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For example, ref. Based on the evaluation, the following three strategic choices were identified: Porters five forces provide a useful framework for analyzing industry structure and processes to identify the sources of competitive advantages for a firm (Porter 2008, p. 67). The aviation industry has only two aircraft manufacturers, Boeing and Airbus. So it shows that over all Emirates Airline is working better as compared to other competitors. !-Keith GrencherBirmingham Business School. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The database is updated daily, so anyone can easily find a relevant essay example. Are you looking for a report which is not covered on our website? Its key elements include product differentiation to compete in the low-cost segment (Graham et al. Managing Change at British Airways, An Introduction Miles Agbanrin 30.4K views21 slides. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. professional specifically for you? The firm has won several accolades for its quality in-flight products, including the Airline Passenger Experience Award and the British Travel Award, among others (Lohman et al. Emirates Airlines' Strategic Choices and Decisions. Interactive feedback can help tailor in-flight services to customer needs. In addition, it offers integrated in-flight catering and accommodation for travelers. The Emirates business model. Dubai based airline company is the subsidiary of Emirates Groups. * By clicking on "Buy Now" you agree to accept our ", On purchase the Emirates Airlines SWOT & PESTLE Analysis PDF report will reach you. According to 2007 report the airline is declared as the leading airline in term of revenue it generate, fleets (group of planes), and the passenger it carry, of Middle East. However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now. The threats in the SWOT Analysis of Emirates are as mentioned: 1. To enhance luxury travel through integrated passenger lounge and in-flight services. Moreover, it has also provide lot of opportunities for foreign investors. Customer training on the use of the new systems is required. 1-9. dnata leveraged its established home market presence and the re-opening of Dubai for international travel to promote the UAE, and its UAE-based tour operating division Arabian Adventures started new experiences. However, we may send you emails on our new reports and solutions. Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. Turkish Airlines based in Istanbul is also emerging as a formidable regional rival covering more than 280 destinations through its hub and spoke model. Digital Marketing and Social Media Strategy Analysis Report. Strong supply chain partnerships, e.g., with aircraft manufacturers, like Boeing, Integrated hotel & tourism services (5-star hotels), Primary user of the Dubai international airport an important stopover for travellers, High debt burden (up to 42.4bn Dirham in FY2014) that affects its expansion efforts, Risky acquisitions and diversification actions, Weak HR processes relies on low-wage labour for baggage handling, Declining liquidity level current ratio dropped by 21.8% to 0.8 in 2014, Huge market in China a fast-growing economy with tourist destinations, Market opportunities in the Travel & Tourism sector Dubai visitors, Partnerships (horizontal integration) with airlines like Jet Blue to minimize operational costs (strategic option 1), Rivalry from established national (Etihad), regional, and international carriers, Global recession trends in China and the EU. Qatar Airline is another major competitor of Emirates Airline. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. Some modules are disabled because cookies are declined. Emirates order book for 200 aircraft remains unchanged at this time. The airline has a cost reduction model that entails a lean workforce and young fleet compared to other players gives it a strong competitive profile (Jammoul 2014, p. 7). The Emirate Airline also adopt that strategy. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. . It has never gone into receivership or merged with other airliners. The analysis will cover the suitability, acceptability, and feasibility (SAF) of these strategies. Commitment to eco-efficiency through major investments and initiatives, Emirates Airlines Porter's Five Forces Analysis, Emirates Airlines Covid-19 Impact Analysis, Emirates Airlines Segmentation, Targeting and Positioning (STP) Analysis. In addition to passenger flights, Emirates SkyCargo operates dedicated freighter aircraft and manages the cargo activities of the airline. From Dubai to Houston, Los Angeles, Sans Francisco, and Dallas company operate four of the world largest no stop commercial flight. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. Please note that you agree to receive email updates from us on our new reports and solutions. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Etihad Airline is another growing airline of UAE. The Emirates Group. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.COM. Ban on carrying electronic devices to U.S bound flights, 1. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. The airline is also a member of various international airline alliances and industry associations, including the International Air Transport Association (IATA) and the Arab Air Carriers Organization (AACO). Family also have great influence on buying behavior (Perreau, 2013). accessibility__clear-input__text, Group revenue of AED 35.6 billion (US$ 9.7 billion) impacted by worldwide travel restrictions and border closures during the entire financial year, Results impacted by one-time impairment charges of AED 1.5 billion on Groups non-financial assets, Ends year with solid cash balance of AED 19.8 billion (US$ 5.4 billion), Revenue declined by 66% to AED 30.9 billion (US$ 8.4 billion), due to the temporary suspension of passenger flights at its hub in March 2020 and ongoing global travel restrictions, Airline capacity reduced to 24.8 billion ATKMs, with aircraft fleet size reduced by 11 aircraft, Revenue declined by 62% to AED 5.5 billion (US$ 1.5 billion), reflecting the pandemic impact across all business divisions in the UAE and worldwide, Expands global footprint with the full acquisition of Destination Asia, and the opening of new catering and retail facilities, For the first time in the Groups history, redundancies were implemented across all parts of the business. Moreover, the airline is economically strong and it will never turn down. dnata continued to win new contracts in 2020-21. Need a custom Report sample written from scratch by With competition increasing, airlines are finding that offering the lowest fares is no longer enough. For Promotion of their brands Emirate Airline uses of traditional marketing techniques like: They allocate a handsome amount for their advertising budget. They can impact rivalry by hiking prices or producing low-quality goods. Sheffi, Y 2006, The Resilient Enterprise: Overcoming vulnerability for competitive advantage, Pearson Education, New Jersey. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. The Groups cash balance was AED 19.8 billion (US$ 5.4 billion), down 23% from last year mainly due to weak demand caused by the various pandemic related business and travel restrictions across all of the Groups core business divisions and markets. This report on Emirates Airlines Strategic Choices and Decisions was written and submitted by your fellow Emergence of Strong Competitors in the region like Etihad, Turkish Airlines and Qatar Airways: Emergence of new airlines around the globe, has increased the competition for the airlines tremendously. The airline is a subsidiary of The Emirates Group, owned by the government of Dubais Investment Corporation of Dubai. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Skilled and committed management coupled with government support has contributed to improved performance. Grow your business. Factors on which these airlines positioned their brands, Above data clearly show that in term of quality, price, availability and promotional activities the top of the mind brand is Emirates Airline. Highly priced tickets compared to competitors, 1. Stakeholder Analysis (SA) is a methodology used to facilitate institutional and policy reform processes by accounting for and often incorporating the needs of those who have a 'stake' or an interest in the reforms under consideration. 23, no.1, pp. In October, Emirates SkyCargo set up a dedicated GDP-certified airside hub in Dubai for COVID-19 vaccines, and later it partnered with UNICEFto facilitate the rapid transport of COVID-19 vaccines to developing nations through Dubai. The acceptability of a strategic choice evaluates stakeholder expectations to determine their reactions and anticipated returns or risks (Slack, Chambers & Johnston 2004). IvyPanda. Revenue fromdnatasUAE Airport Operations, including ground and cargo handling declined to AED 1.7billion (US$ 455million). Reach thousands of academicians and corporates across the globe. In addition, the switching costs between airlines are low. The airline purchase its aircraft from the top companies in the world Air Bus and Boeing. Government support which gives it a competitive advantage in the GCC markets, Global presence (>150 destination), which helps spread external risks. Working closely with aviation stakeholders to design and implement bio-safety measures, Emirates gradually restored its passenger network and hub connectivity from mid-June 2020 as the UAE re-opened for transit travellers and later for international arrivals. This report presents a strategic analysis of Emirates Airline, a Dubai-based national carrier with operations in three segments: airline, in-flight, and all other (MarketLine 2014, para. And try to rate them on term on 1 to 5 rating in scale in term of quality by asking from people. Therefore, the airline is first choice of customer around the country and around the world. customer services and relationship activities. However, the successful implementation of these strategies will require staff training and development. The cargo division also introduced new loading protocols to safely utilise overhead bins and passenger seats to carry cargo. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. "Emirates Airlines' Strategic Choices and Decisions." In 2020-21,dnatasoperating costs decreased by 48% to AED7.4billion (US$ 2.0 billion), in line with reduced operations in its Airport Operations, Catering and Travel divisions across the world. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. Thus, supplier power is significant. Group revenue was AED 13.7 billion (US$ 3.7 billion) for the first six months of 2020-21, down 74% from AED 53.3 billion (US$ 14.5 billion) during the same period last year. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. Freight yield per Freight Tonne Kilometre (FTKM) increased strongly by 88%, due to the unique pandemic situation which led to significantly reduced cargo capacity in the market worldwide. And toady Emirates Airline also known as low cost carrier (rodrigo, 2012). Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. dnatasCatering business accountedfor AED1.0 billion (US$285 million) of dnatas revenue,significantly down by 68%. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. Our academic experts are ready and waiting to assist with any writing project you may have. Need Strategic Analysis for this company? Emirates has reported a revenue growth since its establishment. The SAF model applied to Emirates indicates that each of the three strategic options is essential in the airlines growth. Across its travel brands, dnata helped its customers rebuild traveller trust by processing refunds and rebookings, and providing the latest travel information. Copyright of Emirates Airlines SWOT and PESTLE Analysis is the property of Barakaat Consulting. Customers have a high bargaining power because ticket costs vary depending on the travel option (budget or luxury option). Web. Web. These are mentioned in their mission statements, vision statement and as well as on their web site. Currency fluctuations this year had no significant impact on airline revenue. Basically, the customer analysis is the way of gathering data from customer to known about their purchase decision. Changing Govt policies and regulations Emirates Competitors Emirates Airlines with its consecutive 22 years of profit and customer satisfaction has the mission and vision to serve customers, stakeholders and environment as well. To investigate the Emirates airline's advertisement and marketing methods and strategies that enable it to gain competitive advantages. must. The airline is the leading as well as the largest airline of not only UAE but also of Middle East. SWOT & PESTLE.com (2023). The Essay Writing ExpertsUK Essay Experts. And, as they also cargo carrier then their major aim is also provide on time delivery to its customers. The prime aim of the company as well as its employees are to deliver the unique and superior customer services. We aim to recover to our full operating capacity as quickly as possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. For the first time in the Groups history, redundancies were implemented across all parts of the business. Therefore the demand for services provided by many airlines is increasing day by day as the population of UAE is increasing. As a result, the Groups total workforce reduced by 31% to 75,145 employees, representing over160different nationalities. In terms of acceptability, the three strategic choices can be considered appropriate for the firm, but their utilization would require sound stakeholder management to reduce political risks. Labour force, which comprises engineers and pilots, tends to be unionized. IvyPanda. Area / Region: UAE, and all six continent in the world. Competition from low-cost carriers (LCC) like Jazeera Airways and Air Arabia reduces the profits of carriers that offer long-haul services, such as Emirates. You dont fill them up, you lose a lot of money. Emirates would be concerned about potential business expansion in the attractive U.S. markets and it may affect its future growth and profitability. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. However, the Emirates Airline is growing on a faster pace than its competitors. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Cuts down my effort to surf through heaps of redundant data.-Alexandra MookiMajor in Business Administration, Carnegie Mellon University, This website has an amazing support team. At the end of 2020-21, Emirates SkyCargos total freighter fleetstood unchanged at 11Boeing 777Fs. The prices are not fixed they are flexible and its due to economic condition around the world.
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