Final individual Essay Example

  • Category:
    Business
  • Document type:
    Article
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    1553

Final Individual 7

FINАL INDIVIDUАL

Final Individual

Etihad Airways Business Model

Etihad Airways is among the most popular and fast growing airline businesses within the UAE. It is the second runners up airline after the United Emirates. The business began its operations in 2003 with the headquarters located in Abu Dhabi, Khalifa city (Goetz & Budd 2014 pp, 197). The popularity of the airline has grown because of the unique business model that it operates across different countries. This business model has provided the company with the opportunity of operating about 1,000 flights in a week to approximately 120 passengers. They have also increased the number of fleets to about 122 airbuses and Boeing aircrafts. Although the business focuses on offering quality transport to the increasing demand, Etihad Airways aims at reflecting exemplary hospitality as well as ensuring that the prestige of Abu Dhabi between the East and West zones is maintained. This is the core mission of the airline.

The major actors for the growth of Etihad Airways include the presence of a fast growing market in the airline industry for most developing countries. Considering that the surrounding countries connected in terms of airlines with Abu Dhabi are currently experiencing a growing spree in their GDP, it opens the possibility of the airline to operate for the purpose of the first class and business class segments. The pricing strategy that is implemented by the airline also acts as a major actor to the positive performance and countering the effect of competitors. They tend to use penetrative pricing in the Middle East with idle to premium prices being implemented. The assumption that the business class and the first class are mostly preferred with the high lifestyle of the people using the airline. It considers the assumption that the consumers are insensitive to the prices implemented and that the competitive market does not concentrate the entire market.

Among the issues that prove a great advantage is the wide range of resources that the airline applies to create satisfaction in the consumers. Access to such resources may prove a challenge to competitive airlines that may render them at a risk of changing their entire business model or experiencing losses. Similarly, the airline makes use of the placement resource to concentrate more consumers and build a trusted and dependable band. At the heart of Abu Dhabi, Etihad Airways is accessible through a number of private and public terminals. The employees prove to be important resources that the airline intends to use to achieve their business objectives. It provides its employees with the desirable level of training and programs with workshops to ensure exemplary performance. Such employees are passed through a customer service orientation that trains them on how to approach challenges and make conscious decisions sensitive to performance.

The transaction process that is implemented by Etihad Airways is quite simple and adaptable to make it easy for the consumers to use the airline services. To make a booking online, the consumer needs to make a reservation. The reservation is made through searching the origin and destination, identifying the fares and availability of the airline, accessing the fare summary, evaluating the guest details, making payments and choosing the method of acquiring the ticket. The airline website is accessible for making such transactions. To modify a reservation in case of faults or improvements, a consumer is required to access the airline management about four hours before the flight. It is possible to modify the flight status, baggage information, airport information, visa services and clearance. To sign up for a vacation package, consumers need to access the vacation tab and view the offers present in the site. They need to identify a global vacations program and register before booking. To shop on-line by redeeming air miles, users need to use the mileage calculator to determine the length of their mile rewards, identify a reward flight and a reward shop.

Etihad Airways Unification Business Operating Model

Etihad Airways has invested heavily in an operating model that will ensure they remain relevant in the airline market. A major model is the Unification Operating Model that is based on a globally integrated business structures. In this case, the airline and the consumers are distributed geographically. The unification of the operations offers the airlines the authentication and opportunity to share public information. To achieve this, the airline considers a number of four factors relevant to the success of the model. The core business processes are identified to ensure that the set of enterprise activities are stabilized and made clear. The capabilities of the company are identified and strategies that aim at countering the market demands are designed. The ability to share data and create a driving core process is also identified that ensures consumer files and information is passed across similar product lines. It is also shared with the financial institutions, and the master suppliers to the global supply chain. The unique key that links all airline automation technologies is identified. It includes access to software, portals and stakeholder groups are defined. The key consumers are classified in terms of services and preferences to ease performance.

Etihad Airways contains a similar Unification Operating Model to Delta Airlines with an exemplary foundation of execution of the global service airlines (Goetz & Budd 2014 pp, 197). The model consists of four core processes that include the consumer experience, operational pipeline, the business reflexes and employee management reflexes. Customer experiences concerned the ways in which Etihad Airways handles its customers. It sensitized on building a strong consumer brand through giving them something to talk about and share with the local, regional and global market. It also affirmed the purpose of the airline and the level of commitment to maintaining quality for the consumers. The operational level of the model was involved in handling the moving, unloading and maintenance of the Etihad Airways planes. The stages involved included allocating resources, preparing the departure of flights, monitoring flight progress, cleaning, and servicing the aircraft.

The business reflex sector was involved with managing the corporate aspects of the airline such as administration, finance and human resource (Morabito 2013 pp, 97). It evaluated the profitable and non-profitable sectors in business and focus on investing on the profitable areas. It allocates timeline to programs and projects that are of essence to the success of the airline. It also manages the employees in operation and ensures that they maintain the required standards. The employee relationship and management sector involves the scheduling, compensation and development of the Etihad Airways workforce. It ensures that tasks are complete while the experienced workers employ their skills in communication and consumer management to engage with the clients. They are provided with the relevant resources and financial assistance to carry out their task. In return, the airline management expects positive return and outcomes.

Etihad Quadrant

Etihad Airways also employs a unique set of digital and leadership capabilities to enable achievement of the business objectives. Etihad Airways may be placed in the digital master quadrant. This is evidenced by the ability of the business to employ unique strategies in technology and innovation to match up with the modernized society. The airline has an updated and well manages website that relays the mission and vision of the business. Their purpose is to be an authentic 21st century, global airline, which provides not just a service, but unique experience for the diverse consumers. The airline also experiences the benefit of good governance that is supported by proactive partners such as Equity alliances, Darwin Airline, Air Serbia and Air Seychelles. The increased digital initiatives in advertising, marketing and social media elevate the global nature of the airline (Morabito 2013 pp, 99). Being at the center of digital improvement, the airline has maintained a relevant culture of technology and innovation in most of the investments and activities.

Playbook Components

Recently, the power of digital media has been revolutionary to the success of many businesses particularly Etihad Airways. The digital aspect is becoming a widely adaptable method of reaching out to consumers within the global market. Etihad Airways can employ internet demographic profiling, video demographic profiling and audio demographics that will ensure it is accessible to every consumer with the differences in preferences (Webb 2011 pp, 61). Such properties will allow direct communication between the consumers and business to design informed business solutions. However, this will require the airline to invest time, money and resources in equipment and workforce. Etihad Airways needs to create responsive websites and applications that are accessible across different platforms and digital operating systems.

ReferencesTop of FormTop of FormTop

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Top of Form

Goetz, A, R, & Budd, L 2014, The geographies of air transport, Burlington, VT: Ashgate.

Morabito, V 2013, Business Technology Organization: Managing Digital Information Technology for Value Creation — The SIGMA Approach, Berlin: Springer-Verlag.

Webb, N, J 2011, The digital innovation playbook: Creating a transformative customer experience, Hoboken, N.J: Wiley.Bottom of Form

Bottom of Form

Bottom of Form

Bottom of Form

Bottom of Form

Bottom of Form

Bottom of For Bottom of Bottom of Bottom of Form Bottom