While the macro factors are the political condition of the country its economic condition, society and the technological development in the country (PESTLE Analysis of UAE 2012, 2012). Emirates current strategies include improving in-flight services for travelers and lowering its operational costs to enhance efficiency. International airport operations continue to represent the largest business segment in dnata by revenue contribution. In very short time span the company has establish it some a major competitor of other airlines. Over 37 airlines serve Dubai. 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. It enables the airlines to present its brand in through the most effective channels. We utilize security vendors that protect and This report is shared in order to give you an idea of what the complete Digital Marketing and Social Media Strategy Analysis Report will cover after purchase. Over the time they have built strong relationship with their customers. The aim is to offer customers an efficient and enjoyable traveling experience. In aviation industry the company has established the strong brand name. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Subsidiaries, Partnerships and Collaborations Report. The PESTLE analysis for Emirates Airlines is given below: We do not share your information with anyone. We're here to answer any questions you have about our services. A detailed Porters five forces analysis is included in Appendix 2. The three strategies will be analyzed to determine their suitability, acceptability, and feasibility in the commercial aviation context. MarketLine 2014, Company Profile: Emirates. Its airport services brand, marhaba, opened an expanded and refurbished lounge at Dubai International airport, and expanded its international network with a new lounge in Manilas Ninoy Aquino International Airport. The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. Maximova (2019) opined that stakeholders' analysis can be regarded as a tool for generating ideas about actors or individuals to analyse and understand their intentions, behaviours, interests and relations; accessing the influence they bring on decision-making and . Therefore the demand for services provided by many airlines is increasing day by day as the population of UAE is increasing. The airline operates more than 3400 flights per week. It has backward integration with suppliers to develop custom-made in-flight amenities for its fleet. This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. 1 Paper Number: 109 Analysis of Airport Stakeholders David Schaar (Ph.D. raising its passenger capacity through short- and long-hauls to several in-demand destinations. 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. A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Financial PerformanceFY 2023: Revenue up 131% to AED 50.1 billion (US$ 13.7 billion), and profit of AED 4.0 billion (US$ 1.1 billion) compared to AED 5.8 billion (US$ 1.6 billion) loss for the same period last year. From this mean that we have to clarify that who are our potential buyer who will enjoy our services. 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. IvyPanda. 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). 5). It has never gone into receivership or merged with other airliners. 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 addition, many airlines depend on two suppliers for maintenance parts and services. From tan till now the airline has shown tremendous growth. The acceptability of a strategic choice evaluates stakeholder expectations to determine their reactions and anticipated returns or risks (Slack, Chambers & Johnston 2004). Moreover, Etihad Airways is also providing best services and providing full customer satisfaction. The Summary report contains the SWOT & PESTLE table contents only. While making purchase decision many factors affect consumer buying behavior (Dudovskiy, 2013). Here is a SWOT analysis for Emirates Airlines: A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. These helped us sustain operations and retain the vast majority of our talent pool. DUBAI, UAE, 15 June 2021 - The Emirates Group today announced its first year of loss in over 30 years caused by a significant drop in revenue, fully attributed to the impact of COVID-19 related flight and travel restrictions throughout its entire financial year 2020-21. 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 pay they gives to their employees are merit base pay as well as the pure performance based pay. The airline is not a competitor to the major airlines but poses competition to other low cost airlines. 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. For different referencing styles and detailed guidelines, please click here. The airline is considering a geographical diversification strategy to spread its operational risks. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. It is the process of dividing potentialmarketsor consumers into specific groups and offering product according to their needs. This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. Based on the findings, the report will identify and recommend one strategy for implementation by the Emirates. Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. Moreover, another pricing strategy that Emirate airline is following is the premium pricing strategy (Emirates flight pricing & sales strategy, 2014). At the end of 2020-21, Emirates SkyCargos total freighter fleetstood unchanged at 11Boeing 777Fs. Company Background. Like facilities that should be provided to disable and aged people are also cater by Emirates Airlines. Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. 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. Moreover, the airline always try to remain first in adopting new technologies and providing unique services. All work is written to order. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. To track regional businesses and to the . Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. 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. Emirates invested to upgrade its signature A380 experience with new Premium Economy seats and other product enhancements. Emirates carried 6.6million passengers (down 88%) in 2020-21, with seat capacity down by 83%. All Rights Reserved. Your privacy is extremely important to us. Overall, the three strategies can be implemented without incurring extra costs. The UAE economy's growth has been mostly fuelled by the country's oil industry, however, recent . Omni-channel strategy for seamless customer experience, 1. During the year, it launched numerous customer initiatives such as: providing the industrys first complimentary COVID-19 medical cover for all passengers; waiving fees so customers can rebook their travel without penalty; expediting refunds handling; and fast-tracking biometric processing and other technology projects that enhanced the travel experience while reducing contact at airport touchpoints. Copyright 2023. While, Etihad Airways is the second brand in term of quality, good will and other mentioned factors in the mind of people. In airline industry there is lot of competition. The airline is the leading as well as the largest airline of not only UAE but also of Middle East. For the purpose of identifying the target audience marketer first have to divide the market into different segments and then on the basis of their needs and wants offering them the desired product (DeMers, 2012). However, airline is a leader in the luxury segment. Moreover, we have to look which need is least and which one is of most importance. Aviation biofuels: which airlines are doing what, with whom - https://intelligent-partnership.com/aviation-biofuels-which-airlines-are-doing-what-with-whom/, 5. Area / Region: UAE, and all six continent in the world. Another entry barrier is brand equity, whereby established carriers boast of a strong presence and brand value. The involvement of executive management is needed to streamline internal processes and remove administrative barriers. The airlines primary hub is at Dubai International Airport (DXB), also one of the busiest airports in the world regarding passenger traffic. 205-211. However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now. IvyPanda. Currency fluctuations this year had no significant impact on airline revenue. 3. Digital Marketing and Social Media Strategy Analysis Report. With two aircrafts in 1985, Emirates airline owns 265 aircrafts and serves 80 countries globally. Candidate), not member IEEE, Lance Sherry (Ph.D.), Member, IEEE is delivered to customers, and ultimately supporting the Abstract Airports are of significant economic importance to growth of the regional economy (Figure 1). 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. And toady Emirates Airline also known as low cost carrier (rodrigo, 2012). During the year, Emirates successfully restructured various aircraft leases and loans. Organizations are referred as an open system, where there are many forces that directly or indirect affect the organizations. All Rights Reserved. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. It also offers a range of in-flight amenities, including hotel services, and lounge services to corporate clients and tourists (strategic option 2). To identify the marketing changes that have occured in the company beginning from the time the company was established to the present. 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. ensure the integrity of our platform while keeping your private information safe. Different forces that combined together create society are references groups, family groups and opinion leaders. Meet & Greet Opens an external link in a new tab, Eurail Opens an external link in a new tab, Media centre Opens an external link in a new tab, Careers Opens an external link in a new tab, The Emirates Airline Foundation Opens an external link in a new tab, Skywards Exclusives Opens an external link in a new tab, COVID-19 information and disrupted travel. Our philosophy relating to international aviation policy and a move towards open skies can be summarised by a quote from the President of Emirates, Sir Tim Clark: We know there has been clear evidence of a progression towards aeropolitical multilateralism in the past 20 years. On the other hand, one potential strategy is expanding its network to overseas markets. document.write(new Date().getFullYear()); To examine how Emirate Airline's marketing affects its global success. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Turkish Airlines based in Istanbul is also emerging as a formidable regional rival covering more than 280 destinations through its hub and spoke model. Therefore, their employees are also loyal to the company (Group, 2011). With significantly reduced and constrained capacity deployment across most markets, Emirates total revenue for the financial year declined 66% to AED30.9 billion (US$8.4billion). We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Before we dive deep into the SWOT analysis, let us get the business overview of Emirates Airlines. The company has diverse culture, as it has many subsidizers and more than 50 parent company. 28, no. Group revenue was AED 13.7 billion (US$ 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. 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. Its primary actions involve managing cargo and ground handling, catering and travel services. In addition, Emirates Airline has a large fleet size (217 large carriers), integrated services, and brand equity (intangible resource) to support its growth. We inspire travelers around the world with our growing network of worldwide destinations, industry leading inflight entertainment, regionally inspired cuisine, and world-class service. Air canada- Digital Marketing Strategy Keshav Arora 1.9K . To expand its network into emerging markets or international destinations in Asia and the Americas. In addition to passenger flights, Emirates SkyCargo operates dedicated freighter aircraft and manages the cargo activities of the airline. The strategic decisions revolve around four main objectives. The risk of strategic drift for the Emirates is low because of the firms IT solutions segment. Therefore the no of channel between end customers are three. 391-398. 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). Copyright of Emirates Airlines SWOT and PESTLE Analysis is the property of Barakaat Consulting. A core part of our strength as a business stems from the 'open skies' environment at our main operating base, Dubai International, where we compete with over 100 other scheduled airlines. 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. You can reach us out at [emailprotected] .Disclaimer: The views and opinions expressed in any article on the website are solely those of the authors and do not necessarily reflect the official policy or position of companies in context. In recent years, the airline has received numerous awards for its in-flight entertainment system (ICE) and exceptional service. Emirates is also the fourth in the ranking of all airlines globally (O'Connell and Bueno, 2018; Redpath, O . 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! In short, the government of UAE is stable politically, with strong political reforms. Emirates average fleet age remains at a youthful 7.3 years. Web. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. Staff training may be necessary for front-line employees. Economically the country is one of the fastest growing country in the world. 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. In 2020-21, Emirates and dnata were hit hard by the drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions. Press Esc to cancel. Passengers from these countries can stopover at Dubai International Airport en route to North America or Australia and New Zealand (Auckland destination). 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. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. IvyPanda. The airline is also the 10th largest airline in the world in term of travels who travel every week from this 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. 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. Based on this framework, the three strategies are good choices for the firm. Moreover, positioning referred as factors on which companies differentiate their brand from their competitors. . Copyright 2023 - IvyPanda is operated by, Emirates Airlines Strategic Choices and Decisions, Greenway Hotels as the Global Organization, Regency Drycleaners Limited's Strategic Plan, ClearSky Airways Inflight Internet Strategy - Going Global or Not, Competitor Analysis for Lounge in Hilton Hotel, Emirates Airlines' SWOT, Marketing Mix and Plan, Emirates Group's Marketing Strategies in 2017, Human Resource Planning of the New Lounge with Asian Cuisine, Zara Restaurant and Lounge: Business Plan Evaluation, Budget Objectives and Strategy in the Marketing Plan, Delta Air Lines' Strengths and Weaknesses, Netflix Inc.'s Political, Legal, Regulatory Forces, Boeing's Operational Growth in Vietnam and India, Under Armour Company's Financial Perspective. The Groups revenue was AED 35.6 billion (US$ 9.7 billion), a decline of 66% over last years results. 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. 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.. SWOT analysis is a strategic tool for the evaluation of a firms internal and external environments to determine its strategic position in the industry (Kotler & Keller 2011). 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. This dramatic revenue decline was due to the COVID . Therefore, people choice regarding whether to travel through this airline or any other and if yes whether to travel through economic class or business class totally depended on these factors i.e. on the income and their way of living (Personal Factors Affecting Buyers Behavior, 2010). Released today in its 2020-21 Annual Report, the Emirates Group posted a loss of AED 22.1 billion (US$ 6.0 billion) for the financial year ended 31 March 2021 compared with an AED 1.7 billion (US$ 456 million) profit for last year. Emirates Airlines SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting. 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, pp. Emirates Group 2015, Leadership: The Senior Management Team. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. The airline was established by the Emirates government. The prosperity of the organization is since it is developing in the UAE, a country characterized by rapid and efficient economic development (Simmons, 2020; Almarri and Abu-Hijleh, 2017). Emirates Airlines, founded in 1985, is the largest airline in the Middle East, based in Dubai, United Arab Emirates (UAE). of the United Arab 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.. Strong growth and world class infrastructure, 1. Keep it up! (2021) 'Emirates Airlines' Strategic Choices and Decisions'. Analysis of Competitive Strategy and Position. For example Emirate Airline has succeed to avoid its prices matching with what other airlines are offering product to customers at lower price. 1-9. 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. In addition, the switching costs between airlines are low. The analysis can employ a range of analytical methods that include the SWOT analysis, the PESTEL analysis, Porter's Five Forces analysis, TOWS Matrix, and Stakeholder Analysis for the evaluation of strategic choices for the case of Etihad Airways. This report is shared in order to give you an idea of what the complete Risk Analysis 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. The only recommendation is that, they have to position their marketing activities while considering all their competitors. Nevertheless, shareholder value retains a tenacious hold on the minds of investors. 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. Overall, the threat of substitutes is high in this industry. [1] has identified the following 15 airport stakeholders: passengers, air carriers, general aviation users, airport organisation, investor holders and bondholders . 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. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. DII impact of Emirates' A380 deliveries in 2013 6 Figure 5. It is a subsidiary of the Emirates Group which is owned and backed up by the government and the Dubai royal family. "Emirates Airlines' Strategic Choices and Decisions." Our philosophy relating to international aviation policy and a move towards open skies can be summarised by a quote from the . 8.6 Major Downstream Buyers of Airline Catering Analysis 8.7 Impact of COVID-19 and the Russia-Ukraine war on the Upstream and Downstream in the Airline Catering Industry 9 Players Profiles It also launched new technology platforms Emirates Partners Portal and Emirates Gateway, to better engage and serve travel trade partners. Connectivity, competition and consumer choice - https://www.emirates.com/english/about-us/government-affairs.aspx. Emirates in efforts to strengthen its IT infrastructure signed a 10-year technology services agreement with IBM in 2016.
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