Was founded in 2003 by Khalifa Bin Zayed Al Nahyan & Ahmed Bin Saif Al Nahyan (Oxford Business Group 2016)
It is the second largest airline in UAE according to Jack (2008)
Operates more than 1000 flights per week (oxford Business Group 2016)
Handles more than 120 passenger and cargo destinations in Africa, Asia, Europe, & America(Jack 2008)
Head office situated at Khalifa City UAE
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2. Was founded in 2003 by Khalifa Bin Zayed Al Nahyan &
Ahmed Bin Saif Al Nahyan (Oxford Business Group 2016)
It is the second largest airline in UAE according to Jack (2008)
Operates more than 1000 flights per week (oxford Business
Group 2016)
Handles more than 120 passenger and cargo destinations in
Africa, Asia, Europe, & America(Jack 2008)
Head office situated at Khalifa City UAE
3. International marketing Local marketing
• Involves the promotion, advertisement
and distribution of goods and services
outside the geographical boundaries of
the country within which the
organization is situated
• Involves promotion, advertisement and
distribution of goods and services inside
the geographical boundaries of the
country within which the organization
is situated
• Involves More legal and regulatory
compliance hence leading to more
government influence
• less legal and regulatory compliance
hence tend to have less government
influence
• More expensive since the operational
modalities in foreign countries may
involve more expenses coupled with the
currency fluctuations in the foreign
exchange
• Involves more challenges and risks due
• Less expensive as the organization only
deals with expenses within the locals
with no effect of currency foreign
exchange fluctuations
• Is less risky and may encounter
4. Results into an increase in sales revenue (Ritcher 2012)
Exposes the organization to global networking(Lages et al.,
2013)
Enables the organization expand its Market (Ritcher 2012)
Leads to greater brand reputation (Lages et al., 2013)
5. Local marketing involves lesser financial investment than
global marketing hence the organization can still make
tremendous marketing milestones by spending lesser cash
Local marketing is relatively easier due to the fact that there
are fewer legal and operational logistics involved as
compared to global marketing
The socio-cultural uniformity within local markets enables
easier product development and pricing procedures there by
making it conducive and cost effective to develop and sell
products locally
6. Products- should be superior high quality products than
competitors (Czinkota & Coskun 2007)
Prices-should be competitive and affordable to target market
(Risko & Wiwczaroski 2014)
Place- marketing message must adequately reach the
intended target market
Promotion- messaging must be customized to target market
7. Understand the need of the target market.
Acquire historical data on consumer behavior and economic
performance of target market
Understand and abide by the rules and regulations of
international market
8. Global competition Local competition
The organization may experience a more
competitively dynamic environment in the
foreign markets characterized by high level
market entry barriers and unfamiliar
litigations from existing rivals (Jack 2008).
The organization is likely not to receive
major unfamiliar entry barriers due to
some level of experience and
understanding the managers may have
had in the market (jack 2008).
According to Srinivasan (2011), there is
likely to be a fight for market share and
market leadership control which might
cause turmoil for the management in its
effort to expand their market boundaries in
international markets.
Srinivasan (2011) notes that market control
rivalry is likely to be experienced as a
result of the organization’s familiarity with
the market dynamics and kind of
customers to target without sparking any
significant rivalry with other market
players.
According to Mueller (2011), organizations
entering new global markets may
experience competition with regards to the
levels of product differentiation the
existing market players may have already
established in the target country.
It is easier to identify any new product
differentiation moves taken by the rivals
and counter that as appropriate (Mueller
2011).
9. Managers should establish good teams to help implement
international marketing strategy
Financial resources should be availed on time during the
marketing campaign
Focus on organization’s strength e.g. brand name to promote
products and services in new international markets
10. Czinkota, M. R., & Coskun, A. (2007). The remarkable performance of
international marketing in the second half of the twentieth century. European
Business Review, 19(4), 316-331.
doi:http://dx.doi.org/10.1108/09555340710760143.
Jack W. (2008). Plunkett's Transportation, Supply Chain & Logistics Industry
Almanac 2008: The Only Comprehensive Guide To The Business Of
Transportation, Supply Chain, Logistics Management. Plunkett Research Ltd.
Lages, L. F., Mata, J., & Griffith, D. A. (2013). Change in international
market strategy as a reaction to performance decline. Journal of Business
Research, 66(12), 2600. Retrieved from
https://search.proquest.com/docview/1434430945?accountid=17234.
Mueller, B. (2011). Dynamics of international advertising: Theoretical and
practical perspectives. New York: Peter Lang.
11. Oxford Business Group,. (2016). The report: Economy, energy, trade &
investment, industry, real estate, education, banking, transport, tourism &
culture, IFS, sports, interviews. London: Oxford Business Group.
Richter, T. (2012). International marketing mix management: Theoretical
framework, contingency factors and empirical findings from world-markets.
Berlin: Logos.
Srinivasan, R. (2011). International marketing. New Delhi: PHI Learning
Risko, T., & Wiwczaroski, T. (2014). From domestic marketing through
international marketing to intercultural marketing. Economic
Affairs, 59(3), 439-447. Retrieved from
https://search.proquest.com/docview/1629702308?accountid=17234.
Srinivasan, R. (2011). International marketing. New Delhi: PHI Learning.
12. Contact us now
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Editor's Notes
According to Oxford Business Group (2016) Etihad Airways is the second largest Airline in United Arab Emirates after Fly Emirates with its headquarters in Abu Dhabi International Airport where all its operations are coordinated. The airline also operates in an alliance with other airlines which it owns part of their shares. The airlines include: Air Serbia, Air Seychelles, Air Berlin, Alitalia, Darwin Airline, Jet Airways and Virgin Australia. According to Oxford Business Group (2016),the operations within alliances is usually meant to increase revenues complementing those earned from the Airline’s mainstream operations. The company has a slogan of “From Abu Dhabi to the world” and is currently in possession of a 13 fleets and operates within 90 destinations world wide (Jack 2008). Writings by Oxford Business Group (2016) also reveal that Etihad’s current management team consists of H.E Mohammed Mubarak Al Mazrouei as its chairman and Peter Baumgartner as the Chief Executive Officer.
According to Mueller (2011), there exists great differences between global and international marketing especially in terms of the amount of resources required to initiate both and the kind of legal and regulatory requirements to be abided by in case any of the marketing approaches have to be applied. For instance, global marketing will require organizations to comply with the legal requirements of the authorities in the respective countries they choose to market in. By effect, the organizations will experience more influence from the governments, a situation which may not be conducive for business. Srinivasan (2011) also remarks that international marketing may be expensive due to other factors like foreign currency exchange rate fluctuations and price differences.
According to Ritcher (2012), companies that go global with their marketing activities achieve a lot of benefits ranging from an increase in sales revenue to as a result of market diversification and increase in customer base to exposure to global networks where they meet new business partners and venture into new business opportunities emerging within the foreign countries. Lages et al., (2013) also remarks that the expansion of a company’s market caused by global marketing results into a greater brand reputation as s result of the perception that a globally consumed product or service is one of high quality and trustworthy. As such, Companies like Etihad Airways truly stands a chance of great benefits if incase they would want to delve into new international markets.
According to Czinkota & Coskun (2007), organizations only conducting local marketing operations often achieve more revenue at reduced costs as compared to those Practising global marketing which requires more financial investment. Likewise, pundits are of the opinion that local marketing is more popular among organizations as compared to international marketing because engaging in local markets exposes the organization to more government scrutiny. Lages et al., (2013) also cites the availability of uniform socio-cultural environment as a factor which favors the application of local marketing practices in business.
According Czinkota & Coskun (2007), organizations implementing global marketing strategies should ensure that their products and services are of high quality enough to compete with those already existing in the respective international markets. Similarly, the services should be offered in competitive prices to avoid buyer apathy besides tailoring the marketing message to suite the kind of market audience they are seeking to capture (Risko & Wiwczaroski 2014) .
According to Mueller (2011), organizations such as Etihad should consider understanding the current customer needs and market gaps existing in the target country to enable the development of specific strategies to meet the needs. For example, if Etihad would want to establish another regional hub in the United Kingdom, it would be wise to conduct a market research to understand the customer needs which the other potential competitors such as Virgin Airways are not satisfying and working hard to meet such needs. According to Jack (2008), the same approach is used by big companies like Coca Cola to work out their market incase they are venturing into new international markets. It is also imperative to have a qualified legal team for the purpose of understanding the legal affairs of the entire marketing procedures to avoid being on the wrong side of the law while rolling out an international marketing plan. Finally, Srinivasau (2011) asserts that understanding the historical consumer behavior of a target market and the general economic performance of the country in target is an important approach in ensuring that the move is succesfull. As such, managers should engage in more research and fact finding missions of the markets they aim to target as early as possible.
Approaches to Competition
According to (jack 2008), the likelihood of the organization to encounter a more dynamic market competition means that the managers of the organization should enter the market after an elaborate market research and with appropriate plans to counter any possible entry barriers posed by the competitors. similarly,, Srinivasan (2011) advices that the managers should not expect to gain market control immediately but should work harder to gain larger market share that could eventually lead to market leadership. Likewise, organizations should strategize on how to come up with different product differentiation techniques after gaining more foot on the international market to counter any product differentiation initiatives carried out by the competitors
In conclusion, Lages et al (2013) notes that a good team of management is important in ensuring that the laid out strategies for international marketing campaigns are implemented in the most appropriate and successful manner. As such, it is important for Etihad to sufficiently vet and compensate the team intended to be sent to the foreign market to lay the foundations of a prosperous business abroad. Similarly, Jack (2008) warns that if adequate resources are not availed on time, the operations may be stalled and subsequently fail. As such, all the necessary financial resources must be well organized and well coordinated to ensure the success of the foreign marketing campaign.