With the increase in the pace of the globalization process, the significance of airline companies has grown to a considerable extent, which is not surprising – is the fastest transportation mode, airplanes have become the symbol of bridging different countries together and creating stronger ties with people all over the world. Emirates Airlines is no exception to the case; once starting as small entrepreneurship, the firm has grown to become a global leader and a major game-changer in the transportation industry.
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Emirates Airlines is one of the companies that were made to succeed. Despite the challenges that the target market posed in front of it and the intrinsic issues that were built into the firm’s design, it has been delivering the services of the finest quality. However, the recent need to enter the global market and expand its services has posed a range of obstacles to the company, making it reconsider some of its current strategies.
Nonetheless, the success of Emirates has not been consistent. Because of the intrinsic flaws in its design, the firm has been experiencing difficulties in the global market, especially as far as the competition and the related issues were concerned.
Although Emirates has established a strong presence in the target market, it failed to build a solid competitive advantage, which resulted in its being ousted slowly from the global economic realm. To remain in the market and reduce the number of losses to a minimum, the company will have to reassess its current strategy and shape it so that the firm could maintain sufficient competitive rates in the global economy realm.
As stressed above, the lack of competitive advantage can be viewed as the main problem of the organization. On the one hand, the firm has enough resources to increase its customer base and enter a new market. On the other hand, Emirates Airline has not developed a rather unique personality that will help it brand its product and become easily recognizable in the target market.
It would be wrong to claim that the organization does not have the characteristics that could help it become competitive in the global market. For instance, it offers a luxurious experience to its customers, focusing on expanding the opportunities for first-class travelers. However, the identified characteristics cannot be deemed as the company’s selling point. Although making entrepreneurship more competitive in the target environment, they do not create a unique image that will help make the entrepreneurship and its products instantly recognizable or make the company stand out of the range of similar organizations (Perrey and Spilleke 116).
Similarly, the recent attempt at creating an original brand that would help the company stand out shoed quite clearly where the main problem of the company was. According to the case study, Emirates Airlines has been putting a very heavy emphasis on its luxury and the idea of providing the target audience with the most expensive and luxuriant services possible. For instance, how the firm updated the first-class services proved that entrepreneurship was taking a course for meeting the needs of its richest customers.
On the one hand, the idea of increasing the number of options for customers seems quite sensible. On the other hand, it was important to bear in mind that rich customers did not make the bulk of the firm’s clientele and that most of the orders came from the middle-class population. The resulting drop in the company’s revenues and the rise in the expenses, though admittedly upsetting, should have been nonetheless expected since the organization failed to conduct a detailed analysis of its customer base, its options, and its financial assets.
With the lessons learned from this unfortunate situation in mind, one should consider more efficient market research and the design for the tools that will allow for determining the needs of the customers in the most accurate manner possible. After a careful investigation of the current trends in the global market, the company must use customer segmentation as the key tool in determining the further development of its services. To avoid a failure similar to the one described above, the entrepreneurship members will have to determine which customer segment constitutes the largest amount of the firm’s clientele. It is expected that, after a detailed evaluation of the company’s customer base, it will become obvious that the first-class clients are not in the highest percentile of the entrepreneurship’s customer base.
When addressing the issue of congestion, one may suggest that, instead of increasing the frequency of flights, the company could offer its passengers new destinations. As a result, a significant amount of load will be taken off of the other routes since the new ones will be busy. It should be noted, though, that the identified solution is fraught with numerous expenses. Therefore, the incorporation of the sustainability principle as the foundation for the decision-making process and the allocation of resources is vital to the company’s existence. Indeed, to add new destinations to the overall range of options that the company provides, one should consider increasing the inventory that the organization has at its disposal. The identified solution is likely to have a positive effect on traffic development. Furthermore, it will serve as the foil for rapid economic growth.
Speaking of which, the increase in the number of destinations that the entrepreneurship will be able to provide to its target audience can become an important competitive advantage of the organization. Because the firms in which the target market is represented and dominated by are of comparable power and influence, suggesting the strategy that will require extensive investments from Emirate Airlines does not seem to be a sensible idea. Being both times- and resource-consuming, the identified approach is likely to make the entrepreneurship lose. Working on a minor characteristic feature that will set the company apart from a range of similar services, on the other hand, is likely to become a potential tool for grabbing the attention of the target audience and promoting loyalty among the target audience by offering them an increasingly large array of options.
Therefore, it can be suggested that entrepreneurship should expand its services and become a part of the global economic environment. Although some of the methods used by Emirates Airlines can be seen as half-baked, the organization has a potential that will allow it not only to take a specific niche in the world economy but also to climb at the top of the global hierarchy. While the organization has a lot of problems currently, none of them are inherent in its design. For example, the fact that the company is represented by a large number of cultural and ethnic identities shows that Emirates Airlines will be able to operate in the global economy and work with the partners and customers from all possible backgrounds.
Indeed, the emphasis on diversity and the need to communicate successfully with the members of all cultures and backgrounds is an essential characteristic of an organization operating in the global market. By incorporating its cross-cultural strategies, the company will be able to carry out negotiations successfully and create a promotion campaign that will speak to all types of customers. Finally, the increased diversity rates of the firm will serve as the foil for carrying out a successful customer segmentation process as a result of the identified step, Emirates Airlines will be able to meet the needs of its target audience more accurately.
The promotion strategy used by the organization, however, can be considered impeccable – by using sports events as the tool for branding its product, Emirates Airlines created a unique and easily recognizable identity. Therefore, altering it does not seem sensible at present. A rebranding process might arguably be considered an important stage in the firm’s development, especially given the fact that it is going to reintroduce itself to the target audience. However, changing the current branding framework drastically is not necessary. To boost the sales rates, the entrepreneurship could consider the idea of co-branding by partnering with an equally successful organization that will help introduce the organization’s services at the global level. Among the potential partners, world-renowned travel agencies can be considered a decent target.
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Apart from a more elaborate approach toward customer segmentation, the organization should also consider a different strategy as far as its marketing approach is concerned. As stressed above, the entrepreneurship has been putting its stakes on the promotion of luxurious services; as a result, it has been positioning itself as the company that offers an exclusive and rather costly experience for its customers. The premium in-flight experience, which the firm has been having been using as the key selling point, can be viewed as a good place to start form, yet it does not make the company unique as much as it makes it look expensive.
Therefore, it would be a sensible step to reconsider the current promotion approach. Even though the strategy is aimed primarily at the general audience, the emphasis on luxury is unlikely to appeal to every single member of the target population. It would be wrong for the company to refuse from the idea of using the concept of luxury as the means of promoting the firm in the global market. However, one must admit that, for most target members of the audience, the luxury of the experience is not as important as other properties, such as the speed of the transportation, the number of destinations available, etc.
Therefore, it would be a more reasonable idea to work in the identified directions, putting more emphasis on the variety of services rather than on the chic that entrepreneurship has to offer. Abandoning the latter element completely, though, will not be necessary; instead, the luxury can be represented as the second most important characteristic of the services along with the quality and the speed of transportation (McGrath 48).
Furthermore, a far as the development of the product quality is concerned, Emirates must put more emphasis on the safety issue. Unfortunately, the current global political situation implies that air travelers should be exposed to an array of risks when using airline services. Consequently, the significance of checking the baggage for the items that can be defined as possibly dangerous for the wellbeing of people on board is essential.
It should be noted. Though, the enhancement of the airline’s security is likely to shave an adverse effect on customer satisfaction. Because of a set of more rigid rules concerning the handling of the passengers’ luggage, the checking procedures, etc., the customers may face delays, not to mention possible personal discomfort in the course of checks. Thus, it is imperative to make sure that the security processes should be carried out in a manner as delicate and expeditious as possible. The identified goal will require the purchase of the latest equipment and the provision of training courses for the staff so that the employees could maintain the safety levels high, at the same time providing clients with enough comfort.
Therefore, there is a strong need to link the current concept of luxury to other aspects of the firm’s functioning; otherwise, the identified characteristic of the organization will not work to its advantage and, instead, will be viewed as another redundant detail of a service that does not have any other distinctions.
The case study also points to the fact that Emirates has been suffering from the activities of copycats. Although the services that other organizations provide are not as luxurious as the ones of Emirates Airlines, the organizations that copy the company’s style have been thriving in the target market, depriving the firm of its profits and attracting Emirates’ customers.
It should also be borne in mind that the existence of copycats is likely to trigger an immediate drop in the company’s credibility. Since the organizations copying the firm’s services do not have either time or resources required to meet the existing standards, the quality of the end product leaves much to be desired. After having a bad experience with a copycat firm, one is unlikely to consider the services of Emirates Airlines, assuming that it belongs to the same area of competence and offers the same mediocrity as its competitors.
The problem mentioned above is linked directly to the current inconsistencies in the branding strategy. The fact that being a huge corporation, Emirates still does not have a unique identity is the sign that the firm’s branding tools could use significant improvement. As a result, the organization’s promotion style can be copied easily, and the customers can be fooled into believing that the company of a significantly lower level of expertise will provide the same transportation options based on the similarities in the branding approaches of both.
The outstanding quality of the services and the increase in safety rates can be considered the selling point that could make the entrepreneurship stand out of the range of copycats and gain a unique identity. In fact, by introducing unique tools for passenger safety management that will help maintain the comfort levels high and at the same time make sure that the customers remain safe can be viewed as a potential selling point of the entrepreneurship (Grosse 11).
Finally, the brand image of the organization must be made memorable and easily distinguishable among the rest of similar organizations. At present, Emirates remains surprisingly bland in the context of not only the global economy but also its home market. While having gained enough recognition among the residents of the UAE, the organization does not have a distinctive marketing style and seems to prosper due to the lack of competition. When entering the realm of the global economy, however, Emirates is bound to face much harsher circumstances and, therefore, face the need to develop a more definitive look.
When considering the options that the firm has currently as far as the branding tools and the brand image are concerned, one must give credit to the concept of luxury as an integral part of the future design. However, as attractive as the idea of positioning the company as solely the service for the first-class clients might seem, one must admit that middle-class passengers make the bulk of the travelers nowadays. Therefore, the identified members of the population are likely to provide the organization with the largest amount of revenues. Consequently, when designing the brand image and the appropriate marketing approach, the company must include the concepts and images that appeal to middle-class citizens in the first place.
When considering the problem that Emirates Airlines has faced, one may also suggest that the lack of negative records and, therefore, the experience in handling crises can be viewed as the source of concern. Indeed, according to the case study, entrepreneurship has been witnessing a streak of success up until recently. As a result, with no reason to build a sustainable crisis management approach, the firm is in an understandably difficult situation as it has finally encountered one.
With the information provided above in mind, one may suggest that the organization members could start working on the design of a conflict management tool.
Although the idea of creating a competitive advantage that will set the firm aside from a range of similar organizations operating in the target environment seems rather a sensible step to take, there is another solution that could help maintain balance in the present scenario. According to the details of the case, the congestion issue remains a problem that needs an immediate solution. Seeing that the congestion issue can be addressed by rearranging the corporate resources and rescheduling the flights, acquiring new aircraft, and improving the network connectivity, there is an urgent need to introduce the principle of sustainable resource usage into the company’s design.
As soon as the concept of sustainability is introduced into the company’s design, the available resources can be pulled to handle the problems that need an immediate resolution, the congestion issue being one of them.
As far as the alternative solution to the airport congestion problem is concerned, increasing the ticket price can be viewed as a temporary leeway to avoiding the associated complications. However, one must admit that the identified method has its problems, the possibility of losing some of the loyal customers being the key one. As soon as Emirates Airlines increases the price of the tickets, its competitors will use the change as the means of promoting their products more actively and steal the company’s customers. Therefore, the use of the increase in prices as the means of reducing the tension and bringing the congestion rates down can be considered as a temporary suggestion, yet it must not be viewed as the silver bullet for the company’s problems.
Moreover, the entrepreneurship could consider promoting the idea of consistent improvement as its competitive advantage. A course on a regular update of its services and the search for the new ways of catering to the needs of the target demographics, the concept of consistent improvement is the kind of an idea that people are likely to get behind, which means that the Emirates Airlines would be able to attract new customers within a relatively short amount of time. On the one hand, the strategy seems impeccable.
On the other hand, the focus on improvement will imply that the services offered by the organization are flawed, to begin with. It will send a wrong message to the audience and, therefore, may hurt the company’s chances of entering the global economy successfully. With the above information in mind, it would be wrong to dismiss the concept of continuous improvement. Instead of making it the firm’s selling point, Emirate Airlines should view it as a part and parcel of its future corporate philosophy. By investing in the unceasing improvement process, the organization will be able to gain new competitive advantages, such as safer and more efficient services, the staff that will be able to cater to the needs of the target audience in the manner as efficient as possible, etc.
The approach to problem management provided above does not necessarily have to be an alternative solution to the management of the company’s internal processes. Instead, the idea of consistent quality improvements, as well as the introduction of a more appropriate quality management approach in the framework of the company’s operations deserves being considered.
Furthermore, a very heavy emphasis must be placed on the cooperation between the Emirates airlines and the related airport companies. Seeing that traffic congestion is a common problem, exploring the company’s capacity options is a popular yet temporary solution to the problem. Unless Emirates considers a partnership with other organizations and refuses from restricting its options to its resources, the latter is going to be exhausted sooner or later, and the quality of the services will gradually drop. Furthermore, the expansion of the firm’s capacities is bound to affect the overall quality rate, making customer satisfaction levels drop. Consequently, the airlines will not be able to claim the position of luxury service., thus, losing their key competitive advantage. Therefore, the application of the sustainability principles that will allow for using the available resources to their maximum must be viewed as the course that the organization should take in the nearest future (Akkucuk 98).
Although gaining a competitive advantage is imperative to be able to enter the global market, the source of the assets that the company has at its disposal is also crucial to its position in the target environment, as well as its perception by the target customers. As the case study shows, rumor has it that Emirates Airlines has been supported by the government extensively, therefore, using an unfair competition strategy to gain to the top of the identified economic environment. If used by its competitors to represent Emirates in an unfavorable light, the information mentioned above is likely to have a very negative effect on the customer loyalty rates, as well as the overall rank of the firm in the global market. Abandoning the existing practice of receiving support from the government and focusing on the corporate resources available to the organization is the most sensible solution that Emirates Airlines can use at present.
At this point, the significance of the approaches that help minimize the use of the company’s internal resources and maximize the output need to be mentioned as the possible approaches to problem management. As stressed above, the use of the tools that will help improve the quality and reduce the waste percentage, such as the Six Sigma framework, should be considered appropriate in the identified situation (Pyzdek and Keller 118).
Moreover, to prevent negative information from affecting Emirates’ success streak, the organization should use the available information resources to its advantage. For example, modern networks could be used as the medium for announcing a new corporate strategy at the Emirates Airlines so that the target audience could be aware of the changes in the firm’s design and, therefore, be more inclined to try its services.
Also, as far as the issue of government funding is concerned, the impact of a public refusal from relieving the support of the state authorities can be enhanced by promoting the concepts of clarity and transparency as the guiding principles of the firm’s operations. as soon as the Emirates Airlines starts providing its clients with an opportunity to see the company’s reports, as well as shed some light on the financial aspects of its functioning, the members of the target audience are likely to develop more trustful relationships with Emirates. As a result, a different and more efficient pattern of customer communication can be implemented in the context of the organization. Granted that the transfer to the policy of complete transparency is going to be rather challenging, the outcomes of its application are bound to compensate for minor issues.
The principles of transparency, therefore, will serve as the foil for developing an entirely new platform for customer communication. Because the organization has already developed the element of luxury that can be viewed as a leeway to successful customer segmentation and the design of customer loyalty programs with discounts and discount cards, the focus on developing more trustful relationships with the target audience should be viewed as the next important step in reinforcing the loyalty rates among the identified audience.
As soon as the organization restores its reputation, it will be able to use new opportunities for an improved and more trustful conversation with the customers. Therefore, it will be necessary to make sure that the communication tools, especially the ones that allow for retrieving feedback (e.g., surveys, discussion forums, etc.) should function properly (Hill and Lagan 108).
Although the Emirates Airlines managed to propel itself to the top of the local market at some point, the strategy that it has been using to advance in the home market was not enough to maintain a strong presence in the realm of the global economy. A closer look at the approach that the leaders of the entrepreneurship have been promoting as the foundation for the company’s operations in the global economic environment lacks sustainability and could have been better thought out.
For example, the principles on which the customer relationships are built in the organization seem to lack reasonability. At present, the firm is catering to the needs of its richest clientele, which is an understandable yet drastic mistake. By disregarding a large number of customers and their needs, i.e., dismissing the entire population of the middle-class citizens, the company makes a drastic mistake.
As stressed above, though having developed credibility in the home market, the Emirates Airlines may have issues when entering the environment of the global economy because of the lack of competitive advantage and a distinctive marketing strategy. Without the brand image that will make it unique and memorable, entrepreneurship is unlikely to retain its position as a leader in the global economy realm. The emergence of copycats that offer similar services and attract the firm’s customers is another problem that needs to be addressed.
Also, catering to the needs of middle-class citizens is another priority of the organization. While the element of luxury needs to stay as the means of carrying out customer segmentation and suggesting people unique offers, it, nevertheless, must give way to a new approach based on regular quality improvement and the enhancement of communication processes. By stressing the significance of conversing with the target audience, Emirates Airlines is going to make a significant improvement and gain the competitive advantage that it will need to operate in the global economic environment.
Akkucuk, Ulas. Handbook of Research on Developing Sustainable Value in Economics, Finance, and Marketing. New York, NY: IGI Global, 2014. Print.
Grosse, Robert. Emerging Markets: Strategies for Competing in the Global Value Chain. New York, NY: Kogan Page Publishers, 2015. Print.
Hill, Ronald, and Ryan Lagan. Handbook of Research on Marketing and Corporate Social Responsibility. Northampton, MA: Edward Elgar Publishing, 2014. Print.
McGrath, Rita Gunther. The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business. Boston, MA: Harvard University Press, 2013. Print.
Perrey, Jesko, and Dennis Spilleke. Retail Marketing and Branding: A Definitive Guide to Maximizing ROI. New York, NY: John Wiley & Sons, 2013. Print.
Pyzdek, Thomas, and Paul Keller. The Six Sigma Handbook. 4th ed. New York, NY: McGraw-Hill, 2014. Print.