Etihad Airways

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Etihad Airways The report deals with the marketing plan audit which critically analyzes the “Etihad Airways” in terms of different aspects. Initiating with the PESTEL analysis it examines the Airways macro environment on Political, Socio-cultural, Ecological, Economical, Technological and Legal factors. It also surveys the Etihad Airways social responsibility, its key target markets, and the major competitors Emirates and Air Arabia airways were also analyzed. A SWOT and A SWAN analysis as well as the positioning will incorporate the marketing plan audit. The main results that emerged were that Etihad Airways is operating in a highly competitive market. Where emerging stiff competition emanating from the aviation sector particularly from the development of the first class services provided by the others is affecting its growth rate and in turn its profitability. The Company must consider in strengthening its other services, to maintain a sound and proper cash flow which will result in having enough liquidity for further development. The analysis of the positioning of Etihad with its other competitors has brought a conclusion that the Company needs to intensively focus on identifying the global market, its expansion policy in reaching new destinations and targeting more passengers on Diamond First class services. On its expansion strategy the CEO James Hogan says. “There is no tougher business than aviation, but we have the ability to build forward. Etihad airlines does not have an exit strategy” It is strongly recommended that Etihad should focus on the following:- Continue with the expansion strategy Tapping new business opportunities in the International Market (Russia , European market) Increase number of routes as planned by the company.

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Etihad AirwaysThe report deals with the marketing plan audit which critically analyzes the Etihad Airways in terms of different aspects. Initiating with the PESTEL analysis it examines the Airways macro environment on Political, Socio-cultural, Ecological, Economical, Technological and Legal factors. It also surveys the Etihad Airways social responsibility, its key target markets, and the major competitors Emirates and Air Arabia airways were also analyzed. A SWOT and A SWAN analysis as well as the positioning will incorporate the marketing plan audit.The main results that emerged were that Etihad Airways is operating in a highly competitive market. Where emerging stiff competition emanating from the aviation sector particularly from the development of the first class services provided by the others is affecting its growth rate and in turn its profitability. The Company must consider in strengthening its other services, to maintain a sound and proper cash flow which will result in having enough liquidity for further development.The analysis of the positioning of Etihad with its other competitors has brought a conclusion that the Company needs to intensively focus on identifying the global market, its expansion policy in reaching new destinations and targeting more passengers on Diamond First class services. On its expansion strategy the CEO James Hogan says. There is no tougher business than aviation, but we have the ability to build forward. Etihad airlines does not have an exit strategyIt is strongly recommended that Etihad should focus on the following:- Continue with the expansion strategy Tapping new business opportunities in the International Market (Russia , European market) Increase number of routes as planned by the company.

INTRODUCTION:-As far as the concordant opinions within the business press are concerned, the core factors why Etihad Airways is yet to strongly assert its position in this sector have been identified as, firstly of their need to maintain market share growth due to intense competition levels. Secondly heavy modernization and expansions taking place in aviation industry along with a low cost strategy leading to reduction in revnue generation per airline.This report is a critical analysis of the Etihad airways. Its Market analysis includes Product, Price, Promotion, Place, People strategy. Countries in which the Airways operates are Africa, North and South America, Asia , Australia and Oceania . The airline is headquartered in Abu Dhabi, the capital of UAE. In 2007, it passed additional than 7 million client, contrasted with approximately 340,000 in its very first full time process in the year 2004. The company has more than 8000 employees working in numerous divisions like finance, marketing, flying , sales etc. Its major base or platform is Abu Dhabi International Airport. (Delfmann, 2005).

Etihad Airways is the representative air carrier of Abu Dhabi, offers air transportation for cargo and customers. Companys sole shareholder is the Government itself 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 focus of the analysis will be on assessing the companys macro environment by means of a PESTLE analysis, determining marketing strategies and objectives as well as undertaking the SWOT, SWAN and competitor analysis. In addition this report will also focus on the differentiation and positioning, the target market and its social responsibility. The Service which will be critically analyzed will be the Diamond First Class , its positioning , its competitors and its market share in the UAE Aviation industry.In the following part, Etihad Airways is being analyzed in terms of political, Economic, social, technological and legal factors.Political

ORGANIZATIONAL OVERVIEW. Etihad today is considered as one of the most rapid growing airlines, with a fleet of 57 aircraft operating about 1000 flightsa week to 66 destination in 44 countries from its hub in Abu Dhabi. As the national airline ofthe UAE, Etihad always looked for reflecting the Arabian hospitality and culture, as well as trying to promote Abu Dhabi as an attractive business centre in the Middle East. With international air transportation as its main business, Etihad also runs Etihad Crystal Cargo, which offers cargo services throughout its global network, and Etihad holidays, which offers a wide range of holiday programmes. Etihad is constantly working hard to provide guests with an incredible travel experience, through upgrading its aircraft, in Business Class, Economy Class, and First Class cabins, as well as offering some ground services such as limousine pick-up in 19 destinations, and high quality lounges in Abu Dhabi, Frankfurt, Manchester, Dublin, and London. With less than 11 years in operation Etihad Airways received many global awards such as Worlds Leading Airline at the World Travel Awards in 2009 and 2010 (Etihad Airways Website 2011)

Etihad Airways is one of the worlds most famous airline carrier based at the Abu Dhabi in the United Arab Emirates. This organization is well known for its quality cabin crew services it provides to its clients. The cabin crew is made up of highly qualified beverage and food managers, cabin mangers, cabin seniors and cabin crew who are dedicated to providing quality services to its clients, hence the organizations top reputation globally. The airline operates in various destinations globally including Africa, Asia, Americas, Middle East and Europe. Alongside the airline services, Etihad airways operate other services including Etihad Cargo and Etihad Holidays (Saleem, 2010).The organization has its head office in the Khalifa City in the Abu Dhabi international airport where the organizations corporate activities are controlled at. The organization is governed by the board of directors consisting of seven non-independent executive members, an audit committee and an executive committee. The boards of directors are responsible for coming up with legislations, rules and policies which govern the organization. The winning of the World Travels award is one of the contributing factors among other wards which have contributed to this organizations excellent performance and positive public picture (Lastrou & Oretti, 2007).This airway carrier operates in a total of 86 destinations globally. These destinations are located in a total of 42 countries distributed across Africa, Americas, Europe, North America, Asia and Oceania. Etihad provides quality in-flight entertainment services to its clients meeting their comfort. The organization has partnership agreements with other airline companies which promote the companys operations. These include the Aer Lingus, Bangkok Airways, Jet Airways and American Airlines among other airlines. Therefore, this paper will analyze in detail this airline operation including its marketing strategy, objectives, flyer programs, and its membership ties among other organizations operations (Vedder, 2008).Etihads Objectives and Purposes.One of the objectives of the Etihad airlines is to provide airline carrier services to its esteemed customers globally with the dedication of meeting their clients expectations. Additionally, the airline was established in the United Arab Emirates to bear the flag globally. The acts of the airline were to carry the organizations flag globally to its guests and express their level of hospitality to these nations. Furthermore the airline company wanted to provide the most modern flights to its customers hence, creating a competitive air transport market for its competitors (Ramavarman, 2010).Furthermore, the airline was established with the core objective of ensuring that it unified the Eastern countries and the Western countries through the provision of its air services with the Abu Dhabi being the core Centre of all of these business operations. The organization aimed at providing luxurious tourism airline services to its clients and quality air cargo services to its clients alongside its other airline services. The airline cargo is handled with the responsibility of transporting precious cargo, goods and pets among other products. The organization operates in a system of products share to ensure that it maximizes the profits acquired from the sale of their products and services (Lastrou & Oretti, 2007).

CORPORATE SOCIAL RESPONSIBILITY:-The Corporate Social Responsibility is focused under the together strategy, Growing , Working, Giving , Greener. The following section, analyses the economic , legal ethical and philanthropic responsibilities. (appendix attached 6.2)Economically , Etihad Airlines is operating to progressively give momentum to its expansion strategy and promoting its luxury brand Diamond First class services. Next to it E.A. (2014) purses to be as profitable as possible and maximize its earnings through its vision of Abu Dhabhi 2030, and also for its stake holders which incorporate , employees, guests, industry, association, partners and various groups. According to James Hogan CEO Eithad Airlines As a company the airline has a to-day operations. With the continuing experience we must be prepared to play a part in the sustainability challenges that lie ahead. E.A. operates in compliance with the legal and regulatory requirement. Apart from complying to the requirements of disclosing its renumerations and economic proceses. The Company adheres to the legal norms as structured by the Abu Dhabi Govt. It refrains from any unethical practices in relationships, actions and communications, refrains from offering any business favours to its suppliers or to the employees. Ethically, E.A. seeks to operate in the moral manner and norms to prevent any misconduct. In the light of the cultural values , change is inevitable. It supports change but within the cultural parameters of UAE. The company promotes many organizations and environment groups , initiates many recycling programmes. It also uses its channelizing the research to find an alternative to substitute fuel development which could benefit the aviation industry.E.A. has a strong commitment to its philanthropic responsibility to realizing the vision of Abu Dhabhi 2030. It started the first Bio- Jet Flight , Reducing carbon emissions. The concern for print spirit In 2012 the Save Water Campaign. Humanatarian activities through sponsoring various competitions at various levels .

Appendix 6.1Pyramid of Corporate Social Responsibility

5. Competitor Analysis The section deals with examining the companys key target market and product category Diamond First Class, assessing the three major competitors, Emirates and Air Arabia .Etihads Product Market:-The author has chosen to further investigate Diamond First Class as one of the key products of Etihad Airlines. The CCO Peter Baugarnter, chief commercial officer Eithad Airwayswho was voted as the sales and marketing manager of the year 2009, Aviation Business Awards says that there are four marketing Principles that Eithad functions on, the first principle is to avoid undifferentiated superiority., Second principle is to be inspirational to individual. ,Third principle is to behave like a luxury brand but dont lose sight of entire spectrum., We are a luxury brand and position ourselves as a luxury brand, but everybody has a right to fly and experience a touch of Etihad luxury , fourth principle is promoting and initiating Abu Dhabis new image with Etihad Airways through slogan, From Abu to the World.Keeping in mind its position as a luxury brand ,The Diamond first class assures scaling new heights with the significant luxurious customer care. It maintains a strong bond maintaining that when people fly this class they are not mere passengers but honored guests on flight. Secondly it has recruited so many individuals of different nationalities speaking different languages to enable greater stability in customer care.For customers five-star hospitality, is offered. The UAE aviation industry has ranked Etihad airways as the first luxury airliner of Asia.. The success mantra of this airline is not dependent on its price line but on the customer satisfaction and care which Etihad airways adhere to. The staff makes the guest feel like a royalty , the pinnacle of luxury commercial airline travel. The company offers comfortable travel catering to all ages, satisfying quality, luxury and style at every step of their journey.

EmiratesEmirates is the worlds largest international airline. In 2014-15, carried 49.3 million passengers and 2.4 million tonnes of cargo. This was 11% more passengers, and 6% more cargo than the previous year, keeping pace with the airlines 9% growth in capacity.But these numbers only present one view of our year. What Emirates really did, across our global network of 144 cities on six continents, was connect people to places, and businesses with opportunities.The first class services of Emirates is successful because of its brand portfolio, strong marketing strategy with the customer care at its core. A strong weakness that has made Emirates take a backseat where luxury airline is concerned is that the Emirates service is very friendly,kind and professional, but not personal ad Etihad scores in their customer care.Despite being a leader in the UAE airliners , it needs to be alert on improvising, innovations to lure the customers to them.

SWOT Analysis:Strengths:-Fast pace growing fleet, from 6 aircraft in 2003, to 57 modern aircraft in 2011, which needsless time for service and maintenance, hence more time in the air, and more profit(Etihad Website 2011).-Lower fares compared to main competitors in the region, such as Emirates Airlines.-Headed by a creative, well known, and experienced CEO James Hogans, with a highlyqualified management team.-Globally recognised sponsorships with sports clubs and events.-One of the worlds leading airlines in 2009 and 2010, through the global awards received.-The great entertainment system on board (E-Box) with a USB plug and play feature toconnect personal devices to the system (Etihad Website 2011).-The unique design of cabins, Diamond zone for first class, pearl zone for business class, andcoral zone for economy class (Etihad Website 2011).-High service quality, more than 30 awards received for service by the World Travel Awards(WTA) (Etihad Website 2011).-Successful partnerships to add new destinations, such as the partnership with Virgin BlueAustralia.-Increased seating capacity every year.-Wise diversification through cargo and holidays services, in addition to air transportation,which resulted in total revenue of 2.3 billion dollars.-Creativity and innovations in both onboard and ground services, such as limousine pick-upservice.-Achieved positive EBITDAR (Earnings before Interest, Taxation, Depreciation,Amortization, and Rentals), with expectations to break even in 2011 (E-travel BlackboardWebsite 2010)

Weaknesses:-Fewer destinations than major competitors, Emirates more than a hundred destinations, andQatar Airlines more than ninety destinations.-Weak support by customer service centres, as many customers complained that they didntget the help they needed.-Delayed processing of compensations.-Some customers complained about longer waiting time in connection flights

Opportunities:-The increasing popularity of Etihad allows it to enter new markets through strategicalliances.-The location in one of the most promising business districts in the Middle East will attractmore and more business travellers.-A good chance to attract technology loving customers, due to innovations in cabins.Threats:-Entry of new rivals in such a wealthy part of the world is relatively easy.-Fuel cost might face an increase.-Terrorist threats towards airlines in general.-Natural environmental conditions that might affect the aviation industry as a whole, such asthe 2010 ash cloud in Europe, which caused airlines huge loses.

Positioning:-