Select a Middle Eastern company of your choosing and complete an Industry Analysis by answering the following questions: In relation to the four characteristics of successful strategies in Figure 1.1 (textbook p.9), assess the strategy of your selected company.

QUESTION

Select a Middle Eastern company of your choosing and complete an Industry Analysis by answering the following questions:

• In relation to the four characteristics of successful strategies in Figure 1.1 (textbook p.9), assess the strategy of your selected company.
• Review the figure 3.2 (textbook. p. 65) relative to Porter’s Five forces of competition framework, assess the power of the buyers, suppliers and substitutes of your selected company. How formidable are the barriers to entry and how intense is the rivalry among existing firms? Is the industry of your chosen company attractive? Justify.
• What strategies can companies adopt to reduce competitive pressure and improve industry profitability? Which strategies might work for your company? Justify.
• Review the figure 3.6 (textbook p. 78) and the text relative to the identification of Key Success Factors (KSFs) and answer the following questions:

1. What are the KSFs of your company?
2. How do customers choose between rival offerings?
3. Have your companies KSFs changed over time? Explain.

• APA style guidelines.
• Write at least 4-5 pages in length, excluding the title page, abstract and required reference page, which are never a part of the minimum content requirement
• 3 Or 4 References

ANSWER

Company: Emirates Airlines

 Assessment of Strategy based on Four Characteristics of Successful Strategies

Emirates Airlines has adopted a strategy that aligns with the four characteristics of successful strategies:

Clear and Unique Value Proposition: Emirates Airlines offers a unique value proposition by positioning itself as a premium airline providing exceptional service, luxurious amenities, and world-class comfort. The company focuses on delivering a superior travel experience to its customers, distinguishing itself from competitors.

 Fit with External Environment: Emirates Airlines strategically positions itself in the global aviation industry by capitalizing on its location in Dubai, which serves as a major connecting hub between Europe, Asia, Africa, and the Americas. This geographical advantage allows the company to capture transit passengers and establish a strong network.

Sustainable Competitive Advantage: Emirates Airlines has achieved a sustainable competitive advantage through its extensive route network, modern and well-maintained fleet, and commitment to continuous innovation. The company has invested in advanced technologies, onboard entertainment systems, and luxurious cabin features to provide a differentiated experience for its customers.

 Effective Execution: Emirates Airlines has demonstrated effective execution by consistently delivering on its promises of quality service, operational efficiency, and customer satisfaction. The company has established a strong brand image and garnered customer loyalty through its high service standards and reliable operations.

Assessment of Porter’s Five Forces for Emirates Airlines

 Power of Buyers: The power of buyers in the airline industry is relatively high, as customers have access to a wide range of airline options. However, Emirates Airlines has managed to differentiate itself and attract a loyal customer base through its superior service and amenities, reducing the bargaining power of individual buyers.

 Power of Suppliers: Emirates Airlines, being a major player in the industry, holds a considerable bargaining power over its suppliers, including aircraft manufacturers, fuel suppliers, and maintenance providers. The company’s scale and financial strength enable it to negotiate favorable terms and secure cost-efficient resources.

Threat of Substitutes: The threat of substitutes in the airline industry exists, particularly with alternative modes of transportation such as trains and buses for short-haul travel. However, for long-haul international travel, where Emirates Airlines primarily operates, the availability of direct substitutes is limited, reducing the overall threat.

 Barriers to Entry and Rivalry among Existing Firms: The barriers to entry in the airline industry are high, primarily due to significant capital requirements, regulatory complexities, and established networks of routes and partnerships. The intensity of rivalry among existing firms is also high, with competition based on factors such as price, service quality, and route networks. However, Emirates Airlines has successfully differentiated itself and built a strong market position, making it relatively less vulnerable to intense rivalry.

 Strategies to Reduce Competitive Pressure and Improve Industry Profitability

Companies can adopt several strategies to reduce competitive pressure and improve industry profitability. For Emirates Airlines, potential strategies include:

 Focus on Niche Markets: Emirates Airlines can identify niche markets or underserved routes to establish a competitive advantage. By offering unique and specialized services tailored to specific customer segments, the company can reduce direct competition and enhance profitability.

 Enhance Operational Efficiency: Continuously improving operational efficiency can reduce costs and increase profitability. Emirates Airlines can invest in advanced technologies, optimize fleet utilization, and streamline processes to minimize operational expenses while maintaining service quality.

 Differentiated Service Offerings: Emirates Airlines can further enhance its differentiation strategy by introducing innovative services and amenities. This can include personalized customer experiences, exclusive partnerships, and novel in-flight entertainment options to attract and retain customers.

Collaborative Partnerships: Collaborating with other airlines or strategic partners can provide Emirates Airlines with access to new markets, improved connectivity, and cost-sharing opportunities. By leveraging partnerships, the company can enhance its competitive position and profitability.

 Key Success Factors (KSFs

) of Emirates Airlines:
The KSFs of Emirates Airlines include:

 Service Excellence: Providing exceptional customer service and ensuring passenger satisfaction is a critical KSF for Emirates Airlines. The company focuses on delivering a superior travel experience through well-trained staff, personalized services, and attention to detail.

Network and Connectivity: Emirates Airlines’ extensive route network and connectivity are essential KSFs. The company’s ability to connect various destinations seamlessly and offer convenient transit options attracts passengers and enhances its competitive advantage.

 Brand Image and Reputation: The brand image and reputation of Emirates Airlines play a vital role in attracting customers and building loyalty. The company’s commitment to quality, safety, and innovation contributes to its KSFs.

Operational Excellence: Emirates Airlines emphasizes operational efficiency and reliability as crucial KSFs. Ensuring on-time performance, maintaining well-maintained aircraft, and efficient logistics operations are essential to its success.

Customers choose between rival offerings based on factors such as price, flight schedules, service quality, loyalty programs, and additional amenities. Emirates Airlines has positioned itself as a premium airline, and customers often choose the airline for its luxurious onboard experience, extensive route network, and reputation for excellent service.

Over time, the KSFs of Emirates Airlines have evolved in response to changing customer expectations and market dynamics. The company has focused on innovation and continuous improvement to maintain its competitive position. For example, Emirates Airlines has invested in the latest aircraft models, introduced advanced entertainment systems, and expanded its network to meet evolving customer demands and stay ahead of the competition.

References:
1. Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2019). Strategic Management: Text and Cases. McGraw-Hill Education.
2. Emirates. (n.d.). About Emirates. Retrieved from https://www.emirates.com/about-us/