However, the staff is likely to oppose the cost-cutting measures (lean workforce) contained in the strategic action 1. Second aspect is that how the particular airline is going to satisfy or dissatisfy with the available services with respect to each of the priority important needs and wants. *You can also browse our support articles here >. These forces include the customers of the company, company itself, its competitors, the market intermediaries and many other stakeholders (Global Marketing Environmental Factors Affecting Marketing Strategy, 2013). Emirates local competitors include RAK Airways and Etihad Airways. Emirates airline embarks on 'modest restructuring' as growth slows In addition to the AED 14.5 billion financing that was raised for aircraft and general corporate purposes in 2020-21, Emirates has already received committed offers to finance two aircraft deliveries due in 2021-22 and continues to tap the financial market for further liquidity to provide a cushion for the potential impact of COVID-19 on the business cash flows in the near term. There is a good chance the Dubai government will accept the strategies that enhance the government-owned carrier. Accept cookies to experience the full functionality of this page. !-Keith GrencherBirmingham Business School. 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. With two aircrafts in 1985, Emirates airline owns 265 aircrafts and serves 80 countries globally. Press Esc to cancel. The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. Emirates Airline is renowned for its superior in-flight services globally. 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 dramatic revenue decline was due to the COVID . 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. Therefore, the section in detail analysis the potential customer of this airline and the different factors that affect their purchase decisions. Emirates Airlines, founded in 1985, is the largest airline in the Middle East, based in Dubai, United Arab Emirates (UAE). Emirates Airlines SWOT & PESTLE Analysis | SWOT & PESTLE To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! To investigate the Emirates airline's advertisement and marketing methods and strategies that enable it to gain competitive advantages. International airport operations continue to represent the largest business segment in dnata by revenue contribution. Airlines can utilize travel agencies, advertisements and the internet to promote their brand. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. Airlines and Stakeholders: A First Class Relationship Slack, N, Chambers, S & Johnston, R 2004, Operations Management, Prentice Hall, New York. It enables the airlines to present its brand in through the most effective channels. 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. 2. Moreover, another pricing strategy that Emirate airline is following is the premium pricing strategy (Emirates flight pricing & sales strategy, 2014). Role Of Stakeholders In Aviation - 963 Words - Internet Public Library While, Etihad Airways is the second brand in term of quality, good will and other mentioned factors in the mind of people. Environmental, Social, and Governance (ESG) Analysis Report. Another entry barrier is brand equity, whereby established carriers boast of a strong presence and brand value. 15, no. Emirates airline reported a 34% growth in revenue in 2015 ($1.5bn) (Research and Markets 2013). The airline started its operations in 2003 and from that time till today the organization has shown exceptional growth in term of providing quality to the passengers who travel through this airline. Diversification is referred as offering new services to new market. Emirates SkyCargo quickly scaled up operations and rebuilt its cargo network to meet strong demand from shippers who faced a capacity crunch when the pandemic forced airlines to drastically reduce flights. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. Culture is defined as totally learned behavior that contain shared values believe, norms, customs and rituals of particular region. Moreover, we have to look which need is least and which one is of most importance. In addition, it uses product differentiation and geographical diversification (strategic option 3) to compete. Subsidiaries, Partnerships and Collaborations Report. Positioning is referred as creating the image of your product in the mind of that divided potential market. This report on Emirates Airlines Strategic Choices and Decisions was written and submitted by your fellow Keep it up! Emirates Airlines' Internal and External Factors Case Study Labour force, which comprises engineers and pilots, tends to be unionized. 2021. [online] Available at: https://www.swotandpestle.com/emirates/ [Accessed 01 May, 2023]. Three type of passengers toward whom they tailored their marketing and positioning strategy are business people, families, and transit passengers. In particular, the rise in the competitive rivalry in the low-cost segment, rising fuel costs, and expansion into the Asian market present a threat to the Emirates competitive position. Emirates Airline is a national carrier; therefore, it enjoys the government support (monarchy). Emirates average fleet age remains at a youthful 7.3 years. The level of these stakeholders' impact on the strategic progress of Emirates is different. The PESTLE analysis for Emirates Airlines is given below: We do not share your information with anyone. In airline industry the competition is increasing day by day as the competitors are trying to provide more quality services then each other. Moreover, there brand is better in term of quality, packaging and other factors to score higher these from customers. The firms A380 fleet is the largest in the industry globally (Lohman et al. In 2020-21, dnata executed the USs first green turnaround of a customer aircraft at New York JFK, an achievement made possible by its previous investments in zero-emission, electric ramp ground support equipment. It also pressed ahead with key investments to strengthen the business including the opening of a new state-of-the-art cargo facility in Manchester; upgrades to technology across its leisure and corporate travel businesses; the setting up of a dedicated inflight retail centre of excellence in the UK to serve global customers; and the opening of its second catering facility in Dublin. Web. However, the threat of new entry is low because of the high capital/resource requirements and brand equity enjoyed by established carriers (Sheffi 2006). 391-398. These helped us sustain operations and retain the vast majority of our talent pool. Our business model | Financial transparency | About us | Emirates - Global The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a loss of AED 1.8 billion (US$ 496 million) for the first time. 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). In very short time span the company has establish it some a major competitor of other airlines. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. As for as, their employees are concerned, for them employees are their key assets and they provide many benefits to the employees including the old age benefits, fringe benefits, bonuses and many other benefits. Dedicated to your worth and value as a human being! The analysis will cover the suitability, acceptability, and feasibility (SAF) of these strategies. Factors such as our income, occupation, our life style which include daily basic activates, interests, as well as opinions. MarketLine 2014, Company Profile: Emirates. Right after its pre-lunch in 1997 Qatar Airline has awarded with many prestigious awards (Ceos message | Qatar Airways, 2014). "Emirates Airlines' Strategic Choices and Decisions." in case of Emirates Airline as it is the oldest airline of UAE and has shown the tremendous growth over the time therefore, toady its as clear cut competitive advantage over it competitors. Moreover, positioning referred as factors on which companies differentiate their brand from their competitors. Internal and External Stakeholder Analysis - Peachy Essay Emirates Airlines: Tough Business Conditions - LinkedIn The airline in 1985 e started its operations, when in mid-1980s the Gulf Air cutback to Dubai. The airline operates a fleet of wide-body aircraft, predominantly Airbus A380s, and Boeing 777s, offering both passenger and cargo services. 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). Basically, the customer analysis is the way of gathering data from customer to known about their purchase decision. Over the time they have built strong relationship with their customers. In Singapore and Australia, it introduced new high-tech cool dollies to enhance its pharma and perishables handling capability; in Italy its subsidiary, Airport Handling SpA, partnered with Beta Trans to provide full cargo services to customers at Milan Malpensa Airport; and in Indonesia, dnata entered the market through a partnership with PT UNEX Rajawali Indonesia (UNEX) where both entities will make joint investments in ground handling facilities, equipment, and training. Grow your business. The airline operates more than 3400 flights per week. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. Their cargo service provide on time delivery to its customers. Sheffi, Y 2006, The Resilient Enterprise: Overcoming vulnerability for competitive advantage, Pearson Education, New Jersey. The Emirates story started in 1985 when we launched operations with just two aircraft. In addition, the switching costs between airlines are low. Web. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. We inspire travelers around the world with our growing network of worldwide destinations, industry leading inflight entertainment, regionally inspired cuisine, and world-class service. In recent years, the airline has attracted traffic from the S. Asian market to N. America, enabling travelers to avoid passing through EU airports such as Heathrow and Frankfurt (Lohman et al. From tan till now the airline has shown tremendous growth. To lower the operational costs through a lean workforce and maintaining low overhead costs. Grant, R 2002, Contemporary Strategy Analysis, Concepts, Techniques, Applications, Blackwell publishers, London. Other people:Business people, families, professional and other people from all over the world. In recent times major airlines such as British Airways has been plagued by downtime in their passenger support systems due to failure of IT infrastructure causing cancellations of flights and passenger inconvenience. utilization of large carriers, such as Airbus A340, with a considerable carrying capacity (Lohman et al. It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. No plagiarism, guaranteed! The Emirates Group is a highly profitable business with revenue of approximately US$ 12 billion and more than 40,000 employees. Emirates Group Announces 2020-21 Results Emirates SWOT Analysis, Competitors & USP | MBA Skool 2011). One of the things customers value the most is receiving accurate information andomni-channel strategies ensure that proper communication is maintained at all times. It also continued to invest resources towards environmental initiatives, as well as supporting communities and incubator programmes that nurture talent and innovation to drive future industry growth. 23 July. Emirates Group announces half-year performance for 2020-21 (2021, July 23). From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. In addition, many airlines depend on two suppliers for maintenance parts and services.