Introduction
Business organizations use different strategies, models, and initiatives to meet the changing needs of their customers. Marketing is a critical function that makes it possible for a specific company to deliver high-quality products and services to the targeted clients. It is an effective practice since it dictates the profitability of a given organization. Modern technologies have catalyzed the development of marketing analytics tools to support the performance of different companies. This paper gives a detailed analysis of Etihad Airways’ business strategies and marketing actions.
Company Identification
Etihad Airways is currently one of the leading airline corporations in the United Arab Emirates (UAE). It has its head office in Khalifa City and competes directly with Emirates (Russell and Medvedev 37). This company has been in operation since the year 2003 and has a fleet of 117 aircraft (Russell and Medvedev 42). Some of its leading cargo and passenger destinations are located in Asia, Europe, the Americas, the Middle East, and Australia.
The organization’s chief executive officer (CEO) is called Tony Douglas. Mohamed Mubarak Al Mazrouei is the company’s chairman. Statistics released in 2017 revealed that Etihad Airways had a total of 24,500 employees (Russell and Medvedev 19). The company has a powerful organizational culture that continues to drive performance.
Business Strategies and Marketing Actions
The success of Etihad Airways is applicable to the nature of its business strategy. Two unique approaches make it possible for this organization to achieve its objectives. The first one is known as corporate strategy. This model focuses on the commitments and choices the organization makes to deliver high-quality services and experiences to the targeted passengers. The first aspect is to identify business operations and practices that can add value to different clients.
For example, Etihad Airways has partnered with other companies to attract more customers and operate in various regions across the globe. The second aspect is that of products and services. Etihad Airways purchases Airbus and Boeing aircraft to meet the diverse needs of all individuals (Russell and Medvedev 54). Proper processes have also been put in place to improve the quality of services to different workers.
The next critical aspect that supports the effectiveness of this company is the implementation of powerful marketing actions. The organization has a department that focuses on some of the major issues that can result in increased profits. Marketing is a critical function that Etihad Airways pursues to support its entire business strategy. For instance, the relevant department engages in continuous research to identify emerging trends, changing customer demands, and the role of technology (Russell and Medvedev 72).
The findings obtained from such studies make it possible for the company to develop superior procedures for addressing passengers’ demands. New product development is taken seriously to identify better options for cargo transportation. The same idea is considered to improve passengers’ experiences.
Brand development is something that Etihad Airways takes seriously. The marketing department considers various attributes that can ensure that more people perceive the company’s brand positively. For example, involved professionals ensure that airplanes carry the organization’s name. The department also offers competitive prices, bonuses, reward schemes, and promotions. Such measures have resulted in a superior brand. In terms of promotion, Etihad uses different platforms to inform more people about its brand and encourage them to enjoy its superior services (Russell and Medvedev 44). The company’s website, social media platforms, and television channels support its promotion strategy.
Etihad Airways takes the issue of distribution seriously. The company has established strategic partnerships across the globe, thereby informing more people about the superiority of its brand. The ultimate objective behind the distribution model is to ensure that more people are informed about the airlifting, cargo, and passenger services offered by Etihad Airways (Russell and Medvedev 72). This organization’s pricing strategy is founded on the norm associated with the aviation industry.
Business Matrices
Successful companies use various tools to measure performance and apply the acquired information to make evidence-based decisions. The first business matrix is SWOT Analysis. This tool focuses on a company’s strengths, weaknesses, opportunities, and threats. These constitute both the external and internal aspects of an organization. Etihad measures the concept in order to understand its weaknesses and threats.
The existing strengths are then leveraged to address them and drive performance (Rackley 83). The metrics can be measured using assigned key indexes or percentage. A good example of calculation is the use of strengths or opportunities as a scientific construct. Etihad can monitor the intensity of a given opportunity or strength using key index of 1-5. These metrics can guide the company to make evidence-based decisions or strategies to drive performance.
Etihad has been using SWOT to improve its business model. This means that there is a relationship among the company’s use of different metrics. For instance, SWOT and PEST are related and monitor the company’s strengths and threats. The source of data for this metrics is the company’s internal and external business environments.
The second one is that of PEST Analysis. This model gauges the technological, social, political, and economic forces acting on a company’s environment. Such concepts are critical since they inform a company’s business strategy. Etihad measures these metrics to complete a detailed analysis of its business environment. A good example of calculation is the use of indexes (1-10) to understand whether a give force is an opportunity or a threat (Rackley 73).
These metrics can have positive implications on businesses since they can reshape their models. Etihad uses this tool to prepare for future performance. It is combined with SWOT to deliver positive results. The company uses its departments and units to get high-quality data.
Hofstede’s Cultural Dimensions is another tool that can make a difference for every company. This model focuses on the issues of culture in an organization. It is necessary to measure the concept to understand how to guide employees, and make decisions. The metrics can be calculated by analyzing a region’s culture. A good example is the use of high and low scores to gauge these issues: uncertainty avoidance, masculinity/femininity, and power distance (Cook and Billig 62).
The metrics can guides businesses to make appropriate decisions and implement evidence-based cultural practices. Etihad uses it to guide, empower, and improve its employees’ experiences. The company uses the model individually without linking it to other tools. Data is obtained from studies focusing on the cultural attributes of people from different regions.
Porter’s Diamond Modal is the fourth model and identifies the determinants of competitiveness. It compares and contrasts existing government policies and strategic actions. The concept is worth measuring since it dictates a firm’s key sources of competitive advantages. It is measured by examining a company’s strategy and the existing regulations. A good example of calculation of the metrics is the use of key indexes. For instance, competitive advantages can be ranged from 1-5.
In terms of implications, businesses using the metrics will make evidence-based decisions and create models that can deliver positive results. I have suggested this model since Etihad has not been considering its benefits (Cook and Billig 14). It relates to the PEST model since they both focus on the role of government-imposed policies on performance. Data can be obtained from the company’s departments, case studies, and government publications.
The first metrics is Risk Analysis. It guides managers to identify and address problems that might disorient performance. This is something worth measuring since it helps companies save money and avoid losses. Leaders measure it by examining the responsiveness of different projects or processes. Companies can use losses, profits, or costs to calculate potential risk. When conducted effectively, managers will know when to continue with various projects, action plans, and processes (Cook and Billig 18).
Etihad has been using the metrics to monitor the effectiveness of different undertakings and strategies. This tool relates to the SWOT analysis since they both focus on potential threats that might disorient business performance. Data is obtained from financial reports, project plans, and marketing forecasts.
The sixth metrics is called a Contingency Plan. This tool guides companies to prepare for unpredicted events. It is necessary since it ensures that firms transform their models to address such challenges. Percentages can be used to predict and measure potential sources of disruptions.
For example, data loss can have a smaller percentage of 10 while the loss of customers could be 85. This metrics is appropriate for businesses since it prepares them for issues that might have a negative impact on performance (Rackley 102). Etihad has been employing it to monitor potential challenges and disasters that can affect its marketing procedures. This metric is related to the portfolio of metric used by Etihad since it forecasts future business threats. Data is obtained from weather stations, newspapers, customers’ feedbacks, and market surveys.
The seventh tool is the Porters’ Five Forces. It focuses on these five key attributes that can dictate a future marketing strategy: rivalry, new entry, suppliers’ power, buyers’ power, and substitutes. Companies should measure the concept to develop a superior business model (Cook and Billig 25). These aspects are measured by analyzing their respective intensities. A good example is to calculate each of them using key indexes (minimum-average-maximum).
The adoption of the tool will guide leaders to formulate a superior strategy for achieving positive results. Etihad Airways has been using this tool to revolutionize operations and add value to its passengers. This tool is related to the ones described above since they can monitor threats, opportunities, and environment of the organization. The company obtains data for this metric from weekly magazines, customer feedbacks, supplier information, and case studies.
The eighth metrics is known as Scenario Planning. This is a powerful technique aimed at establishing views of a positive future for an organization. This concept is worth measuring since it provides a platform for better investment decisions. The model is not measureable since it focuses on future predictions. However, indexes can be used to gauge plausible views depending on their attractiveness. This tool has meaningful implications since it can dictate future performance (Cook and Billig 24).
The concept is recommendable to Etihad since the company has not been using it to improve its strategy. This tool is relatable to the ones currently applied at this organization since it focuses on possible opportunities and challenges that might disorient future profitability. Information or data can be gained from consumer reports and industry projection surveys.
The ninth tool is called the Critical Success Factor Analysis. The concept behind this tool is that it identifies areas that companies should succeed in an attempt to record positive results. It guides organizations to make meaningful decisions. Strategists can measure it by predicting the potential outcomes of different functions. It can be calculated through the use of indexes. It has a positive implication for companies since it ensures that efforts and resources are allocated to key areas. This company has not been using it. It can consider the model to record positive results (Rackley 91). This model has a relationship with the other metrics the company uses since it focuses on internal strengths and gaps that require improvement. Data is obtained from organizational performance reports.
The final tool is the PESTEL Analysis tool. This is an expansion of the PEST model since it introduces the elements of environment and law. Companies can measure the concept to make informed decisions and operate within the existing requirements. Companies can measure these concepts to develop superior strategies. Firms can measure these metrics by analyzing the nature of the legal and environmental policies in the sector. A good example of calculation is the use of indexes (1-10).
These aspects can have positive implications on companies since they can improve their models and make them more sustainable (Cook and Billig 29). Etihad uses this tool to prepare for its future business performance. The metric is combined with SWOT and PEST to deliver meaningful results. The company uses its departments and government publications to get high-quality data for this metrics.
Conclusion
The above discussion has revealed that Etihad Airways is major player in the UAE aviation industry. It uses a powerful business model to meet its passengers’ needs and remain competitive in the region. It embraces the power of a powerful strategy to market its services. The use of various marketing analytical metrics is something that continues to support its business performance. Such tools make it possible for Etihad’s leaders to identify potential gaps, threats, and opportunities for supporting future performance.
Works Cited
Cook, Gerald N., and Bruce Billig. Airline Operations and Management: A Management Textbook. Taylor & Francis, 2017.
Rackley, Jerry. Marketing Analytics Roadmap: Methods, Metrics, and Tools. Apress, 2015.
Russell, Ronald, and Alex Medvedev. Alan Waite, Manager Government, Etihad Airways, Australia. Blurb Incorporated, 2016.