Case Study Of Etihad Airways

1472 Words 6 Pages
o The location of the airline is an advantage since its geographical location is in the UAE, which is considered one of the countries that act as a “crossroad between east and west”. o The airline company has a lot of internationally recognized sponsorships; this provides good branding and visibility. Example: Etihad Airways is the sponsor of Manchester City F.C. and has won many awards such as World’s Leading Airline in 2016. ("Etihad Airways", 2017) o Etihad Airways is considered as a profitable airline company. Example: The airline company announced a net profit of $103m in 2015. (“Etihad announces net profit of $103m for 2015”, 2016). o The airline is achieving growth through successful partnerships, resulting in a wider network of destinations, …show more content…
Since it is an airline company the main strategy is to expand geographically by providing more destinations. This will help to overcome one of its weaknesses since Qatar Airways and Fly Emirates offer more destinations and are located in the same region, as mentioned in the SWOT analysis previously.
Another strategy is to cater to different segments rather than targeting one specific segment, such as urgent, business and budget conscious travellers. As an example, making booking last minute tickets easier and faster than other airlines for urgent travellers. Catering to different segments will expand the market share of the airline and will attract customers of competing airlines.
Etihad Airways can benefit from current customers to expand their market share. By using a customer referral incentive program, existing customers are encouraged to refer other customers to use the airline. By doing that they receive free products, big discounts and cash rewards. This strategy uses existing customers as a sales force for attracting new customers using the same products. PRODUCT-DEVELOPMENT
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One way to diversify includes offering aircraft ground-handling services (the services done for an aircraft while it is in the airport) for other airline companies. Other airlines have already adopted this strategy such as Singapore Airlines.
Another strategy is aircraft leasing, where another airline or other operators can lease Etihad Airway’s airplanes. This is done when another airline wants to increase their capacity temporarily without buying an aircraft or cannot afford to buy one to operate.
To provide further diversification, Etihad Airways can also provide aircrew training. This can be done as a course for people looking to work in airline companies in the future. The course can introduce the skills required by the world’s leading airlines. This can also benefit the airline in recruiting in the future. Also, related diversification can include air catering, where airline meals can be made and provided for other airlines as well, similar to Bangkok Air Catering. Etihad airways can also expand to provide tour operations, which is another strategy that targets tourists mostly where Etihad Airways can book or provide travel related services from other suppliers, such as hotels and rental

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