Introduction
In business, innovation is a crucial factor that develops entrepreneurial spirit and purports financial prosperity. In a competitive business environment, companies invest, conduct research, and struggle to manufacture new products that satisfy the customers’ needs. In UAE, DU telecommunication and Etihad Airways are some of the most successful companies that have been identified. This report will describe the two companies, touch upon their innovative strategies, and discuss some of the factors that should be considered when conducting a feasibility analysis.
DU Telecommunication
This is a company that was introduced to provide technological services, including data, voice, and content services. Although it was founded eight years ago, its innovativeness has enabled it to challenge bigger service providers (Emirates Integrated Telecommunications Company, n.d.). In fact, this uniqueness formed the basis of selecting the company for this report.
Besides the fact that the company provides a wide range of services, it also targets different segments of customers, including individual consumers, businesses, and carriers. The businesses include both the small and large corporations while the carriers comprise entities that provide data networks as well as telecom services. For consumers, the company provides such services as fixed calling and data provision to both individuals and households that have subscribed with the company.
The company has about two thousand employees drawn from sixty different countries to serve the customers in a variety of languages and encourage globalization (Aboutus, 2012). The company works to promote, develop, and use talents in order to increase the level of innovation and provide employment opportunities. The application of these strategies has led to a gradual rise of the company, and it was named the best mobile broadband network provider in 2013. This rating was taken from the recent research that was conducted by ARC Chart Company. The rating strongly based on the premises that the company had about 6.5 million subscribers in the UAE and registered the annual revenue of 10 billion in 2013.
Etihad Airlines
Etihad Airline is a national company that has been extremely innovative in regards to its services, processes, and organizational management. Although it was established ten years ago, it has been capable of competing with other multinational companies and attaining a strategic global position. In essence, it has been recognized as one of the fast growing airlines due to the innovative capability envisaged by the employees and managers (Elmorchid et al., 2013). Having considered these aspects, the company was regarded as an appropriate choice for this report.
One crucial development that has taken place in the company is the creation of partnerships with other airlines. In this regard, Etihad has partnered with other companies such as Aegean, Aer Lingus, and Air Astana Airlines. The alliances enable Etihad to provide their services to about 325 destinations worldwide (Balakrishnan, Jayashree & Michael, 2011).
Further, the company has partnered with some rail networks so that customers are served by trains once they reach the respective airports. Having portrayed its capability to offer proficient services to customers, the company has received various awards that include the World-Leading Airline and the Best First-Class in 2013 and 2011 respectively. The awards show that the entrepreneurial capability of the company is not only existent, but also sufficient for honorary recognition in the world.
Apart from focusing on profits, the company is committed to community building in the United Arab Emirates and the entire world. It fulfills this by sponsoring cricket and football games that bring people together and unite the world. In addition, it has a commitment of ensuring sustainable development by encouraging maximum utilization of energy, minimizing the amount of waste, and providing health conscious services among other measures.
What Should be Included in a Feasibility Analysis?
Product
In a feasibility analysis, the involved personnel must identify the products that are being offered to customers. Accordingly, the benefits of the products should be described in order to show how the goods and services are better than the ones available in the market (Oprea, 2010). In addition, it should elucidate the channels that will be used for distribution, identify suppliers, and describe the patent. This should be accompanied by an analysis that determines whether a product is beneficial or not.
Price and Profitability
Economically, it is evident that price is the most crucial determinant of business success since it is the main factor that influences demand and supply. Accordingly, the feasibility analysis must illustrate how a product will be priced in relation to the available goods and services. In essence, it is recommended that the gross margin should be set to cover the expenditures. Although community businesses make profits, what determines their feasibility is how they use the surplus. Essentially, the price and investments should be used to determine profitability when they are compared with the cost.
Plan for Further Action
The feasibility analysis should evaluate the futuristic value of a business in order to determine whether it is advisable financially. In this regard, the analysis should establish the resources that are needed to start the business. In addition, the concerned personnel must consider the viability of an idea, people who will be involved in the process of implementation, and the organizational objectives.
Market
When conducting a feasibility analysis, it is essentially critical to consider the market (Spreckley, 2011). First, a businessperson must determine whether there is a market for products. The evaluation must be based on whether the market availability can be proven or not. If it can be proven, the owner of a business should proceed to identify the size of the market since this is a pertinent issue when it comes to determining the scope of operation.
Importantly, the feasibility analysis should make future projections and determine possible fluctuations that may affect the business financial solvency. In addition, other aspects, such as the expected annual growth of the market and the factors that affect its development, must be discussed in detail. Essentially, market feasibility is the most challenging part of the entire undertaking. Extensive research should be conducted in order to determine the highlighted issues.
Target Market Feasibility Analysis and Gathering information about it
Target market feasibility analysis refers to a detailed description of the current scope of potential consumers of a product. This evaluation seeks to determine the people who are interested in the goods or services that are provided by a company. Critically, the most important undertaking in this analysis is the collection of information about the target market. There are three major ways in which a company can obtain this information. First, the involved personnel can use previous statistics related to the product consumption and people who consume it. Alternatively, they can use information from industries that provide related products or conduct a research.
Conclusion
It is evident that DU telecommunications and Etihad Airlines are some of the most innovative companies in United Arab Emirates. They have been in business for less than one decade, but they have made a huge impact as far as innovation is concerned. In addition, it has been established that feasibility analysis should include a detailed description of the product, market, price, and futuristic plans among other things.
References
Aboutus. (n.d.). Web.
Balakrishnan, M. S., Jayashree, P., & Michael, I. (2011). Etihad: contributing to the UAE vision through Emiratisation. Emerging Markets Case Studies Collection, 1(1), 1-7. Web.
Elmorchid, B., Samy, N., Sekkat, K., & Squalli, J. (2013). Arab Passengers’ Airlines Framework And Performance: A Cross Countries Analysis.Middle East Development Journal, 5(2), 1-21. Web.
Emirates Integrated Telecommunications Company. (n.d.). Web.
Oprea, A. (2010). The importance of investment feasibility analysis. Journal of Property Investment & Finance, 28(1), 58-61. Web.
Spreckley, F. (2011). Connecting the UK to the world and the world to the UK, the British Council is the UK international cultural relations body. Social Enterprise Planning Kit, 1(3), 1-68. Web.