Strategic Management of Etihad Airways: A Comprehensive Analysis

STRATEGIC
MANAGEMENT

Contents
Introduction............................................................................................................... 2
Pestle Analysis........................................................................................................... 3
Value chain and value proposition................................................................................... 5
Porter`s five forces model.............................................................................................. 6
SWOT analysis.......................................................................................................... 6
Recommendation........................................................................................................ 7
Conclusion................................................................................................................ 8
References................................................................................................................ 9

Introduction
This report brings out a discussion on strategic analysis on Etihad airways complied with the
assessment of business and corporate level strategy. This report will analyse the capacity of
Etihad airways with an aim to sustain appropriate competitive advantage. This report presents
internal and external assessment of Etihad airways by using organisation`s system prototype
and also the drivers of the company. The company was started in 2004 and it was established
on 2003. The company carried nearly 4.5 million travellers. The company has been
scheduling to fly with near to 25 million travellers by 2020. For internal analysis, SWOT has
been conducted that consists of four main factors such as strength, weakness, threat, and
opportunity. It is an framework that has been used to examine the organisation`s competitive
position and develop strategic planning. The company will have to analyse accurate after
avoiding conceived beliefs. A pestle analysis is a agenda and tool that is used to examine
macro environmental factors, which effect organisational performance (Rastogi, and Trivedi,
2016).
The financial performance of the gulf airways have been given here-

(Source: CAPA, 2016)
Pestle Analysis
Political factors- Etihad airways is an global airline that has been situated Abu Dhabi that
works on worldwide routes as it is exposed to other development of politics internationally.
With the sudden drop in the factors relating to the gulf airline`s flight to US where it absolute
to minimise the occurrence of the US flights and finally discontinuing few ways (Rastogi,
and Trivedi, 2016).
Trump government has banned to transportable for the countries of six Muslim nations that
are related with increased danger of terror attack that remains a political decision by limiting
the growth of airlines that are located in the affected regions (Souza, 2017). Due to
unexpected drop in load, factors have affected airline flights to US, airline has decided to
reduce the frequency of US flights and stop few paths. European and U.S. flights last the
strong promoting activations to prevent Middle Eastern airlines and their admittance to the
marketplaces (Gupta, Gupta, and Gupta, 2019).
Economic factors- Global airlines are relatively exposed to several fluctuations in regards to
the presentation of global cheap as any expansion in the macro environmental factors can
lead to demand for air travel. After the 2007-2008 financial crisis, the global economic
conditions have recovered and it was able to continue to moderate growth (Alshubaily, 2017).
The uncertainty of the emerging markets performance that pose economic risks for the gulf
airlines earnings. Decrease in price of crude oil can help several carriers to minimise the
operational expenditures (Alsyouf, Kumar, Ashi, and Hammadi, 2018).
Social factors- Apart from the major influencer of economy recovery after 2007-2008
financial crisis, there is an increase in people in middle class from emerging regions, which
has certainly donated to several optimistic changes in claim for its air transportable. In areas