Business Model of Etihad Airways - Case Study Example

Global cоnnесtiоn thrоugh Тесhnоlоgy Name Course Date Tutor Business Model Etihad Airways Etihad Airways is a world famous airline career which is based in the capital of the United Arab Emirates. the firm is known because of the top notch cabin crew services provided to the clients. The crew is composed of highly qualified managers that handle the food and beverage, and crew that are dedicated toward providing the best services to the client, and hence the top reputation of the company on a global scale. The airline operates in a number of destinations on the global scene such as Africa, Asia and the Middle East as well as Europe and the Americas. Formulation of a successful business approach is dependent on the creation of a first rate business strategy. The businesses have to develop plans that address methods in which they can compete in their markets. The first thing to do would be identifying the competition. Considering Etihad air ways is in the airline industry, they would have to complete a larger number of corporations in order to come up with new innovations which are there to compete within the survive. if we went through the process for strategy then some steps would have to be involved (Gulf News, 2016). Etihad airways have the best first class product and service. the short term objective of the organization was to maintain client value through the decrease of the service costs. The status quo for the company would have to be maintained through reduction of the costs of service which would then imply the corporation becomes the best in luxury services for the customers. The organization also has long term goals and these were to help it maintain a quality strategy for the market. This may include the increase of the profit amounts on an annual basis by 5 to 10 percent thus facilitating competitiveness. At the same time, the increase of the value to the client by 8 to 10 percent was also one of the long term objectives. One of the business models that illustrate would be the frequent flyer program. it is noted as one of the best loyalty programs considering the numerous benefits held over standalone programs. members have the opportunity to accumulate and redeem their points which provides a better perception about the value of the program. Network of FFP Etihad Airways “Unification Business Operating Model” The first thing to do with the unification model process would be the identification of clients which are on a global front according to the marketing structure of the corporation. next would be to list the main processes which are required. Identification of the shared data in order to integrate the processes. the last process is optional and entails identification of the main technologies which either automate or link the main processes. 3. Digital Masters According to the diagram below the quadrant Etihad would belong to would be the digital masters. this is because of their sense of customer valuing. The company tends to prioritize the whims of the client which would mean keeping up with the latest trends that would keep the clients as interested as possible in the general activities. Under the digital masters, quadrant there is a strong overarching digital vision (Zhang, 2015). Etihad has a strong online presence which they exercise as much as possible in order to retain the clients and gain more in the guise gaining the largest market share possible. there is also a high level of governance. this is represented in two ways which would concern the way the state of employment and the feedback from customers on regular basis. On the former, the company employees have some of the best working environments the industry would have to offer. The clients also claim to have been quite satisfied on a regular basis as the airline usually gets positive feedback for their services all of the time. The airline has also revealed a number of digital initiatives which generate more business value in ways that are tangible. there have been extensive campaigns through most of the main search engines resulting in netting a return on investment of 25 to 1. The corporation has also come up with an updated flight booking engine for the convenience of the customer. An extension of travelers insurance cover product has been effected to 14 new business areas making it up to 19. Finally, the company has established that it does have a strong digital culture (Etihad Airways 2010). In 2010, over twenty five million guests visited the main site for the corporation. This was done in over 60 localized versions and nine languages. The website grew quickly as the sales channel which came up with 10.4 percent of the total proceeds resulting from passenger increased by seventy four percent based on the preceding year. The number visiting the website increased by100% on a yearly basis since then. In the previous year, the site was introduced in 12 different nations and in 2 other vernaculars which includes Korean and Italian. Maintaining The Digital Master Level Playbook The corporation is already at the level of the Digital Masters which means that it has a good idea of what the market needs and is on the same page theoretically. The company has also achieved a high level digital vision concerning the clientele. As such, it is at a good place. However, this is not easily maintained which would be achieved through seeking better connections in the market and upgrading on the level of technology on a regular basis. To this effect, the firm needs to increase investment in the marketing departments especially concerning technological upgrades. This will help the company stay within step with the technological advances available within the airline industry and the ongoing trends the market keeping to. Etihad needs to collect surveys and feedback via online forums as well to judge customer preferences and satisfaction with its services and the brand in general. This is in line with strengthening of its online social media presence which is the path forward for major corporations looking to maintain their market share. References Zhang, B. (2015). The Middle East's 3 best airlines have infuriated their US competitors. Business Insider. Retrieved from http://www.businessinsider.com/middle-eastern-us-airlines-dispute-future-of-air-travel-2015-7 Etihad Airways. (2010). Etihad Airways Business Review 2010. Retrieved from https://www.etihadguest.com/Documents/PDFs/Corporate%20profile/Corporate%20reports%20and%20CSR/Business-review-2010-en.pdf Gulf News. (2010). Partnership approach offers new model for airline competition. Retrieved from http://gulfnews.com/business/aviation/partnership-approach-offers-new-model-for-airline-competition-etihad-president-and-ceo-says-1.1719785 Read More