INTL 706 - Evaluating the Global Business Strategy of Etihad, Emirates

This report provides a comprehensive evaluation of the global business strategies employed by Etihad Airways and Emirates Airlines, both based in the UAE. It begins with an overview of global business strategy, highlighting its importance for organizations expanding internationally. The report then offers insights into the business operations of both airlines, noting Emirates' larger scale and global reach compared to Etihad. A critical evaluation of their strategies follows, discussing aspects like target markets, service offerings, and customer relationship management. The report concludes with recommendations for both companies, including implementing low-cost leadership practices, leveraging core competencies, and exploring strategic alliances to enhance their global presence. Desklib offers a wealth of similar reports and resources for students.

Comprehensive
Evaluation of the Global
Business Strategy of
Etihad Airways and
Emirates Airlines

Introduction
 In order to seek better business
opportunities and profitable markets, a
majority of the organizations are moving
across the national borders.
 Global business strategies and
operational practices develop the
organization as a multinational unit
(Peng, 2016).

Overview of Global Business
Strategy
 It can be defined as a strategic guide for any business
organization for globalization.
 Incorporation of global business strategy enhances business
practices by trading in the worldwide market.
 Practices of market presence, development of necessary
global presence, optimal location and competitive advantage
of the business are potentially influenced by global business
strategy (Rugman & Verbeke, 2017).

 Organizations having a global business
strategy are highly centralized in nature as
they require firm regulations over product
and pricing strategies in the overall
international market (Motohashi, 2015).

Overview about the Business Ventures
of Etihad Airways and Emirates Airlines
 Both the companies are based in Dubai, UAE. Out of
the two, Emirates Airlines is the largest airline
company in UAE as well as the Middle East followed
by Etihad.
 Every week, Emirates Airlines operates around 3600
flights from Dubai 140 countries of 81 countries
(O'Connell & Bueno, 2016).

 However, Etihad Airways is the second-largest airline
based in UAE and also a flag-carrier in the following
fragment.
 It was stared in the year 2003 from its head office
established in the Khalifa City, Abu Dhabi, near Abu Dhabi
International Airport.
 Fleet size of approximately 116 flights.
 The airline operates around 1000 flights every week for
passengers as well as cargo destinations in 6 continents
of the world (O'Connell & Bueno, 2016).

Critical Evaluation of Global
Business Strategies of Etihad
Airways and Emirates Airlines
 Etihad has targeted all the three main
classes and two subclasses equally.
 The establishment of offices all around the
world in various locations enhanced the
accessibility factor for the customers
(Farouk, Cherian & Shaaban, 2017).

 The fleet size of Emirates comprises
approximately 127 aircrafts such as Boeing 777-
200, Boeing 777-300ER and Airbus A340-500.
 Convenient services provided through different
class flight reservations and interaction feedback
method helped in facilitating the customer
relationship (Farouk, Cherian & Shaaban, 2017).

Recommendations
 Both the companies are recommended to
implement the practices of low-cost
leadership (McManners, 2016).
 Incorporation of core competency practices
could help both the organizations in making
better customer relation in globalized
markets (Šebjan, Tominc & Širec, 2017).

 Market leaders like Emirates and Etihad
can undertake strategic alliance joint
arrangement to empower their objective of
global business strategy (McManners,
2016).

References
 Farouk, S., Cherian, J., & Shaaban, I. (2017). Low cost carriers versus traditional
carriers and its impact on financial performance: a comparative study on the UAE
airlines companies. International Journal of Value Chain Management, 8(4), 325-
341.
 McManners, P. J. (2016). Developing policy integrating sustainability: A case study
into aviation. Environmental Science & Policy, 57, 86-92.
 Motohashi, K. (2015). Global business strategy: Multinational corporations
venturing into emerging Markets. Springer Open.
 O'Connell, J. F., & Bueno, O. E. (2016). A study into the hub performance
Emirates, Etihad Airways and Qatar Airways and their competitive position against
the major European hubbing airlines. Journal of Air Transport Management.
 Peng, M. W. (2016). Global business. Cengage learning.
 Rugman, A., & Verbeke, A. (2017). Global corporate strategy and trade policy.
Routledge.
 Šebjan, U., Tominc, P., & Širec, K. (2017). Multiple conceptual modelling of
perceived quality of in-flight airline services. PROMET-
Traffic&Transportation, 29(3), 311-319.