Network Performance and Competitive Impact

Question: Discuss about the Network Performance and Competitive Impact. Answer: Introduction In the 21st century, airlines industry has seen some impressive and most dynamic change in the sector. Emirates airlines are using some strategies that will increase the overall competitive edge in the marketplace. This is why, the corporate-based strategy and the management of the business will define the procedure of directing as well as leading the operations within the organization by optimizing the present resources in an extensive manner to attain the objectives (Borenstein and Rose, 2014). Considering some factors, it includes: The economic factors include the rate of inflation as well as the exchange rates which are related to the use of fiscal policy as well. The operational limits with the economy is to make sure that there are areas to handle the double digit economy. Emirates have been able to manage with the beliefs and the lifestyles of the passengers who tend to embrace the services. For this, the airlines have tried to make customer friendly equipment for all the disabled people like wheelchairs. There are other provisions for the customers which include the baby trolleys which are for the easy movement of those with the children. For the airlines, there are different policies and programs that has been inhibited by Emirates. They are able to extend the opportunities with creative thinking and problem solving in the organization. The technology is based on handling the advancement with assured safety, convenience of the air transport. Emirates also provide with the entertainment with proper information of what is happening in the world, with free Wi-Fi. It includes the forms where the sustainability is set with democracy. One of the example is September 11 attack in US that led to a decrease in the revenue for the airlines. Emirates still tried to work in a better manner. The political and the legal challenges led to the suspension of the flights in Iraq with the other forms of the conflicts. Economic concepts and models As per the plans of Emirates, it has been unveiled that there will be a construction of the Overhaul shop in Australia. The cost advantages are important for the sizing effects. Hence, for the greater volume, there are greater advantages. This includes the short term positive impact on with the addition to the value. (Banerjee et al., 2013). The qualitative factor is mainly related to the decrease in the cost, which lead to the increase in the entity profits. Emirates is able to handle the services, customer satisfaction which includes the experience with the airlines. As per the survey, it was seen that the Emirates was the strongest airlines and is the benchmarking tool when compared to the Delta and American Airlines. Emirates is cost efficient with the Cost per Available Seat Kilometer. The above graph shows that trading is important for UAE economy with the proper hold on the long productive efficient that is the lowest point on LRAC (Long Run Total Cost Curve). For Emirates, there have been foreign investors who tend to focus on majority stakes in the company mainly out of the free zone area. The financial sector also include the different services for the airlines. As per the analysis, Emirates may charge differently from the different travelers depending upon the demand. The charging of the higher fares for the will have more inelastic demand and the lower prices will have more of elastic demand. With this, there is a price discrimination that is contingent of the airline that has a market power. (O'Connell et al., 2016). In Australia, the largely operated body works on the operations of the duopoly of the airlines to maximize the yields. The blue box represent the profit from the business travelers and the black box represent the sales of the ticket from the other travelers. The discrimination in the pricing in Emirates include the different prices for the different category of the passengers like the students, couples etc., as shown in the diagram. Demand and Supply The demand for the air transport includes the employment potency. Here, the functions are based on the air transport with proper economic activities. It includes the supplies of the air transport, as a consequence, of the current GFC (Global Financial Crisis) for both the demand and support. It has resulted in the huge job cut in the industry except in the Emirates Airlines. Emirates has been working on the Gross Domestic production interest rate and the producer per index so that it can build a proper network to the different destinations. With the change in the equilibrium pricing, there is a change in the price of the airline tickets as well as the quantity. In summer, the demand for the airlines tend to increase and so it shifts to the right for the Emirate airlines. Global challenges faced of Emirates Airlines Globalization has been important but a major drawback for the airline industry. It sets the relation between the government as well as the private sector. The crisis in the major economy of USA has passed to different airlines with a major impact on the business cycle. The revenues of the company have declined slightly with passing the time. The company is one of the important parts of the Emirate Group which also consist of Data services. Some group profits were around $364 million for around six month which means there is around sixty-four percent fall and rise in revenues are just one percent. The main reason behind this fall is claimed to be the influence of dollar and the issues in operating culture for the further slump in profits levels (O'Connell and Bueno, 2016). Conclusion Emirates airlines are facing a hard time in the current environment, and for them, Dubai was a secure market however it is nor covered with many unstable situations with war and low oil prices around. The company will have to recognize the gap and offer what other are not offering along with expansion plans in other parts of the world by accurately analyzing the market (Logothetis and Miyoshi, 2016). Emirates can focus on the improving the customer needs as well as tailoring their services to bring down the risks and improving the cushioning effect from the competitors. In comparison to the other airlines, Emirates could also focus on the assessing the politics with liberalized economic laws. One of the best infrastructure in the world with the lowest tax business model, Emirates, has been able to overcome the risks with balancing the airlines, and improving the traffic generation for ticket booking. Reference Belobaba, P., Odoni, A. and Barnhart, C., 2015.The global airline industry. John Wiley Sons. Borenstein, S. and Rose, N.L., 2014. How airline markets work or do they? Regulatory reform in the airline industry. InEconomic Regulation and Its Reform: What Have We Learned?(pp. 63-135). University of Chicago Press. Dai, M., Liu, Q. and Serfes, K., 2014. Is the effect of competition on price dispersion nonmonotonic? evidence from the us airline industry.Review of Economics and Statistics,96(1), pp.161-170. Li, J., Granados, N. and Netessine, S., 2014. Are consumers strategic? Structural estimation from the air-travel industry.Management Science,60(9), pp.2114-2137. Beik, N. and Galbraith, J., 2016. 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