QTY8216 Strategic Management and OD

Critically analyse the Etihad Airways-Air

Arabia Partnership using Porter’s 5 Forces
 Critical Analysis of the Effects the Partnership
Deal on Air Arabia

Benefits
 The benefits of using the Abu Dhabi International Airport.
 Increased routes in the local, regional and international markets.
 Increased hub airports translating to enhanced dominance levels.
 Guaranteed improved financial performance.

Downsides
 Etihad Airways is in financial difficulties.
 Risk of losing control of the regional market.
Porter’s Five Market Forces on Etihad Airways

Threat of New Entrants

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The Power of Buyers

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Porter’s Forces (Continued)

Threat of Substitutes
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The Power of Suppliers

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Competitive Rivalry
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Critical Analysis of Etihad Airways
“Benefits in the Deal”

1. Strategic for financial performance improvement

2. Guaranteed route and destinations served for growth
3. Improved numbers of company’s fleet
4. Reputation appeal improvement
Criticism of Etihad Airways’ Role in the Deal

Loss of full Encouraging Risks to its

Losing potential
control of hub stiff current levels of
business
airport competition popularity