23 Mar 2015 19 May 2017
Etihad Airways was recognized in 2003. It is the national or says the flag holding carrier passenger air service of Abu Dhabi, the capital of United Arab Emirates (UAE). The airline is headquartered in Abu Dhabi, the capital of UAE as mentioned earlier.
In 2007, it passed additional than 6 million clients, contrasted with approximately 340,000 in its very 1st full time process in the year of 2004. The company has more than 8000 employees working in numerous divisions like finance, marketing, flying, sales etc . Currently Etihad is operating its services in regions like Indian subcontinent, North America, Europe, Far East Middle East, Africa and Oceania. Its major base or platform is "Abu Dhabi International Airport". (Delfmann, 2005)
Etihad Airways is the representative air carrier of Abu Dhabi, offers planned air transportation for cargo and customers. Company's sole shareholder is the government itself of Emirate of Abu Dhabi, was been extracted from its combined venture in "Gulf Air in the year 2005" and preserved its spotlight on Etihad Airways.
The airlines business of UAE is huge if we look at the quantity of service providers. The sector is filled from number of low cost airlines. State airlines of UAE other than Etihad include Gulf Air, Emirates and Air Arabia. Gulf air started operations in 1950. It provides a quantity of facilities to its clients. Initially it has provided many involved facilities to kids below the age of 10. It also provides spited dinning for its passengers. It is delectated as a standard nationalized flight for the majority of the purposes. Next, Emirates airlines were initiated after Gulf Air in the year 1985. (Vedder, 2008) It is also measured as a state flight. The airline has won numerous awards for its luxury services. This airline comprises of many aircraft both for private and public issues. Etihad airline is the most new one and was launched after Air Arabia in the very same year. It had also become fairly accepted but could not battle with Air Arabia on concern of low cost. Kam air fare is too considered as 1 of the stumpy cost airlines in United Arab Emirate. Among all the existing national air services till date, the "Air Arabia" is supposed to be the cheapest among all. It is not recognized to be an airline with the finest ability on board but of course it presents a cheap fare to its clients. The facilities offered by these public airlines to their clients vary drastically from each other. All the mentioned airlines have great contribution to the nationalized economy of the UAE. (Group, 2006)
The Etihad airline was started in the year 2004 or say started operating in 2004, but was established earlier in august 2003. The airline carried over 4.5 million travelers, an boost of about 65.7% over the figure of year 2006; In addition with this, Etihad also gained 175,000 tons of cargo in year 2007, an augment of over 70% from that of year 2006 .
In 2008, the airline placed a requirement for over 190 planes, which would be of worth AED157.9 billion or approximately USD 40 billion. The order is composed of about 95 Boeing airplanes and 100+ from Airbus. Tentative schedule for release of order is between 2011 and 2020. (Vedder, 2008) Etihad Airways possess complete stocks is its 2 subsidiaries, "Etihad Crystal Cargo", which offers cargo handling facility and "Etihad Holidays", a travel group and vehicle rental company. The Etihad Airline owned a group of 37 traveler and cargo airplanes, as depicted by the data of January 2008 and it plan is to increase its aircraft group to 300 by the year 2020.
The company is also planning to fly with over 25 million travelers per year by 2020 and to dual the number of destinations served from 48 to make it close to 100. The principle business activity is to provide scheduled air transport services for customer and freight; travel agents etc.
The mission of the Etihad airline is to make the most of profitability by applying effectual business practices for best yield, maximum load factors, minimum transit times, seamless and instant information to the flying community, management and increase client's service. (Delfmann, 2005)
"As the public sector Airline of the United Arab Emirates, the company, Etihad seek to replicate the best of country's hospitality - cultured, warm, considerate and generous - in totaling to get better the status of Abu Dhabi, the capital Emirate as a center of hospitality between West and East". (Delfmann, 2005)
There are few norms popular in Etihad One is the dress of employees in the company. It is expected in the company that people will wear traditional UAE cloths. In office, female employees are not allowed to wear short skirt or any other type of clothing considered un social in the UAE culture.
Values:Few values prevailing in the company are:
Assumptions: There are few assumptions also considered in the company. For example, the people here consider that the task is assigned only by the senior and they are required to work only after the assignment of the work providing a very mechanistic framework of work in the company.
Some strategies of Etihad for future few years are as follows:
• Expanding its aircraft range: One important constraint in company's expansion plan is the limited number of cargo and passenger planes available to the company. The company will place periodic orders for new aircrafts to support its expansions plans.
• To provide service on more number of routes: The company would like to serve in European countries and other untouched destinations in North and South America. The expansion will give a vast increment in company's present market size.
• To enhance efficiency of operations: As a long term strategy, the company would like to implement TQM strategies in its operations.
• Increase its revenue maintaining high and quality structure of luxurious aircraft industry:
• Another one is Emiritization and advancement of UAE people. The company has a number of plans in this direction with long term interest which are mentioned as follows:
• Enhancing the cargo carrier's flights: As shown from the contribution of profit from the cargo and customer units, the cargo unit contributes around 65% of the company's turnover, which depict the clear dominance of cargo unit over the customer unit in terms of profit. The company would like to utilize this faith of people in Etihad's cargo unit to gain additional market share. Thus as an expansion plan for cargo unit, the company is ordering more share of cargo planes as compared to that of passenger planes.
The company mainly focuses on two streams of services: passenger service and fright carriers. Few highlights are:
The key market segments been served by the company is the corporate cargo and low and medium earning customers for passenger carriers.
THE MICRO ENVIRONMENTAL ANALYSIS
The micro environment analysis is a structure for outlining marketing strategies of a company and also conducting an industry review. It is governed by Porter's five force analysis. They are as follows:
MAIN COMPETITORS OF THE ORGANIZATION:
Air Arabia, Aerovista Airlines, Abu Dhabi Aviation, Air Cess, Kang Pacific Airlines, Falcon Aviation Services, RAK Airway, Flydubai, Dolphin Air, Palm Aviation, Emirates, Airlink, Dubai Air Wing and Eastern SkyJets etc.
MARKETING ACTIVITIES OF COMPETITORS:
Talking about Airlink, which is a major competitor of Etihad, the number of jets possessed by the company is much higher than Etihad. Airlink and similar airways like Air Arabia believes in cheep service providing and better market capturing. Etihad on the other hand believes in capturing luxury market sharing. Air Arabia has 5 times aircrafts than Etihad. It has more capacity aircrafts too.
Palm aviation is much concerned towards long distance comfortable tour packages. For promotional activities, bigger firms like Air Arabia, Aerovista use television ads while smaller firms uses print media for promoting their services. Institutional marketing and collaboration with other firms is also employed as a marketing tactic. (Vedder, 2008)
SWOT is an acronym of Strengths, Weaknesses, Opportunities and Threats. This is a marketing analysis that helps a company understand its competitors. A brief discussion of SWOT analysis of Etihad is as follows:
Strength: The Company has strong brand image Cargo units. The company already has 12 jets including 5 Boeings other world class luxury aircrafts like Learjet 35, Learjet 55, Avro RJ70 and Avro RJ80 etc to support its luxury market. The company's hold on this segment is increasingly growing too. (Delfmann, 2005)
Weakness: Because of work in luxury segments and passenger unit is down, the company's market scope is limited, any new competitor and launch of new luxury aircraft can force the company to drastically change is market statistics. Also the desired costumer volume is also limited.
Opportunities: Recently the company is exploring opportunities to invest in Eastern Europe including Russia. The company is looking constantly for new markets apart from Gulf region.
Threats: the main threats to the company are form increasing number of aviation services in luxury class. Another threat is from economic crises that is indirectly affecting the end customers of Etihad.
The company has immense growth opportunity in both its passenger and cargo units. Few of these are mentioned as follows:
1. Oxford Business Group (2006), "Emerging Abu Dhabi", Published by Oxford Business Group, ISBN: 1902339428, 9781902339429
2. Delfmann, Werner (2005), "Strategic management in the aviation industry", Published by Ashgate Publishing, ISBN: 0754645673, 9780754645672
3. Vedder ,Hendrik (2008), "Strategic Alliances in the Aviation Industry: An Analysis of Past and Current Developments", Published by GRIN Verlag, ISBN: 364023037X, 9783640230372
4. Bilimori; Sandy Kristin, Piderit (2006). "Handbook on women in business and management". Published by Edward Elgar Publishing. ISBN: 1845424328, 9781845424329
If you are the real writer of this essay and no longer want to have the essay published on the our website then please click on the link below to send us request removal:Request the removal of this essay
Get in touch with our dedicated team to discuss about your requirements in detail. We are here to help you our best in any way. If you are unsure about what you exactly need, please complete the short enquiry form below and we will get back to you with quote as soon as possible.