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Assignment

Summer 1, 2014

Id: 1209167
Name: Mohammed Ali Salem
Subject: BUS202 Principal of Marketing
Supervisor: Mohd Nadeem Abbas

Introduction

Emirates Airline is one of the fastest growing airlines in the world


and has received more than 200 international awards for excellence
since its launch in 1985. Emirates Airline is one of the two divisions
of the Emirates Group, the second being Dnata.In 2001, Emirates
airlines announced the largest order in aviation industry valued USD
15 billion.in 2011, Emirates Airline ordered a total of 70 aircraft
valued at USD 26 billion.
Etihad Airways Founded in 2003, Etihad Airways is the national
carrier of the emirate of Abu Dhabi, based at Abu Dhabi
International Airport. Operating a fleet of narrow and wide-body
Airbus and Boeing aircraft, Etihad provides a rapidly expanding
network of services within the Middle East and to Europe, Asia,
North America, Canada and Australia. In addition to its core activity
of passenger transportation, Etihad earns significant revenue from
its cargo operation, Etihad Crystal Cargo. Etihad Airways forms part
of the Etihad Aviation Group.
In this report we discuss marketing Strengths & weaknesses of two
air-giants and show plan that the marketing division may adopt to
generate higher customer growth in the GULF & international Travel
market

The marketing Strengths & weaknesses of Emirates Airlines


Strengths

Location- the Dubai city is the home Emirates Airlines. The


City gives unique advantage in terms of ever increasing
demand for passenger and cargo service. Dubai is the ideal
connecting point between Asia, Europe and Africa.
Management Style - Unique decision making ability is
strength. There is a unique way of decision making in Emirates
Airlines. The airline established its market while most of the
airlines reduced their gulf operations. This unique approach to
decision making is the key strength of the Emirates Airlines.
When Airbus A 380 was launched Emirates airlines was the
second customer in the world. Today, Emirates has the largest
fleet of Airbus A380 in the world.
Brand Reputation - Emirates Airlines has generated a strong
brand reputation in the world. It provides premium service
even in the economy class. The strict standards of passenger
comfort, entertainment and flight schedules are unmatched in
the industry.
Profitability and Resource Strength - Emirates airlines are the
fastest growing airline. It consistently achieved 20% growth
rate right from the first year. Emirates maintained its growth
rate while the airline industry all over the world has been
facing serious challenges and negative growth.
Government Ownership - Government ownership is generally
considered a limitation due to excessive bureaucratic control.
In case of Emirates Airlines, ownership by Dubai Government
comes with freedom and managerial flexibility.
Tax Advantage- Tax free climate of Dubai gives unique
competitive advantage to Emirates airlines. Employees of the
company also receive generous benefits. Emirates have one of
the best reward structures in the airline industry.

Weaknesses

Negative Reports - There is some negative reporting in


electronic media regarding inconsistent service quality of
Emirates Airlines. Emirates have the history of winning
maximum quality awards. But number of awards achieved has
reduced in recent years.
Effect of Global Crisis - Global economic crisis of 2008 had
strong negative effect in every industry. Being a business city,
Dubai was the worst affected. Emirates airlines are very much
under stress due to Dubai financial crisis.
Large Fleet - Emirates are the largest customer of Airbus
A380. It has 58 orders. The cash flow position and poor
business in recent two years could further aggravate the
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financial pressure on the airline. Emirates have to utilize


additional fleet strength. Unless there is faster economic
recovery, there could be less demand for airline service. A
fleet expansion could weaken the airlines further

The marketing Strengths & weaknesses of Etihad Airlines


Strengths

Fast pace growing fleet, from 6 aircraft in 2003, to 57 modern


aircraft in 2011, which needless time for service and
maintenance, hence more time in the air, and more profit
Lower fares compared to main competitors in the region, such
as Emirates Airlines, and Qatar Airways.
Headed by a creative, well known, and experienced CEO
James Hogans, with a highly qualified management team.
Globally recognized 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 to connect personal devices to the
system.
The unique design of cabins, Diamond zone for first class,
pearl zone for business class, and coral zone for economy
class.
High service quality, more than 30 awards received for service
by the World Travel Awards(WTA)
Successful partnerships to add new destinations, such as the
partnership with Virgin Blue

Weaknesses

Fewer destinations than major competitors, Emirates more


than a hundred destinations, and Qatar Airlines more than
ninety destinations.
Weak support by customer service centers, as many
customers complained that they didnt get the help they
needed.
Delayed processing of compensations.
Some customers complained about longer waiting time in
connection flights

Plan to improve marketing in airline industry

Design your network to compete effectively in the


marketplace with our network planning solutions.
Identifying new markets that will generate incremental
profitability can be a challenge. Whether you are adding new
aircraft to your fleet or using available aircraft time, you need
a solution that identifies the most profitable market and its
impact on existing routes.
Increase your passenger connectivity by optimizing not just a
flight, but an entire hub.
Determining the right markets for multimillion dollar assets is
critical to your airline. There are so many factors that go into
fleet assignment that using an inadequate tool makes the
process frustrating and ineffective.
Pricing strategy is a crucial aspect to maximizing revenue.
Improves customer service and reduces costs by enabling
groups to book directly online,
Reduces turnaround time of group request processing and
facilitates better resource utilization by automating the
request process.
Commercial planning requires close coordination and smart
decision making across multiple functions to win in the
marketplace.
You can better utilize the seats youre flying without the
increased operating costs of adding more flights or buying
more aircraft
Better revenue information drives better revenue decisions.
Provides accurate and reliable data that supports key
commercial decisions.
Allows analysts to identify new market opportunities, monitor
segments and markets for the effects of competitive actions,
and identify underperforming agencies and market.
Increased insight into competitors service offerings, traffic
and market share.

Conclusion
Emirates airlines have marketing strengths such as the advantage
of size, decision to focus on diversified market, entering the cargo
shipping, top global brand, a strong corporate culture, continuously
renew and improve their service in the airline and aviation and
effectively managing the needs of their target audience
Emirates airlines have marketing weaknesses such as not all of
diversification and approach have been successful, does not cater a
lot of places in us.does not cater to middle class &budget travel and
focusing too much on their high-end acquisitions and diversification
Etihad airlines have marketing strengths such as they have most
lucrative &posh interior, the fare is less compared to emirates, their
service quality is one of the best in recent market, and their career
is more spacious
Etihad s airlines have marketing weaknesses such as they have very
few destinations, their packages are not well defined, they are very
new to market and as they are using boing bus they have more oil
consumption & their cost is comparatively high