Emirates Airline Connected The Unconnected Case Study Solution
Threats
- Hike in aviation security costs and insurance, which increase the operational costs of airlines.
- Emission of carbon from flights is responsible for 12% of all carbon emission from the transportation industry.
- Increase in fuel prices as the company cannot run without fuel.
- Security and hacking over technology and internet, targeting the e-ticketing websites.
- It is headquartered in the region that is a politically unstable environment in the Middle East.
- Increase in the frequency of terrorist attacks in the Middle East, in recent years.
- European and American countries were criticized for lobbying to harm the Gulf Airlines by using subsidies and renegotiating.
- Strong bargaining power of customers, as there are other substitutes which are available in cheaper prices.
- Infection from diseases, such as: Covid-9 could be a big threat to the company in reducing the number of passengers. Recently there was a ban on travelling, because of the Covid-19, which lasted extraordinary effects over the airlines’ companies’ profits.
- Political instability is common in developing countries, such as; India, Iraq and Africa, which can decrease the demands for flights
Competitive advantage
On the basis of above SWOT analysis; Emirates Airline always focused on maintaining a competitive market, with the help of innovative marketing strategies and latest technology. Consistent focus on providing quality services to the customers, played a major role in increasing the revenue and the customers’ loyalty. Emirates Airline has a unique business model characterized by flexibility. This allowed the company to offer a variety of services, which are relatively affordable and unique in the market.
Emirates Airline is proud to be one of the top players in the world's most innovative long-haul flights. Flexibility allowed its administration to find ways to cope with the global economic crisis. The company successfully overcame the global crisis, without any major problems. The major competitive edge for the company is that it has never opted for mergers, which is why it has a brand value and integrity in the market. Emirates Airline confronts other market players and encourages the competition. This strategy is known as the "open sky" strategy.
For example, Emirates Airline shared Dubai airport with hundreds of other airlines, encouraging competitive market forces to effectively control their market share. Instead, the market is responding with improvements and alliance offers that are currently shelved by the Emirates Airline.Besides that, the company gives priority to the latest technology in order to compete and be sustained in the market, which is considered to be one of its competitive edges in the industry. Flexibility allowed the company’s administration to find ways to cope with the global economic crisis. The company successfully overcame the global crisis, without any major problems.
Q3- Business strategy Emirates has chosen and analyze its five elements.
A-3 There are five elements of business strategy, which Emirates airline chose to increase the revenue and achieve the global recognition.
Price
Emirate focuses on high pricing strategy, with high quality and luxurious services that are more expensive as compared to other airlines. It is aimed at customers who demand better services, regardless of the price.
Product/Services
Emirates has a fleet of 120 wide-body aircraft and flies to 108 destinations in 60 countries across 6 continents. Emirates nearly doubles its fleet every year.
Promotion
Emirates uses a combination of traditional and modern marketing methods, such as: advertisements in newspapers, magazines, televisions and billboards and a website in 9 different languages. The goal is to reach the customers of all nationalities. However, the main way through which Emirates promotes itself, is by organizing different events to increase the brand awareness.
Persons
Emirates focuses not only on customer satisfaction, but it also focuses on the satisfaction of shareholders, employees and the general public. For this purpose, Emirates offers dividends to the shareholders and suitable rewards and promotions to the employees.
Place
Emirates believes that place is extremely important for intangible services; therefore, its main focus isover the delivery of an excellent quality service.
Conclusion
Based on the aforementioned analysis; there have been many threats which Emirates has been exposed to, in the market. These threats are: political instability in developing as well as the developed countries, for example Middle-East, increased operational costs, increase of fuel prices, only two suppliers in the industry, need of innovation, strong bargaining power of buyers, lobbying by international companies, presence in the global market, strong and innovative marketing strategies, cyber and hacking threats, focus on quality, uncertain events, such as: hurricanes and storms, spread of diseases that can be contagious, latest technological, environmental and social concerns as well as legal forces that vary, depending on the country.
Additionally, the company has included booming policies, which are consistent. Per capita income is increasing in Middle East, which is further increasing the number of expatriates, tourism is increasing in developed countries and investment in infrastructure, for example: building an airport in Dubai and Abu Dhabi, increase in the internet speed, globalization, increasing population and developing technology as well as the competitive environment.
In order to achieve an ability to improve and to have a greater market share; the company needs to focus on innovative marketing strategies as well as the gaining the competitive advantage in terms of the quality of services. There must be a strategy that solely focuses on economies of scale so that company’s cost decreases and so does its price, which will help in attracting more customers. Strategies must be implemented with persistence and suitable leadership stylein case of airline industry, for which there is a need of democratic leadership style with strong knowledge of cost management tools............................
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