Global Business Strategy for Etihad Airways and Emirates Airlines

Question: Discuss about theGlobal Business Strategy for Etihad Airways and Emirates Airlines. Answer: Introduction In the contemporary scenario of competitive business markets, a majority of the organizations are moving across the national borders to seek better business opportunities and profitable markets. Therefore, implications of global business strategies are aligned with the operational practices of the organization to facilitate the proposed objective of becoming a multinational unit (Peng, 2016). Considering this relation, the following report is undertaken to crucially analyze the global business strategy of Etihad and Emirates. The literature of this report will discuss various strategic issues of the international alliances along with their recommendations. Overview of Global Business Strategy The term Global Business Strategy can be defined as a strategic guide for any business organization for globalization. In the modern world of ruthless competition, organizations do not wish to confine their profit by borders of the nation. Therefore, global business strategy planning is incorporated to enhance business practices by trading in the worldwide market. The policies of global business strategy assist various factors such as the extent of market presence, development of necessary global presence, optimal location and competitive advantage of the business (Rugman Verbeke, 2017). In the simple context, this term describes a major segment of business studies due to its association in promoting and developing the business practices in international marketplaces. The attributes of this implementation contribute to the overall revenue and profit consideration of the business ventures. 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 Business ventures of both Etihad Airways as well Emirates Airlines are relatively associated to the same domain of airways. Even more, 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. It has a parental association with The Emirates Group and also owned by the government of Dubai's Investment Corporation of Dubai. Every week, Emirates Airlines operates around 3600 flights from Dubai 140 countries of 81 countries (O'Connell Bueno, 2016). On another end, 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. With the 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 Considering the strategy of Etihad, it can be conferred that the product of the company is highly appealing. Being one of the market leaders in the air transportation, the company has targeted all the three main classes and two subclasses equally. Along with this, the establishment of offices all around the world in various locations also helped the company in enhancing the accessibility factor for the customers (Farouk, Cherian Shaaban, 2017). However, in contrary, the business strategy of Emirates is rather different from this. The most imperative strategy is their fleet size, which comprises approximately 127 aircrafts such as Boeing 777-200, Boeing 777-300ER and Airbus A340-500. Along with this, in order to maintain the customer relationship, convenient services were provided through different class flight reservations and interaction feedback method (Farouk, Cherian Shaaban, 2017). Recommendations On the basis of aforementioned discussions, some recommendations are postulated for Etihad Airways and Emirates Airlines. Both the companies are recommended to implement the practices of low-cost leadership, which means delivering a service or product at comparatively low costs and getting cost benefits from the competitors (McManners, 2016). In addition to this, incorporation of core competencies could help both the organizations in making better customer relation in globalized markets. Core Competencies can be defined as a specific set of skills performed by the organization in order to provide valuable services to the customers (ebjan, Tominc irec, 2017). Moreover, mutual agreement between two organizations to share their resources for a common project in order to gain mutual benefit is defined as strategic alliances. Market leaders like Emirates and Etihad can undertake this joint arrangement to empower their objective of global business strategy (McManners, 2016). Conclusion On the basis of all the discussion and arguments presented above, it can be concluded that globalization of business is a trend in the modern world. Various operational business ventures are moving across the international borders to seek better business opportunities. In the following context, this report study is commenced to understand all the attributes of global business strategy. Moreover, business ventures and global business strategy of Etihad Airways and Emirates Airlines was also included in the study to present informative discussion for the report. Overall, this report has justified the purpose as some recommendations regarding global business for Etihad and Emirates are also proposed in this literature. 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. ebjan, U., Tominc, P., irec, K. (2017). Multiple conceptual modelling of perceived quality of in-flight airline services.PROMET-TrafficTransportation,29(3), 311-319.