Innovation Strategies for Emirates Airline: A Business Report

This report provides a detailed analysis of Emirates Airline's innovation management, strategic alliances, and entrepreneurial health. It begins with an executive summary, followed by an introduction and background of the company, highlighting its position in the global airline industry and its subsidiary, SkyCargo. The report then delves into an entrepreneurial health audit, assessing the airline's susceptibility to innovation and its ability to adapt to market changes. It considers basic concepts in innovation, assesses the existing dominant logic, and proposes an innovation management strategy. The analysis includes the airline's position on the entrepreneurial grid, core competencies, and prospects for entry into various international strategic alliances (ISAs). Furthermore, it includes a venture plan, recommendations for innovation activities, and references to support the findings. The report emphasizes the importance of innovation in maintaining a competitive edge in the airline industry and suggests strategies for enhancing Emirates Airline's market position.

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Executive Summary
In the process of implementation of the planned actions for the emirates airline, the obtained
results and effect are monitored and analyzed, and, if necessary, adjustment of programs,
projects, and organizational support is carried out. Then, based on the assessment of the positions
at which the organization is currently located in the strategic space of its business, as well as its
targets, its strategies are determined. On the basis of the adopted strategies, a system of goals is
developed which are required to be achieved in the course of a certain period of time. These
goals will obviously go well with the organization’s targets. Based on the goals set, programs,
projects and the entire system of organizational support of production and commercial activities
are developed. The development of organizations occurs through the development of a variety of
innovations. These innovations can affect all areas of the organization (Bhagavatula, et al, 2017).
Innovations are any technical, organizational, economic and managerial changes that are
different from the current practice in this organization. Organizations have different
susceptibility to innovation. Innovations are on the one hand, contrary to all conservative, aimed
at preserving the existing situation, on the other hand, they are aimed, within the strategy of
change, at a significant increase in the effectiveness of the organization (Dees, 2017). Appeal of
states with traditionally developed market relations to issues of a global, prospective nature
(meaning a thorough analysis of the directions of technical development and the selection of
priority areas of innovation activity; analysis of the rates of development of innovation processes
and the propensity of society for innovative entrepreneurship; initiation of innovation programs,
etc.) reveals the main reason for government intervention in innovation management. Focusing

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mainly on issues of a prospective nature, state measures of influence harmoniously complement
market mechanisms, which mainly have only a short-term impact on the sphere of innovations
(Kim, et al, 2015).
Table of Contents
Introduction and background of the company...........................................................................3
Enterpreural Health Audit...........................................................................................................4
Consideration of basic concepts in innovation............................................................................4
Assessment of the existing dominant logic (cognitive and behavioral).....................................5
Innovation Management Strategy................................................................................................5
Where the company / organization currently lies on the Entrepreneurial Grid, and CECI..6
Identifying core competencies......................................................................................................7
Analyze the prospects for the entry of UAE airlines in various ISAs.......................................8
Venture plan...................................................................................................................................8
Recommendations for innovation activities of the airline..........................................................9
References.....................................................................................................................................10

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Introduction and background of the company
Emirates airlines is a Dubai based airlines in the United Arab Emirates. It is a subsidiary of the
world renowned Emirates Group which 100% is owned by the investment corporation of Dubai
which is a vehicle of investment of Dubai government. With over 3600 flights per week it
makes it the largest airline in the Middle East and operates from its Dubai International Airport
hub. It operates across six continents to more than 140 cities across the world. Sky cargo is the
emirates airline subsidiary that undertakes the cargo services (Drucker, 2014).
It is the fourth largest airline in the world in revenue per kilometer covered and international
passengers that it has carried. It is also the second largest airline in terms of tone per kilometer
covered. Its history dates back to its inception in the year 1985 by the royal family of Dubai and
a lease of 2 aircrafts from Pakistani international airline. It was a wet-lease. A start up of $ 10
million was required in order to operate independently as a subsidiary of the government. Its
chairman was Ahmed Bin Saeed Al Maktoun and also acted as the founder. It moved its
operations in Dubai I international Airport in 2008, twenty three years after it was founded
(Khosropour, et al,2015). It operates a mixture of Boeing and Airbuses body fleet. It was
reported that as of November 2017, it operated the worlds largest Airbus fleet in the world with
103 airbuses under its wings. It is also the worlds largest boieng 777 dreamliner operator in the
world and operates around 152 aircrafts of that.
Entrenueral health Audit
Airlines s have the greatest susceptibility to innovation. They are specialized in meeting the
specific needs of consumers and have the ability to adapt flexibly depending on the nature and
pace of development of industrial production. In a market situation, the introduction of new

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products acts as a reliable means of providing advantages over competitors, establishing
favorable prices and changing market share in their favor (Lan, et al, 2017).
In the course of the course work, such concepts as innovation, innovation, the innovation
process, innovation goals and innovation potential were considered in theory and are applicable
to UAE Airlines. The following tasks were set and achieved:
Consideration of basic concepts in innovation
 Presentation of the characteristics of the airline "UAE Airlines"
 Assessment of the innovative capacity of the organization
 Analysis of innovative goals
Assessment of the existing dominant logic (cognitive and behavioral)
The concept of company behavior, Innovation strategy (Innovation strategy), the development of
which is based on new technologies and the production of new products, and will be a strategy of
innovation. S. According to the western classification, firms are divided into so-called: Scouts
(those who lead in technology, market development and commercialization, even under the
circumstances that a single product does not bring profit), Analysts (apologists for Scouts). They
are distinguished by a pragmatic approach to business: the production is set in such a way that, in
a short time, to launch the release of “imitation” of a fresh novelty developed by the Scouts,
quickly put it into circulation and begin to make a profit. At the same time, they allow
developers to continue to explore their new product type).The third type is the Defenders. These
are those who, launching a new product on the market, are preparing by any means and up to the
end to defend their right to it (Malecki, and Spigel, 2017).

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Innovation Management Strategy
In place of some forms and methods of economic management come others. There are processes
of privatization, corporatization, the development of new organizational forms of management
and financial activities, the securities market, the capital and innovation market, the labor
market, etc. That is why it is necessary to determine the strategy of modern UAE enterprises as a
complete long-term plan, in which globally Ballroom perspective goals and fundamentally
determined decisions cannot be achieved on the basis of experience. To develop such plans, there
is neither experience nor opportunity.
Assessment of the effectiveness of the present innovation strategy
What can today be called a strategy in enterprises most often has the form of a practice in
conjunction with short- and medium-term planning. This law solves several problems. First of
all, the law introduces such important concepts as “innovation activity” and “state innovation
policy” into the regulatory turnover. In addition, the law defined the basis for the formation of
state innovation policy and the main ways of implementing state support for innovation activity.
The adopted federal law is aimed at regulating state support for innovation, as stated in the law:
“in science, technology and production and technology areas.”
At the stage of strategic organization, all resources and intra-company relations, all goals,
objectives and areas of responsibility of employees are fully aligned with the chosen strategy.
Here, the necessary organizational changes are carried out in the company and the policies of
each of its structural divisions are developed. It is becoming increasingly difficult for airlines to

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stand alone in this struggle and find their niche in the long-divided global market. To survive,
airlines increasingly resort to cooperation in the form of marketing and strategic alliances (more
recently, strategic alliances are often called global) and other types of partnerships due to the
large number of participants from different countries.
Where the company / organization currently lies on the Entrepreneurial Grid, and CECI
The company currently lies as the best airline in UEA. It is also the fourt biggest airline in the
world with over 140 destination in various cities around the world. With over 3600 flights per
week it makes it the largest airline in the Middle East and operates from its Dubai International
Airport hub. It operates across six continents to more than 140 cities across the world. In the
entreprenueral grid, the company is ranked among the best to invest in in public market listings.
Civil aviation of the UAE Federation, as well as aviation of any other country, is actively
involved in this process. In recent decades, the problems of civil aviation in UAE have acquired
particular relevance and are being discussed at all levels of government. The issue of the
competitiveness of UAE airlines from year to year remains one of the most pressing on the
agenda of the industry and the domestic economy as a whole.
Corporate Entreprenuership Assessment Instrument(CEAI)
The implementation of corporate entrepreneurship is an ever increasing important activity for
both the private and public organizations. CEAI is an instrument that measure internal
organizational factors effectiveness , climate and influence innovative activities and behaviors.
The internal organizational factors include;

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1. Top management support and the willingness of the airline to promote entreperenural
behavior
2. Work discretion and ability of top management to provide managers decision making
latitude
3. Rewards reinforcement and encouraging pursuit of challenging work
4. Time availability and the evaluation of workloads for gropus and individuals.
This includes security, fleet, qualified personnel, high level of service, and consistent state
activity in the implementation of industry policy. All these tasks are much easier to accomplish if
there is a more experienced partner nearby who can prompt and always support. Consolidation is
the first condition for increasing competitiveness.
Product vs Service
Emirates Airlines has the best products and services. Its first class, business class and economy
class are also rated as one of the best by business travel magazines and travel blogs. Due to
competition in the industry, the company has done its increased their level of services and the
corporate status as the best airline not only in middle east but aslo in the world.
Currently, in the period of international globalization, airlines interested in the success of their
business, maximizing profits and increasing competitiveness, are increasingly joining
international strategic alliances (IAS). No exception and UAE airlines.
Service vs Process

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The UAE airline services is anchored on great processes and ability to innovate. The services are
great while the processes to acquiring the services offered by the airline are also great in making
great services. There are ecommerce processes for e commerce services among others
(Naqshbandi, and Kamel, 2017). The urgency of this problem was the reason for choosing this
topic for its detailed study.
Identifying core competencies
The purpose of the work is to analyze the prospects for the membership of UAE airlines in
international strategic alliances.
 To accomplish this goal, a number of tasks were set:
 Examine existing international strategic airline alliances (UIA)
 dentify the positive and negative aspects of membership in the ISA
 Consider airline requirements for joining various international strategic alliances (UIA)
 Analyze the problems faced by the airline of the UAE when joining the ISA
Analyze the prospects for the entry of UAE airlines in various ISAs
SkyTeam members today make more than 13,000 flights to 856 destinations in 169 countries of
the world. Alliance members carry more than 384 million passengers using the fleet of 1941 own
aircraft (+1 199 aircraft of partner carriers).
Venture plan
The study showed that the strategic alliances of airlines are expanding. This is evidenced by the
fact that already today every alliance is considering new candidates for membership. Thus, we

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can conclude that in the near future alliances will continue to actively develop and expand the
geography of their flights.
But along with the obvious advantages of air alliance, there are some of their drawbacks. The
most significant of these is the possibility of reducing free competition in the market. For
example, an alliance may monopolize any air transport hub, which is why the entry of a new
competitor into the market, which could influence the pricing, is minimized (Naqshbandi, et al,
2015).
First, this is the technological lag of the air transport of the UAE Federation. The rate of renewal
of the aircraft fleet is low. The average age of the domestic airline fleet is 30 years, as a result,
the outdated technology does not comply with modern flight safety standards and environmental
standards. An important contribution to maintaining a high level of operational reliability is for
airlines to undergo an audit and obtain a certificate of IOSA international standard of operational
safety (Wensveen, 2018).
Thirdly, in the UAE Federation there is an acute problem of imperfections in the legal
framework of civil aviation, most laws are outdated, and some aspects are not covered at all (for
example, (Yun,et al,2018).
Fourthly, the problem of underfunding of programs and projects devoted to the development of
ground infrastructure is acute (the number of airfields is rapidly decreasing from 1,000 in the
Dubai to 300 today); such areas as information technology (e-tickets) are also underfunded. It is
also necessary to create converter systems for frequent flyer programs (Wong, and Brooks,
2015).

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Fifth, it is necessary to develop the route network, both inside and outside the country. In this
case, the ISA will be more interested in accepting UAE airlines to their ranks.
Recommendations for innovation activities of the airline
Given the relatively large number of valuable offers of the company, it is already difficult to
come up with something new. But, nevertheless, there is something to add. For example, the
development of tours for individual applications of consumers. The client can leave wishes on
the site, where he would like to go and for what amount, and the company, on the basis of this,
develops a tour. On the one hand, the proposal is not feasible, because everyone will want to go
in the popular direction most profitable for themselves. But on the other hand, the company will
offer a flight with several transfers in the off season. Thus, everyone will be satisfied: and the
client will get what he wants, and the company will sell a possibly “unpopular” tour.
Carrying out promotions at airports. Often, people have a lot of free time before departure,
especially if they are flights with transfers, so you can arrange entertainment for them, such as a
win-win lottery with inexpensive prizes (for example, souvenirs with a company logo), choosing
a “happy ticket” computer sampling) and also presenting a gift (Zhou, et al, 2016). That is,
promotions designed to reduce waiting times at airports and impress in the eyes of customer.

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References
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special issue ‘The innovation and entrepreneurship ecosystem in India’. Management and
Organization Review, 13(1), pp.209-212.
Dees, J.G., 2017. 1 The Meaning of Social Entrepreneurship. In Case Studies in Social
Entrepreneurship and Sustainability(pp. 34-42). Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Khosropour, H., Feizi, K., Tabaeean, K. and Taheri, Z., 2015. The effect of open innovation on
technology intelligence in aviation industry of Iran. Science, Technology and Society, 20(1),
pp.89-113.
Kim, H.J., Jo, N.O. and Shin, K.S., 2015. Text Mining-Based Emerging Trend Analysis for the
Aviation Industry. Journal of intelligence and information systems, 21(1), pp.65-82.
Kousoulidou, M. and Lonza, L., 2016. Biofuels in aviation: Fuel demand and CO2 emissions
evolution in Europe toward 2030. Transportation Research Part D: Transport and
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Lan, Y., Shengde, C. and Fritz, B.K., 2017. Current status and future trends of precision
agricultural aviation technologies. International Journal of Agricultural and Biological
Engineering, 10(3), pp.1-17.
Malecki, E.J. and Spigel, B., 2017. Innovation and entrepreneurship. Elgar companion to
innovation and knowledge creation, pp.625-637.

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Naqshbandi, M.M., 2016. Managerial ties and open innovation: examining the role of absorptive
capacity. Management Decision, 54(9), pp.2256-2276.
Naqshbandi, M.M. and Kamel, Y., 2017. Intervening role of realized absorptive capacity in
organizational culture–open innovation relationship: Evidence from an emerging
market. Journal of General Management, 42(3), pp.5-20.
Naqshbandi, M.M., Kaur, S. and Ma, P., 2015. What organizational culture types enable and
retard open innovation?. Quality & Quantity, 49(5), pp.2123-2144.
Wensveen, J., 2018. Air transportation: A management perspective. Routledge.
Wong, S. and Brooks, N., 2015. Evolving risk-based security: A review of current issues and
emerging trends impacting security screening in the aviation industry. Journal of Air Transport
Management, 48, pp.60-64.
Yun, J., Jeong, E., Lee, Y. and Kim, K., 2018. The effect of open innovation on technology value
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