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Emirates Airlines Company IT strategic Plan
Mar 22, 2019 in Term Paper
Emirates Airlines, a company wholly owned by the government of Dubai, is a subsidiary of Emirates Group. Records show that this is the current largest airline corporation in the entire Middle East operating in 142 cities across 72 countries of the world. The airline currently provides high rank services across six continents being one of the top ten largest airlines in the world. Besides passenger transportation, the firm operates cargo activities that are supervised by Emirates SkyCargo (Wilson, 2007). Presently, this business ranks as the fourth largest in the whole world in terms of international passenger transportation. It proves that it has great prospects in terms of internal recognition and maximization of its global coverage.
This airline operates within the transport industry and currently competes with other giant airline companies such as Qatar Airways, Jet Airways, and even Air India Express. With its headquarters situated in Garhoud, Dubai (United Arabs), the firm has managed to open several offices across the world in the countries of its operation. These offices report directly to the head office, and they have made management relatively easy and efficient.
Being a four-star airline company as per the 2013 rating by Skytrax Aviation Consultancy Group, Emirate airline stands out as one of the companies recognized for its consistent growth patterns and investments in the industry. Further, the decision of the business to invest in the modern fleet of Airbus and the wide-body Boeing aircrafts has enabled the firm to make greater steps in achieving a competitive advantage among its competitors. Research proves that Emirates Airline has managed to build a strong brand name that enables it to achieve service excellence regarding transportation of passengers and even cargo transportation.
Just like any modern organization striving to achieve a strong competitive ground, Emirates Airlines aims at maximizing its revenues to a tune of $20 million from a low current turnout of $5million. In this regard, Emirates works towards enhancing its Information Technology Strategic Plan to embrace the modern industry and environmental issues it currently faces. This paper seeks to examine the technological standing of the organization and challenges the measures for security put in place (International Business Publications, USA, 2012). Besides, this paper aims at analyzing the possible goals that the firm will achieve by implementation of a feasible IT strategic plan.
Mission and Vision of Emirate Airlines
The mission statement tends to define the purpose or the reason for existence of the business and also indicates what the organization intends to be in the future. It denotes the future intentions of the business. The company’s mission is to maintain a steady growth rate of 20% even in the future years of operations. It tries to achieve this focusing on its positive market reputation and great competitive strategies. The airline market presently faces several challenges as analyzed in this paper, but the company tends to achieve its objective despite these difficulties. Critics argue that, being a wholly-owned firm by the government, it faces no hurdles in its pursuit to achieve the missions. It has been refuted by the airlines, and research shows steps made by the business during its initial stages to reach its present standards.
On the other hand, the vision statement offers a guide to the entity on how it will realize the future goals. It denotes a blueprint within which the entity meets the purpose or the strategies. The vision of Emirates Airline is to construct and maintain a strong leadership in the market by means of operation extending beyond conventional track. With a strong market leadership, the firm can influence a lot of decisions affecting the market in regard to the methods of operation and other characteristics of ancillary market dynamics. It seeks to achieve this by having an efficient team of management who makes decisions, improves the company’s image and builds a strong brand name.
Current Technology and Security Position of Emirates Airlines
One of the industries that lie purely on technology for success is the airline transport industry. Scholars argue that no airline organization can achieve a competitive edge without embracing strong and modern technological know-how. This company has made significant strides in embracing the current technology ranging from its infrastructural components, nature of its aircrafts and its mode of customer services (Betz, Khalil, Hosni, & Mostafa, 2010). Research shows that this organization is the largest operator of Boeing 777 among all other airlines. The technology by means of which these aircrafts are built makes it one of the technology giants in the world.
The security of the company is delegated to the Emirates Group Security; a body is charged with the responsibility of overseeing security and safety issues across the entire group holdings. This organization has come up with high technology dependent surveillance system for all of its passenger and cargo planes. In order to ensure efficiency in their operations, the Group security is classified into nine categories, some of which include Fraud Prevention, Airport Security, Cargo and Aircraft Protection, Quality Assurance and Operations among others. Presently, the business uses an online customer registration and identification service that many criticize as inefficient.
With the aid of the mentioned technology, the airline provides services to the clients on the basis of such issues as online query services, online reservation services and online booking services. Besides, the online services extend beyond customer-related services to customer security services. The decision to implement online registration of the customers into the system of the company shows a tremendous step towards ensuring security of the clientele. Besides, it shows how the Information Technology aids the company in its operations so as to achieve operational efficiency. This paper seeks to suggest strategies that ensure edification of the various security aspects of this airline firm in order to safeguard it against the current rise in criminal acts.
Important IT Personnel to Help Boost Customer Satisfaction
- Online Requisition Attendants
Presently, the company has a website that communicates the news about its operations to the customers but does not directly respond to the customer's requisitions and inquiries. This paper equally acknowledges the customer service telephone network that the company operates. Analysis proves that the online services relating to the prompt response to customer needs are deficient. Therefore, the proposed IT Strategic Plan suggests the hiring of attendants to help manage this initiative.
- ICT Auditor at Every Branch
The company operates several branches across many countries. Analysis of the operations of the company indicates that the Information Technology applicable to its branches is a result of the decentralized system of the head office. Therefore, the branches lack an oversight role that would possibly help in identification of mishaps and digressions from its goals. The major aim of establishing the Auditing Departments for the company is related to the achievement of the strategic goals related to the Information Technology. The increased innovation and identification of new Information Technology know-how takes place only when there are chances for discoveries and innovation. This paper suggests that all the branches of the firm need to have an independent auditor to help improve system use and application.
- Mobile Phone Application Software for the Company
Presently, the company does not have specific application software that can aid the customers get regular notification and have a direct interface with the company at the comfort of their seat. This paper suggests the possibility of introducing such an application in collaboration with leading mobile phone manufacturers and service providers to ease customer accessibility.
- Online Cargo Tracking Personnel
The company has a strong tracking and surveillance plane tracking system monitored from its offices of operation. However, it is impossible for the owner of the cargo to be able to perform independent online tracking of his or her cargo. As a means to achieve customer loyalty, this paper proposes to pay attention to this technology and consequently hire competent personnel to allow the customers monitor the progress of their cargo in transit.
- Customer-Company IT Coordinators
These personnel have a responsibility for bridging the gap between the company and the customers in a more specific way. This paper recommends the establishment of the coordination or the linked department constituted of IT experts who can have a direct connection and improved interaction with the company. This aspect is presently lacking in Emirates Airlines.
SWOT Analysis for Emirates Airlines
This analysis aims at identifying the strengths of the company compared to its competitors and the weaknesses affecting the operations of the firm. It also identifies the opportunities that offer prospects for growth of the company and the threats hindering the achievement of the strategic goals.
Strong government support: Being a wholly owned company of the government, Emirates Airline enjoys enormous support in terms of financial resources and policy legislations. It is an advantage as opposed to companies owned by individuals and public entities; this company stands a chance of guaranteed success of operations in the foreseeable future without suffering financial constraints and threats of liquidation.
Strong workforce and wide reach in 72 countries: The operations of the company make it one of the most desirable airlines in the world being proud of covering 72 countries across the world. It makes it have a wide customer netting even in periods of low seasons in other continents. The operations of the company also attract a huge employee turn up with a current estimate of about 50,000. The wide employee basket witnessed in the company further increases the chances of innovation and efficiency in operations.
High customer preference: The records of the company show a significant progress in terms of growth and customer preference. It probably relates to the feasible customer relations and high quality of services offered by the airline as envisioned in its strategic plans.
Limited market share: - The airline industry faces intense competition with other superior players who also aim at sharing the same market. It in turn reduces the share available to the Emirates Airlines. The company is forced to maintain greater standards in order to maintain relevance in such an industry. Such standards turn out to be more expensive.
Dependence on the international onward moving traffic: - There is usually wastage of time and backlogs due to the congestion caused by this traffic. Usually, the airline is able to reschedule or divert their operations so as to avoid the wastages of time. It is, therefore, one of the weaknesses of this company.
Launching of a new fleet: The modern fleet of planes used by the company consists of new and highly furnished aircrafts such as the Boeing 777. The planes have greatly revolutionized the company. The introduction of this fleet enhances customer loyalty and preference of the company and further increases their confidence in using the airline. The new fleet embraces the modern technology that has significantly raised the growth patterns. One of the requisite factors that potentially enhance the competitive advantage of any airline company relates to the use of modern technology. Studies show that immense changes continue to take place in this industry with Emirates Airlines standing out as one of the strongest competitors.
Several international destinations: The airline operates in 72 countries in the world which tend to be the most preferred international travel destinations. The decision of the company to operate in the said countries is a strategic concept that has enabled the company to increase its profitability to a great extent.
High cost of fuel: The fuel used for the plane is very expensive. The high costs are further graduated by the recent global increase of pricing due to the fuel shortage. This can be viewed as a significant threat to the operations of the company because the company is forced to spend a lot.
Changing regulations of the government: The policies of the government experience a lot of changes, some of which are repugnant to the course of success of the company. Due to this, the company is forced to perform constant structural and operational adjustments in order to fit into the changes.
Goals for Information Technology Strategic Plan
Efficiency in service delivery: The integration of IT strategic plan ensures efficiency in the service delivery to the clientele of the company in terms of timeliness, quality and reliability of the services. Presently, some critics show discontent with the services of the company.
Enhanced privacy and security: The implementation of the said plan helps in beefing up the security and the privacy of the airline activities as well as keeping customer information confidential. It is necessary even now when cyber-crime and other forms of crime are so prevalent.
Enhanced quality assurance: The implementation of the strategic plan mentioned above ensures that the quality of the services offered is improved and maintained (Plunkett, 2009). Recently, some of the clients have complained of the strenuous procedures in booking the tickets online. The plan suggested in this paper will help alleviate this outcry.
Increased competitive advantage: As rightfully noted, the industry in which Emirates Airlines operates is flooded with other great giants. One of the means of achieving a strategic advantage above them is through the introduction of the Information Technology in the Strategic Plan.
Effective communication: The essence of the proposal to integrate the Information Technology concepts in this paper is to foster good communication patterns. In addition, it ensures prompt customer feedback and delivery of reliable information to the customers, which currently proves to be an obstacle to the company.
Positive Impacts of the Strategic Plan
One of the impacts of the proposed strategic plan is the improvement of growth rate. Besides the high rate with which the firm records its growth, an implementation of the proposed strategy will even increase the rate further. Being an airline company, a lot of attention shifts to its management of communication within the company itself and with its customers, therefore, the essence of this strategic plan (Jha, 2005).
Secondly, the plan will increase customer confidence and loyalty in the business to a great extent. Whenever a company has a feasible Information Technology in place, the customer relationship is enhanced, leading to further improvement in its operations. This paper notes that the growth of customer loyalty in this airline majorly relies on the extent to which it makes the plan practical. The enhanced customer relations denote improved customer loyalty. This, therefore, leads to increased profitability and efficiency in operations.
Finally, the proposed strategic plan ensures efficiency in management of the company due to fast and reliable communication within the company itself and with the clientele. Studies show that proper management fails to take place due to the delay in transmission of information between departments. As a result, the management fails to offer prompt strategies. If the management receives the required information on time and disseminate it timely, there is guaranteed efficiency in the flow of communication resulting in better management.