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Strategic Management Assignment - Emirates and British Airways

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Added on  2020-01-07

Strategic Management Assignment - Emirates and British Airways

   Added on 2020-01-07

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Strategic Management Assignment - Emirates and British Airways_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31. WHAT IS STRATEGY?.............................................................................................................32. INDUSTRY ANALYSIS ...........................................................................................................43. INTERNATIONALIZATION.....................................................................................................54. DRIVERS OF INTERNATIONALIZATION.............................................................................85. BARRIERS IN INTERNATIONALIZATION...........................................................................9CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................132
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INTRODUCTIONStrategic management is considered as an effective process under which the managementof organization generally focuses on measuring and assessing the strategies (Luo, Sun and Wang,2011). So, that manager can select effectiveplan that supports rendering of better performancethat results in gaining competitive edge for the enterprise. It may also be defined as a procedureunder which manager undertakes different decisions that directly and indirectly affects theorganizational performance. Presently, the report focuses on assessing the different strategiesthat a company plan to sustain in the competitive marketplace. For this purpose, the report has tomeasure the overall airline industry by assessing porters five forces model and PESTLE analysis.To study all these aspects, two companies have been selected that is Emirates and BritishAirways. Both the firms are considered as renowned airlines in the aviation industry.Emirates isa subsidiary organization of Emirates group that is generally owned by Dubai government.However, Emirates is considered as the largest air courier within Middle East with operatingaround 3,300 flights per week. On the other hand, another company that is selected in the reportis British Airways that is one of the flag traveller airlines operating services in United Kingdom.Based on their fleet size, it is considered as the largest airline in UK. Furthermore, report willalso measure the key drivers that assist British Airways and Emirates in the international market.1. WHAT IS STRATEGY?In order to survive or sustain in the long run it is effective for the management toassess and devise an effective plan of action that mainly assist in achieving long-term goalsto succeed in the competitive marketplace (Lucas, 2010). However, it may also define as apath that directs the organization to attain long term objectives with meeting the needs andrequirement of the stakeholders and customers. British Airways and Emirates both areconsidered as the leading organizations within the airline industry. Emirates is the leadingairline that is based and operated in United Arab Emirates that mainly serves the MiddleEast region customers. However, the British Airways is the flag carrier airline based in UKthat generally operates in the domestic and international market. Emirates generally uses Dubai hub for long haul flights that result in proving themadvantageous to sustain in the airline industry (Kuratko and Audretsch, 2009). This airline3
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generally owns two different corporations that are Emirates and Dnata. It generally focuses onadopting the growth strategy by expanding the number of serving destinations and aircraftmodule by increasing the passenger’s capacity. Furthermore, Emirates airline has also focused ondifferent marketing strategies related with segmentation, targeting and positioning that isEmirates has segmented their market customers in two different categories they are business andeconomy travellers. However, Emirates generally target the businessmen and executive whoseage group is between around 30-60 that generally prefer to have luxurious and comfortable flightservice (Gregorini, 2012).British Airways is one of the leading airlines in UK region whose main aim is to becomethe foremost airline in the global market by targeting different segment customers andpassengers. Therefore, this airline must focus on modifying their aircraft that would attract largecustomers towards using their services. However, another strategy that can be used by BritishAirways is to attract and influence the business travellers across the globe includes managing theoverall cost of them that supports organization in reducing the pricing of their tickets. However,cost is considered as a main element of British Airways because many people and travellerscannot expend on costly services for travelling from one place to another. 2. INDUSTRY ANALYSIS Industry analysis is consider as an assessment instrument that is being designed tosupport the organization in understanding the different forces existing within the airlineindustry (Greco, Cricelli and Grimaldi, 2013). However, understanding the relevantservices is considered as an important aspect within strategic planning. Measuring the fiveforces in the external environment will assist BA in taking effective decisions that directlyresult in increasing the profit ratio of the company.4
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