Etihad Airways is one of the big international companies ensuring the transportation of passengers to various destination points. It is a second flag carrier of the UAE, headquartered in Khalifa City, Abu Dhabi (“About Etihad Airways,” n.d.). Statistics show that the company has around 1,000 flights per week to more than 120 destinations on various continents (“Etihad Airways on path to recovery,” 2021). In such a way, Etihad is one of the significant companies working in the civil aviation sector and offering its services to numerous passengers.
External Environment Analysis
The external environment of Etihad can be analyzed by using the PESTEL tool.
- Political
- The company is supported by the government of Abu Dhabi (“About the Etihad Aviation Group,” n.d.)
- Economical
- The growing rivalry in the sphere
- Improving the well-being of passengers
- The growing rivalry in the sphere
- Social
- The company participates in the Emiratization program promoting social change (“Our commitment to Emiratisation,” n.d.)
- Technological
- Etihad promotes the use of innovative technologies
- Legal
- The company has to observe existing international regulations and laws
- Environmental
- The environmentally friendly fleet is used.
In such a way, the analysis shows that the external environment is overall positive.
Internal Analysis
The company’s internal analysis can be performed using the VRIO tool, which stands for value, rarity, imitability, and organization.
- Value
- Etihad’s central values are brand recognition and a large number of operations (“About the Etihad Aviation Group,” n.d.). They ensure the company remains attractive for clients globally and can provide various services to them.
- Rarity
- Etihad enjoys multiple benefits from its geographical location as it helps to connect various continents and parts of the globe, which helps it to evolve (“Our latest facts and figures,” 2021).
- Imitability
- However, the company has several rivals, such as Emirates, who focus on the same segment and might use the same solutions to work with the target audience.
- Organization
- The company has a strong structure and organization, which leads to the establishment and support of links between departments and their improved cooperation (Etihad Airways reports strong start,” 2020).
VRIO analysis also shows that the brand has stable positions as there are numerous factors promoting its further evolution.
Business Strategy
Etihad has an effective business strategy creating the basis for its growth. Thus, the company focuses on providing high-class and safe transportation to people and efficient cargo delivery. Etihad guarantees secured and on time delivery and comfortable flights to all clients (“About Etihad Airways,” n.d). It results in the growing number of passengers and broadening of the loyal audience, as individuals are ready to use the company’s services again (Tore, 2021). The business strategy also focuses on supporting the positive image of the brand.
Corporate Strategy
Etihad emphasizes the importance of its corporate strategy and culture. The company states that it is committed to improving the well-being of people. It is achieved via increased attention to sustainability issues and empowerment through development (“About Etihad Airways,” n.d.). The corporation encourages its workers to engage in personal and professional development incentives to demonstrate better results (“About Etihad Airways,” n.d). The focus on the given strategy helps to create a positive climate within the company and motivates workers to demonstrate high commitment levels and do their best to achieve current goals.
Recommendations
The analysis shows that Etihad enjoys its current position and has numerous advantages that might help it to struggle against rivals. However, it is possible to offer specific recommendations related to the analysis. The high level of rivalry means the corporation needs a unique offering that cannot be imitated by its competitors. For this reason, it can be recommended to create a special program for most loyal and new clients providing them with unique bonuses and advantages.
References
About Etihad Airways. (n.d.). Etihad. Web.
About the Etihad Aviation Group. (n.d.). Etihad. Web.
Etihad Airways on path to recovery as operations grow. (2021). Etihad. Web.
Etihad Airways reports strong start to 2020 with second quarter heavily impacted by COVID-19. (2020). Etihad. Web.
Our commitment to Emiratisation. (n.d.). Etihad. Web.
Our latest facts and figures. (2021). Etihad. Web.
Tore, O. (2021). Etihad carried 1 million passengers in H1 2021.ftn News. Web.