What are the long term objective of Flydubai?
Flydubai has a series of long-term objectives. Their principle mission resides in attracting the maximum number of customers with the help of their unique approach.
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First, and foremost, they are intended to focus on the quality of service so that a client is sure to receive the highest standards at the lowest price possible. A particular emphasis is put on the business class service that currently offers unique facilities and entertainment available due to the employment of the latest technologies.
Enlarging the number of clients will also be achieved through the diversity of markets within which the company operates, including the Middle East, East Africa, Russia – on the whole, Flydubai’s network is supposed to extend up to 45 countries. It is also necessary to note that the company is concerned about making the flying both accessible and secure.
They stick to their self-concept and its philosophy, and their public appeal reflects the concern for clients’ comfort, the company’s image, and the employees’ benefits.
It is evident that the vision set in 2013 is still valid, and Flydubai is in the process of accomplishing its main mission of enlarging the client base.
What is the competitive advantage of Fly Dubai?
Numerous factors determine the competitive advantage of Flydubai. In the framework of the SWOT analysis, one might point out the following strengths of the company: low-cost strategy policy, diverse targeted market, and modern technologies. The first two strengths are particularly critical from the standpoint of gaining a competitive advantage as Flydubai cooperates with the countries the networks of which experience some problems. For example, their entry to the Russian market has increased the company’s competitive capacity significantly.
Flydubai has numerous opportunities that might help it win a competitive advantage. First of all, the company has consistent chances to develop its business class service, and thus, extend its clientele significantly. Secondly, the company now has an opportunity to increase its market share in Kazakhstan’s region and engage new investments. Thirdly, the company has a chance to increase its profit due to the close cooperation with DWC – the company’s clients will be enabled to use its services in two Dubai airports.
In the meantime, there are a series of threats that the company might meet. Among the most critical challenges, one can point out the severe competitive environment with a well-developed Emirates Airline’s brand taking the leading positions. In addition, the company’s shift to luxury service might contradict with its initial low-cost strategy so that Flydubai will be obliged to reconsider its image in the market. Lastly, high costs set by big airports might be excessive for a low-cost company.
Although the weaknesses of the corporate strategy are not elucidated in the case stud, one might assume that one of the principal disadvantages resides in the fact that few airports are currently equipped for low-cost airlines. Moreover, the company can suffer from relatively low profitability due to increased fuel prices. Finally, the unit cost of this airline might be relatively high contrary to bigger airlines.
What are the strategies that Fly Dubai applies or follow and why?
Flydubai employs several strategies in order to fulfill its mission. Their key intensive strategies are market penetration, market development, innovation, and product development. Thus, the company extends its networks in Kazakhstan intensively. Meanwhile, it also continues to extend the networks and increase the quality of their service in the already tapped markets, such as Russia, for example.
Moreover, Flydubai is constantly focused on product development, introducing new services and improving the quality of those that exist. It is essential to note that modern technologies perform a significant contribution to product development. The implementation of high technologies enables the company to facilitate the process of purchasing tickets, which means more clients are likely to use their services. It also helps Flydubai to receive the feedback and perform the timely changes.
Hence, it might be recommended that the company strengthens its positions in the Kazakhstan market, involves international investors for the development of the local market, focuses on the cost leadership strategies, and becomes completely independent of the Emirates Airlines.