A change vision focusing on equipping employees with high quality customer service, communication skills was instituted by the airline to achieve its strategic objectives.

Step 4: Employees were exposed to a new working culture which allowed them to understand the firms vision in the industry and how it was going to be achieved.

Step 5: Adoption of learning centred approach to improve performance and to streamline various functions. Improvement in hiring practices to bring about cultural diversity at the workplace.

Step 6: Performance management and reward systems for technical, customer service and other employees in the organisation to improve internal and external operations.

Step 7: New expansion plans that enable the firm to use modern aircraft for long haul flights to increase connectivity and to provide high levels of comfort to customers.

Step 8: The firm has instituted a corporate responsibility plan that encourages its employees to engage with external stakeholders to make them understand its long term vision.

Change Implementation Processes and Innovation in the Company

The firm has focused on bringing transformational changes that are aligned to evolving overall brand strategies. As a result, employees perceptions towards change management processes are more positive because they know there are many opportunities they will gain in the future.

Effective stakeholder management policies have been implemented to encourage all stakeholders to participate in organisational activities. This approach has allowed the firm to increase awareness about its short term and long term objectives in the industry (Hayton, Biron, Christiansen & Kuvaas, 2012, p. 117).

Managers inform employees about specific changes that are implemented in the firm and how they conform to its long term goals. As a result, this encourages employees to work harder to attain positive results in their duties.

The company uses constant learning processes to make its internal as well as external practices more competitive. Since it has more than 62,000 employees, it has diverse workplace strategies that make employees feel that they are appreciated.

Therefore, all employees understand the role they play in the firm and this has stimulated positive thinking in different departments (Taneja, 2004, p. 112). The firm also relies on technology to boost various outcomes achieved by individual employees in their respective workstations.

In addition, employees are allowed to propose new changes in their workstations to improve the quality of results obtained from different work processes. Work systems in the firm are designed to encourage flexibility and teamwork to allow employees to become more creative in their duties (Storey, 2007, p. 76).

This approach encourages employees to propose new ideas which are forwarded to managers for review. As a result these innovative practices have helped the company to achieve a higher degree of service excellence out of its operations and this has strengthened the quality of its brand in the industry.

Conclusion

The firm has a less complex organisational structure that favours quick decision making. Additionally, it relies on technological solutions such as video conferencing to conduct meetings between its managers who work in different locations.

Employees rely on mobile technological solutions to schedule flights in accordance with flight plans of different destinations to minimise delays.

Moreover, the firms employees use enhanced technical support systems that rely on high quality mobile technologies to perform other important functions (Lock, Fattah & Kirby, 2010, p. 10).

It is also one of the first airlines that offered electronic booking, onboard multimedia entertainment and other value added services to its customers.

More importantly, the firm has a full time research and development department that identifies specific areas of its operations which need to be improved to boost its performance in the industry.

The airlines recruitment and performance management processes are closely linked to its long term business objectives and they have increased its competitive edge in the industry.

The airlines brand has increased in value because it allows employees to use technological tools to make both internal and external work processes more efficient. In addition, the airline has a simple management structure that encourages employees to share information about various work processes easily.

This has helped the firm to avoid duplicating employee responsibilities at the workplace and as a result, it has managed to reduce unnecessary costs. Lastly, work systems in the firm are innovative and they encourage employees to be more creative in their work duties so that they attain good results.

References

Bamber, G.J., Gittell, J.H., Kochan, T.A., & Von Nordenflycht, A. (2013). Up in the air: How airlines can improve performance by engaging their employees. Ithaca, NY: Cornell University Press.

Boxall, P., & Purcell, J. (2008). Strategy and human resource management. Basingstoke, UK: Palgrave Macmillan.

Exter, N. (2013). Employee engagement with sustainable business. New York, NY: Routledge.

Hayton, J., Biron, M., Christiansen, L.C., & Kuvaas, B. (2012). Global human resource management casebook. New York, NY: Routledge.

Lock, H., Fattah, A., & Kirby, S. (2010). Airline of the future: Smart mobility strategies that will transform the industry. San Jose, CA: Cisco Internet Business Solutions Group.

Nankervis, A., Compton, R., Baird, M., & Coffey, J. (2011). Human resource management: Strategy and practice. Mason, OH: Cengage Learning.

OConnell, J.F., & Williams, G. (2011). Air transport in the 21st century: Key strategic developments. London, UK: Ashgate.

Storey, J. (2007). Human resource management: A critical text. Mason, OH: Cengage Learning.

Taneja, N.K. (2004). Simpli-flying: Optimizing the airline business model. London, UK: Ashgate.

Wensveen, J. (2007). Air transportation: A management perspective. London, UK: Ashgate.

Introduction

Emirates Airline is a constantly expanding international airline company. With a history of over 30 years of successful flights, it has become synonymous with exceptional quality of luxurious transporting services. As for now, it is the third most powerful company in the global airline industry measured by capacity. However, measured by international passengers, it is the most popular and successful one ranked first in the list of the global airline leaders (Alcacer and Clayton 1). The secret of its meteoric expansion is customer-centrism. It is associated not only with improving the quality of provided services but also the focus on upgrading aircraft so that they are more comfortable and fuel-effective, thus flights are more enjoyable and ticket prices are more moderate.

Still, it is essential to point to the fact that regardless of the current-day propelling success, the path towards the global leadership and recognition was lengthy and cumbersome. The company was founded in 1985. It is based in Dubai, United Arab Emirates. Since 1985, there were several stages of the companys growth and expansion. The first one dates between 1986 and 1993. During this period, the company was engaged in active purchasing of aircraft and entering new markets. During the first two years of operation, it managed to serve 11 destinations. Emirates Airlines is one of the companies that avoided drops during the early years of its operation, outperforming regional competitors easily and constantly increasing its revenues.

By the beginning of the second stage of its development, the companys revenues increased by more than $100 million annually, which made it one of the fastest expanding airline companies. During the second stage of its expansion, Emirates Airlines faces a significant challenge precluding it from further global development  the possessed aircraft could not cover distances longer than 14 hours of flight. Therefore, the third phase of development began with the overall upgrading of aircraft so that longer flights became possible. Since 2004, Emirates Airlines continued to inject funds in expanding aircraft basis and entering new markets (Alcacer and Clayton 7). As for now, the company operates a fleet of around 260 aircraft, including Boeing 777 and A380 (Emirates Fleet Details and History). With 152 destinations around the globe and more than 55 thousand employees, the Emirates Airlines is recognized as the Most Valuable Airline Brand, and it is unlikely that this honorary rank to one of its competitors (History).

Nevertheless, regardless of the successful history of the companys operation, it is essential to be aware of the market it works in as well as the specificities of its business environment. Therefore, the paper at hand aims at investigating the issues mentioned above. A special focus will be made on conducting PEST and SWOT analysis to obtain a better understanding of the companys environments as well as reviewing the most influential competitors of Emirates Airlines and currently deployed growth strategies.

PEST Analysis of the Company

Conducting PEST analysis is essential for obtaining a better understanding of the specificities of the market of the companys operation. The need for carrying it out is motivated by the necessity of understanding factors that may have either a direct or indirect influence on the companys further development and affect its performance. This analysis covers four groups of factors: political, economic, social, and technological. All of them will be reviewed below.

Political Factors (P)

This group of factors is associated with the political environment of the companys operation, including legislation and overall political climate inside the country of origin as well as at regional and international levels. In the case of Emirates Airline, the impact of political factors is critical due to the specificities of its operation. Therefore, it is possible to state that there is a profound influence of both national and international legislation. Speaking of the national legislation, it was already mentioned that the company belongs to the Dubai government. For this reason, the impact of the national legal framework is diminished because there is always a real opportunity for creating an advantageous atmosphere for the companys operation. Still, the company is very sensitive to any changes in the national legal frameworks (Cook and Billig).

However, the same cannot be said about the international legislation, as even the slightest changes in global legal frameworks may have a devastating influence on the companys performance. In this case, it is essential to point to the fact that the operation of Emirates Airline is governed by numerous legal provisions. Some of them include bilateral Open Skies agreements and universal treaties. In this way, terminating contracts with any of the United Arab Emirates partners (countries that signed the Open Skies agreement) is potentially connected to a drop in revenues as well as an increase in operational costs. More than that, it is critical to mention that international regulations are becoming stiffer, especially after the 9/11 terrorist attacks. From this perspective, Emirates Airlines is forced to correspond with all airline legal provisions and monitor any changes in the legislation.

Regardless of the flight-related legislation, the company has to consider any changes in employment-related provisions. In this case, it is essential to state that the national (UAE) standards that have a direct impact on the companys operation should comply with the international employment norms because the majority of cabin crew are foreigners. Therefore, any amendments to these provisions may be connected to changes  both negative and positive  in operational costs due to expanding staff base. Here, it is essential to point to the fact that, according to the current international standards, maximum in-flight duty time for any crewmember should not exceed 15 hours. It means that in case of a possible decrease in this figure, the company may face additional challenges, even if the decreases are slight and insignificant.

Besides regulation provisions, other legislative issues should be mentioned. For example, the company should pay specific attention to reaching agreements with local airports it cooperates with, especially in case of lengthy flights when the aircraft does not return to Dubai. In this instance, the issues under consideration are the availability and costs of parking slots, landing and take off technological support, and emergency recovery plans. That said, the slightest changes in destination airport provisions and agreements are of extreme significance for the successful operation of the company and may have a direct impact on its further development.

Finally, there is an extremely powerful impact of any instability in the political environment. It is true for national, regional, or international conflicts because it increases risks of unstable operation of the company. More than that, it is associated with passenger safety issues. However, it is paramount to mention that Emirates Airlines is among those companies that manage to avoid the detrimental impact of regional conflicts. For instance, during the Gulf War, the company never ceased providing its services. Nevertheless, the influence of political instability is still critical due to the psychological factor, i.e. returning tickets for refunds that may result in increased losses.

Economic Factors (E)

Economic factors make up the second group of factors that predetermine the development of Emirates Airlines. In this case, it is essential to mentions that being founded and operating in a highly developed country  the United Arab Emirates  is one of the aspects that helped the company reach its current economic condition. Still, it is imperative to mention that there are two critical determinants when it comes to identifying the role of economic factors in the companys business environment. The first one is the economic development of Dubai. It is stated separately instead of pointing to the UAE economy as the whole because the company is based in Dubai International Airport only, not across the state. Therefore, any changes in the development of the Dubai economy are directly connected with the changes in the economic activities of Emirates Airlines. More than that, it is essential to point to global changes in the airline industry. Making a special focus on this economic factor is important because these are the overall trends in the industry that determine the operation of all airline companies, and Emirate Airlines is not an exception.

Nevertheless, regardless of laying stress on the importance of the Dubai economy, it is essential to point that the effect of the UAE economy should as well be considered. There are two perspectives to estimate it. To begin with, due to the economic stability and sustainable economic development of the UAE economy, its currency is stable. In this way, UAE Dirham-USD fluctuations are insignificant. This aspect is important because all prices are determined in Dirham, while the rest of the world purchases tickets paying in dollars. It means that due to the stable currency, ticket price in dollars is relatively unchangeable so that there are no dramatic shifts in service costs. Another aspect of the UAE economic development is connected to the specificities of the economic environment. In the UAE, GDP per capita is high, while the unemployment rate is low. It means that UAE citizens can afford to cover high ticket prices and are not forced to search for low-cost alternatives.

However, in the case of estimating economic factors, it is paramount to point to a particular duality in their influence. As stated above, both the development of the Dubai economy and the changes in the international airline industry has a direct influence on the operation of Emirates Airline. Therefore, even though the Dubai economy is constantly growing and becoming more powerful, there are some negative changes in the industry connected to the increased risks of on-board suicide attacks.

Another significant economic factor is the fluctuation of fuel prices. Even though, as for now, the company pays special attention to upgrading its fleet and purchasing fuel-efficient aircraft, this process is timely. Therefore, the impact of fuel prices on ticket prices is powerful because fuel-related transportation costs make up more than half of the ticket price (Cook and Billig). The same can be said about the changes in food and beverages. Even though these expenditures cannot be compared to fuel-related costs, it is essential to point to the fact that the company offers only high-quality and premium food and beverages to its passengers. From this perspective, any alterations in this group of expenditures can lead to ticket price changes.

Finally, it is paramount to point to economic aspects of technical support of aircraft and the operation of airports. In this way, any delays in departures or emergencies are associated with extreme loss. In this case, it is connected to both brand issues  the impact of the companys image and the desire to travel with it  and safety-related challenges. Here, even though the role of delays in departments is essential, the influence of catastrophes or emergencies during flights is even more critical due to the risks of ruining brand image and high post-crash costs. However, it is imperative to state the Emirates Airlines is among those companies that managed to avoid victims in crashes. As for now, there were only 3 incidents of aircraft crashes over 32 years of operation that point to the professionalism and reliability of the company.

Social Factors (S)

One more aspect of the business environment is social factors. This one can be viewed from perspectives. To begin with, it is essential to point to the increasing population both globally and in Dubai. Speaking of Dubai, it is associated with the increased part of foreigners in its population. Still, in both cases, the increase of population is connected to the potential expansion of the customer base and attracting new clients. From this perspective, any changes in family planning policies may have a negative influence on the companys incomes due to the potential reduction of the global population. The same is true for changing the national regulations of migration that might limit the flow of immigrants. In this case, any changes are as well extremely important because the majority of cabin crew members are foreigners, i.e. the immigrated to the United Arab Emirates for employment and will be forced to leave in case of adopting unfavorable migration policies.

Another significant economic factor is the role of the cultural and social needs of the companys passengers (Katsioloudes and Abouhanian). Focusing on the peculiarities of cultures and ethnicities is the foundation of providing services. The specificity of the company is a special educational course aimed at teaching cabin crew members to address the culture-specific needs of passengers, thus improving customer satisfaction with the provided services. For instance, Muslim passengers should not be offered drinks and snacks during the holy month of Ramadan because it is perceived as an offense. More than that, during each flight, all culture-specific needs represented in common food and beverage preferences are addressed. It is true about both snacks and alcoholic drinks that are selected separately for each destination based on the peculiarities of the local culture.

Technological Factors (T)

Finally, another important determinant of the business environment is technological factors. As for now, the impact of the newest technologies on the operation of the company is powerful. It can be explained by the overall introduction of the newest technologies in everyday life, and this trend is as well popular in the airline industry. As for now, Emirates Airline is known as a company that is successful in incorporating technological advancement on-board, including inflight entertainment, Wi-Fi, different IT systems, and teleconferencing. Moreover, senior management pays special attention to the constant improvement of the fleet, purchasing more technologically advanced aircraft. At the same time, the company has introduced online services for purchasing tickets, selecting snacks and beverages, and airport check-in.

Still, it is paramount to point to some of the recent policy changes that may have an unpredictable impact on customer satisfaction with the provided services. For instance, around a month ago, Emirates Airlines adopted a technology ban provision. According to it, any devices larger than smartphones are banned onboard. Passengers are obliged to pack them before leaving the gate and entering the cabin. Among the prohibited devices, there are laptops, electronic books, cameras, tablets, portable DVD players, traveler scanners and printers, etc. (Electronic Ban Services,; Help Centre,). Nevertheless, this rule applies only to passengers traveling from Dubai International Airport to the United States. Also, the company offers a tablet loan service to stay connected in case of necessity. This new policy is connected to the changes in the US legislation, specifically adopting the provision limiting the use of electronic devices on-board for passengers traveling from the United States to the Middle East countries. It is the new US security directive  the so-called Trumps travel ban  that points to the influence of politics on the business environment (Emirates Introduces Laptop and Tablet Handling; Zhang). Major PEST factors can be found in Table 1 provided below.

The Main Competitors: UAE, Middle East, and International

Even though Emirates Airline is a well-known and globally recognized air company, its ticket prices are high for ordinary passengers. It means that it is reasonable to review different competitors. In this way, both the luxury segment and low-cost airlines should be perceived as rivals. The reason for the inclusion of luxury segment companies is evident, as Emirates Airline is one of the companies belonging to this group of companies. As for the low-cost service providers, they should be mentioned because, in the case of common destinations, middle-class passengers are more likely to give preference to cheaper journeys if the difference in the quality of provided services is insignificant. Besides, three groups of competitors will be reviewed  UAE, Middle East, and international. A complete list of competitors is provided in Table 2 below. Still, it is essential to note that regardless of the long list of competitors, choosing one of them is a matter of individual preferences. Therefore, the most powerful ones will be addressed in the following subsections.

UAE

The most powerful competitor in the United Arab Emirates is Etihad. Even though it is small and young, the company is becoming increasingly powerful both regionally and internationally. As for now, it has around 90 destinations (Alcacer and Clayton 18). Nevertheless, because it was founded in 2003, this figure points to the increased risks of potentially outperforming Emirates Airlines in the future. It is as well government-owned and operates in the luxury segment. Therefore, it is the major UAE-based rival.

Middle East

In the Middle East, there are two main competitors  Turkish Airlines and Qatar Airways. The first company is one of the most influential regional air transportation providers. The main difference from all Middle East carriers is the fact that it has a large domestic passenger base that is the foundation of its growth. Also, Turkish Airlines has 249 destinations (more than 200 of them are international) which makes it more advantageous compared to Emirates Airlines, especially keeping in mind that it is also a premium segment carrier. As for Qatar Airways, it has 188 destinations. It is as well a government-owned company with the constantly increasing the fleet (Alcacer and Clayton 16). In this way, just like Turkish Airlines, it is powerful and its operation imposes significant risks for the Emirate Airlines growth.

International

The major international competitors are AirFrance (more than 200 destinations in 93 countries), Lufthansa (193 international destinations in 81 countries), British Airways (around 250 destinations on six continents), and Singapore Airlines (160 destinations on six continents). Because all of these airline companies offer more destinations compared to Emirates Airlines, they are a significant threat. More than that, they belong to the group of the most luxurious airlines, as well as offer middle-class services, which makes them even more threatening.

The Market  SWOT Analysis

SWOT analysis is one of the common techniques deployed for estimating a companys market position because it helps identify both internal and external factors that may have an impact on the companys operation and develop long-term strategies for managing its activities. The focus is made on four aspects: strength, weaknesses, opportunities, and threats. They will be reviewed in detail in the following subsections.

Strengths (S)

Emirates Airline possesses numerous strengths. To begin with, being backed up by the Dubai government is what helps the company become even more powerful. Due to it, the company obtains the resources and support necessary for further growth. In particular, it is what was beneficial for becoming globally recognizable which is another strength. Furthermore, the quality of the provided services is exceptional that contributed to the continuous expansion of the customer base. The same is true about efficient branding and marketing strategies that are valuable for attracting new clients. More than that, the focus on technological advancement that is beneficial for outperforming competitors and constantly improving organizational performance. Finally, Emirates Airlines is the company with high operational costs that makes coping with emergencies easier due to the availability of necessary resources.

Weaknesses (W)

Regardless of significant strengths, there are as well some critical weaknesses that should be mentioned. To begin with, ticket prices are high that makes it complicated for medium-class passengers to afford to choose the companys services. From this perspective, the customer base is smaller than it could be based on the companys potential. What is even more critical is that Emirates Airlines is forced to take more aggressive steps to increase its market share (compared to its competitors) due to high ticket prices. Besides, the environment of operation is highly competitive. Therefore, there is always the need for implementing new techniques for outplaying rivals. Besides,

Opportunities (O)

Although there are some critical weaknesses of Emirates Airlines, the company still has some opportunities for becoming more powerful. First and foremost, it may become more influential by entering new markets and introducing new destinations. Even though nowadays, it has 152 destinations, launching new ones will be beneficial from the perspective of attracting new customers and increasing incomes. More than that, Emirates Airline may be interested in creating a medium-cost segment for the most popular destinations. The idea is to copy the business model of most regional air companies  do not offer free snacks and premium alcohol in the medium-cost segment. It will reduce some operational costs, thus helping to decrease ticket prices and attract more passengers. Finally, continuing to invest in fuel-efficient aircraft is another opportunity for further growth due to the potential reduction of fuel consumption, i.e. expenditures for satisfying fuel needs.

Threats

Still, in addition to some promising opportunities, there are some challenging threats. Due to the operation in a highly competitive market, the most critical threat is the rise of its competitors. It is especially true for Middle East companies that are actively cooperating with Dubai Airport  Emirate Airlines hub. At the same time, there is a risk of being outperformed by the most powerful international competitors, especially in the countries of their hubs because citizens of those states are more likely to choose domestic airlines instead of foreign ones. Furthermore, there is a significant threat connected to the changes in fuel prices that may result in increased ticket prices. Finally, due to the dependence on the national government, as well as the criticality of following all international legislation norms, any changes in legislation may have unexpected consequences for the companys operation (see Table 3).

Growth Strategies

Achieving the current recognition and economic state might have been impossible without crafting efficient growth strategies and using them masterfully. Emirates Airlines is a company known for a unique strategic mix that is designed to satisfy its specific needs and bring it to the leading positions in the global airline industry (see Figure 1 below). The core of the companys growth strategy is the focus on its planes. It can be viewed from two perspectives. First and foremost, it is the focus on the constant upgrading of the fleet that is helpful for the companys growth. Furthermore, they are constantly replaced with more fuel-efficient aircraft that help reduce operational costs, thus increasing revenues.

As for now, Emirates Airline possesses more than 200 aircraft, and this figure is constantly increasing, as the company orders the newest crafts all the time. Comparing it with two crafts that were available in 1985, the growth is spectacular that proves that this strategy is fruitful. Also, senior management of the company limits the range of purchased aircraft that is beneficial for optimizing pilot work and customizing passenger experience (Alcacer and Clayton 7). More than that, there is only one hub  Dubai International Airport. Even though it may seem inconvenient from the perspective of international business, it is more beneficial to locate all of the airplanes in one place that is easier to reach and monitor and sign contracts for parking around the globe than create hubs that will be complicated to control due to being located far from the regulating center.

Another efficient growth strategy is the focus on expanding customer capacity. It is achieved by the creation of unique customer experience when on-board  culturally-and ethnically specific treatment as well as valuing and satisfying any culture-based needs of the passengers. More than that, special attention is paid to making journeys more comfortable by introducing new services on-board, such as entertainment and the introduction of the newest technologies, as well as increasing the number of premium and luxury amenities to make traveling experience unforgettable (Alcacer and Clayton 10). In addition to laying stress on customer experience, Emirates Airlines is constantly working on entering new markets and offering new destinations. This strategy is inseparable from the two mentioned above because the increased number of routes is potentially connected to the expanded customer base and the need for a larger quantity of aircraft (Alcacer and Clayton 9).

ConclusionFinally, the senior management of Emirates Airlines recognizes the criticality of marketing as one of the deployed growth strategies. It has been used since the foundation of the company in 1985. In marketing, the special focus is made not only on the exceptionality of the provided services but also on promoting the city of Dubai believing that the increased inflow of tourists is inseparable from the expansion of the customer base. More than that, it uses globally famous sports events (for instance, Cricket World Cup) for increasing awareness of the brand. As for the ad campaigns, they center on assuring potential customers that all of their needs will be addressed properly due to the expertise of cabin crew and numerous luxury amenities offered by the company (Alcacer and Clayton 11).

To sum up, regardless of some critical weaknesses and potential threats, Emirates Airline is a powerful and well-branded company. Being internationally recognized and deploying efficient growth strategies, it has increased chances of becoming even more popular, although it operates in a highly competitive business environment. Still, it is critical to state that the company should not give up its uniqueness and make the further focus on cultural specificities of its passengers, as well as search ways to enter new markets, to attract more clients and outperform even the most influential national, regional, and international competitors.

Works Cited

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