Emirates Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In an industry where profitable companies are scarce, emirates have provided solid growth and profitability for years? Why? What is behind their success? Describe their global strategy.

Emirates have deployed excellent strategies regarding the routes it serves, the business model, marketing strategy, the service it offers in order to become the third largest airline globally by capacity and the largest by number of international passengers.

When the emirates airline was started, it came up with the strong team of local people and the expatriates with a same goal and vision. They were enthusiastic about their work and determined to achieve their common objective. It allowed them to develop a strong team dedicated to makingthe airline a successful one.

The emirates did not become one of the profitable airlines suddenly. Their strategy involved a series of steps which make them successful. The strategy of organized growth, the early adoption of advanced technology and the business model of globalmega-hub principle marked their success.

The airline industry was dominated by europeans who had a strong support from their government and used to operate from a single mega hub airport. For instance, paris’s charles de gualle. Moreover, they had strong demand for their airline service which enables them to become the market leaders till 1980s.

However, when deregulation takes placein the airline industry, they lose their strong market position. On the other side, emirates management learns from their mistakes and shifted to multi polar models targeting new markets such as brics countries. The demise of their competitors helped emirates to grow and prosper.

As an emirates had dubai as its base, it was important that tourist traffic arises at the place. The government of dubai began developing high profile projects with the help of the hospitality industry, attracting a large number of businesses and tourists flow allowing emirate s to become financially strong. Moreover, the relaxation of visa requirements and their marketing campaign benefits in the way that most of the receipts from tourism was experienced by emirates.

Another competitive advantage emirates gained was from strategic route planning and exploiting the weaknesses of airlines who were operating in different routes. For instance, pakistan international airlines had high fares and multiple stop over when travelling from one city to another in pakistan. Emirates benefited by having only one stopover as it was able to create its demand in the pakistani market.

Emirates was also able to exploit the gaps in the markets before any other competitor. For instance, cities such as colombo had fixed demand for international travel and it wascaptured by emirates and the markets’ doors were closed for others.

As dubai was the regional hub for emirates flights, it was able to benefit from operational efficiencies as compared to point by point service. It was able to capture the market for long-haul routes enabling passengers to travel from europe to asia. It was able to exploit its geographic location and dominates routes and achieves market shares dominated previously by european legacy carriers.

Moreover, emerging markets of china, india and dubai proved to be beneficial for emirates as it was able to capture the gap created by the increase in trade between these nations.moreover, it also served long routes (china to africa) through their regional route that is dubai.

In order to operate routes in different countries, the government of dubai assisted them by negotiating bilateral aviation agreements with foreign countries.it enables emirates to enter markets, which they wanted to enter. Emirates also had cost advantages over other airlines as they have to pay very little for transport charges and enjoy government subsidies. These benefits are expected to generate $4.2 billion if applied to air france-klm.

The global and operational strategy of emirates has also been successful. The management of the emirates is risk averse totake bold decisions. In 1990s, when the emirates planes did not have the capacity tofly 14 hours a day, they approach air, bus and boeing to develop aircraft that were more suited from their long routes. The optimism about their strategy helped them to reap benefits from their long routes.

Emirates has the youngest fleet in the industry, an average airplane age of 6.4 years and provides excellent customer experience with increased fuel efficiency. The way they maintain their aircraft are another competitive advantage of its strategic over its competitors.furthermore, they are increasing their market reach all over the world as they have ordered 150 777x planes at 2013 Dubai air show.............................

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