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Etihad Airways’ Segmentation, Targeting, Positioning Essay

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Updated: Jul 26th, 2021

Market Segmentation

Partners Business Segmentation

This market includes small airline businesses across the regions of Abu Dhabi and beyond. The company has instituted partnership deals with the local airlines to improve its customer traffic and ease market penetration. The notable partners of Etihad are Jet Airways of India and Aer Lingus of Ireland, among others. Therefore, this segment is influenced by competitive pricing, quality, and safety for optimal benefits for Etihad Airline to survive the competition and ensure business sustainability.

Consumer Segment

This is the largest segment for Etihad Airways flight and cargo delivery products. This segment comprises passengers who travel with Etihad airlines. Since the flight and cargo products come in different packages, the segment is influenced by differential quantification, competitive pricing, and efficiency. As a part of its strategy, the company has internalized these aspects to position itself in this segment. Thus, Etihad was in number seven globally, among the 200 leading airline companies reviewed.

Target Audience

Etihad is a leading airline in the global flight arena, and it offers some of the safest and most affordable flights to its passengers. Every household within and beyond the Persian Gulf consists of potential customers of Etihad. With the need to be ahead of its competitors, Etihad adopted the strategy of maximum comfort in the first-class cabin, spacious airplanes, and a variety of meals served during its flights.

Positioning Strategies

Because of fierce competition in the global market for air travel, product position is directly linked to success in the short and long term, especially for Etihad products. In order to achieve the desired goals, Etihad has positioned itself to emphasize the difference between its products and those of its competitors. As a strategy for diversifying market operations, Etihad Company has created multiple brands through its numerous airline partners, such as the Jet Airways of India and Aer Lingus of Ireland. This has created an environment of competition and blocked other competitors from encroaching into the company’s local and global market. This strategy has been successful and has led to the company’s dominance over other local airlines.

The threat to new entrant

It is difficult for any aspiring airline company to enter into the airline industry in the Persian Gulf market and manage to break there easily. In the Persian Gulf, Etihad’s businesses magnitude together to that of its main competitors, such as the Emirates of Dubai and Qatar Airways, which are well established and would easily enjoy economies of scale to the disadvantage of a new entrant. Etihad Airways is well-positioned to survive in the competitive market through gaining from economies of scale, competitive price tags, and a strong customer base in the Persian Gulf region.

Threat of substitutes

Emirates and Qatar Airways pose the greatest threat to Etihad’s existence and business performance. These air carriers have been in the industry for a longer period and are more established than Etihad is. Besides, Emirates and Qatar Airways have the ability to offer an alternative perfect substitute to the customers who may be unsatisfied with the services offered by Etihad Airways. However, in order to remain relevant, Etihad has established a unique market for its clients through tailored optometry flight services.

Competitive rivalry

There are several air carriers operating in the same industry with virtually all of them dealing in a variety of flight products and services. For instance, the Emirates and Qatar Airways provide the biggest competition to Etihad due to their big market share and expanded networks. All the players in the industry are putting measures in place to ensure they attract more customers and, therefore, expand their market share. In line with this, Etihad Airways of Abu Dhabi has the highest passenger traffic.

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