The corporate culture of Emirates airlines and the Etihad airways
How have Etihad airways and Emirates airlines become leaders in the aviation industry in the Middle East despite the varied culture of its people? Even so, Emirates airlines has performed better than Etihad airways. Therefore, what is the different corporate culture that has made Emirates airlines to become more outstanding than its competitor? International business has continued to take root in most countries as a strategy for globalization and organizational efficiency. As it continues to be embraced all over the world, it has grown to involve a lot of complexities in which it is carried out. For example, offering services has been greatly affected by interference and competition (Cateora & Ghauri 86). This has changed the approach through which international business is carried out. Corporate cross-cultural strategies are the new approaches to deal with interference and competition in the global market. This helps business enterprises to understand, agree and do business in markets where there are new cultures. However, this process in international business faces a big challenge especially where there are misunderstandings between the two cultures (Ghauri 200). The aviation industry is a very important sector in developing the economy of the world through providing a transportation network link around the globe. Globalization has become the new strategy for business organizations and which solemnly depends on air transport. This paper gives an analysis of how Etihad airlines and Emirates airlines compare in their corporate culture in promoting international business.
The corporate culture of Etihad airlines establishes that the company should work within the Emiratisation strategy. The airline has adopted the Emiratisation recruitment strategy that offers high class training to boost operation management. This is evident from its 2012 passengers order at around 10 million translating to about 23% increase from the 2011 passenger orders (Ghauri 202). The strategy divides operation management into graduate managers, cadet pilots, technical engineers, sales managers, guest service agents, contact centre agents and airport operations managers. This has enhanced specialization and division of labor to increase productivity. These various departments help to reduce delays that will bring out losses and lack of customer satisfaction. However, this specialization also helps to work within the legal frameworks of the designated countries. Operations managers are deployed to different countries were they are tasked with understanding the legal framework. In addition, Etihad Airways has collaborated with other bodies and organizations to ensure maximum production of services and recruitment of nationals. These organizations include Abu Dhabi Tawteen Council, HCT, Zayed University and Abu Dhabi University (Cateora & Ghauri 85). The airlines personnel are taken through comprehensive classroom lessons and then attached to different departments to obtain the necessary experience. Globalization increases the market share of the airline while Emiratisation strategy encourages recruitment of highly qualified and professional workers that bring managerial strength to the airline.
The corporate culture of the Emirates airlines has adopted an elaborate organizational strategy in response to the challenges it has faced in the aviation industry. The business model used by the airline is based on giving the airline flexibility and support to the competitive business environment. This has been achieved through research on the management operations issues. Through the market and product research, the airline has comfortably been able to handle problems associated with the external environment. Due to its strong organization strategies, the airline success has won several awards for the airline. These awards provide strength for the company because it is an international award given in recognition of quality services. An example of the award won by the airline is the World Airline Entertainment Association Award.
The corporate culture at the airline has also allowed for comprehensive incorporation of technology in the customer care department. The in-flight entertainment system is an example of technology inclusion to the comfort of the customers. This is aimed at making the customers feel comfortable during the flights. Another technology inclusion is the use of customer emails in communications. Any problem can be channeled through the email where an immediate response is given for any question asked. In 2005, it introduced the Digital Widescreen system that distinguished and branded the airline as a unique airline in the world to gain competitive advantage (Ghauri 203). In addition, after giving high quality services, the airline has developed a social corporate responsibility strategy to ensure that it works within the requirements of the employee unions.
The corporate culture of an organization is an important factor in international business. This can be achieved through research and development to spur innovations. The aviation industry is not static and it requires constant improvement to the products and services. As such, the corporate culture at Emirates airlines has been effective in promoting innovations in its products and services. Therefore, it is more likely to perform well in international business than Etihad airlines. This is due to the fact that, the corporate culture at Etihad airways has failed to promote an innovative culture h would diversify its products to cater for all market segments that is a requirement of the aviation industry.
Cateora, Philip & Ghauri, Pervez. International Marketing. Berkshire, England: McGraw-Hill Press, 2005. Print.
Ghauri, Pervez. A framework for international business negotiations. Oxford, UK: Elsevier, 2003. Print.