Etihad is obviously pursuing a growth strategy, as it is heavily investing in the fleet and infrastructure at airports. This is in line with their vision of becoming one of the leading international airlines and providing customers with high quality service. They are also pursuing a low cost strategy by providing similar or lower rates than competing airlines. This will confirm that they do not lose any market share due to price. According to the Ansoff Matrix, they are following a market development strategy by focusing on the same product and developing new markets, such as the flights from Abu Dhabi to Brussels and Dublin.
They are also following a market penetration strategy as they are entering into existing markets with the same product with competitive prices. Recommendations Etihad is a new company with a promising future ahead of it. It needs to build on its current base and then consolidate its position. It should not grow beyond the point that it cannot control. Bearing in mind the current global financial scenario, it needs to slow down and focus on specialization. It also needs to partner with key suppliers such as Boeing and Airbus to gain competitive advantage.
Also important is to press home the inherited advantage that it is indeed the national carrier. This point needs to be emphasized time and again so it is deeply entrenched in the minds of the UAE based traveler. This will help tremendously in building brand loyalty. Etihad needs to find more market niches so that it can expand in those markets and gain the first movers advantage. This can be done through extensive research. Finally, Etihad has to hire experienced people in its staff.
It should be a blend of youth and experience so that the experienced staff pass their knowledge to the youth to carry on in the future.
List of References
Anna Aero. (2008). Etihad racing to catch up with Emirates and Qatar Airways. Anna Aero Available At: http://www. anna. aero/2008/02/22/etihad-racing-to-catch-up-with-emirates-and-qatar-airways/[ accessed February 9, 2009] Etihad Airways. (2008). Our History. Etihad Airways – National Airline of the UAE: Available At: http://www. etihadairways. com/sites/Etihad/ae/en/aboutetihad/etihadstory/pages/etihadhistory. aspx [ accessed February 9, 2009]
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