However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now. connection point between two flights. This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. Emirates Group Announces 2020-21 Results Three type of passengers toward whom they tailored their marketing and positioning strategy are business people, families, and transit passengers. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. *You can also browse our support articles here >. The threats in the SWOT Analysis of Emirates are as mentioned: 1. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.com. 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. The UAE economy's growth has been mostly fuelled by the country's oil industry, however, recent . If you want to get in touch with our media team, please mail us on: If you're a customer and you have a general question about our services or would like some help, please 1. However, the staff is likely to oppose the cost-cutting measures (lean workforce) contained in the strategic action 1. 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. Free resources to assist you with your university studies! Therefore, capital is not a problem. 28, no. Emirates Airlines' Strategic Choices and Decisions. The involvement of executive management is needed to streamline internal processes and remove administrative barriers. All Rights Reserved. Emirates is an international airline so the revenues are collected in multiple currencies - any sudden movement in the exchange rate and change in global macroeconomic conditions could lead to revenue fluctuation (Parasie, 2016). During 2020-21, dnatas Airport Operations division continued to strengthen its international reach and capability. 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. The airline is not a competitor to the major airlines but poses competition to other low cost airlines. Today the economy of the country is growing on fastest pace and the recorded economy in 2013 was 4.4 percent, which was expected to reach at 4.8 percent this year. As for as Emirate Airline is concerned the basic need of people through this airline are comfortable journey, quality services, quality food during traveling, and may other required facilities during traveling. Therefore, the threat of new entry is low. 23, no.1, pp. 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. They can impact rivalry by hiking prices or producing low-quality goods. They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. Like facilities that should be provided to disable and aged people are also cater by Emirates Airlines. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. 2021. Auckland International Airport SWOT & PESTLE Analysis, Royal Jordanian Airlines SWOT & PESTLE Analysis, Yansab (Yanbu National Petrochemical Company) SWOT & PESTLE Analysis, Sharjah Islamic Bank SWOT & PESTLE Analysis, Emirates National Oil Company (ENOC) SWOT & PESTLE Analysis, 1. The airline in 1985 e started its operations, when in mid-1980s the Gulf Air cutback to Dubai. The GDP growth of the country is exceptional. Before we dive deep into the SWOT analysis, let us get the business overview of Emirates Airlines. We inspire travelers around the world with our growing network of worldwide destinations, industry leading inflight entertainment, regionally inspired cuisine, and world-class service. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry. Government support which gives it a competitive advantage in the GCC markets, Global presence (>150 destination), which helps spread external risks. PESTEL Analysis of Emirates - UKEssays.com In airline industry there is lot of competition. If you need assistance with writing your essay, our professional essay writing service is here to help! Some modules are disabled because cookies are declined. IvyPanda. Reach thousands of academicians and corporates across the globe. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. The key trends identified in the commercial aviation industry include global/regional economic slowdowns, environmental concerns (emissions), rising fuel prices, and competition from low-cost carriers (McGee, Thomas & Wilson 2005). This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. For frequent flyers, Emirates Skywards offered generous extension on Tier status and Miles validity until 2022, and launched various initiatives to help its members earn and redeem rewards even if they are unable to immediately travel. The SWOT, five forces, and strategic drift analysis revealed three strategies that Emirates could utilize to strengthen its competitive position. Changing Govt policies and regulations Emirates Competitors The airline is firmly committed to its long-standing strategy of operating a modern and efficient fleet, which underscores its Fly Better brand promise, as young aircraft are better for the environment, better for operations, and better for customers. In response to the pandemic, Emirates led the industry in developing new service and operating protocols to protect its customers and employees. Emirates airline operates the largest fleets of Boeing 777 and A380 Aircrafts. Analysis of the Emirates Airlines | Business Paper Example Web. The number of aircraft turns handled by dnata in the UAE declined by 59% to 78,000. The Emirates Group. In aviation industry the company has established the strong brand name. Emirates is an established brand of the Emirates group. Emirates received three new A380 aircraft during the financial year and phased out 14 older aircraft comprising of 9 Boeing 777-300ERs and 5 A380s, leaving its total fleet count at 259 at the end of March. 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. 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. McGee, J, Thomas, H & Wilson, D 2005, Strategy Analysis and Practice, McGraw Hill, New York. Dedicated to your worth and value as a human being! (PDF) Analysis of airport stakeholders - ResearchGate They also follow Informative Advertising: where they try to create brand awareness and knowledge of new products or new features of existing products. 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. The largest airline In 2017, Emirates was lauded as the Best Airline in the World in the inaugural TripAdvisor Travelers Choice Awards for Airlines. Strong growth and world class infrastructure, 1. The full 2020-21 Annual Report of the Emirates Group comprising Emirates, dnata and their subsidiaries is available at: www.theemiratesgroup.com/annualreport. Notably, in Australia dnata began ground handling for Qantas at most of its major airports and GTA dnata, its joint-venture company in Canada, was awarded a five-year ground handling license for ramp, passenger, and cargo warehousing services at Vancouver International Airport. Importantly, the values underscore the essence of respectful interactions among employees and other stakeholders in their day-to-day undertakings. US$ figures are converted at 1US$ = 3.67AED and are based on the AED figures rounded off in millions. 1. 23 July. This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. In addition, it uses product differentiation and geographical diversification (strategic option 3) to compete. Increasing Competition in Middle East Market can affect business of Emirates airlines 2. Positioning is referred as creating the image of your product in the mind of that divided potential market. Emiratisation strategy to recruit and retain UAE Nationals, 1. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. Thus, the LCC-dominated markets in Asia, including China, India, Malaysia, and the Philippines, are potential destinations for Emirates (Damuri & Anas 2008). 5). Over the time they have built strong relationship with their customers. We're here to answer any questions you have about our services. 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. The prime aim of the company as well as its employees are to deliver the unique and superior customer services. Furthermore, the second that have to make clear is the need and wants of that targeted audience. 5, pp. Moreover, there brand is better in term of quality, packaging and other factors to score higher these from customers. The only recommendation is that, they have to position their marketing activities while considering all their competitors. SWOT Analysis: Meaning, Importance, and Examples. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.. Overall, the threat of substitutes is high in this industry. Totaloperating costs decreased by46% from last financial year. This reflects the impact of the suspension of scheduled passenger flights at both Dubai airports (DXB and DWC) in March 2020 as part of the UAEs pandemic containment measures. Dubai based airline company is the subsidiary of Emirates Groups. In addition to supporting global supply chains for food, medical and other trade items, Emirates SkyCargo also tapped on its pharma capabilities and infrastructure to support the worldwide distribution of COVID-19 vaccines and humanitarian relief to Lebanon in the aftermath of the Port of Beirut explosions. The airlines primary hub is at Dubai International Airport (DXB), also one of the busiest airports in the world regarding passenger traffic. Recent by ordering 140 Air Bus A380s, the company is become the second to operate these air craft after Singapore. 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. The aim is to identify the strategic choices of the firm that could improve its competitiveness in the industry. Some of the prominent airlines from UAE other than Emirates Airline are Etihad Airline, and Qatar Airline. In addition, Emirates has installed the latest in-flight technology, including TVs, audio/video systems, and on-board communication devices that enhance the travel experience (Emirates 2012). Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Emirates received a capital injection of AED 11.3 billion (US$ 3.1 billion) from our ultimate shareholder, the Government of Dubai, and dnata tapped on various industry support programmes and availed a total relief of nearly AED 800 million in 2020-21. Segmentation, Targeting and Positioning (STP) Analysis Report. Therefore, switching costs for carriers are very high. Therefore the demand for services provided by many airlines is increasing day by day as the population of UAE is increasing. It is the largest airline in the Middle East and the fourth largest globally in terms of passenger volumes, operating the worlds largest fleets of Airbus A380 and Boeing 777 aircrafts. 2. From Dubai to Houston, Los Angeles, Sans Francisco, and Dallas company operate four of the world largest no stop commercial flight. The airline operates more than 3400 flights per week. In today world every organization is engaged in competition. Emirates Airline is renowned for its superior in-flight services globally. professional specifically for you? Different sub-types of passengers have been identified (Neufville & Odoni 2003; pp. Quantifying Emirates' economic impact in Europe 2 Figure 2. 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. The three strategies can help Emirates reduce costs (strategy 3), increase its revenue through diversification (strategy 1), and improve the quality of customer service (strategy 2) in line with macro-environment trends. The competitors of Emirates Airline are the all other airlines from UAE. Being a service provider the major aim of the airline is to provide comfortable journey to its customers. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. Trade protectionist policies of new U.S. administration, 1. The airline purchase its aircraft from the top companies in the world Air Bus and Boeing. Additionally, the airline has become number choice of the families around the world. (2021, July 23). 2011). dnata continued to win new contracts in 2020-21. And the government is working hard for the development of UAE. Mentioned earlier the main and the foremost thing in the marketing is target market identification. The level of these stakeholders' impact on the strategic progress of Emirates is different. Moreover, the macro environment of the company is the political, social, economic and technological forces around the company that affect the micro economic forces. The 'acceptability criteria' applied to Emirates can indicate the stakeholders' expectations, expected returns/profits, and inherent risks. Current strategies are built around the firms capabilities, such as resources and technological expertise. Emirates unique connections to/from Europe 7 Figure 6. The issues are still under discussion. The airline has managed to maintain a good organisational fit free of conflict. The analysis will cover the suitability, acceptability, and feasibility (SAF) of these strategies. With the strong demand in air freight throughout the year, Emirates cargo division reported a revenue of AED 17.1 billion (US$ 4.7 billion), an increase of 53% over last year. The Emirates Group is a highly profitable business with revenue of approximately US$ 12 billion and more than 40,000 employees. Emirates Airlines also operates a frequent flyer program called Emirates Skywards, which allows passengers to earn miles and redeem them for flights, upgrades, and other travel-related benefits. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. Environmental analysis is the analysis of forces around the organization that affect or make an impact on the ability of the organization to take decision. Therefore the no of channel between end customers are three. The airline is the leading as well as the largest airline of not only UAE but also of Middle East. Emirates Airline: Strategic Management Report - SlideShare Our global presence Please click here for more information. 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). 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. 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. This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. The huge capital investments constitute another barrier to new entry. Emirates Airline is the global airline that serves around 155 destinations across the world. The various cost reduction initiatives returned an estimated saving of AED 7.7 billion during the year. To expand its network into emerging markets or international destinations in Asia and the Americas. Qatar Airline is another major competitor of Emirates Airline. 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. Economies and companies that entered pandemic times in a strong position, will be better placed to bounce back. Overall, buyer power is significant in this industry. With significantly reduced and constrained capacity deployment across most markets, Emirates, Due to ongoing pandemic-related flight and travel restrictions, the airline reported a, Emirates carried 6.6million passengers (down 88%) in 2020-21, with, With the strong demand in air freight throughout the year, Emirates cargo division reported a, The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a, With reduced flight and travel activity across the world, dnata's. It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. 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. 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. However, the country has successfully take out itself from the economic crisis of 2008 and 2009, which was mostly due to world economic crisis and decline in trade. Overview and Analysis of Emirates Airline - UKEssays.com Europe also has been target of terror in recent times and these will have an impact on tourism and travel and subsequently Emirates business. The firms A380 fleet is the largest in the industry globally (Lohman et al. This includes a one-time impairment charge of AED 710 million (US$ 193 million) mainly relating to certain aircraft which are currently grounded and are not expected to return to service before their scheduled retirement within the next financial year. Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs. The government has also establish a trade free zone for conducting businesses activities. Emirates hotels portfolio recorded revenue of AED 296 million (US$ 81 million), a decline of 49% over last year as the events business dried up and facilities had to shut temporarily due to the pandemic. The full 2020-21 Annual Report of the Emirates Group comprising Emirates, dnata and their subsidiaries is available at: From a Globe to Infinite Possibilities and everywhere in between: Emirates 30 years at ATM highlight the airlines innovative offerings and latest benchmarks in travel, Emirates opens new City Check-In and Travel Store in Dubai International Financial Centre (DIFC), Emirates celebrates its aviators journeys on World Pilots Day, Emirates Group joins the United Nations Global Compact, Emirates to expand global network with launch of services to Montral in July, Emirates increases flights across the GCC and Middle East ahead of Eid Al Fitr. This section will in detail analyze the targeted market of Emirates Airline. It also has a differential advantage due to its broad portfolio. This includes impairment charges of AED 766 million (USD 209 million) on goodwill and other intangible assets across all its divisions. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. The company has diverse culture, as it has many subsidizers and more than 50 parent company. This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. Unwittingly, they have been subsidising their national carriers through a fortress mentality of aeropolitical protection and the elimination of competition, and other primary sectors of their economies have suffered as a result.. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Due to ongoing pandemic-related flight and travel restrictions, the airline reported a loss of AED 20.3 billion (US$ 5.5 billion) after last years AED 1.1 billion (US$ 288 million) profit, and a negative profit margin of 65.6%. 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 should continue improving its on-board facilities, e.g., entertainment and communication (Wi-Fi), and catering services to maintain its strong competitive position. Therefore we take the rating scale of 1-10 to rate these factors. Omni-channel strategy for seamless customer experience, 1. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The environment is ideal for doing business as government does not interfere in business activities. 2. Moreover, their major aim is provide the quality services for that they have dedicated team that work day and night for ensuring the quality (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). The SWOT analysis for Emirates Airlines is given below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. Air canada- Digital Marketing Strategy Keshav Arora 1.9K . With many award in 2012 the company is also ranked 8th best airline in term of services it is providing around the world. Type above and press Enter to search. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. From long ago the airline is applying full fledge marketing strategies to ensure the quality services they are providing to their clients. Its key elements include product differentiation to compete in the low-cost segment (Graham et al. They are following the best promotional strategies, pricing strategies, advertising strategies, and distribution strategies. Ban on carrying electronic devices to U.S bound flights, 1. (2021, July 23). This section of the report will in-detail analyze some of the major direct and indirect competitors 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. Area / Region: UAE, and all six continent in the world. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Company Background. In airline industry the competition is increasing day by day as the competitors are trying to provide more quality services then each other. This paper examines the air route development process, including key stakeholder engagement, to identify essential factors in the successful establishment of new international air services at regional airports.Data from semi-structured interviews with airports, airlines and destination marketing organisations were analysed to provide perspective regarding Adelaide, an Australian regional . dnatas Travel division saw corporate and leisure travel demand dry up across markets. customer services and relationship activities. It supplemented its existing freighter capacity by bringing into service 19 mini freighters - modified Boeing 777-300ER passenger aircraft with seats in the economy cabin removed to make room for more cargo. Moreover it has the population advantage of almost 80 million people staying in Turkey compared to just over 9 million in UAE where Abu Dhabi based Etihad also competes with Emirates. A strategic drift arises when a firms strategies are shaped gradually by its history or organizational culture that is not in consonance with industry trends (Grant 2002). * By clicking on "Buy Now" you agree to accept our ", On purchase the Emirates Airlines SWOT & PESTLE Analysis PDF report will reach you. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). Environmental, Social, and Governance (ESG) Analysis Report. Emirates Airlines' Strategic Choices and Decisions Report Society has also great influencer on purchasing decision of consumers in different situations. A. Emirates closed the financial year with cash assets of AED 15.1 billion (US$ 4.1 billion), a position which would have stronger if not for a one-time payout of AED 8.5 billion for customer refunds.

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