Exploringthe Key Success Factors Young Airlines— A Focus on Emirates Airlines and its Regional Competitors`Strategy for Success
Theenvironment in which firms are operating is particularly perplexing.One of the examples of these outstanding challenges is globalization,which has triggered heightened competition because firms in differentregions can operate seamlessly. Another challenge is the marketdynamic nature, which is characterized by economic downturns thatpose different challenges to operations. At the same time, marketregulations have also been increasing over time, calling upon firmsto align their activities with the laws to avoid costly penalties.Based on such scenarios, it is plausible to argue that a firm’smode of operation will no longer be business as usual. As such,organizations will need to adopt strategies to keep abreast thechallenges more than ever. This view is widely acknowledged, but theproblem has always been about what strategies would be the mostsuitable. Operation management has been lauded as the most criticalpoint that enable firms to address the impending challenges.Nevertheless, even this strategy is marred with a raging debate onwhat should inform an elaborate operation management strategy. One ofthe notable notions has been that since organization environments areunique by virtue of their goals, size, and culture, it is necessaryfor firms to adopt an operation management strategy tailored to theirgoals. Therefore, the issue of particular intrigue is how firms areplaced to keep abreast the market challenges.
Airlinebusiness, like other vibrant sectors, is characterized by differentforms of challenges that call for adoption of informed managementstrategies. One of the approaches to competitiveness is using the keyleading airlines as benchmarks. Emirates Airline lends itself as oneof the top performing companies whose operation strategies, ifunderstood, could serve as a success model for the young, as well asstruggling Airlines. The purpose of this paper is to explore the keysuccess factors to suit young and struggling airlines, focusing onthe strategies of EmiratesAirlines with respect to its competitors.
Overviewof Emirates Airlines
EmiratesAirlines is headquartered in Dubai, in the United Arab Emirates. Itis part of the Emirate Group and it is fully owned by the governmentunder the Investment Corporation of Dubai. The airline is currentlythe largest in the Middle East region, serving over 154 cities inmore than 82 countries worldwide. On average, Emirates operates over3,620 flights on a weekly basis. Apartfrom being the leading airline in the region, it also ranks as thefourth largest in the world in terms of passenger traffic, as well asrevenue (Travelmole, 2014).
Thehistory of Emirate Airlines traces back to the mid-1980s when GulfAir, the dominant regional Airline, started cutting trips to Dubai.The government responded by unveiling the Emirates in 1985. Thecompany was funded with $10 million as start-up capital tooperate independently without any further government subsidies. Itwould then embark on a journey of adopting strategic operations torealize growth and profitability, and it is now rated as one of thetop leading airlines in the region and the world beyond. Despitethese successes, the Emirate Airlines is still committed to pursuingfurther growth through innovation and hopes to become the largest andleading airline in the world (Emirates Airlines, 2014). Certainly,the company’s operation strategy serves as a potential model toinspire other airlines to success. Therefore, it will be interestingto examine different factors responsible for the airline’s success.
Companyand Organization Assessment
Inexamining the success strategies that EmiratesAirlines possesses, it is of particular interest to assess the marketstructure and the operation activities that the organization isputting up in response to the market demands. To be able toaccomplish this process, three types of assessment tools will be usednamely the PESTEL analysis, Porter’sFive Forces Analysis and SWOT. These tools will effectively shed morelight on pivotal points that the new and struggling airlines canemulate to keep abreast the market challenges.
PESTELanalysis is an analytical tool utilized in assessing and monitoringthe potential impact of external market environment on anorganization to identify the areas of weaknesses and strengths. Thecomponents of this analysis include political, economic, social,technological, environmental, and legal factors. The analysis ofthese elements with respect to EmiratesAirlines is presented in the sections below.
Political:The Emirates Airlines operates in an environment characterized byvarious political challenges that affect its operation negatively.One of the outstanding issues is that the airline is based in theMiddle East, a region that is marred with political conflicts andterrorism. This challenge typically causes travelers to cancel orreschedule trips to less vulnerable regions, translating tounpredictable traffic and low profitability. In some cases, thesituation compels the company to undertake costly security steps thatconstrain its competitiveness. The effect of the politicalinstability does not stop there. The radical uncertainty presentsvarious market uncertainties that limit the opportunities for theregional airlines to enjoy the opportunities of joining aninternational alliance with other leading airlines in differentregions such as the American Airlines, which consider Emirates ashighly risky. However, the company strives to ensure that it choosesto fly to destinations that are characterized by high politicalstability such as Europe, America, and Australia, a move that isaimed at minimizing the risks associated with political threats(Grant,Hall, Wailes, & Wright, 2012).
Economic:Theregional economic environment in which Emirates Airlines operates canbe argued to be relatively supportive. The most notable economicdevelopment that the airlines enjoy is the governments’ commitmentto improve transport infrastructure. This has been achieved byconstruction of modern airports that meet consumer demands. Forinstance, Abu Dhabi and Dubai are planning to channel investment indevelopment of airports in the region, motivated by the fact that thesuccess of its local airlines relies on having modern technologiessupported with latest state-of-the-art technologies. According toBlack (2015), UAE`s total investments channeled towards theimprovement of air transport will be over Dh-72 billion in the nexttwo decades. The motives behind airport improvement stimuli includeimproving the economy, cutting down dependency on the oil sector, andboosting tourism. However, the airline faces other economicchallenges that cannot be solved through improvement of airportinfrastructure. In particular, the global economy is marred bychallenges such as the currency fluctuations and global financialdownturns that will certainly affect the profitability of manymultinational companies such as the Emirates Airlines. Flightsglobal(2013)notably observes that the period between 2008 and 2009 had the worsteconomic implications on airlines, having resulted in a reduction ofdiscretional expenditure and high oil prices leading to lowprofitability. To overcome this problem, the company is embracingdifferent forms of risk management methodologies that it prides on.
Social:Thesocial environment is subject to three notable forces that includeincreasing global populations, the need for speed, and globalization.First, the growing population implies that there is a potentialincrease in the number of travelers who will use air transport. Forexample, the UAE’s population in 2002 was 3.754 million, whichcurrently stands at over 9.346 million people, a figure thatcorrelates to an increase in the number of passengers using airtransport by over 14 percent. Secondly, the society is highlyconscious about time and tends to prefer the use of airways to othermodes of transport such as such roads, railway, and sea. In thisregard, such a social preference serves as an incentive for operatingEmirates Airlines to pursue growth. According to Emirates Airlines(2014), the importance of air transport cannot be disputed. Airtransport rates as one of the fastest and most reliable forms oftransport. It is particularly suited for transport of people andgoods, especially those that are sensitive to urgency and need tomove over long distances. Lastly, globalization has beencharacterized by the continued interactions of people and regionsacross the world. The air transport lends itself as one of the highlyreliable means of transport to overcome the distance barriers.However, the consumers are demanding for quality services that areassured through provision of convenient, comfortable, reliable,secure and safe services. Interestingly, the Emirate Airlines hasbeen faring well in providing quality services focusing on theseaspects.
Technological:Innovationand technology are paramount to meeting a firm’s core goals —efficiency,safety, sustainability and environmental protection (O`Leary,2012).The company acknowledges that the market is characterized by a highlevel of competition and that success is essentially a war oftechnologies and innovations. In light of this point, theorganization is overly reliant on technologies in supporting theoperation management. An example of a technological tool that thecompany uses is theenterprise resource planning system. In addition to the use ofinnovative technologies in operation management, it is also at theforefront in implementing sustainable technologies in the differentprocess of firm operation, including scheduling, human resource, andsecurity management. Many of the processes are being automated, aprocess that is reported to have reduced costs and increased theefficiency in the delivery of services. Flightsglobal (2013) notes,the airline isnow striving to improve its organizational structure and culture toopen communications and encourage idea sharing in an attempt topromote thetechnological capacity and innovativeness. The company is alsofocused on training and development, a move that is expectedto play a crucial role in helping the company to keep abreast withthe technological changes while fostering technological andinnovativeness capacity.
Environmental:Likeany other businesses in the contemporary world, the Emirates Airlinesis operating in a society that is conscious about the environment.The society expects every person, organizations and business entitiesto exercise due care to protect and conserve the surroundings. Thisconsciousness has been orchestrated by the concerns that the societywill not be able to achieve its sustainability goals if it does notconserve the environment. Indeed, the criticality of the environmentto sustainable development is indisputable because adverse effectssuch as famine, disease, and global warming are consequences ofmassive pollution and environmental mismanagement. The airlines, likeother business entities, are expected to support environmentalsustainability by engaging in practices that minimize harm to theenvironment. The Emirates Airlines has been faring relatively well byupholding different forms of corporate social responsibility directedat environmental protection and conservation, including usingcarriers with limited exhaust emissions and noise. Besides, theairline is also involved in initiatives that support environmentalprotection through charitable activities such as funding, research,and innovations aimed at fostering environmental sustainability. Thisstep has played a crucial role in earning it a competitive advantagethrough self-regulation and avoiding penalties associated withflouting environmental conservation laws (Wang & Jin, 2014).
Legal:Theoperation environment in which Emirates Airlines operates ischaracterized by different forms of laws and regulations thatdifferent companies observe. The examples of such laws includeenvironmental protections, tort laws, contract laws, affirmativeaction, and occupation health and safety, among others. The EmiratesAirlines acknowledges that consequences of failing to observe therules and regulations are far-reaching (including fines, negativereputation, and license revocation), it is committed to aligning itsoperations with the different jurisdictional demands. Theoperational management goals of thecompany are set out and can be seen to be oriented towards fourelements.The first element is efficiency, which is concerned with minimizingcongestions and delays at the facility. The second element is safety,concerned with preventing harm on passengers and cargo because ofcontact with the facility environment. The third element issustainability, which is focused on assuring the return overinvestment. The last element is environmental protection, which isconcerned about minimizing harm on the environment. Moreover,the airline further acknowledges thatthe process of realizing the goals underpinning the four componentslargely relies on how the products and processes are designed andrendered, and that it is its responsibility to integrate all theareas into the operation activities (Binggeliand Pompeo, 2013).
Porter’sFive Forces Analysis
Theenvironmental forces that could constrain the market performance ofAirline’s span internal and external factors. The Porters FiveForces of market analysis serve as a framework for evaluating themarket environment in which the Emirates Airlines operates (Vollman& William 2015).The framework considers a group of five critical elements: substituteproduct threats, the threat of new business entries, and the threatfrom existent competitors, the suppliers’ bargaining powers, andcustomers’ bargaining powers.
Threatfrom Existent Competitors:EmiratesAirlines faces the threat of competitors whose operations are basedin the region and the world beyond. Some of the notable regionalcompetitors include Singapore Airlines, Virgin Australia, Jetstar andBritish Airways, among others. Such competitors are vibrant and theirmarket presence has a significant impact on the sales andprofitability of Emirates Airlines. This calls upon the company toembrace strategies to counter the effect of the competitors. Indeed,the airline has essentially been relying on informed marketingstrategies and product design to subdue its competitors. Forinstance, the company strives to offer services that satisfy thevalue for money. Secondly, the company produces both low cost andexecutive services to include customers with different economicclasses. The Emirates Airlines relies on the 4Ps of the marketing mixto design and tailor its products to the consumers and expand itsmarket share (Kovacs& Paganelli, 2013).
Threatsfrom New Entrants:Apartfrom the existent competitors, the Emirate Airlines faces threatsfrom new entrants. The threat of the new entrants is motivated by theprospects that the air transport and cargo industry provides. It isworth noting that the entrants may not necessarily come from thelocal market, but from other regions across the world. Theavailability of alliances and joint ventures with local companies,however weak they can be, may serve as a platform for the newentrants to destabilize the order of the local market. The EmiratesAirlines responds to the threats of the new entrants using thetechniques employed in dealing with the existent competitors (Green,2014).
ConsumerBargaining Power:TheEmirates Airline is subject to high consumer bargaining power. Such abargaining power is motivated by the fact that there are differentairlines that the consumers can choose to use. Consumers demand forquality services, including safety, reliability, convenience,security, safety, and affordability, among other aspects ofcost-effectiveness. Therefore, success partly depends on how anyairline will be able to address different demands of consumers. Inline with the point, Emirates has been striving to be responsive todifferent customer needs, an act that has been reflected in itsproduct design, delivery, and marketing. In all these processes, theairline strives to appease the consumers to attract their loyalty andavoid problems with the law (Vega, 2015).
Threatsfrom Alternative Products:Airlineoperation suffers from the threat of external products. Inparticular, some travelers are likely to abandon air travels, whilefavoring teleconferences, and other forms of electroniccommunications. The travel demand has also been weakening consideringtourists have been postponing tourism plans, and waiting for thetravel costs to be appealing. In response to the falling demand, aswell as rising competitions, the airlines have been compelled toslash the prices of products. The heavy reductions, as well asincreased discounting practices, have resulted to the increase, aswell as stabilization in the number of passengers. The regulationshave created a leeway for the other airlines such as EmiratesAirlines to capitalize the market by consolidating the positionswithin the industries. Now that new groups of airlines with lowcosts, such as China Southern and AirAsiaX have emerged, the state ofEmirates Airlines market command would be particularly threatened.Recently, the monopoly of Jetstar Airlines in the domestic operationswas subverted following the entry of Virgin Australia with premiumproducts. This has added to the potential problems to competitorssuch as Jetstar and Qantas, and Emirates Airlines. The latest indexfrom the government shows that the entrance of Virgin Australia inthe local market resulted in the drop of fares by a significantfigure of 40 percent (Martyn,2012).However, the operations of these airlines have evidenced someweaknesses such as lack of flexibility to reach all destinations,safety issues and minimized delay. Another challenge that competingairlines suffer is that they are unable to participate in thetrending technologies such as 777X. Failing to participate andexplore the current aircraft technological trends limits the firmsfrom competing effectively with other airlines (Martyn,2012).Therefore, if Emirates Airlines keenly studies and employs survivalstrategies of existent firms while learning and tailoring itsservices to the interests and needs of the consumers, the threat ofsubstitute products would be lessened.
SupplierBargaining Power:Thesuppliers’ bargaining power describes the relative power thatsuppliers can command in the market environment to influence thesuccess and performance of firms. In essence, the bargaining power ofthe suppliers is always a critical element to inform the investmentchoices. The components of suppliers’ bargaining power relates thenature and distribution of raw materials, source of energy and labordynamics. The target environment presents suppliers as having lowbargaining powers. This would certainly serve as an advantage forEmirates Airlines to exploit.Differentcompanies are venturing in the manufacture and sale of airlines andairlines can choose the carriers they want, for instance Airbus andBoeing. These are competing to the extent that they have made theaircrafts affordable to the airlines. The consulting services arealso relatively cheap, a trend that follows from globalization thathas created the allowance to seek services from firms across theglobe. The labor dynamics are also favorable. The global populationhas been growing at a faster rate, compared to the rate of growth ofjob opportunities. This trend implies limited job opportunities fortrained personnel. Emirates Airlines has the power to command interms of the skilled workforce to employ, as well as the laborcompensation schemes to offer. The energy aspect may pose achallenge. The prices of oil have been assuming an upward trendbecause of the increasing demand. Emirates Airlines will need to comeup with measures to ensure that this does not affect its success.This is possible. Indeed, Emirates Airlines is presented with thechoices of enhancing the bargaining and negotiating ability withsuppliers by creating alliances and partnerships with interestedparties (Wensveen,2013).
ThePESTEL and Porter’s five force analysis creates the allowance toenvision Emirates Airlines as presented with a myriad of strengthsand opportunities that motivate it to remain on top of the market,which the new and struggling airlines could emulate. Nevertheless,the analyses also present different forms of weaknesses and threatsthat the new and struggling airlines should beware. The chart belowsummarizes the SWOT analysis findings derived from the analyses.
Large regional and global market share
Vibrant marketing and promotion strategies
Emphasis on quality and provision for value-for-money
Environmental social responsibility
Suing different carriers such as Boeing and Airbus
Limitations to forms strategic alliance with other airlines because of operating in risky environment
Inability to train own pilots
Promising political environment
New modern airports fitted with state-of-the-art technologies
Prospective social environment driven by need for speed, globalization and growing population
Technology and innovativeness
Threats from competitors
Threats from new entrants
Threats from existent products
Political conflicts and terrorism
Newinformation that can be predicted
Whatcan be predicted from the analyses is that the Emirates Airlines ison the right track of safeguarding its market share and realizingfurther growth through differentiation. The ability to achieve theseonly relies on persistence and leadership commitment.
Themanagement theories and decisions leading to emirates airlinessuccess vs other regional carriers Theairline success over other rivals is hinged in different strategiesthat the company adopts. For instance, Emirates’ resourcemanagement strategy is the optimization to sustain operationrequirements. Success in realizing the goals underlying itsactivities is guided by an array of factors, ranging from theexternal and internal factors, which are treated as interrelated andmust all be reflected in the operation management process. Inessence, the resource management technique largely conforms to theprinciples of one systems approach, which lays emphasis on treatingelements as a system of interrelated items, as opposed to distinctelements. In line with this point, the airline acknowledges thateffective management of the human and non-human resources are allcrucial to support the company to realize its short-term andlong-term goals. Nevertheless, it further acknowledges the paradigmshift towards humanistic approaches, which requires firms to treatthe workforce as the most special resource to be able to leveragecompetitive advantage. To achieve this, Emirate has endeavored toengage its employees through ways such as motivation, training, anddevelopment to support them in improving capacity to work effectively(Emirates Airlines, 2014).
Accordingto Osborneand Amy (2012), thisapproach differs from those that are typically employed by youngairlines in which resourcemanagement process, while it exists, has a narrow scope and isessentially focused on risk avoidance, using the multiple pathmethodologies. Theuse of multiple paths in managing risks is limited, especially inhandling large and complex projects. This is because of the highnumber of activities involved, and the demanding nature of thisapproach. For this reason, multiple paths approach requires complexsoftware for efficient management, which may subsequently call forhigher operational costs for the organization. Indeed, it has beennoted that using multiple paths would require an overhaul in casechanges are to be effected as the project is executed.In the management of risks, the firm tends to classify risks as low,medium and high. Indeed, as Loh and Ching (2014) note, while theclassification is important to the organization because it points outareas that require an immediate response, it is limited because somerisks perceived to be critical may be inherently overlooked iferroneously designated as low-risk. This situation may havefar-reaching consequences on the outcome of the firm. In most cases,it is likely that non-critical risks will be overlooked because theirimplications may take a relatively long time to surface. The outcomescan be adverse to the point that the business or an organization mayfail. Kovacs and Paganelli (2013) note that non-critical risks havethe ability to curtail performance of an organization. In addition,it is likely that the organization would lose its reputation if itdoes not manage non-critical risks. Some of the common non-criticalissues in businesses include delays in the delivery of goods to theclients, unresolved issues affecting organizational staff andinformation technology failure among others. As such, it is importantfor young airlines to maintain good reputation through ensuring thatthe nothing is overlooked as a minor issue in the organization. Theinformation technology system should be maintained to the standardneeded, while services should be delivered at the right time. It isalso necessary for the organization to ensure that unresolved issues,however less critical, are addressed correctly and on time.Besides, employeeengagement through training and development should be adopted (Rohit,2014).
Accordingto Lohand Ching (2014), theEmirates marketing strategy is vibrant and is the source ofcompetitive advantage. It can be conceived based on the 7Ps ofmarketing.
Product:Theairline strives to ensure that the services meet the expectations ofthe customers. For instance, cargo and passengers are ferried at thesatisfactory time, and on more strategic and convenient routes thanwhat the competitors offer. Communication channels are maintained andnotifications to customers about airlines schedules should be done ingood time, informing customers of the changes to preventinconveniences.
Placement:The services of the Emirates Airlines are made accessible to all itspotential consumers through segmentation. The airline segments itsservices to accommodate diverse customer interests. This step isnecessary because its potential customers have diverse interests. Forinstance, the Generation Y, the baby boomers and persons withdisabilities have different demands that will need to be considered.The airline uses different marketing strategies to target differentconsumers. For instance, it could use social media to target theGeneration Y, and use magazines and newspapers to target the babyboomers.
Price:Thepricing conforms to the value-for-money principle. It is noteworthythat this point does not necessarily mean Emirates Airlines offersthe cheapest products, but strive to balance quality with price. Thisstrategy is effective because customers are usually happy when theypay a little more for something that works really well for them(Hayward,2012).Ideally, British Air and young airlines will need to consider thepricing strategies of other competing airlines and come up with apricing strategy that differentiates it from them.
Promotion:Advertisingthrough online, mass media and print media is guaranteed to reachlarge masses of potential customers. In recent times, social mediasuch as Facebook, Instagram and Twitter are all essentialcommunication tools for an organization. These tools are used by theairline to put across the organization’s message to the targetconsumers in the manner they would most likely understand. Inaddition to advertising, the Emirate Airlines has adopted a vibrantCustomer Relation Management programs to engage its clients.
People:Allcompanies are reliant on the people who run them, starting from frontline sales staff to the management teams (Loh & Ching, 2014).Having the right people is essential because they are as much apivotal component of organization resources and sources ofcompetitive advantage. Emirates Airlines strives to recruit a skilledworkforce. It also strives to improve the capacity of the existingworkforce through elaborate training and development programs.
PhysicalEvidence:Physicalevidence implies the various aspects that help in the formalizationof the respective aspects of a given place. The Emiratesoperates in different airports across major towns and cities acrossthe globe, especially in the regions beaming with commercialbusinesses reliant on air transport services. The company is alsoconsidering opening branches and offices in different locationsacross the globe to communicate their physical presence. Youngairlines should consider locating its offices in these regions toassure an element of physical evidence.
Processes:EmirateAirlines focuses on efficiency to avoid delays, which is one of themajor causes of dissatisfaction among air travelers. As documented byCosta,Harned and Lundquist (2014), theapplication of quantitative risk analysis is appropriate where theestimation of the risk incurred is measurable in a numeric form. Inthis regard, the resource value is defined in figures, the frequencyof a risk occurring is evaluated in numbers, and probability isapplied to determine the chances of a failure happening in anorganization project or business operation. The values are used todescribe the chances of the risks occurrence, and as well determinethe suitable action to address the risks based on the organization’spriorities.Certainly, this management approach is relatively limited to assurethe desirable standards of total quality management process.
TheRole of Ethics and Social Responsibility
Ethicsand social responsibility play a crucial role in enhancing thecompetitiveness of the organization. The derivative competitiveadvantage is manifested in two ways (Green,2014).In one way, ethics and corporate social responsibility serves as away of self-regulation to avoid penalties from the community and thegovernment. In another way, it is a way of marketing throughreputation building. According to Hayward(2012),consumers, suppliers, and investors conceive ethical and sociallyresponsible firms as trustworthy.
Whetherthe Airline can survive without the Government
TheEmirates Airlines has also included total quality management in itsoperation management processes. Likeany competitive firm, the source of its competitive advantage isquality, which it must strive to safeguard through informed qualitymanagement processes (Marc,2013).With these strategies, the company has been performing relativelywell, especially in terms of increasing profitability, which createsthe allowance to infer that it can still survive without governmentinterventions and support.
TheDifferences between Boeing 787 Dreamliner vs A380 in both productsoutlook and demand from customers
TheEmirate Airlines operates both Boeing and Airbus. The airline is oneof the few airlines operating the wide-body aircrafts. Currently, theairline is the largest operator of Airbus A380 carriers. The use ofboth Boeing and Airbus is aimed at satisfying consumers with diverseinterests. Nevertheless, the convenience of using both Boeing andAirbus is to be able to exploit the benefits of each carrier brand,while overcoming the inherent weaknesses. For instance, Boeing has alow fuel budget of about 34.48 per nautical mile less than Airbus,yet Boeing has a low weight of about 765,500 pounds than Airbus.However, Airbus commands several advantages over Boeing Dreamliner,including the ability to fly over 845 nautical miles and at analtitude of 100 feet more than Boeing. Airbus also enjoys a speedadvantage, and has the capacity of cruising 36 knots more thanBoeing, has a thrust force of 6,000 more than Boeing, can hold 50,972gallons of fuel, and carry 334 passengers more than Boeing.
WhetherGCC trains enough Pilot and the Impact of Regulations
GCCtrains its pilots, but relies on the partnership with otherinstitutions and aircraft manufacturers beyond to producewell-trained pilots. The legal environment is encouraging — itexists to ensure order for the best interests of the consumers andfirms, rather than subvert limit operations (Osborne& Amy, 2012).Typical rules and regulations pertain to anti-monopoly laws,industrial relations and employee rights, which are not demanding.Therefore, any young airlines can always pull through by observingthese laws.
ThePosition and Significance of Supply Chain management
Emiratessupply chain is vibrant and is underpinned by total quality controlthat lays emphasis on a number of areas, including systematic andstrategic management, continuous improvement, evidence-baseddecision-making process, and communication. One of the significantaspects of Emirates quality management practice systematic andstrategic management that is oriented towards enabling the company torealize the goals, vision, and mission. This process entailsformulation of plans while integrating quality in operationmanagement process. The continuous improvement process involvesdeploying the creativity and analytical skills to find ways ofincreasing competitive advantage, as well as meet the stakeholderdemands. Lastly, fact-based decision-making process is aimed ataverting the risks, while communication is aimed at fosteringunderstanding and avoid conflicts.
The7s McKinsey Analysis of the Emirate Airlines based on the analysescan be summarized in the table as follows.
Focus on Quality (Value for money)
The use of technology and Innovativeness
Hierarchical organization structure
Highly motivated through incentives
Engagement with all the shareholders in making decisions (suppliers, consumers, shareholders)
Training and development
corporate social responsibility
Inconclusion, the aim of this paper has been to explorethe keysuccess factors that suit young airlines, based on the analysis ofEmiratesAirlines as the model to emulate. It has been established that itssuccess is attributable to its strengths, as well as the ability tosee and explore opportunities in the marketplace, and address thethreats inherent to the market.
Themost outstanding threats include highlevel of innovativeness, large regional and global market share andpresence, vibrant marketing and promotion strategies, emphasis onquality and provision for value-for-money, technology consciousness,environmental social responsibility and upholding the laws andregulations. Moreover, Emiratessupply chain is vibrant and is underpinned by the total qualitycontrol that lays emphasis on a number of areas, including systematicand strategic management, continuous improvement, evidence-baseddecision-making process, and communication. Theopportunities the company has been exploiting include the promisingpolitical environment, the presence of new modern airports fittedwith state-of-the-art technologies, the prospective socialenvironment driven by the need for speed, globalization and growingpopulation and evolving technology and innovative environment. TheEmirates marketing strategy is vibrant and is the source ofcompetitive advantage and it is essentially informed by 7Ps ofmarketing.
Thenotable threats that the company has been keen about include growingregulations, financial downturns, threats from competitors, andthreats from new entrants, threats from existent products andpolitical conflicts and terrorism. What can be predicted from theanalyses is that the Emirate Airlines is on the correct track ofsafeguarding its market share and realizing further growth throughdifferentiation. The ability to achieve these only relies onpersistence and leadership commitment. Therefore, young andstruggling airlines are encouraged to emulate the Emirate Airlinesoperation strategies, focus on exploiting the availableopportunities, beware of the threats, and rise above the weaknesses.
Binggeli,U. and Pompeo, L. (2013). Hyped hopes for Europe’s low-costairlines. McKinseyQuarterly4, 86–97.
Black,D. (2015). Qantasto fly into Dubai in major alliance with Emirates Airline. Retrievedfromhttp://www.thenational.ae/business/aviation/qantas-to-fly-into-dubai-in-major-alliance-with-emirates-airline
Costa,P., Harned, D., Lundquist, J., (2014). Rethinking the aviationindustry. McKinseyQuarterly,89–100.
EmiratesAirlines. (2014). Findflights to Emirates destinations.Retrieved from https://www.emirates.com/english/destinations/
Flightsglobal.(2013). Emiratesprospers despite slump.Retrieved fromhttps://www.flightglobal.com/pdfarchive/view/1987/1987%20-%202153.html
Grant,D Hall, R., Wailes, N. and Wright, C. (2012). "The falsepromises of technological determinisms: the case of enterprisesresource planning systems". NewTechnology, Work & Employments21 (1): 2–15.
Green,S. (2014). ERP Vs Best of Breed. WorkforceManagement,3(3): 53-56
Hayward,K. (2012).Government and British civil aerospace: a case study in post-wartechnology policy. Manchester University Press.
Kovacs,G. L., & Paganelli, P. (2013). "The planning and managementinfrastructures for large, complex, distributed projects – beyond ERPand SCM." Computersin Industry,51(2), 165-165
Loh,T. & Ching, S. (2014). "Critical element for a successfulERP implementations in SMEs". InternationalJournal of Production Research42 (17): 3433–3455.
Marc,E. (2013)."BA Dreamliner completes inaugural London-Toronto flight".Toronto Star.
Martyn,G. (2012).Dirty tricks: British Airways` secret war against Virgin Atlantic.Warner.
O`Leary,D. (2012), Enterpriseresource planning system: systems, life cycle, electronic commerce,and risks,Cambridge University Press.
Osborne,A. & Amy, W. (2012)."British Airways owner IAG seals deal to buy BMI for £172.5m".The Telegraph.Retrieved fromhttp://www.telegraph.co.uk/finance/newsbysector/transport/8972188/British-Airways-owner-IAG-seals-deal-to-buy-BMI-for-172.5m.html
RohitT.K. (2014)."Atlas Air loses contract with British Airways, shares dive"Retrievedfromhttp://www.reuters.com/article/us-atlasair-britishairways-idUSBREA0G11R20140117
Travelmole.(2014). EmirateMakes History.Retrieved from http://www.travelmole.com/news_feature.php?id=1130534
Vega,H. (2015). “Air cargo, trade and transportation costs ofperishables and exotics from South America”, Journalof Air Transport Management,forthcoming.
Vollman,T. and William L. (2015), ManufacturingPlannings and Control System for Management of Supply Chain.CambridgeUniversity Press.
Wang,J. and Jin, F. (2014). Asia air passenger transport: an analysis ofrecent trends”, EurasianGeography and Economics,48(4), 469–480.
Wensveen,G. (2013). AirTransportation: A Management Perspective.Burlington: Ashgate Publishing Company.