American International University – Bangladesh
Term Paper on Etihad Airways
Presented To:
Professor Dr. M. Mahmodul Hasan
Faculty of Business Administration
Department of Management
MBA Program
Submitted By:
Jeener Badsha
Section: C
Date of Submission: 20th July, 2014
Term Paper
On
Etihad Airways
LETTER OF TRANSMITTAL
20th July, 2014
Professor Dr. M. Mahmodul Hasan
Faculty of Business Administration
American International University of Bangladesh (AIUB)
Subject: Letter regarding submission of Term Paper on Etihad Airways.
Dear Sir,
It's a great pleasure for us to have the opportunity to submit a term paper on “Etihad Airways” which had been a great experience for us to work with such a practical & real life issue. We tried utmost to make & let it look like a professional one. Any shortcomings are expected to have a kind view for us encouragement.
Thank you for your sincere & honest try to let us make easy & get familiar with the terms & facts of Strategic Management and to help us make the paper a successful one.
Our efforts will be valued, if this paper can serve for what it’s been meant for & our assistance will be there for any queries.
Sincerely,
We, the group members
Serial
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Name
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ID
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Signature
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1.
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Ahmed Shehab
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13-96814-2
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2.
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Ahmmad Faysal
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13-96759-2
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3.
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Shuva Sourav Sarker
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13-96812-2
| |
4.
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Rob Mahfuj
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13-96915-2
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5.
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Kabir Md. Faisal
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13-96920-2
|
Table of Contents
1. Definition of Strategy
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1
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2. Most Strategic Management Models
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2
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3. Company Profile
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4-5
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3.1 Overview of the Company
3.2 Vision & Strategy
3.3 Etihad Organogram
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4
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4
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5
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4. PESTEL, SWOT and Porter’s Five Forces Analysis
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6-9
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4.1 PESTEL
4.2 SWOT
4.3 Porter’s Five Forces
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6
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8
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9
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5. SWAN Analysis & TWOS Matrix
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10-11
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5.1 SWAN Analysis
5.2 TWOS Matrix
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10
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11
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6.0 Value Chain Analysis
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12
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7.0 GREATER Model & SMARTER Model
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15-16
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7.1 GREATER Model
7.2 SMARTER Model
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15
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16
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8.0 The BCG Matrix chart
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18
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9.0 PURE Objectives & ViSA Model
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19-20
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9.1 PURE Objectives
9.2 ViSA Model
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19
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20
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10. Market Analysis including Market Segmentation
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21
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11. EFE Matrix
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26
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12. CPM Matrix
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27
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13. QSPM Analysis
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28
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14 Financial Analysis
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31
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15. Competitors Analysis
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33
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16 Breakeven Analysis
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34
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17 KSF Analysis
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35
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18 Strategy Evaluation and Contingency Plan
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37
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19 Recommendations
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39
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20 Conclusion
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40
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21 References
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41
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Acknowledgement
First of all we would like to thanks Almighty Allah for helping us to complete this term paper properly and on time.
We are also especially grateful to our honorable course instructor Prof. Dr. M. Mahmodul Hasan, for his kind and sincere guidance throughout these endeavors and to make our report better and much more knowledgeable.
We would like to express our sincere gratitude and cordial thanks to our parents, friends and other classmate for their crucial support and providing needed information about our term paper despite of their enormous workload. It would have been quite impossible to carry on the term paper and give it a final shape without their help.
Although, we had to face some difficulties due to the lack of time while preparing this term paper, and at one moment of time, we thought we would not be able to complete this, but thanks go to the Almighty once again for making us prepare this paper and submit in time.
Finally we would like to say that this report is a subject to error or mistakes that are inherent in human endeavor. We therefore request every reader of this paper to forgive us for any kind of mistake.
Executive Summary
Etihad Airways, the national airline of the United Arab Emirates, was set up by Royal (Amiri) Decree in July 2003. Etihad Airways commenced operations in November 2003, and in 10 years has become one of the fastest growing airlines in the history of commercial aviation. Etihad is governed by a board of directors chaired by HH Sheikh Hamed bin Zayed Al Nahyan, HH Sheikh Khaled bin Zayed Al Nahyan being the vice chairman and operates in terms of its founding legislation and the Article of Association of the Company. The Board consists of seven independent non-executive members and has two sub-committees, being an Executive Committee and an Audit Committee, each with its own charter and chairman. Other members of the board include: Mohammed Mubarak Fadel Al Mazrouei, Ahmed Ali Al Sayegh, Mubarak Hamad Al Muhairi, Hamad Abdullah Al Shamsi, Khalifa Sultan Al Suwaidi and George Cheaib. The airline is led by James Hogan (formerly CEO of Gulf Air) who was appointed as President and Chief Executive Officer on 10 September 2006. The airline has received a range of awards that reflect its position as one of the world’s leading premium airline brands, including ‘World’s Leading Airline’ at the World Travel Awards for five consecutive years in 2009, 2010, 2011, 2012 and 2013. Abu Dhabi, the capital of the United Arab Emirates, is the airline’s hub. Etihad’s fleet of 88 aircraft operates more than 1400 flights per week, serving an international network of 84 passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and North America. Etihad Airways also owns nearly 30 percent of air Berlin, Europe’s sixth largest carrier and 40 percent of Air Seychelles. The airline seeks to reflect the best of Arabian hospitality cultured, considerate, warm and generous as well as enhance the prestige of Abu Dhabi as a centre of hospitality between East and West.
1. Definition of Strategic Management
There are 2 types of strategic Management Theory. There are:
- Strategic Management (Theory: 2000-2010)
- Strategic Management (Theory: 2011-2015+-)
In our report is based on Etihad Airways. And that reason we need to find that what type Strategic Management Theory follows by Etihad Airways. Where Strategic Management (Theory: 2000-2010) can be defined as, the art and science of formulating, implementing and evaluating cross-functional decisions that enable and organization to achieve its objectives. Which is not related the overall strategic management process by Etihad Airways. They follow the Strategic Management (Theory: 2011-2015+-). This strategy focuses on integrating management, marketing, finance/Accounting, productive/operation, research and development (R&D) and computer information system to achieve organizational success. And Etihad Airways followed strategy development which is comprised of five stages:
1. Discovery: This stages Etihad’s all members of the team to individually gather information on an agreed upon set of attributes affecting the organization.
2. Strategic thinking: After the discovery they can be defined as ‘the generation and application of business insights on a continual basis to achieve competitive advantage’.
3. Strategic planning: Strategic planning stages Etihad assemble a mission statement, set goals and objectives, audit the organization for internal strengths and weaknesses, assess the external environment for opportunities and threats, evaluate strategic options, and then select and operationalize an organizational strategy.
4. Strategy roll-out: This stage they follow into activities and offering and ensure that the strategy is communicated well throughout the organization.
5. Strategy tune-up/adjustment: And this stages Etihad Airways phase is a meeting held several times per year to keep track of the progress of the implemented strategy and adjust for changes in the internal and external climate of the organization.
2. Most Strategic Management models:
1. PESTEL Analysis
2. STEER Analysis
3. Five Forces Model
4. Strategic Group Map
5. SWOT Analysis
6. Blue Ocean Strategies
7. Open innovation
1) Strategic Group Map of Etihad Airways
- Extent of Product diversity: As far as the first class and business class is concerned, Etihad Airways segregates its services as Etihad Diamond First Class and Etihad Pearl Business Class.
- Extent of Geographic Coverage: Etihad Airways operates in Europe, North America, Latin America, Australia, Asia Pacific and Middle East (Malaysia, China, Indonesia and Qatar), and Canada
- Number of Market Segment Served: Etihad Airways segments the market according to the geography and psychographic to spread its overall business internationally.
- Distribution Channels Used: Etihad Airways are running their business in codeshare agreements to major market hubs.
- Extent of Branding: Etihad Airways brands its products through, print media, publicity and web based media predominantly etc.
- Marketing Effort: Environmental Laws and regulations while operating can add to the cost and difficulty of marketing or transporting products across state and international borders.
- Product Quality: High quality is maintained while they provide service for the customer.
- Pricing Policy: Etihad Airways follows consistent price policy. Etihad Airways would not only avail booking facility at its main offices but also increase sales in general throughout the Asian region that it targets. Also, it can increase the volume of ticket distribution at its corporate website.
2) Blue Ocean Strategy of Etihad Airways
Blue Ocean Strategies competing head-to-head with other suppliers for known customers in an existing industry. And Etihad Airways is doing so with competing head to head with Emirates Airlines. In recent years Etihad Airways is a pioneer in huge investments in environmentally friendly technologies.
3) Open innovation of Etihad Airways
Etihad Airways prime focus is on providing better service for the customer. And also strive to make travel safe and environment-friendly by practicing the highest global standards in both these areas.
4) Seven S- Model of Etihad Airways
- Business Environment/Strategy: Etihad Airways has higher competition from national oil companies who are able to operate at lower profitable level and an increasingly volatile market.
- Shared Value: The spirit values of Etihad Airways shared by everyone in the organization.
- Structure: Etihad Airways employ over 10,000 staff representing more than 126 nationalities and 8,512 of whom are based at its headquarters in Abu Dhabi. They have several departments those are Human Resource Department Marketing, Software Engineering, Hardware Engineering, Project, Finance and Monitoring department etc.
- Staff: Etihad Airways hire talent employee when they recruit they consider knowledge, skills and experience, they consider their employee as an asset. Etihad Airways offer attractive salary, pension plans, informs estimated retirement date provides health care services.
- System/ Infrastructure: State of the art technology and exploration infrastructure.
- Skills: Recruitment is based on skills, technical knowhow, perseverance and diversity.
- Style: Etihad Airways always focus on quality service, innovation as well as teamwork for better performance of the company.
3. Company Profile
Vision
As the National Airline of the United Arab Emirates, they seek to reflect the best of Arabian hospitality - cultured, considerate, warm and generous - as well as enhance the prestige of Abu Dhabi as a centre of hospitality between East and West. Their goal is to be a truly 21st century, global airline, challenging and changing the established conventions of airline hospitality.
Etihad Airways welcome everyone who flies with them as a distinguished Guest, as reflected in the unique hospitality they offer in their Guest Travel Classes. With fresh new approach to service in the air and on the ground, Etihad Airways always seek to return a sense of freedom to flight as well as a relaxing experience; and also strive to make travel safe and environment-friendly by practicing the highest global standards in both these areas. And Etihad Airways always in touch with Customers needs.
Mission
As the national carrier of UAE Etihad mission is to make Arabian hospitality closer and available to other part of the world by a creating sense of cultured, considerate, warm and generous staff attitude and service. As now remarked as innovative carrier Etihad wanted to maintain its name as most innovative airlines in the world as compares.
Company Organogram
Etihad is governed by a Board of Directors under the chairmanship of HH Sheikh Hamed bin Zayed Al Nahyan and operates in terms of its founding legislation and the Article of Association of the Company. The current Board consists of seven independent non-executive members and has two sub-committees, being an Executive Committee and an Audit Committee, each with its own charter and Chairman.
4. PESTEL, SWOT, Porters Five Forces
4.1 PESTEL Analysis of Etihad Airways
There are some factors in the macro environment that effect the decision making process in an organization. To help analyze these factors marketers can categorize it using PESTEL model. This distinguishes factors between political, economic, social, technological, environmental and legal.
Political
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Economical
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Ø Relatively Liberal Government as a flag carrier.
Ø Support of Sheikh to make this airline best in the world.
Ø Total Instability in Middle East makes difficulty to operate business in this region.
Ø Role of Abu Dhabi as capital
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| |
Social/Socio–Cultural
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Technological
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Ø Cosmopolitan workforce and population so huge international customers access.
Ø Plenty of wealth people who can take this type of airlines service
Ø Still existing discrimination of women in the workplace.
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Ø The existing order of aircraft is under proceed so the airline quickly will increase number of flight.
Ø Development of devices online service department to give quick and better service to passengers.
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Ecological / Environmental
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Legal
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Ø Tough hot environment in region so it is very much challenging.
Ø Sound and others restriction in urban areas so it becomes so challenging to operate flight noise free.
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Ø Low tax regime as a flag carrier of United Arab Emirates
Ø High cost of VISA to UAE so limited labor force.
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The political situation in Emirates gives a competitive advantage to UAE companies because of political stability in this region in comparison with other Arabic countries. Etihad is based in Abu Dhabi which is a rapidly developing city. Dubai has the advantage of starting its development earlier than other locations, but on the other hand now the growth of Abu-Dhabi’s economy is higher. It even more influences the Etihad’s role because its headquarters are located in a capital of the country. There is a competitive advantage for Emirates and Etihad airlines because they, as other companies in the country, benefit from a low tax regime and lower costs in domestic airports. The currency value of UAE is closely associated to the US Dollar, which resulted in a lower exchange value base cost advantage over the EU rivals. The other features of macro environment are shown at the PESTEL diagram.
4.2 SWOT Analysis of Etihad Airways
Strengths
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Weaknesses
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1. Etihad Airways is a profitable airline. A full year EBIT of US$ 137 million was recorded on revenues up 36% to US$ 4.1 billion.
2. Safest airways & Best in class airlines in between the competitor.
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1. Market share growth is restricted due to intense competition level.
2. Flights having via destinations have their interval time often increased more than that was committed.
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Opportunities
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Threats
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1. Five new routes were launched in Etihad Airways. Now total 81 destinations in 51 countries.
2. Online Payment & security system is better than other competitors.
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1. Airways Services becoming more competitive.
2. Fuel price increasing in recent years which is range $100 to $600
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4.3 Porters Five Forces
The company’s competitors can be best seen in their degree of challenge that they pose to Etihad Airlines by virtue of a thorough competitors’ analysis using Michael Porter’s five force analysis. This can be done as follows:
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5. SWAN Analysis, TOWS Matrix
5.1 Swan Analysis
Strength:
· Etihad Airways is a profitable airline
· Safest airways & Best in class airlines
Weakness:
· Market share growth is restricted due to intense competition level
· Flights having via destinations have their interval time often increased more than that was committed
Achievement:
· Etihad Airways has been voted the World’s Leading Airline, for the fifth consecutive year, at the World Travel Awards 2013, held in Doha on November 30th.
· Etihad Airways won the award for World’s Leading Cabin Crew and the prestigious World’s Leading Airline First Class award for our Diamond First Class cabin.
· Airline of the Year 2013 by Global Traveler magazine in the US.
· “The Oscars of the Travel Industry”, the World Travel Awards are acknowledged across the globe as the ultimate travel accolade, with winners setting the benchmark to which all others aspire.
Next Step:
· Etihad Airways has announce new routes will join a daily service to Los Angeles and three flights per week to Dallas (United States), plus daily services to Zurich (Switzerland), Perth (Australia) and Medina (Saudi Arabia), all of which are scheduled to commence in 2014.
· In 2015 the eight new routes will increase Etihad Airways’ worldwide network to 102 destinations.
· Etihad airways future deliveries will allow us to progressively replace existing, less-efficient aircraft, add capacity in existing markets, and launch flights to more destinations, with over 30 new international routes planned by 2020.”
5.2 TWOS MATRIX
Internal Environment
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Scores
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Strength
1. Etihad Airways is a profitable airline. A full year EBIT of US$ 137 million was recorded on revenues up 36% to US$ 4.1 billion.
2. Safest airways & Best in class airlines in between the competitor.
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Weakness
1. Market share growth is restricted due to intense competition level.
2. Flights having via destinations have their interval time often increased more than that was committed.
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CPM Scores 2.85
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External Environment
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Opportunities
1. Global Destination, now total 81 destinations in 51 countries.
2. Online Payment and security service is better than other competitor.
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Threats
1. Airways industry becoming more competitive.
2. Fuel price increasing in recent years which is range $100 to $600.
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EFE Scores 2.55
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6.0 Value Chain Analysis of Etihad Airways
Etihad Airways is a service industry, so their value chain is different from other type of organization. Here we focus on the Etihad Airways Value Chain Process.
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There is also some of Value chain process is involve in Etihad Airways. There are:
Human Resource Management
Human resources or human capital is the intangible resources of abilities, effort, and time that workers bring to invest in their work. The people at Etihad Airways are the major contributors of strategic capability to the company. Service has a big impact on the customers’ perceptions about the company’s product. Because of the importance of its people, Etihad Airways formulated an employee development strategy through proper and effective training. This strategy is expected to strengthen Etihad Airway’s position in the marketplace. Employee development can be an essential ingredient of an organization’s competitive advantage. Employee development includes all of the education and training that organizations might invest in their employees such as training employees to perform effectively in their current jobs, orienting employees to the workplace, developing them for advanced positions or programs, and building organizational capability for future success. Etihad Airways promotes a working environment wherein the employees are free to act in both the company’s and passengers’ best interests.
Technology Development
Etihad Airways become Asia’s leading e-business airline by implementing ambiguous strategy and fully harnessing state-of-the-art technology. The company is determined to provide their customers and business partners with greater ease and convenience, as well as to create new business opportunities for business growth and to enhance efficiency and economic benefits. The company has unveiled a series of e-business initiatives in the areas of passengers, cargo, procurement and internal procedures. Among the technologies that Etihad Airways introduced in order to enhance passenger experience are:
1. Online Check-in
2. Airport Lounges
3. In-flight E-mail System
Other Service
More and more corporations throughout the world are adding value to their core corporate offerings through services. Modern corporations are increasingly offering fuller market packages of consumer focused combinations of goods, services, support, self-service, and knowledge. Etihad Airway’s goal is to deliver superior service and value to its customers and to become the world’s most admired airline. The organization recognizes that the quality of service sets it apart from its competitors. The organization is committed to meeting on-time performance goals, maintaining and growing international route network, and increasing flight frequencies to meet market demand. Etihad Airways strives to deliver Service Straight from the Heart and takes pride in making its customers feel safe, welcome, comfortable and above all, reassured.
7. GREATER Model, SMARTER Model
7.1 GREATER- Model
Goals:
· They consider health, safety and environment (HSE) excellence, as well as sustainable development (SD), throughout their worldwide operations essential to their success and the foundation of their SPIRIT values.
Roles:
· A high- quality portfolio of existing assets, promising major projects under development worldwide, and investment in numerous new emerging businesses, combined with employees who make a difference, ensures an opportunity- rich future for Etihad.
Expectations:
Returns
· Execute disciplined capital program of approximately $14.2 billion per annual.
· Continue optimization of the portfolio and shift to high-margin production.
Growth
· Net Profit Jumped 48 percent (US $42 million) and revenue also increase by 6.1 billion.
· EBIT has been increased by 22 percent to 208 million and EBITDR rise up to 30 percent.
Distributions
· In 2012, Etihad carried 10.3 million passengers, a 23% increase on the previous year.
· Repurchase shares, broadly tied to asset sales.
Accountable and Transparent:
· Etihad believes it is their responsibility to seek to understand and be understood by their stakeholders – a diverse group of individuals and organizations who can impact or be impacted by their business.
Timing:
· This model represents the Short term proposal for Etihad Airways. It’s a one year and short proposal for Etihad. This proposal could be used in 2014 to 2015. Etihad is one of the successful industries. They always maintain good time management system. By taking personal responsibility and pride in their work to deliver timely, quality results that benefit Etihad and help achieve their vision and strategy.
7.2 SMARTER Model
Specific:
Ø To keep the Sustainable Development Report current, key performance metrics are updated every year. All reported HSE data are based on operated assets only. Environmental data are represented as 100 percent ownership interest regardless of actual share owned by Etihad Airways.
Measurable:
Ø There worldwide annual average ticket sales price from continuing operations remained relatively flat in 2012, from US $137 million on revenue up to 36 percent to US $4.1 billion .
Achievable:
Ø They will continue to expand reporting assurance to cover a broader scope of sustainable development metrics. They will develop company guidance for implementing stakeholder engagement principles
Realistic:
Ø Etihad Airways stake in Air Seychelles gives 'realistic way forward' to the island carrier's future.
Ø Airway’s 40% stake in Air Seychelles gives a much-needed second lease of life to Air Seychelles, who says the stake offers a "realistic way forward" for growth, critical as the carrier has scaled back almost its entire network.
Time:
Ø This model represents the long term proposal for Etihad Airways. It’s a four years and long term proposal for Etihad. This proposal could be used in 2014 to 2018. They have talent workforce those are responsible to do the work effectively and efficiently in timely. Good time management is their one of the key success factor.
Encompassing:
Ø Etihad Airways is evaluating and developing technologies for renewable energy, and is leveraging expertise, intellectual property and physical assets in pursuit of economically feasible, renewable energy business opportunities.
Ø Working Together encompasses investment in the training, development and wellbeing of a multicultural workforce, with the core airline employing stay from more than 140 nationalities during 2013.
Reviewed:
Ø A career with Etihad Airways is a rewarding one. They value their people and ensure that the rewards and benefits are comprehensive, competitive in the markets where they operate and designed to recognize each individual’s contribution.
8. BCG Matrix of Etihad Airways
Relative Market Share
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HIGH
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LOW
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Market Growth Rate
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HIGH
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LOW
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Analysis:
Etihad Airways is the fourth largest airline in the Middle East and it is the second largest airline in the United Arab Emirates, after the Dubai-based airline Emirates. Etihad Airways has growing market but low market share because buyers have yet to discover them. According to World Airline Awards (WAA) Etihad Airways is one of the fastest growing airline companies in the world. Etihad Airways needs to increase market share rapidly otherwise it becomes dogs. Singapore Airlines, Emirates airlines, Qatar Airlines are in the stars because they have high growth rate and high market share.
9. PURE Objective & ViSA Model
9.1 PURE Objectives
Positive:
Ø Most of the Customer preferred Etihad airline. Because this airline’s service is excellent, its feel as if you are travelling business class, nothing is too much trouble for the staff. Entertainment is the best with excellent earphones. That’s why is airlines are awarded by fifth consecutive years.
Understood:
Ø Because of good understanding with customer Etihad Airways stake in Virgin Australia rises to 21.24 per cent. Loyalty programs give companies the ability to understand who their consumers are and allow them to acquire new consumers. Companies use the power of loyalty programs to get consumers to spend away from the competition.
Recorded:
Ø Etihad Airways has recorded first-half revenues of $3.2 billion, up 28% compared to the year-ago.
Ø Passenger revenue growth was even stronger, up 13% year-on-year to USD1.8 billion.
Ethical:
Ø Etihad Airways expects all suppliers to comply with its supplier ethics and code of conduct, regardless of local business practices and social customs.
Ø Ensuring that all their employees who interact with Etihad Airways understand and adhere to the Etihad Airways Supplier Ethics and code of conduct for doing business with business with Etihad Airways.
9.2 VISA Model
Vision:
To deliver an effective transport system that contributes to the economic growth, quality of life and environmental sustainability of the Emirate of Abu Dhabi.
Strategy:
Etihad’s strategy is to be best airline in the world, to become profitable and to contribute at its best to Abu Dhabi 2030 Plan.
Action Plan:
Wherever possible, investigation reports should also make recommendations to management on corrective action to be taken in order to reduce the likelihood that the particular incident will reoccurs.
10. Market Analysis including Market Segmentation
Market Analysis
The marketing process starts by segmenting the market, selecting or targeting the most profitable segments, and then positioning the service or product on the minds of consumers within the selected segment. Then providing and communicating the service or product. In order to succeed in today’s competitive markets, a strong marketing strategy should be put in place using the right principles, and this is just what Etihad did. CCO Peter Baumgartner described the marketing strategy at Etihad, after receiving the 2008 marketing award i.e. the “Airline Strategy Award”, that their marketing strategy is driven by four principles. First, “undifferentiated superiority” second, “to be inspirational to the individual” (they aim to act like a small airline, through personalized service in all classes, even the economy class), third to “behave like a luxury brand but don’t lose sight of the entire spectrum”. Baumgartner says: “We are a luxury brand and position ourselves as a luxury brand, but everybody has aright to fly Etihad and experience a touch of Etihad luxury”, fourth is about promoting Abu Dhabi and lining up Abu Dhabi’s new image with Etihad’s, through the new slogan “From Abu Dhabi to the world” (Airline Strategy Awards 2008).
The integrated marketing mix for services can be summarized using the 7 P’s model, which consists of Product, Price, Place, Promotion, People, Process, and Physical Evidence, below is how Etihad considered each part, with regard to the Segmentation, Targeting, Positioning (STP) process.
Product Strategy
As far as the first class and business class is concerned, Etihad Airways segregates its services as Etihad Diamond First Class and Etihad Pearl Business Class. This is integrated with actual staff provision and the multi-cuisine availability on board. The company’s augmented products give it maximum competitive advantage. This has been diagrammatically represented in the subsequent diagram. Abu Dhabi being the centre of tourism for many, gives the company a location advantage. The company has chauffeur service for its customers not only at Abu Dhabi airport but other airports as well where the company’s airline operates. This is especially for the 1st class and business class passengers. Also, the company provides 24 hrs departure facilities and only an hour early arrival as against the normal 3 hour early arrival in other company’s flights. The potential product of Etihad Airways does not include lounge which can be developed over time so as to draw more customers in the targeted segment. The company also does not have the baggage at the door pick up facility. Once this is provided, it would be more convenient for the passengers to avail the facility. Also, hot-towel can be provided to passengers at departure to suit the likings of 1st class and business class passengers.
Price Strategy
The company has a market penetration pricing strategy so as to increase the market share in United Arab Emirates. If the company can deliver the same services at the same price as compared to Emirates Airlines and British Airways, it has chances of achieving its break-even as it targets. Once, this has been done, the company can raise prices by about 5% and fall in the same category of customer perception as Emirates Airlines. This way the customers would also not consider the company as a low cost carrier which could damage the image of being a first class or business class carrier.
Place Strategy
Etihad Airways would not only avail booking facility at its main offices but also increase sales in general throughout the Asian region that it targets. Also, it can increase the volume of ticket distribution at its corporate website. This would enable the busy passengers of 1st class and business class to customize their air travel. The drawback in this regard is that the company does not have many sales agents. The company should look forward to appoint more sales agents and eventually increase its sales.
Promotion Strategy:
The customers’ perceptions with respect to the promotional strategies of the company are as follows:
Ø Sales Promotion: The Company’s customers prefer the option and bundled pricing efforts and the consistent updated facilities with respect to offers in this respect. This would help a long way in increasing market penetration.
Ø Direct Marketing: By taking part in a number of travel and tourism events, the company’s staff spread direct word-to-mouth marketing which has been a matter of great appreciation.
Ø Sponsorship: The Company has been amongst the pioneers in sponsorship by sponsoring Manchester City F.C, Melbourne City Football Club, England Cricket Team, and Mumbai Indians Cricket Team. The Company has also sponsorships by sponsoring in huge amounts at events like Abu Dhabi Grand Prix and also the Ferrari F1 team. The motorsports fans of the company were highly delighted at this step. Also the company’s involvements at events like Abu Dhabi Golf Championship, Gaelic Athletic Association (GAA) have been appreciated largely by 1st class and business class customers. And the company’s involvement at Al Ain Football Clubs (UAE) Airline partner, Etihad Stadium- Melbourne Australia, Sydney Opera House, Australia.
Ø Advertising: Etihad Airways advertises on all media channels form radio to television to newspaper to magazines and travel magazines. Presently Etihad Airways does 20% print ads, out of which 10% are in leading newspaper as Gulf News and Khaleej Times and 10% are in travel magazines.
People Strategy
The company’s staffs have been highly acknowledged throughout its flight services. The only problem has been in a certain case when a passenger was treated inferior to a staff when he required a better seat to facilitate his long-broken leg. Such issues need to be worked upon otherwise with the type of education and courtesy; the company has high prospects especially in the 1st class and business class sectors. The company has scored 91.5% in a survey conducted Ethos Consultancy on customer service benchmarking. If the company wishes to make the most out of the survey, it should further provide better training and development to its staff. Also, it must be kept in mind that no matter how many flights the company increases, a customer would always go for better hospitality which becomes all the more important in the 1st class and business class services. The employees can work as catalysts to word-to-mouth marketing.
Physical Evidence:
In air transportation physical evidence is everything that’s visible to customers, it starts from the logo, uniforms, and facilities to make bookings, and lounges, to the seats, services, and space at the aircraft. Etihad provided well designed offices, superior cabin design in all classes, used a well known fashion designer to design the staff uniforms. All these activities helped in improving the customers’ perception of the services provided.
Process:
This refers to the systems used to deliver the process. It can be described as the whole process that starts with customers making the booking, until they depart or arrive. Etihad built strong systems that can provide the customers with the required services they are paying for, these systems include on-stage systems such as the online information system through the website, and offices, back-stage systems such as the booking and scheduling systems, and all the support systems that helps Etihad to perform in the required way, such as internal IT systems across all the departments, and ‘Amadeus’ Availability Management, which gives Etihad ways to choose what inventory to release to which sales outlet, to make sure all seats are sold at the right time at the right price, through the most productive channels, agents, and markets (Amadeus website 2007)
Market Segmentation
Within markets, not all customers are the same - they have different tastes and want different things. As a result, particular markets can usually be further divided into discrete segments. Each group consists of people with similar needs and requirements. The organization then develops strategies that are closely aimed at satisfying each customer group. This process is known as market segmentation. Through segmentation, Etihad Airways can identify market opportunities and meet its marketing objectives. Segmentation gives an airline a better understanding of its customers, the services they require, where and when they want those services and how they would prefer to pay for them.
Etihad Airways has used traditional approach adopted by legacy carriers for segmentation. Etihad Airways focuses on business travelers and the price sensitive leisure travelers. The business paradigm of Etihad Airways has clearly differentiated these two segments by catering to their heterogonous need. In order to penetrate their existing market and expand their revenue base they are also focusing on additional segment based on consumer loyalty. Etihad Airways uses a form of psychographic segmentation to divide up the market for its services. This involves identifying the social class, lifestyles, opinions, interests, behavior and attitudes of customers. Etihad Airways segments its market so that it can:
Ø Identify consumer needs and the proportion of customers who have those needs.
Ø Develop products and prices to meet these needs.
Ø Target communications at customers within each segment.
Ø Allocate funds to support and develop each market opportunity.
Detailed analysis of segmentation strategy used by Etihad Airways is given as below:
Ø Preferences: The two major groups of business and leisure travelers differ in their preferences. It’s believed that on an average in aviation industry elite travelers contribute up to 50% of revenue though they add up to less than 20% in passenger number (Brancatelli, 2010). Hence the preference of this particular segment (Business travelers) is given additional importance. They are given exclusive in-flight service with respect to variety of cuisines being served, exotic drinks and special seating comfort (Wirtz and Johnston, 2009). At the same time since the other segment i.e. the leisure travelers form the major chunk of passengers their preferences also cannot be ignored. They too are given in-flight services which can be termed best as per industry practices.
Ø Nature of demand: Since the nature of demand varies with respect to business and leisure travelers it is used as a parameter for discriminator analysis. Business travelers demand more working space, internet and telephone connections whereas leisure travelers demand more in-flight entertainment features.
Market segmentation therefore enables Etihad Airways to maximize the efficiency of its marketing efforts by moving the company to use a different strategy for each market segment.
11. EFE Matrix of Etihad Airways
Key External Factors
|
Weight
|
Rating
|
Weighted Score
|
Opportunities
| |||
3. Global Destination, now total 81 destinations in 51 countries.
|
0.10
|
1
|
0.10
|
4. Online Payment and security service is better than other competitor.
|
0.20
|
3
|
0.60
|
5. Five new routes were launched
|
0.15
|
2
|
0.30
|
6. Increasing popularity of Etihad
|
0.05
|
4
|
0.20
|
Threats
| |||
3. Airways industry becoming more competitive.
|
0.20
|
3
|
0.60
|
4. Fuel price increasing in recent years which is range $100 to $600.
|
0.15
|
2
|
0.30
|
5. Natural environment condition could also be a threat to any airline
|
0.10
|
4
|
0.40
|
6. Entry of new rivals in such a wealthy part of the world is relatively easy.
|
0.05
|
1
|
0.05
|
4= the response is superior
3= the response is above average
2= the response is average
1= the response is poor
|
Rating
| ||
Total
|
1.00
|
2.55
| |
12. CPM Analysis of Global Airlines Services
Emirates Airlines
|
Etihad Airways
|
Malaysian Airlines
| |||||
Critical Success Factors
|
Weight
|
Rating
|
Score
|
Rating
|
Score
|
Rating
|
Score
|
Advertising
|
0.20
|
3
|
0.60
|
4
|
0.80
|
4
|
0.80
|
Quality of Service
|
0.10
|
3
|
0.30
|
3
|
0.30
|
3
|
0.30
|
Price
Competitiveness
|
0.10
|
4
|
0.40
|
3
|
0.30
|
3
|
0.30
|
Management
|
0.10
|
3
|
0.30
|
3
|
0.30
|
3
|
0.30
|
Financial Position
|
0.15
|
3
|
0.45
|
4
|
0.60
|
3
|
0.45
|
Global Expansion
|
0.20
|
4
|
0.80
|
2
|
0.40
|
3
|
0.60
|
Customer Loyalty
|
0.10
|
4
|
0.40
|
3
|
0.30
|
2
|
0.20
|
Market Share
|
0.05
|
3
|
0.15
|
2
|
0.10
|
2
|
0.10
|
Total
|
1.00
|
3.40
|
3.10
|
3.05
| |||
4= Major Strength, 3= Minor Strength, 2= Minor Weakness, 1= Major weakness
| |||||||
13. QSPM (Quantitative Strategic Planning Matrix) for
Etihad Airways:
The QSPM is a Strategic decision - making tool that allows strategies to evaluate alternative strategies objectively, based on previously identified external and internal critical success factors. Like other strategy formulation analytical tools, the QSPM requires good intuitive judgment.
Alternative -1
Expand into more cities such as European market and Asian market
|
Alternative – 2
Add 15 A380-800 to fleet
| |||||
Key Factors
|
Weight
|
AS
|
TAS
|
Weight
|
AS
|
TAS
|
Strengths
| ||||||
Etihad Airways is fastest growing airline in Middle east
|
0.09
|
3
|
0.27
|
0.06
|
2
|
0.12
|
Etihad Airways is one of the most profitable airlines in the world in recent years.
|
0.10
|
2
|
0.20
|
0.12
|
3
|
0.36
|
Etihad has a reputation for great customer service
|
0.11
|
3
|
0.33
|
0.10
|
2
|
0.20
|
Etihad Airways is renowned for pioneering new ideas and leading markets trends often in contrast to the conventional industry view.
|
0.12
|
1
|
0.12
|
0.13
|
2
|
0.26
|
Etihad Airways has strong existing distribution channel and networks
|
0.15
|
4
|
0.60
|
0.17
|
3
|
0.51
|
Weaknesses
| ||||||
Depend on a single producer
|
0.10
|
3
|
0.30
|
0.12
|
2
|
0.24
|
There are inconsistencies service quality in some Etihad Airways flight segment
|
0.15
|
4
|
0.60
|
0.12
|
3
|
0.36
|
Most employees are form nearby low-wage nations and there may be demand for high wages in the near future.
|
0.08
|
3
|
0.24
|
0.06
|
2
|
0.12
|
Though wholly owned by the government of Dubai , Etihad Airways receives no financial support from the government
|
0.10
|
2
|
0.20
|
0.12
|
3
|
0.36
|
Sum Weights
|
100%
|
100%
| ||||
Opportunities
| ||||||
The heavily populated China and India are at closer reach for Etihad Airway’s scope of operations to these high –traffic- volume countries
|
0.08
|
4
|
0.32
|
0.06
|
3
|
0.18
|
In general Asian continent is witnessing an economic boom and the airline has really benefited from this opportunity
|
0.10
|
4
|
0.40
|
0.08
|
3
|
0.24
|
With an increase of nearly 4 million people in the European and Asian there is an expansion of develop cities
|
0.18
|
3
|
0.54
|
0.20
|
2
|
0.40
|
Increased amount of upper level business traveler has led to greater demand for better seats
|
0.10
|
2
|
0.20
|
0.11
|
4
|
0.44
|
Etihad Airways is most important customer of Boeing and airbus aircraft makers
|
0.16
|
2
|
0.32
|
0.15
|
3
|
0.45
|
Threats
| ||||||
New tax systems and higher ticket taxes
|
0.09
|
3
|
0.27
|
0.08
|
2
|
0.24
|
The airlines industry pays high salaries and pensions to pilots which is not sustainable for Etihad Airlines
|
0.08
|
2
|
0.16
|
0.11
|
1
|
0.11
|
The growth strategies of regional competitors such as Emirates and Qatar Airways are challenging to Etihad Airways
|
0.10
|
4
|
0.40
|
0.06
|
3
|
0.18
|
Etihad may become a potential pawn in Dubai’s scramble for financial stability
|
0.11
|
0
|
0.00
|
0.15
|
2
|
0.30
|
Sum Weights
|
100%
|
100%
| ||||
Sum Total Attractiveness Score
|
5.47
|
>
|
5.07
| |||
Note: AS= Attractiveness Score, TAS= Total Attractiveness Score
Attractiveness Score:
· 1= Not acceptable
· 2= Possibly acceptable
· 3= Probably acceptable
· 4= Most acceptable
· 0= Not relevant
14. Financial Analysis
Etihad Airways financial performance (Based on Last three years auditor’s report):
Year
|
Revenue
|
Net Profit
|
EBIT
|
EBITAIR
| ||
2013
|
6.1
Billion (US $)
|
62
Million (US $)
|
208
Million (US $)
|
979
Million (US $)
| ||
2012
|
4.8
Billion (US $)
|
42
Million (US $)
|
170
Million (US $)
|
753
Million (US $)
| ||
2011
|
4.1
Billion (US $)
|
14
Million (US $)
|
137
Million (US $)
|
648
Million (US $)
|
Increasing the profitability year by year (Based on year 2011 profitability)
Year
|
Revenue
|
Net Profit
|
EBIT
|
EBITAIR
|
2013
|
Increased 27 %
|
Increased 48%
|
Increased 22%
|
Increased 30%
|
2012
|
Increased 17 %
|
Increased 200%
|
Increased 24%
|
Increased 16%
|
In the financial performance of Etihad Airways we see that, the record financial result for 2013, with net profit up 48 percent to US $62 million on revenue up 27 percent to $6.1 billion. The record performance also saw earnings before interest and tax (EBIT) up 22 per cent to US$208 million and earnings before interest, tax, depreciation, amortization and rentals (EBITDAR) up 30 per cent to US$979 million, a margin of 16 per cent of total revenues. This marked the third successive year of net profitability, in the airline’s tenth year of operation. This outcome is remarkable, given Etihad’s youth and ambitious growth program, as well as its continued investment in product and service innovation. These positive results reflect the focus on its business plan and Board mandate, and the implementation of its strategy to expand through a combination of organic growth, code shares and equity investments in key markets. This growth strategy is underpinned by a rigorous cost control program and strict financial discipline.
15. Competitors analysis
Although competing with these established market leaders is going to be very difficult, Etihad Airways should be confident to gain the market share and achieve good profit. Competitor Analysis is an important part of the strategic setting up method.
This analysis provides both an offensive and protective strategic framework to identify opportunities and threats.
As we have seen in the previous analysis, the direct competitors of Etihad Airways are Emirates Airlines, Saudi Arabia Airlines, Thai Airways, Qatar airways, Malaysian Airlines and Singapore Airlines in different regions. As far as its other Asian competitors are concerned, Singapore Airlines also poses a big threat. The biggest of all is Emirates Airlines. Also, the company has a number of indirect competitors. They can be in Telecom Industry and also Holiday Cruise Line Industry. Telecom industry has made communication so easy that video calling is so easy and cheap that people would not need to go to places for meetings. Some Holiday cruise Line industry players like Carnival Cruise Liners and Star Cruises have taken up the job of not only transportation but providing hotel facilities and other amusement facilities, beyond Etihad Airlines’ reckoning. As far as direct competitors are concerned, with Emirates, customers receive larger value for it being more than 25 years old in the industry, for Saudi Arabia Airlines, this is because of its cost leadership strategy while the other competitors offer same value as Etihad Airways. This needs some change of strategy by the company.
16. Break even Analysis
The break-even level or break-even point (BEP) represents the sales amount—in either unit or revenue terms—that is required to cover total costs (both fixed and variable). Profit at break-even is zero. Break-even is only possible if a firm’s prices are higher than its variable costs per unit. If so, then each unit of the product sold will generate some “contribution” toward covering fixed costs. In economics and business specifically cost account, the break even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even." A profit or a loss has not been made, although opportunity cost been "paid," and capital has received the risk-adjusted, expected return. In short, all costs that need to be paid are paid by the firm but the profit is equal to zero. Etihad Airways looks certain to make 2013 a milestone year, carrying the positive momentum of 2010 to 2012 into the New Year. The company reported revenue over last year grew year-on-year and continued growth in 2013, and in year 2010 it was expected to see it post a break-even result that year. Profits are forecast for 2014, a goal Etihad Airways has had its eye on for some time. Cost figures were not released by the airline, but Etihad stated that it has beaten its own cost reduction targets for the year.
We also know, breakeven point =
)
)
= 72520/ (59210-57250)
= 37X
17. KSF Analysis
The airways business is an extremely competitive marketplace. And every company has to some key success factors (KSF). Key Success Factors are those functions, activities or business practices, defined by the market and as viewed by the customers that are critical to the vendor/customer relationship. Key Success Factors are defined by the market and by the customer, not by the company. They revolve around skills, processes and systems.
And here we know about Etihad’s Key Success Factor. There are relating on:
1. People
2. Products & Services
3. Route System
4. Partnership and Alliance
5. Revenue and Cost control
1. People: People are the most important factors for Etihad Airways. People and performance division always support and be supported by their various business division. Etihad has unique way to recruiting and training process led to provide in flight customer service. And this all is possible because they have:
Ø Awarded Winning cabin crew.
Ø In flight Chef
Ø Training for communicative skills and crisis management
Ø Introduction of “iachieve” a performance based pay
2. Products & Services: this is another important key success factor for Etihad. And Etihad dealing in a service industry identifying its key success factors in the field of product and services are very important factor for attaining a better competitive advantage. Etihad’s KSF in product service have been identified as:
Ø Inflight Developments
Ø Aircraft Developments
Ø Ground Product Offering
3. Route System: Etihad’s new and frequencies in the route flight schedule system made them to achieve a better advantage in the competitive markets for fast east region. Etihad’s daily flights to the several destinations like Beijing, Seoul and Bangkok made their route system unique in Far East markets. But now they have continued their flights in several destinations.
By the end of September 2013, Etihad serves 96 passenger and cargo destinations across Africa, Europe, North America, South America, Asia and Australasia from its hub at Abu Dhabi International Airport. Etihad Airways, along with Air France, British Airways, Delta Air Lines, Emirates, Korean Air, Qantas, Qatar Airways, Singapore Airlines, South African Airways and United Airlines, is one of the few carriers to have services to all six inhabited continents
4. Partnership and Alliance: At 1st March 2014, Etihad had almost most of the codeshare agreements with many international carriers. It had 43 codeshare agreements in place with leading airlines and gave them advantage in serving several international destinations. By Etihad’s remarkable alliance with Australia’s Virgin Blue Group of Airlines in September 2010, made it Far East customers having easy travel to Australia with no stop over.
5. Revenue and Cost control: Etihad made a significant improvement in revenue and cost control with a robust support of Finance division by providing support to the business with financial, risk management, financing and other services.
18. Strategy Evaluation and Contingency Plan
Strategy Evaluation:
Etihad’s cooperate strategy is to be the best airlines in the world, to become profitable and to contribute at its best to Abu Dhabi 2030 plan. Most of the Etihad’s cooperate strategy is created and planned by the mandate from its shareholders. On the year of 2010 Etihad’s top management were focused on a strategy to grow and achieve its scale quickly and to develop sustainable business process. The company found that Etihad have successfully and efficiently delivered its shareholders vision, but there are several structural limitations, which complicated the airlines ability to reach profitability. To overcome the limitations company suggested a better business model in order to diversify its current structure to engage in many partnerships, distribution, hub operation and its air cargo. By approval of this business model by Etihad’s senior management, Etihad have doubled its global activity and profit level as compared to its other competitors.
Contingency Plan:
To ensure minimal customer inconvenience during lengthy delays on the ground, Etihad Airways’ plan for providing customer comfort during irregular operations is outlined below. Lengthy tarmac delays can result from unusually severe weather conditions, government-imposed operating restrictions, air traffic control issues, or other issues associated with the airport facilities. Even though these causes of lengthy tarmac delays are outside of Etihad Airways’ control, they coordinate with all appropriate agencies to ensure that the following policies will be implemented.
Ø Etihad Airways will provide at least a snack and potable water, from the on-board catering supplies, no later than two hours after the aircraft leaves the gate (in the case of a departure) or touches down (in the case of an arrival) if the aircraft remains on the tarmac. If the pilot-in-command determines that safety or security considerations preclude this service, then this may not be provided.
Ø Operable lavatory facilities will be available while the aircraft remains on the tarmac.
Ø Adequate medical attention, if needed, will be available while the aircraft remains on the tarmac.
Ø The flight crew will ensure that information on the status of the delay is available to the passengers on the delayed flight at least every thirty minutes while the aircraft is delayed, including the reasons for the tarmac delay, if known.
Ø Etihad Airways will notify the passengers on the delayed flight beginning 30 minutes after scheduled departure time (including any revised departure time that passengers were notified about before boarding) and every 30 minutes thereafter that they have the opportunity to disembark from an aircraft that is at the gate or another disembarkation area with the door open if the opportunity to disembark actually exists.
Ø Etihad Airways will make every effort to provide sufficient resources to deliver this plan.
19. Recommendation
1. Etihad needs to re-access its profitability in within particular geographic area. It is necessary to go into code-share alliances in certain markets where there is a decline in profitability. By going into strategic alliances, Etihad will cut down significant cost and obviously still gain marketing benefits of large size of network spread and reduce competition on duopolistic routes.
2. Market penetration is recommended through cutting prices in existing markets. Etihad should redirect its strategy to price competition to widen market coverage from lower cost market. This is probable because customers are more prices sensitive and growth of budget airlines is increasing.
3. Etihad airways need more strategic plan for reducing their cost and expenses because to survive in any financial crisis they need more retained earnings to protect them.
4. They should have more of the customer’s service and loyalty programs. The company should provide discount to their corporate clients. The company should get in touch with their clients when they have some promotional offers.
5. From competitive advantages and economic of scale, Etihad can also strengthen or expand the function of other special aircraft or specific cargo service to existing markets to gain profitability.
6. Improving on people process is highly recommended. Also technological strategy is an important pursuit.
20. Conclusion
Etihad has proved time and again that with it’s out of the box attitude, backed by lavish Arabian hospitality it has earned a place for itself in the minds of customers. Customers who have experienced this service would vouch for the standards set by the airlines. The constant up gradation employed by Etihad in providing service by acquiring new aircrafts, ensure that their planes will be in the air for the majority of the time than on ground for maintenance. Etihad currently employs the strategy of having fewer destinations than its competitors. This has enabled the airline to provide better service for the ones that they have than run off in search of newer destinations. This concept of quality over quantity is of great concern in the airline industry, particularly if the airline wants to be perceived as a luxury brand and not a cheap low cost, no frills airline. Potential customers can be gained only if they could be convinced that they are getting more bangs for their buck. The perception of customers towards quality has drastically risen over the years and many wouldn’t mind paying the extra money if they are convinced they are getting what they paid for. Etihad knows this and strategically places their products and services to attract these customers. They know that the airline industry is a delicate one and word of mouth advertising is very crucial for their survival. This is the reason they truly focus on their customers and make sure that they feel satisfied and make it a point to come back after being on one of their flights. As Abu-Dhabi is turning into an international tourist destination and business centre for the Middle East, Etihad being operated from here will be strategically positioned and they stand 15 to gain a potential share of the action. Hence upholding the concept of ‘Abu Dhabi to the world’ is very crucial for their marketing strategy. This plus point of Etihad to convince their customers of their superior service is what drives them forward. To conclude it can be safely said that if Etihad continues to provide this sort of superior service and follows the low price penetration strategy it can enter more markets and repeat its success. The airline has proved that it is able to retain its customers and that their customers recommend the carrier to others have worked in the advantage of Etihad. The carrier has to build on this brand loyalty and continue to provide better and newer services and gradually add more destinations and grow at the steady pace. This will see the airline reaching a top position and turning out to be one of the most preferred ones in the aviation industry.
21. References
1. Fred. R David., (2012-2013), Strategic Management: Concepts and Case, 12th edition. Pearson Prentice Hall.
2. Christopher H., Lovelock., Jochen Wirtz.,(2007). Services Marketing, people, technology, strategy. 6th edition. USA: Pearson Prentice.
3. Annual Report Etihad Airways. ‘‘Etihad Airways Annual Report 2012”. Retrived from the Wikipedia online website:
http://en.wikipedia.org/wiki/Etihad_Airways.
4. Annual Report Etihad Airways. ‘‘Etihad Airways Annual Report 2011”. Retrived from the Wikipedia online website:
http://en.wikipedia.org/wiki/Etihad_Airways.
5. Arab News, 2014. Etihad Airways net profit rises 48%. The daily online newspaper ‘‘Arab News’’ Mar 03, 2014. Retrieved from the Arab News online.
website: http://www.arabnews.com/news/534286.
6. The National Business, 2014. Etihad Airways land first profit. The daily online newspaper ‘‘The National Business” Feb 10, 2012. Retrived from the The National Business online newspaper.
website:http://www.thenational.ae/business/industry-insights/aviation/etihad-airways-lands-first-profit.
7. Dubai Chronicle,2014. Etihad Airways again tops Skytrax First class awards. The daily online newspaper ‘‘Dubai Chronicle” Jun 19, 2013. Retrived from the The Dubai Chronicle online newspaper.
website:http://www.dubaichronicle.com/2013/06/19/ethiad-airways-again-tops-skytrax-first-class-awards/.
8. Zeithaml, V.A. (1998). Customer a perception of price,quality,value: A means end model and synthesis of evidence . Journal of Marketing, 52, 2-22.
9. Rodrigues, J. G. (2010). Etihad Airways-Marketing plan. Unpublished project report. Retrived from the scribd online website:
10. Khalifa, K. (2011). Etihad Airways-Marketing strategy. Unpublished project report. Retrived from the scribd online.
Abbreviations
BCG- Boston Consultancy Group
CPM- Competitive Profile Matrix
EFE- External Factor Evaluation
KSF- Key Success Factors
QSPM- Quantitative Strategic Planning Matrix
TWOS- Threat Weakness Opportunity and Strength
GAA- Gaelic Athletic Association
BEP- Break Even Point
