• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23
  24. 24
  25. 25
  26. 26
  27. 27

Emirates Airlines. The first part of the report provides a brief overview about Emirates Airlines Company followed by a situation analysis that includes the internal and external analysis. The last section will be concluded with the current situation alon

Extracts from this document...


Strategic Management at Emirates Airlines Submitted for: Iman Finaish 1 Abstract This conducted report discusses a strategic study about the global airline industry, particularly Emirates Airlines. The first part of the report provides a brief overview about Emirates Airlines Company followed by a situation analysis that includes the internal and external analysis. The last section will be concluded with the current situation along with suggesting major issues that Emirates Airlines should address. 2 Table of Content 3 INTRODUCTION 4 4 EXTERNAL ENVIRONMENT 5 4.1 INDUSTRY ANALYSIS 5 4.1.1 Airline industry General Profile 5 4.1.2 Life Cycle 6 4.1.3 Porter's 5 Forces 7 4.1.4 Key Competitors 9 4.1.5 Key Success Factors 10 4.1.6 PEST Analysis 11 4.1.7 Summary of External Environment 13 5 INTERNAL ENVIRONMENT 14 5.1 SWOT ANALYSIS 14 5.2 SUMMARY OF INTERNAL ENVIRONMENT 16 6 CONCLUSION AND RECOMMENDATION 17 7 REFERENCES 20 3 Introduction "Emirates Airlines goals for the immediate future and long term are, to be the best in every venture it undertakes; to meet its customers' expectations profitably, to contribute to the success of Dubai Inc., and to make the city the new global aviation hub for the 21st century." Emirates Chairman, Sheikh Ahmed Al Maktoom In 1985 Emirates Airlines was established by Dubai Government with just two aircrafts. Today Emirates has 83 aircrafts files to 78 destinations in 55 countries worldwide. It has a large number of cabin crews from 95 nationalities. It recently made an aircraft orders worth more than $ 26 billion for 45 Airbus A380, which makes the company the world's largest purchaser of Airbus's super-jumbo. (About Emirates) Emirates Airlines recently becomes one of the fastest growing airlines and the fifth-most-profitable airline in the world. It has been growing by more than 20% a year since the last 17 years making a profit of $637 million in 2004-05. (BBC News) Emirates Airlines is committed to achieve its mission, namely "offering consistently high-quality value-for-money service and to be the best airline on all of its routes". ...read more.


(American Airlines) 4.1.5 Key Success Factors To maintain airlines companies' success, various key factors should be implemented for this purpose: * Differentiation Airline companies tend to differentiate by providing advanced services. For example, providing the aircraft with the latest technology, such as wide seats, e-ticketing (as mentioned in 5 porters section) will attract customers and distinguish the company among other companies. (ex: British Airways). * Strong brand name Obtaining a strong brand name plus building a base of loyal customers are the carriers' companies most concern. It guarantees that customers will stick with the strong brand name company and ignore any attractive offers form other competitors. Some airline companies utilize some techniques to have a retain customers, such as offering a flyer mile to win a free ticket if the points were completed. (ex: American Airline) * Alliances Airline industry is moving toward establishing alliances between companies. This will let companies to share resources via linking their networks to build a wide base of customers, develop services and increase number of routes. Additionally, it results in sharing experience and decreasing the operation costs. Ex. British Airways is a member of largest airline alliance known as "Oneworld". * Relations with supplier Airline companies must build a strong relation with suppliers by setting long-term contracts with them. Such relations will benefit the airlines companies, because this will keep them in the safe side even if there was any change in the pricing strategy (ex. increasing costs) in the future as there is a contract between them. The PEST analysis is the best way that leads companies to change their strategies. 4.1.6 PEST Analysis * Political factors The airline industry is affected by political situations, namely wars and terrorism. For instance, terrorists' activities in different areas globally, namely USA (11th Sep), UK, Lebanon and Qatar made the regions unattractive for tourists and business travelers and reduce the passenger's traffic. ...read more.


* What major issues should Emirates Address? As the Airline industry is in the maturity stage, there is a strong competition between airline firms. Each firm should use offensive strategies besides doing analysis for internal and external factors that may affect its position. The research and analysis for Emirates airlines address following recommendations: The operational cost is increasing due to huge investments of Emirates on aircrafts and services and increase in fuel prices. Emirates should reduce the costs by making operational improvements, namely improving maintenance processes, maintaining high aircraft utilization and making effective flight scheduling. It could also be reduced by investing technology in distribution channels to reduce labor costs. For instance , it is recommended to install more self service kiosks in airports of the destinations of Emirates airline since it has already install ones in Dubai airport. In response to the threat of low cost airlines, Emirates shouldn't lower its fares after years of offering advanced services, instead it has to offer new low cost brand as a subsidiary of Emirates group serving economic travelers who are now customers of new low cost airlines, thus expanding the market share. Extending routes is recommended especially there is a growth in tourism UAE. There are main regions in the world that Emirates do not have routes in, namely Canada, It has to extend destinations worldwide (especially attractive areas). Joining a global alliance enables increasing its destinations, offering more fare options for customers helping to solve problems of new low cost airline. Investigating technology is recommended for improving customer service and Emirates has to sign contract with an e-business company that offers airlines technology solutions. E-CRM strategy is a new technology that Emirates should implement since internet users' number is increasing. It allows managing long term relationships with customers (Jiang, 2003). Generally, Emirates should do analysis for internal and external factors and its competitors and develop new strategies to stay competitive in the maturity stage. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Tourism, Transport & Travel section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Tourism, Transport & Travel essays

  1. Proposal for 'Dinner in the sky' project

    However, with a reference to Shone & Parry (2001) an event rarely has just one target market and in this projects' case, prices and length of the dinner session can be adapted accordingly to different market segments. Hence, even though Dinner in the sky will be mainly targeting corporate clients, local individuals and tourists will be its secondary target markets.

  2. This essay will explore how external factors affect tourism as a whole and in ...

    It is thought that terrorists target major tourist destinations as they know it will cause the most damage to the destination. (Paul, 2003) 'Tourists are not the only parties to be harmed by terrorism-local elites, foreign tour operators and the whole national economy can be acutely affected- and it is for this reason that tourists are so useful to terrorists.'

  1. Project Report on Tourism and Hotel Industry in India

    Strengths 1. Travel agents are moving from being mere ticket issuers to travel consultants taking complete responsibility for the consumer's needs. 2. Travel agencies not only provide the picture of the country to the interested parties but also lure them to visit a country by the attractive packages Weakness 1.

  2. This is an executive report on Virgin Atlantic Airways, which contains an External and ...

    2.0 The Analysis of the External of Environment By external environment, we mean factors that are beyond the control of the organization and may impact on its strategic direction, its internal processes and structure (Pearce & Robinson, 2011). The external environment consists of: 1.

  1. Hotel Cinnamon Grand case study

    for local customers, but however the premium price foreign visitors is not affected by country's inflation. Cost of energy affecting bottom line because it has a knock on effect on all other expense including electricity and mainly transport. Airways fare increased globally by the surge in oil prices, this affect travel and tourism industry world wide.

  2. Management Accounting Project Report. Japan Airlines International Co., Ltd. (JAL)

    According to the financial report (FY2009) of JAL, fixed costs such as airport facilities, maintenance and aircraft depreciation occupied a high proportion of the cost of the business. Sales commissions, passenger services and cargo handling are belong to variable costs, which occupied a relatively small proportion of the cost of the business.

  1. This report examines the external environment surrounding Fairmont Hotels & Resorts Inc. over the ...

    An example of this is its newly launched Spa brand, Willow Stream, setup to service customers at its resort properties5. It is clear that Fairmont management's focus over the next five years is to grow the company's assets and revenue.

  2. Air Asia Cultural behaviour. We want to find out what makes Air Asia so ...

    He also emphasize that management must keep communicating with the staff and have daily interactions with them promoting sense of loyalty, dedication and commitment of the staff to the company (Finance Twitter, 2006). Tony Fernandes also mentioned that he created this cadet pilot training program where former check in assistant,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work