- In relation to the four characteristics of successful strategies in Figure 1.1 (textbook p.9), assess the strategy of your selected company.
- Review the figure 3.2 (textbook. p. 65) relative to Porter’s Five forces of competition framework, assess the power of the buyers, suppliers and substitutes of your selected company. How formidable are the barriers to entry and how intense is the rivalry among existing firms? Is the industry of your chosen company attractive? Justify.
- What strategies can companies adopt to reduce competitive pressure and improve industry profitability?Which strategies might work for your company? Justify.
- Review the figure 3.6 (textbook p. 78) and the text relative to the identification of Key Success Factors (KSFs) and answer the following questions:
- What are the KSFs of your company?
- How do customers choose between rival offerings?
- Have your companies KSFs changed over time? Explain.
Answer preview
On competitive rivalry, many airlines are competing with Emirates for local and global markets. The global competitors include British Airways, Qatar Airways, and Air France, among others while the local competitors include Etihad, Qatar Airways and Saudi Arabian airways. The competitive rivalry is high for Emirates Airlines. The number of suppliers determines supplier power in the airline industry. Presently, Boeing and Airbus are the leading companies that supply airplanes in the world. The low number of suppliers and a high number of buyers has led to high supplier power. On buyer power, customers often have little bargaining over price. Customers can decide to use airlines that charge less fare than Emirates, but they might have to contend with poor services. Emirates Airlines has distinguished itself as a company that offers customers value for their money. Therefore, customers will use the airline even when the price is high hence low buyer power.
[843 Words]
