Emirates Airline's Company Strategy Case Study Example | Topics and Well Written Essays - 2250 words

Emirates Airline's Company Strategy - Case Study Example The events of eleventh September 2001 affected all countries of the world. This is because Airline Companies were now seen as vulnerable to terrorist attacks. Many believed that the bombings that occurred in 9-11 could only have been achieved if there was a security breach at the Pentagon and also in some Airports. This event discouraged some passengers from flying and it also affected customer expectations. Clients now expected airlines to increase their security in all airports. This has now become a determinant factor when clients are choosing an Airline. Many Airline Companies ; especially those ones found in Western countries made the choice of expand their operations using the hub and spoke model where flights cater for clients going from an origin market to a specific destination. These expansions saw creation of about seven hundred and fifty mainline jets. This was a huge overestimation because market share is quite low in the origin-destination market. Consequently, many Airline Companies lost a lot of revenue because there was hardly any return on their investments. Supply definitely exceeded demand and it therefore became uneconomical to use this model. Most Companies within the Airline industry have been focusing on short term rather than long term profit margins. Most of them have been trying to improve their performances within the stock exchange over an abnormally short period of time. Since it is almost impossible to increase profitability overnight, companies decided to increase Airline tickets and the pressure was then transferred to the consumer. The major problem with this is that companies were harming the same people who were the main source of revenue and this has resulted in long term loses as consumers dashed off to other low cost Airlines. 2 There is a looming economic crisis in the Airline industry if conventional carriers do not up-their -game; low cost airlines. In the past, low cost airlines had only one unique product offerings for their customers that is low ticket charges. However, with the passage of time, these companies have become very competitive. Most of them now have the ability to attract a hoard of clients through good customer service, top of the class aircrafts and efficient employees. Their emergence has led to the decline in corporate fights and shift to mainstream offerings. 2.2 Social Most Airline companies may opt to host a range of aircrafts within their hubs or ports. As much as these aircrafts offer unique services to a host of clientele, they can become a source of concern when considering the kind of staff one needs to recruit. For example, is an Airline Company owns Regional jets Twin engines Four engine Turboprops Wide-body Narrow body All these various types of aircrafts will require their own pilots and engineers. They may have different qualifications and may also require different pay. Such ideas are quite sustainable if the economy is stable, but most countries have been experiences upsurges; it has therefore become difficult to maintain the payment schedules of al their employees given the fact that most of them belong to different labour unions. 3 2.3 Technology During the mid and late nineties, there was a huge demand for technology. Most airlines throughout the world were also overtaken by this technological boom. They incorporated it into their operations,