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The fundamental forces in the general and industry environments
This is the case study that helps to find the strategic analysis and make the concern about changing the environment of the company that operates usually. A manager like to make the changes in the work and they want to see the position of the company. As a result, they make a good position in the marketplace. But there are some effects created by the critical force of strategic energy. There are some core concept is present strategic management and their business review process to develop the direction for the Emirates airline. They need to find the position of them in the market, and they also should find the competitive advantage to occupy the market place. In the final, the new business goals and a new strategy will ser for the different environment. This is the report which explains the development of the business strategy that was used by the Emirates airlines.
The background of the company is advantageous and they stated the first route to Dubai with two aircraft process one is Boeing 737 and another one is airbus 300 B4 in the year if 1985. The success story of the airline is acting as the phenomenon in all terms like growth, Innovation, and some global expansion. Emirates use the draw out process and make a significant airline function. But there is some impact present in the economic recession it affects the business fo the Emirates airline and prepares them to present at the financial crisis. It is the kind of famous for management to understand the short term and long term potential. For this crisis, they take advantage of the competitive edge. There are two analysis is made, and they are external environment and industry environment analysis (Business strategy and analysis for Emirate airline , 2017)
External Environment
For every airline industry, travel depends on the condition of the economic, pride. Elite and some other. Emirates used this intense economy process and developed its business to the United Arab Emirates. The market that they selected will operate them to the authoritative economic and find their success. The recent External environment factors are four, and they are
- Political force
- Social and culture
- Technological force
- Sustainability.
In the political force process, there is some negotiation present for the aviation system. To operate the airlines. Most of the government are needed to make strict regulation, and the different process is implemented form the Emirates airline. Dubai is marked as the best, so they started there. In the social and cultural process the influence the development strategy and follow the international market function. They indeed use this advantage to form the designation and make the trend. Technological force is act as the success driver for the airline industry they used this process is to form all the latest technology flight and do the differentiation in the standard of the airline. So, it acts as the best global airline website, best flight entertainment, best developer, and Sustainability is act as the high fuel price process and their natural resources for the small and more efficient vehicle. In this, all Emirates airline issue at first and then they solve it by using their competitive strategy.
Impact
There are some impact that faced by both the general and environmental process, and they are
Industry Environment Analysis
Portee Five force is one of the sufficient industrial competitive levels. There are five primary processes is present for this process they are
- Threats of new entrants
- Rivalry among established companies
- Bargaining power of buyers
- Bargaining power of suppliers
There is some impact faced by both the general and environmental process, and they are experiencing a hard time in the financial crisis. The slowdown in the economic growth of the organization. Act as overcapacity in the market, rising in labour cost, do the yield for the overcapacity and do the math for the falling demand. So, it is clear that the economic condition of the organization is to reduce some financial process like cost-cutting, and others sustain business function. So in the final from the analysis of external and internal environment process Emirates face the issue and solve it by their competitive strategy.
How do Emirates compete?
Internal Competitive advantages
Emirates airline is the kind of airline that operates on the unique business model with some flexibility. It used to enable innovative delivery and form the affordable market. Emirates also at as the pride leader for the Innovation in haul fights. So the past company crises are gone and the management from the tackling device to solve the global crisis. The firm model support two main model business one is haul flights and connection between points.
The pricing of the Emirates airline creates an effective one and make the passenger pay cheap fares and also enjoy the trip. This is one of the leading competitive advancement for the airline than the other. So, the list of the passenger is increased and their main cost is also increased. The Haul flights have been acting as the low cost and profitable one. The frequency of the plane has made the emirate to serve more valuable, and the other need to increase their fair. Pricing is acting as an excellent competitive strategy for the firm, and they derived success from this low cost and long-haul flight process.
This is the airline which enjoys a large number of advisor and also creates an excellent manager to form the best interest in the airlines. They used to develop high IQ manager to design and develop the best competitive products. That the other organization. Emirates airline has begun his market by using this process in the short period / The airline is not act as the burden one in any form of cost, so they form the legacy fees and form the pension for the long-term service employee. The legacy cost is acting as the reason for the many airline fall and do the change in the price. So, they form the constant process and provide it for the low fare. There is no long service for the competitive function and its cost.
From the case study, there are two main asses which make more profit. In the year 2015 and 2016, they make more profit than the last five years. There are several reasons present for this asset, and they are the development of technology. They use a specific technique for the customer to book flight and served better. The main moto is the stratification of the customer and proper communication of the employee to the customer. Many customer is cannot able to understand language, so they form some communication process for them. Also, they use a wide variety of types and operating system for the customer to take advantage. In recent days there are no accidents occurred, and there is no report registered for the Emirates airlines. This is act as the safety flights, and passenger acts as the confidence one to prefer this airline. The efficiency of the engine is also installed in every aircraft and make them ensure the trial run. They too do support for the environmental process to emit the low carbon. It makes them act as environmentally friendly.
There are three generic stages is present for the generic strategies, and they are
- Overall leadership
- Differentiation
- focus
They also carry the value chain process and do support for the intangible assets and VRIN resources. It does not act as the single activity process, and it does the value chain, and for the sustainable competitive advantage. In the tangible support, there are three processes is followed they are
- Financial
- Physical and
- Technological
In the intangibles resources here are some other process is present like
- Organizational
- Human
- Innovation and
- Reputation
In the final Emirate had the interlocking system for the mutual and reinforced function. They used to create the ultimate experience for the people and do the privilege for them compare to others. They also make some promise for the Middle East countries to do their Innovation.
The challenges Emirates might face
The airline industry is act as one of the important ones for many countries they used to make more profit for the country. Like the same Emirate, the airline is acting as the important one for the UAE they make many promises, and they face many problems to keep that promise Some of the critical challenges are the best service for the client. For this process, they make the new marketing strategy like pay the basic price for the designation. They make some effort for the organization to capitalized the impunities and make them as the global carrier. They also form some feedback and receive company feedback from all the clients. The company is used to launch the worldwide campaign and also refer the kids to Kids go Free. The discount is also given for the families to this go free process in any of the emergency. Based on the survey there they form the report as Emirates airline has increased the number of to the general to global. After the worldwide formation, they used to serve a wide variety of clines all over the world. It acts as one of the immediate processes and makes the address for this method. There are some complex is present for the function, and they do solve all from the SWOT analysis process
The effectiveness of Emirates leadership
`Emirates is one of the largest airlines, and it plays a major role in country health. There is no doubt that a talented leader plays a functional position and makes all possible things under the management. Leader of this organization is always acting as the responsible one and do treat the people equally. They still work as the honest one and make the connection between the staff and them.
Like the other organization, emirates airline play a management theory to motivate and control the people. They use a different style of the management process and manage the business. They deal with planning and other pieces of stuff to increase the performance of the company. In today nosiness the motivation and leadership skill plays a significant role Sheikh Mohammed bin Rashid al Maktoum and then Sir Tim Clark, They do the activation theory to solve all the problem on time, they monitor the process, control the system and do have the essential to control all the management process. These three acts as the motivation leader and do support for all the struggle that happens. It makes the employee work well and does give their best contribution. Strategic management and their significance of the Emirate airline increase the stakeholder and their customer, the management process is carried by the theories of the management and reach the success.
Bibliography
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- Business strategy and analysis for Emirate airline . (2017, June 20). Retrieved from https://www.scribd.com: https://www.scribd.com/doc/57017999/Strategic-Analysis-on-Emirate-Airlines
- Case34 Emirates FINA. (2014, March 20). Retrieved from www.academia.edu: https://www.academia.edu/25645117/Case34_Emirates_FINAL
- F.OConnell. (2011). The rise of the Arabian Gulf carriers: An insight into the business model of Emirates Airline. Journal of Air Transport Management, 339-346.
- Messick, D. M. (2005). The Psychology of Leadership: New Perspectives and Research. Lawrence Erlbaum.
- Porter, M. E. (2014). COMPETITIVE ADVANTAGE: CREATING AND SUSTAINING SUPERIOR PERFORMANCE.
- The competitive advantage of Emirates Airlines. (2017, June 10). Retrieved from www.ukessays.com: https://www.ukessays.com/essays/management/the-competitive-advantage-of-emirates-airline-management-essay.php
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