Select an Emarati company ( Emirates Airline ). It could for example be:
an Emarati owned / managed company / organization in the UAE, or
an Emarati operation / subsidiary of an international company / organization in the UAE.
The CEO of your company / organization has just attended a Corporate Entrepreneurship seminar at HBMSU and came across an article by Kanter (1985) who describes three major objectives in relation to entrepreneurial innovation strategy:
#1 - Making sure that current system, structures, and practices do not present insurmountable roadblocks to the flexibility and fast action needed for innovation,
#2 - Providing the incentives and tools for entrepreneurial projects; and
#3 - Seeking synergies across business areas, so that new opportunities are discovered in new combinations.
The CEO is enthusiastic to achieve these objectives for his company. He has hired your team of 5 as consultants to create a sustainable entrepreneurial strategy for the next 3 years to enable his company to fulfil the aforementioned objectives. You have one month to carry out the analysis and prepare and submit a report based on your findings to the CEO.
Introduction and background of the company
Emirates airlines is a Dubai based airlines in the United Arab Emirates. It is a subsidiary of the world renowned Emirates Group which 100% is owned by the investment corporation of Dubai which is a vehicle of investment of Dubai government. With over 3600 flights per week it makes it the largest airline in the Middle East and operates from its Dubai International Airport hub. It operates across six continents to more than 140 cities across the world. Sky cargo is the emirates airline subsidiary that undertakes the cargo services (Drucker, 2014).
It is the fourth largest airline in the world in revenue per kilometer covered and international passengers that it has carried. It is also the second largest airline in terms of tone per kilometer covered. Its history dates back to its inception in the year 1985 by the royal family of Dubai and a lease of 2 aircrafts from Pakistani international airline. It was a wet-lease. A start up of $ 10 million was required in order to operate independently as a subsidiary of the government. Its chairman was Ahmed Bin Saeed Al Maktoun and also acted as the founder. It moved its operations in Dubai I international Airport in 2008, twenty three years after it was founded (Khosropour, et al,2015). It operates a mixture of Boeing and Airbuses body fleet. It was reported that as of November 2017, it operated the worlds largest Airbus fleet in the world with 103 airbuses under its wings. It is also the worlds largest boieng 777 dreamliner operator in the world and operates around 152 aircrafts of that.
Airlines s have the greatest susceptibility to innovation. They are specialized in meeting the specific needs of consumers and have the ability to adapt flexibly depending on the nature and pace of development of industrial production. In a market situation, the introduction of new products acts as a reliable means of providing advantages over competitors, establishing favorable prices and changing market share in their favor (Lan, et al, 2017).
In the course of the course work, such concepts as innovation, innovation, the innovation process, innovation goals and innovation potential were considered in theory and are applicable to UAE Airlines. The following tasks were set and achieved:
- Presentation of the characteristics of the airline "UAE Airlines"
- Assessment of the innovative capacity of the organization
- Analysis of innovative goals
The concept of company behavior, Innovation strategy (Innovation strategy), the development of which is based on new technologies and the production of new products, and will be a strategy of innovation. S. According to the western classification, firms are divided into so-called: Scouts (those who lead in technology, market development and commercialization, even under the circumstances that a single product does not bring profit), Analysts (apologists for Scouts). They are distinguished by a pragmatic approach to business: the production is set in such a way that, in a short time, to launch the release of “imitation” of a fresh novelty developed by the Scouts, quickly put it into circulation and begin to make a profit. At the same time, they allow developers to continue to explore their new product type).The third type is the Defenders. These are those who, launching a new product on the market, are preparing by any means and up to the end to defend their right to it (Malecki, and Spigel, 2017).
Entrenueral health Audit
In place of some forms and methods of economic management come others. There are processes of privatization, corporatization, the development of new organizational forms of management and financial activities, the securities market, the capital and innovation market, the labor market, etc. That is why it is necessary to determine the strategy of modern UAE enterprises as a complete long-term plan, in which globally Ballroom perspective goals and fundamentally determined decisions cannot be achieved on the basis of experience. To develop such plans, there is neither experience nor opportunity.
What can today be called a strategy in enterprises most often has the form of a practice in conjunction with short- and medium-term planning. This law solves several problems. First of all, the law introduces such important concepts as “innovation activity” and “state innovation policy” into the regulatory turnover. In addition, the law defined the basis for the formation of state innovation policy and the main ways of implementing state support for innovation activity. The adopted federal law is aimed at regulating state support for innovation, as stated in the law: “in science, technology and production and technology areas.”
At the stage of strategic organization, all resources and intra-company relations, all goals, objectives and areas of responsibility of employees are fully aligned with the chosen strategy. Here, the necessary organizational changes are carried out in the company and the policies of each of its structural divisions are developed. It is becoming increasingly difficult for airlines to stand alone in this struggle and find their niche in the long-divided global market. To survive, airlines increasingly resort to cooperation in the form of marketing and strategic alliances (more recently, strategic alliances are often called global) and other types of partnerships due to the large number of participants from different countries.
The company currently lies as the best airline in UEA. It is also the fourt biggest airline in the world with over 140 destination in various cities around the world. With over 3600 flights per week it makes it the largest airline in the Middle East and operates from its Dubai International Airport hub. It operates across six continents to more than 140 cities across the world. In the entreprenueral grid, the company is ranked among the best to invest in in public market listings.
Civil aviation of the UAE Federation, as well as aviation of any other country, is actively involved in this process. In recent decades, the problems of civil aviation in UAE have acquired particular relevance and are being discussed at all levels of government. The issue of the competitiveness of UAE airlines from year to year remains one of the most pressing on the agenda of the industry and the domestic economy as a whole.
The implementation of corporate entrepreneurship is an ever increasing important activity for both the private and public organizations. CEAI is an instrument that measure internal organizational factors effectiveness , climate and influence innovative activities and behaviors. The internal organizational factors include;
- Top management support and the willingness of the airline to promote entreperenural behavior
- Work discretion and ability of top management to provide managers decision making latitude
- Rewards reinforcement and encouraging pursuit of challenging work
- Time availability and the evaluation of workloads for gropus and individuals.
This includes security, fleet, qualified personnel, high level of service, and consistent state activity in the implementation of industry policy. All these tasks are much easier to accomplish if there is a more experienced partner nearby who can prompt and always support. Consolidation is the first condition for increasing competitiveness.
Consideration of basic concepts in innovation
Emirates Airlines has the best products and services. Its first class, business class and economy class are also rated as one of the best by business travel magazines and travel blogs. Due to competition in the industry, the company has done its increased their level of services and the corporate status as the best airline not only in middle east but aslo in the world.
Currently, in the period of international globalization, airlines interested in the success of their business, maximizing profits and increasing competitiveness, are increasingly joining international strategic alliances (IAS). No exception and UAE airlines.
The UAE airline services is anchored on great processes and ability to innovate. The services are great while the processes to acquiring the services offered by the airline are also great in making great services. There are ecommerce processes for e commerce services among others (Naqshbandi, and Kamel, 2017). The urgency of this problem was the reason for choosing this topic for its detailed study.
The purpose of the work is to analyze the prospects for the membership of UAE airlines in international strategic alliances.
- To accomplish this goal, a number of tasks were set:
- Examine existing international strategic airline alliances (UIA)
- dentify the positive and negative aspects of membership in the ISA
- Consider airline requirements for joining various international strategic alliances (UIA)
- Analyze the problems faced by the airline of the UAE when joining the ISA
SkyTeam members today make more than 13,000 flights to 856 destinations in 169 countries of the world. Alliance members carry more than 384 million passengers using the fleet of 1941 own aircraft (+1 199 aircraft of partner carriers).
The study showed that the strategic alliances of airlines are expanding. This is evidenced by the fact that already today every alliance is considering new candidates for membership. Thus, we can conclude that in the near future alliances will continue to actively develop and expand the geography of their flights.
But along with the obvious advantages of air alliance, there are some of their drawbacks. The most significant of these is the possibility of reducing free competition in the market. For example, an alliance may monopolize any air transport hub, which is why the entry of a new competitor into the market, which could influence the pricing, is minimized (Naqshbandi, et al, 2015).
First, this is the technological lag of the air transport of the UAE Federation. The rate of renewal of the aircraft fleet is low. The average age of the domestic airline fleet is 30 years, as a result, the outdated technology does not comply with modern flight safety standards and environmental standards. An important contribution to maintaining a high level of operational reliability is for airlines to undergo an audit and obtain a certificate of IOSA international standard of operational safety (Wensveen, 2018).
Thirdly, in the UAE Federation there is an acute problem of imperfections in the legal framework of civil aviation, most laws are outdated, and some aspects are not covered at all (for example, (Yun,et al,2018).
Fourthly, the problem of underfunding of programs and projects devoted to the development of ground infrastructure is acute (the number of airfields is rapidly decreasing from 1,000 in the Dubai to 300 today); such areas as information technology (e-tickets) are also underfunded. It is also necessary to create converter systems for frequent flyer programs (Wong, and Brooks, 2015).
Assessment of the existing dominant logic (cognitive and behavioral)
Fifth, it is necessary to develop the route network, both inside and outside the country. In this case, the ISA will be more interested in accepting UAE airlines to their ranks.
Given the relatively large number of valuable offers of the company, it is already difficult to come up with something new. But, nevertheless, there is something to add. For example, the development of tours for individual applications of consumers. The client can leave wishes on the site, where he would like to go and for what amount, and the company, on the basis of this, develops a tour. On the one hand, the proposal is not feasible, because everyone will want to go in the popular direction most profitable for themselves. But on the other hand, the company will offer a flight with several transfers in the off season. Thus, everyone will be satisfied: and the client will get what he wants, and the company will sell a possibly “unpopular” tour.
Carrying out promotions at airports. Often, people have a lot of free time before departure, especially if they are flights with transfers, so you can arrange entertainment for them, such as a win-win lottery with inexpensive prizes (for example, souvenirs with a company logo), choosing a “happy ticket” computer sampling) and also presenting a gift (Zhou, et al, 2016). That is, promotions designed to reduce waiting times at airports and impress in the eyes of customer.
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Khosropour, H., Feizi, K., Tabaeean, K. and Taheri, Z., 2015. The effect of open innovation on technology intelligence in aviation industry of Iran. Science, Technology and Society, 20(1), pp.89-113.
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