Research on tourism and Hospitality

management: Etihad Airways

Contents
Introduction ................................................................................................................................................. 3
Micro environmental factors....................................................................................................................... 3
PESTLE analysis: Etihad Airways ................................................................................................................. 5
SWOT analysis: Etihad Airways ................................................................................................................... 6
Supply chain management of the company ............................................................................................... 9
Marketing strategy of Etihad Airways ...................................................................................................... 10
Marketing Mix strategy .............................................................................................................................. 11
Detailed marketing strategy: Etihad Airways ............................................................................................ 13
Sponsorship............................................................................................................................................ 14
Operational objectives and operation management efficiency: Etihad airways.................................... 16
Cooperation for forming strategic alliances............................................................................................. 16
Strategic alliance: Etihad airways ............................................................................................................... 17
Current performance of Etihad ............................................................................................................. 18
Methodology.............................................................................................................................................. 20
Data analysis and presentation .................................................................................................................. 21
Critical evaluation of Findings and Recommendation: ............................................................................ 24
Reference: .................................................................................................................................................. 24
 “Sustainable market growth of hospitality business depends on the quality
service and efficient operation management”

Introduction
Operation management in a business organization is very important for maintaining the service
and product chain. Efficient operation management can make the organization efficient in
customer management and customer satisfaction. In tourism the importance of operation
management and marketing strategy is indispensable. It is an essential function of business and
the success of any business organization largely depends on it. Tourism has difference in many
sectors. It is the combination of various types of products and services. The activities are like
ship cruise, airline trip, meals of restaurant, accommodation facilities, recreational facilities and
safaris. Proper marketing strategy and effective operation is prerequisite of any business like the
hospitality industry. According to Friday and Cotts (2005) the supply chain management of any
business should be smooth. Sustainable market growth of business depends on it. In this report
the key success factors of business will be analysed and it will give some understanding about
the prerequisite of sustainable growth in market. This report is based on reputed Abu Dhabi
based airline company Etihad. The whole research is conducted upon it.

Micro environmental factors

Suppliers

Suppliers are the most vital factor for hospitality and tourism business. The availability of
suppliers determines the prices of service in hospitality industry. Bargaining power of suppliers
will be decreased if the number of the suppliers increased in the market.

Customers

Customers of business determine the future of the organization. It is the most essential factor of
business (Blythe, 2006). The success of the business largely depends on the customer
satisfaction. Market research should be conducted to find the needs and demand of the
customers. Business organization is largely affected by the income, social status and class of
customers.
 Figure: Micro environmental factors

Employees

Employees are not the physical resource for an organization. But a business organization is
largely depends on the performance of employees. They operate the whole hospitality industry.
So employees are the most influential factor for a business organization.

Shareholders

It is an important factor for business. They are the owner of business organization. They want
their organization profitable. So it is also a vital component of hospitality business. The decision
in organization is made is always considered welfare of the organization.

Media:

This is a vital factor for the business organization. In hospitality business is has some
significance. Strong media coverage and media presence increases the customer awareness.
Strong customer relationship can be maintained through using media.

Competitors
A competitor in business has implication for future existence of business. The strategy of a
business is determined through considering the strategy of the competitors. The business should
analyze the weakness, strength of the competitors to fix up the current strategy of business. In
tourism business competitors has vital influence (Fill, 2005).

PESTLE analysis: Etihad Airways

Kotler and Armstrong (2007) states PESTLE analysis is a very crucial for the business
organization to evaluate the external environment which can affect the business organization. It
is one kind of situational analysis. In this section PESTLE analysis of Etihad airways is given
below. Etihad airways are one of the largest airline businesses in Middle East. The company is
very popular all over the world for its customer service. PESTLE analysis is very important for
Etihad to understand the impact of external factors these are political, economic, social and
technological etc. on Etihad airways.

Political

According to Blythe (2006) Political factors have great influence in any business organization.
So the political factors of Etihad airways have some influence on it. The political situation of a
country affect the decision making process in business. Political turbulence affects the normal
business run so the sale of business decreases and the economy leads to recession. Rules and
regulations of government affect the business very much. A recent rule of safety assurance in
airline has affected Etihad very much.

Economic

Economic variables are vital element and very influential factor for the growth and profitability
in business organization. There are some economic variable which have great impact on any
business like Etihad. Inflation rate, Interest rate, Capital market structure and central bank policy
creates the economic environment of a business. Recent hike in fuel price has greatly affected
airline industry. The sale of the airlines has decreased and the economic recession began.

Social

Social factors have some implication in any business organization. The social environment of
any business is consisted of tradition, culture, norms; morality etc. social practices of people
shapes the business aspect of any organization. Cultural and social norms will shape the
marketing strategy of Etihad airways.

Technological

Technological factors have great influence in any business organization. It is a very important
issue for recent business. According to Linton (2005) Technological advancement has great
impact in business. The old technologies become obsolete with the introduction of new
technologies. So in modern business organization should be up to date with the technology to be
efficient in the market and to be competitive. Introduction of computer and internet has
decreased the use of paper and saved more time to perform task. Etihad Airways has taken the
technological issue as a competitive tool so that they have made an agreement with Taleris a
global technological company for maintenance and initiating ground-breaking new technology
which will reduce the potential technical difficulties. The company is offering Etihad as
intelligent part to monitor the fleet of Etihad Airways.

Legal

Legal factors are also very significant for the business organization. The business organization
must comply with the rules and regulation of government and sometimes legal factors greatly
affect any business organization they have to carry out more cost to comply with the legal
bindings. Recent safety enhancement issues has forces the Airlines industry to take extra
precaution for safety issues

Environmental

Recently environmental factor has some great implication on business organization. The global
warming effect is the main concern of environmentalist and most of them are alleging airline
companies for environmental loss and pollution. Etihad airways also maintains the
environmental code.

SWOT analysis: Etihad Airways

SWOT analysis is a very essential internal situational analysis which is used to find the Strength,
Weaknesses, opportunities and threats of business (Morgan, 2000). The business organizations
are able to know what they should overcome and what the drawbacks are. It is very important for
the business to carry out the strategic decision which affects the business in many ways. The
organizations are able to make appropriate decision which can make them successful in long run.
SWOT analysis of Etihad airways is given below:

Strengths:

 The environment of business in Abu Dhabi is very auspicious for Airline business like
Etihad.
 Oil Rich Emirate is very advantageous for Etihad airways.
 The company has very strong point in large scale of fleets in business. The company is
recently running almost 5000 fleet in every week.
 There are branches of this company in almost 55 countries all over the world and is very
positive for Etihad Airways.
 The company has been trying to make strong brand visibility. The company has been
sponsoring various cultural and sports events recently which has created brand
awareness.
 The company has modern fast paced fleets and in 2011 the company has added 57 fleets
with its other fleets.
 The company is providing services in lower price than its other competitors Emirate
airways and Qatar airways.
 The company has efficient and high qualified management team.
 The company is very renowned for its sponsorship in various events.
 The company has achieved global award for best customer service in 2012.
 The company has unique entertaining system on board USB port facilities are being
provided to attach the personal devices.
 The company has tremendous cabin design and higher service quality.
 The company received more than 30 awards from various events (Hunt and Morgan,
2013).

Weaknesses
  Destinations of the company are fewer than other competitors. Qatar airlines have more
than 90 destinations and the Emirates Airlines has more than 100 destinations where
Etihad Airways have only 50 destinations b(Hunt and Morgan, 2013).
 The customer service centres of the business organization are not efficient. The
customers are continuously complaining about the waiting time and they are not satisfied
with service management.
 The compensation process of the company is being delayed.
 The complaint against the company is the company makes more time to connect with the
flight.

Opportunities:

 The popularity of Etihad airways is increasing day by day so it has allowed the business
to enter into new markets and to make strategic alliances.
 The location of the business is in very convenient place. The location of the business in
Middle East which has allowed the business to connect Asia and Europe. They can attract
more travellers for their convenient location.
 The increasing popularity of the business has allowed the business to enter into some
strategic alliances and make new markets.
 Technology lover passengers will like the new cabin design and the new facilities.

Threats

 To enter into the airline business is very easy for the richest part of the world. So new
entry in business is very possible and new rival can increase the competition in the
market.
 Price hike in fuel is very threatening for airline business. It may lead to economic
recession which can hinder the growth of the organization.
 Threats of terrorist are very common affair in business. The company needs to take extra
precaution to make the customers feel safe.
 The fuel cost is increasing day by day. So the company has to increase the price of their
services in a regular interval.
  Terrorist threats in airlines are very common. So the company has to take extra security
precautions.
 Environmental issues may hinder the growth of the business because of causing extra cot
for ensuring the non-polluting measures.

Supply chain management of the company

The company has performed tremendously in the second quarter of the financial year 2013. The
performance of the company in cargo operations is also remarkable. The revenue of the company
has increased 8% in the second quarter. The total revenue of Etihad was $921 million. It was
published in the financial report of the company in 2nd quarter of 2013. Total revenue earned for
the passengers was $1.8 billion in first half of 2013. The total revenue of the organization
showed a rise of 13%. Supply chain management efficiency has increased the service of the
business. James Hogan, the CEO of Etihad Airways expressed that the first half of 2013 is a
great achievement for the business though there was continuous unsteady economic downturn
and unstable political situation. The company has added new aircrafts which has increased the
cargo volume of Etihad. The company is launching three new freighters during the second
quarter (Muller, 2013).

Providing more space in under-floor freight has boosted the cargo performance and increased the
passenger service. The air yield has been very slow because of the capacity growth and price
competition in the market. It is a very significant factor for the business for future growth of
business.

The environment of the airline business is not very auspicious for business activities for the price
hike and political disturbance. The company has touched double digit in Q2 of 2013. The
increasing profitability shows the brand image and customer satisfaction of business. The
improved supply chain and operation management has influenced the growth of business
organization. If the rate continues it is expected by James Hogan that the company can cross the
industry growth rate. This will be possible for the increased performance in both customer
service and improved service chain management.

The company Etihad Airways has achieved the fast growth in 2013. The company has been able
to uplift 112, 963 tons which is a milestone for the organization. The uplift reflects 26%
quarterly growth and it indicates 23% half yearly growth. Recent addition in freight and
innovation in cabin and use of technology has increased both cargo uplift and the number of
customers.

Marketing strategy of Etihad Airways

Etihad is the youngest and most successful airline company all over the world. The reputation
and popularity of the company has spread for its rapid growth. The company has gained quick
success for the improved customer service and for building a profitable business environment.
The marketing strategy of the business is different from other business organization in many
phase. Etihad airlines and its two other competitors Emirates airlines and Qatar airlines is called
“Big three of Middle East”. They have been carrying out a very profitable business in long haul
all over the world. The advantage of the organization is it is located near to the Asia and Europe
which are consisted of a great market. The marketing strategy of business is designed through
segmentation, targeting and positioning strategy. Marketing strategy of Etihad airways is given
in this section.

Etihad Airways has distinct segmentation, targeting and positioning strategy of their own. The
business needs to communicate its mission, vision, objectives and goals to the stakeholders of the
organization. The company needs to communicate with the customers about their product and
services. Through various media the organization can communicate with the customers. The
marketing process of any organization starts with segmentation strategy. The business ends the
marketing strategy with the action plan. Various decisions are taken by the business which is
determined by various marketing factors. In intense competitive market the business needs to be
very strategic in formulating the marketing strategy. Etihad airways should be very strategic
taking the marketing strategy. The factors determines the future of the organization should be
taken as competitive strategy. The success of today will bring success of tomorrow (Bass, 2005).
To bring the success the business should improve the operations and functions of business
because it will ensure the sustainable growth of business (Barwise, 2013).

The marketing plan of Etihad is based on four basic principles. First basic principle of the
company is to avoid superiority which is undifferentiated. Second basic principle of the
organization is to be inspirational to others. The third basic principle of the organization is to be
luxurious in look and not losing the sight on total spectrum. The fourth and last principle of the
organization is to be renowned as the luxurious bran in the market and let other to experience the
luxurious touch of Etihad. The objectives of the company is to improve the brand image and
make it recognized in customer service.

Marketing Mix strategy

According to Kotler (2006) there are four elements in marketing mix which are called marketing
mix. The business organization designed the four elements while formulating the marketing
strategy. 4ps consisted of Product, price, place, promotion. Later 4ps is extended to 7ps people,
process and physical evidence is added to the marketing mix. Marketing mix of Etihad Airways
are given below:

Product:

Product is an object which can be intangible and has a value and for which the customers are
willing to pay value. The main product of Etihad airways is air transportation. There are many
classes and subclasses in the product of the company. The main objectives of the company is to
catch the market segments in which the company will be able to make profitable business
relation. The company is providing parallel service and ground handling services in flight. The
company has made differentiation in various types of products. There are some heterogeneous
fleet which is segmented in various market. The equity base of the company is consisted of
various differentiated market segments which is added to the product portfolio.

Place:

The company has strong network in various countries of the world. In most of the countries the
company has taken or placed their office in the centre of the city. The company has been
covering the areas through selling the tickets and booking the seats. The network of the company
is very strong especially the agent network of the company. The company has been providing
online customer service any customer from any point can be able to book any seat and get other
supports from the customer manager.

Promotion:

The company is spending more in promotional activities to make the brand renown in the
market. The promotional activities of business organization accelerates the growth of business
organization. The organization become popular in the market. To make a new market in new
geographical area is very challenging for the business organization. As Etihad is already a well-
known brand it will be very easy for them to take promotional activities. The company is taking
sponsorship in various events and advertising using various media. The company is also
launched various loyalty program which is very effective for the company.

Price:

The company takes market penetration pricing when it needs to enter into a new market. The
company offers the product in a lower price to the customers than the competitors to sustain in
the market. Etihad has great advantage in cost leadership strategy because the Abu Dhabi
government is the owner of Etihad Airways. So it is easy for them to purchase the fuel of freight
in a lower price.

People

People of any business organization are very influential for that particular business organization.
The people of the organization bring success of the organization. So the people is a very
important element in marketing mix. Etihad has almost 8000 employees in more than 120
countries. The company has been able to create a diversified workforce. The company has
created a strong culture and the quality of the employees of the organization is developed by the
training and development program. Training and development program has given the company
better service by improving the skills of employees and increasing the level of performance.

Physical Evidence:

The brand image of any business organization is greatly influenced by the physical evidence of
the business organization. Physical evidence means, logo, office design, product design, and in
every piece of work to give a signature about the company. Etihad airways has a unique physical
evidence which is very different from others. The company has been able to make a unique
signature in its aircrafts, office design and its logo which indicates a luxurious brand image of
the company.

Process:
Process means the set of works which must be performed to use the service of the organization.
In airline business the process starts with booking a seat. The whole process of Etihad airways
shows efficiency and experience. The service quality of the company is seen it every steps. The
company is awarded in 2012 as the airline with best customer service. The company is well
developed in information system the customer support can be gained through the online and over
telephone with a lower waiting period. Everything in Etihad shows comfort, luxury and
convenient (Hunt and Morgan, 2013).

The company has intended to create a long term profitable relationship with the customers to
increase the customer loyalty. The marketing strategy of the business organization is associated
with the long term business plan of the organization. According to Keith (2009) The trust and the
loyalty of the customers depends on the value exchange and value service of the organization.
Concentrating on the customer relationship will improve the business condition. The company
can take various loyalty program such as membership card to the star customers of the
organization.

The main objectives or the purpose of loyalty program is increasing trust or loyalty of the
customers. Customers’ equity base is the one important asset for the business. Customer base
depends on repeated purchase which depends on the customer’s satisfaction. To ensure the
customer satisfaction business organization takes various steps which are also called promotional
activities. Honoring the loyal customers will make the other customers encouraged to be loyal to
the organization.

Etihad has planned for long term business purpose. The marketing strategy of the business is
affected by the long term business plan. There are external and internal factors which should be
considered while formulating marketing strategy. In this report external factors and internal
factors are found through SWOT analysis and PESTLE analysis. The product portfolio of the
organization should be designed considering the both environmental factors.

Detailed marketing strategy: Etihad Airways

The company ought to make service differentiation as the company is running its business in
service industry. To compete with the competitors in the market the company can take various
strategy as its weapon to compete. The strategy of business organization depends on the business
strategy of the competitors. The company can redesign, redecorate the product or service
portfolio. The company may take some promotional program to make the customers aware about
the new products. The marketing program of Etihad airways is given below:

Advertisement through media:

According to Jones (2011) in modern digital marketing is very effective to draw the attention of
the customers among the advertisement clutter. With the technological development the way of
advertising has been changed. Internet and digital advertisement has become very popular. Now
getting close to the prospective customer is a very popular strategy in all business. The closer to
the customers the more the company is successful in long run. Etihad airways has a strong brand
image in the market for its customer service. The company can differentiate the customer service
and can add new optional services which will remind about the company and make a
differentiation. The company has a well-developed website. The customers will be able to get
online support through the online media. Online promotion system is a traditional promotional
system which is also very popular recently.

Sponsorship
The company is very popular for its sponsorship in various sports or cultural events. The
company has been arranging cultural events very regularly which has made the company a very
common brand in the market. The company is playing a vital role in arranging the events.
Recently the company has arranged formula 1 international championship. Recently one move of
the organization has been very popular which is painting the logo of F1 in the tail of the plane to
create awareness among the audiences. The company has also arranged various club football
events to create customer awareness.

The company has three basic product portfolio. The features of the product portfolio Etihad
airways are given below:

There are three types of services the company is undertaking.

 Business class
 First class
 Economy class
Considering and analyzing the market segments the company has featured and differentiated
three types of basic services. Etihad has a distinct product portfolio under a common feature
name the company has featured some differentiated services which are described in a short.

Diamond first class:

In this product the company has introduced full-fledged complementary service. The service of
this product type is unique and different than other service category. This product category is
launched in 2009. This type is luxurious and unique in every sense. This product is designed for
luxury, comfort and suitable for privacy use of devices. This product category is charged more
than other product category.

Pearl Business Class

Pearl business class is specially designed for the business travelers of many countries. This
focused on the business people. In this product category the services are not full-fledged but
many complementary services will be provided. This product category is proving better service
in lower cost with many complementary services.

.
Coral economy class

In the intense competitive market the business provides all types of customers the service of the
company. In coral economy class the customers will get many complementary services. The
company is providing the service in lower cost than the business class and first class. The service
will provide the customers comfort and convenience. There are 32 inch leg room and footrest as
well as USB port to use the personal devices. There are also power socket to use the laptop and
other electronic devices.

In airline industry the main challenge is to maintain the service quality. Consistent service
quality is not possible without smooth operation and supply chain management as well as the
staffs and employees of the organization must be well trained and well skilled. Etihad airways
has given importance in both the sections of business (Hunt and Morgan, 2013).

Operational objectives and operation management efficiency:

Etihad airways
The success of business organization largely depends on the effectiveness of the operation
management of any business organization. The success prevails if the management can ensure
the smooth operation and supply chain management in organization. Etihad in in a profitable
environment of business. To continue the growth and make a sustainable growth of business the
business needs efficient operation management and skilled people who will take all the
responsibility. The organization should take strategic direction to get success. The target of the
company must be feasible and realistic. The marketing objectives and plan should be determined.
The organization should match the operational management with the marketing plan and
objectives.

Cooperation for forming strategic alliances

The business organization take the strategic alliance as the strategic approach to create synergy.
According to Baker (2010) it is very common for the large business organization to create
strategic form to take competitive advantage over the other competitors. The business
organizations get facilities and benefitted in many ways. In various business function the lacking
and drawback of business can be overcome due to the cooperation with other business
organization. Business organizations can be able to make differences with other business by
creating competitive advantage.

Strategic alliance: Etihad airways

The capital of Etihad airways has been increased 29.2% with the purchase of shares of Airberlin
in January 2012. Now Etihad airways is one of the major shareholder of Airberlin. Airberlin Has
got credit $225 million from Etihad airways. The investment of Etihad airways has reinforced
the strategic alliance which has created a synergic cooperation between both airlines.

The companies are planning for 5 to 10 years to work together as a synergic tie to get
competitive advantage in the international market. Airberlin is now able to make additional
income by forming strategic partnership. The flight of both companies have been increased with
the strategic alliance. The networks of both companies have been combined so that the
destinations have been increased in 227 countries and 83 countries. For the strategic alliance
Etihad airline has earned almost 100 million euro. The income is boosted for the strategic
partnership with Airberlin.

The company is now looking for new strategic alliance to be more synergic. The strategic
alliance has put the company to step forward. The company is now able to purchase new joint
aircraft and to enter into new market which will increase the profitability of the business. Etihad
airways is using economies of scale to utilize all its resources up to the optimal level.

There are 43 new carriers of Etihad are being shared by the company by new codes. The
company may have limited carriers with newly owned companies and the company can be able
to share its codes to other network to strengthen the network of the company. There are other
three companies which may join with the strategic alliance. The companies have negotiated with
newly owned company Airberlin. Etihad is now focusing on new investment to create
differentiate the portfolio. This new strategy has been taken by the company recently to diversify
the investment (Freeman, 2012).

Etihad airways is now one of emerging giant airline company internationally. The strategic
alliances done by the company is being considered as major alliances. For the strategic alliance
the other companies have become vulnerable in the market. The company is now able to
purchase new aircrafts to use its resources effectively.
The operational management of business is greatly affected by the strategic alliance of Etihad
airways. The new age of Etihad airways is giving a sign of increased revenue and profitability
which will be very useful for the company. The company has increased the destination and
strengthen the network. The company is being considered as the fastest growing company in the
aviation industry. The company has placed a great example before all the airline business in
customer service. Almost 6 million people have been carried by Etihad in 2008. The number has
been increased by 1 million in year 2007. The destinations of the company has been increased to
50. Increasing the fleet of the company is the essence of success in this industry. But it is great
challenge for the business to keep the sustainable growth in the industry.

NOC is the new operating system is introduced by Etihad the facility is being provided by the
company to make a smooth operation management. This business method is being initiated to
keep the success and growth rate of the organization. The new controlling system which is called
NOC has made the company benefitted. Managing power of the organization is increased. New
operating system is being introduced by the company in July of 2012. Old system was become
outdated and obsolete which was in the terminal 1. Integrated new system is now the heart of the
Etihad airways.

Total network system of Etihad airways is improved with the initiation of new controlling
system. Now the process of business can be processed more quickly than previous. Suppliers of
the organization is being managed more efficiently. Initiation new information and technology
has made the organization more efficient and effective in both operation and supply chain
management.

Current performance of Etihad

The current performance of Etihad airways is seen in the financial statement. In year 2009 the
number of passengers of the company has been increased by 8%. The number of passengers
carried in that year was 3.01 million. The number of passengers carried by the company in 2008
was 2.78 million. The handling and management of the company is improved now. The company
has a strong network in more than 50 countries. Thought there was recession throughout the
session it didn’t affect the business adversely for improved supply chain management.
In July of 2009 the company has passed its busiest month. Almost 616000 passengers have been
travelled throughout the period. The number of passengers have been carried out in increased by
9%.

Figure: Passenger Growth (Baker and Sinkula, 2013)

So July is the busiest month of Etihad airways considering the carry of passengers. The record
number of passengers have travelled in last Friday of July moth the number was recorded
21,640. Load factor of the company was almost 90.3%. 900 weekly flights have been carried in
month July so that the month is called the turning point of Etihad. There was 20% increase in
weekly flight of July month.

One major objective of the company is to play a significant role for the economy of United Arab
Emirates. The company is younger than any other airline business but in short time the company
has been able to create example for all the airline business how to be profitable in very short
time.
 Figure: Seat Factors (Baker and Sinkula, 2013)

The company has played a major role in creating employment and moved from 8th place to 5th
place. There are 227 people are involved with this company. The target of the company in 2012
is to make the percentage of employees 15%. There are four types of employees are working
with the company recently. These are

 Pilot cadets
 Graduate managers
 Customer managers
 engineers

The company has ensured the security precaution on board. The company has invited IATA to
check the security precaution of the company who are working as security company to ensure the
on board safety.

Methodology
Methodology means the process of conducting research project. In this research project
Quantitative approach has been used. There are two types of research method these are
qualitative research method and quantitative research method. In Qualitative research method the
researcher doesn’t use the theoretical boundary to collect in depth data. But the problem of the
qualitative approach is it can’t be quantified easily. In quantitative approach the researcher
doesn’t cross the theoretical boundary. The data used in quantitative approach can be easily
evaluated. In this research project two types of data is used both the primary and secondary data
is used. Secondary data are collected from various books, journals and the primary data is
collected from the managers of various level. Data collected by questionnaire survey method. 30
respondents have participated in questionnaire survey. Three scale measures are used to evaluate
the data. These are

A= Agree

B= Disagree

C= No comments

Data analysis and presentation

Question1. Etihad airways is performing well in recent years. Do you agree?

Respondents Numbers

A 20
B 8
C 2

A B C
RESPONSE
5%

27%

68%

Most of the people (68%) in the organization think that the company is performing well. On the
other hand 27% people denies the statement.

Question 2. The performance of the company is influenced by UAE government. Do you

agree?
 Respondents Numbers

A 22
B 5
C 3

Response
5%
18%

77%

A B C

Most of the managers (77%) think that the performance of the company is inflated by the
influence of the UAE government. On the other hand only 18% people denies the statement.

Question 3. Do you think strategic alliance of Etihad will make the company profitable for
long run?

Respondents Numbers

A 21
B 7
C 2
 Response
7%

23%

70%

A B C

Most of the people (70%) of the organization think that strategic alliance of Etihad airways will
make the organization profitable in long run. On the other hand only 23% people denies the
statement.

Question 4. Effective marketing strategy and smooth operation management can lead to
Etihad sustainable growth and successful in long run. Do you agree?

Respondents Numbers

A 23
B 6
C 1

Response

3%
20%
A
B
77%
C
Almost all the managers (77%) agree with the statement that sustainable growth and long term
profitability of any business depends on effective marketing strategy and smooth operation
management of the organization. On the other hand only 20% don’t agree with the statement.

Critical evaluation of Findings and Recommendation:

After analyzing all the data presented above section it can be concluded that Etihad is fastest
growing and most promising airline company in aviation business. Though the company is
younger than other giant competitors. The company is now able to compete in the market and
become a threat to other competitors. In a very short time the company has become profitable
and popular in market for the brand image and improved customer service. But the company is
being benefitted for the government support which is acting as competitive advantage for the
company. The performance of the company is also inflated for the government support. The
company has taken strategic approach such as to be technologically efficient the company made
partnership with Taleris and to be synergic in investment market the company has made
partnership with Airberlin. These strategic approaches has lead the company to a stage of
economies of scale which has boosted up the revenue and profit of the company. Now to be
profitable in future the company should take effective marketing strategy and to keep the
customer satisfied the company needs to be more efficient in operation management.

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