Business Strategies in Saudi Arabian Airline Industry - Coursework Example

 Portfolio assessment Business strategies in simple terms are approaches that the business use to remain competitive or relevant in the field. There are a number of strategies that businesses from the UAE and the GCC companies have employed for the purposes of competition. These strategies are well explained in this paper as realized from various articles. In an article by Bloomberg, A private equity company called Abraaj uses diversification to penetrate new market. It is to invest up to $400m in an attempt to target the Asia middle class.

This firm realizes that there is a growing middle class in the East Asia and understands that majority of these people are potential customers in the sector of retail, education and health care, it expands its market to this region. Abraaj is a company that focuses on emerging markets and ensures that they are not left behind in taking the opportunity of these market, they diversify in trade in areas of retail, education and healthcare. It is also realized that this business is typically investing in business of different kind in other market.

This diversification in trade is because of the spread of the risks that are involved with huge money investments, specifically in new markets. It is also a way that the business wants to use in order to reach majority of the customers in the market. A Dubai emirate airline is seen to invest heavily by awarding a huge amount of money. In an article by Reuters “emirates awards Dh33.75bn A380 engine contract to Rolls-Royce” it is seen that the regional airline has strategies in financial growth through use of huge capital to acquire more plane.

Through product development the business is seen to target more customers by ordering for more modern planes. Emirates airline apply the use of product development with an aim of edging other airlines in the region through better service that comes with modern planes. As an airline, investing in modern plans as seen here is in line with the strategic plan of retaining its position as the leading airliner in the region. The airlines also invest in new planes with an aim of differentiating its products with the rest in the market.

This is seen when in an earlier cancellation of their order from airbus for failing to provide them with their specifications. The airline also invests heavily with an aim of increasing their profit ration. With good management of their assets, they have nothing more but to increase its growth through huge investment in new unique products. An article about the sale of five Saudi Arabian units by a Dubai firm Arabtec also explains the strategy that is used by firms. This firm had just reported a surprise loss in a fourth quarter of the financial year.

In an effort to make things right has through a deep scan of its system, employees the strategy of liquidation. Even though it is not clear the objective of the sale of the units, it is speculated it wants to free some of its assets in order to cover the huge loses that they have incurred. Liquidation is a defensive mechanism that is always used by firms in order to relieve them from the burden of continuous loss in the business. As a matter of fact, it is expected that when a company continues to make loses, though not applicable to Arabtec, the best solution is to wind up the business and liquidate its assets.

Therefore, a strategy well employed by Arabtec, would help reduce other areas where the losses are incurred. A Dubai based airline Flydubai expends it market by adding a route to Lar in Iran. This strategy of market penetration as seen in this article is also one of the strategies that business use to remain competitive. As seen in this case, this airline is a regional airline operating within the Arab countries. Its strategy is to penetrate all the markets around the region because it has not exhausted them.

This is also realized due to the recent add to other routs like the Hamadan, Shiraz, Tarbriz and many others. Together with expansion to other routes, the airline is also planning to increase its number of flights per week in certain route. Market penetration is a strategy which is used by companies in order to improve their sales. As stated by the airline, it is also a way to expand the market which will result into improved sales hence better profit. Samsung electronics gulf with its newest technology introduce the most advanced curved monitor as seen in the article “UAE Gamers: Will you buy a computer monitor for Dh3,799?

” Samsung electronics gulf is seen to employ innovation strategy to edge others in the market. Their technology as argued by the firm has customers in mind and tries to offer an immense viewing experience. According to the firm, the monitor is ahead of the others in the market when it comes to screening technology. This is because it is curved, good for the eye because it reduces screen flickering and produces perfect pictures. The innovation strategy is employed by Samsung in this case as a competitive advantage to go ahead of others in the market.

With well advanced technology, the organization is also driven towards an innovation culture that it is aiming at. Therefore it drives the firm into a vision for the future. In conclusion, there are a lot of strategies that businesses use to improve their competitiveness in the market. Few that have been discussed in this paper include diversification, market penetration, product development strategy, marketing strategy and innovation strategy. With more analysis of other articles, businesses are seen to be using so many strategies.

References Bloomberg. (2015, April 21). Abraaj to invest up to $400m targeting Asia middle class. Gulf news. retrieved from http://gulfnews.com/business/sectors/investment/abraaj-to-invest- up-to-400m-targeting-asia-middle-class-1.1496124 Reuters. (2015, March 15) Arabtec seeks to sell four Saudi units, eyes kingdom expansion. Gulf news. Retrieved from http://gulfnews.com/business/property/arabtec-seeks-to-sell-four- saudi-units-eyes-kingdom-expansion-1.1477831 Reuters. (2015, April 17).

Emirates awards Dh33.76bn A380 engine contract to Rolls-Royce. Emirates247. Retrieved from http://www.emirates247.com/business/corporate/emirates- awards-dh33-76bn-a380-engine-contract-to-rolls-royce-2015-04-17-1.587622 Reuters. (2015,April 23). Flydubai adds Lar to its Iranian network. Gulf news. Retrieved from http://gulfnews.com/business/aviation/flydubai-adds-lar-to-its-iranian-network- 1.1497862 Staff. (  2015, April 25). UAE Gamers: Will you buy a computer monitor for Dh3,799? Emirates247.

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