Emirates Airlines Case Solution
CURRENT SITUATION:
Current Performance:
The company has currently performed outstandingly with respect to its financial perspective as the financial performance of the company shows that the net profit of the company in the financial year 2015 increased by approximately AED 1,311 million. In addition to this, the current market capitalization of the company is AED 41.572 billion. (GROUP, 2015)
Strategic Posture:
Mission:
The mission statement of the company states that:
Objective:
The objective of the company is to retain and improve frequent business class travellers’ market share as well as capture a huge share in the entire market. In addition to this, the company also has the objective of tapping low cost carrier market in order to enhance the overall company’s return on investment. (EMIRATES, n.d.)
Strategies:
Emirates uses premium pricing strategy as it offers higher price of its products and services than its competitors. In addition to this, the management of the company focuses extensively on excellence of the quality of service as well as courteous and pleasant customer care services in order to attract the customers towards the company.
Policies:
The management of the company has various internal and external policies with respect to the code of conduct of the company. The employees are bound to adhere to such policies in order to maintain the overall corporate culture of the company.
STRATEGIC MANAGERS:
Board of Directors, & Top Management:
Sheikh Ahmed bin Saeed Al Maktoum
Chairman and Chief Executive Emirates Airline & Group
Tim Clark
President Emirates Airline
Gary Chapman
President Group Services & dnata, Emirates Group
Abdulaziz Al Ali
Executive Vice President Human Resources, Emirates Group
Adel Ahmad Al Redha
Executive Vice President and Chief Operations Officer
Ali Mubarak Al Soori
Executive Vice President - Chairman's Office, Facilities/Projects Management and P&L (NA)
Nigel Hopkins
Executive Vice President Service Departments
Thierry Antinori
Executive Vice President and Chief Commercial Officer(EMIRATES, n.d.)
EXTERNAL ENVIRONMENT:
Societal Environment:
PEST:
POLITICAL:
Terrorism and wars are the two main political factors that mainly affect the airline industry at a wide spread scale
ECONOMICAL:
Sophisticated airports which are facilitated with the cutting edge technologies to meet customer’s requirements contribute considerably in the success of any airline company. (Rienner, 2005)
SOCIAL:
Increase in population and the increase in tourism trends are the two of the main social factors which affect the overall airline industry.
TECHNOLOGICAL:
The entire airline industry is highly dependent on the technology.Rapid evolution in the entire technological sector makes the airlines company extensively focused on their technological aspects in order to cope up with the rapidly changing environment.
Task Environment:
PORTER:
Threat of New entrants:
Huge start-up costs as well as licences are required to establish footsteps in the entire airlines industry. In addition to this, the entire airline industry is already saturated. Thus, the overall threat of new entrants is assessed to be low.
Threat of Substitutes:
There are a number of substitutes which include travelling through road, railways and ships. Thus, the availability of a wide spread range of substitutes enhances the overall threat of substitutes.
Bargaining Power of Customers:
Thus, the overall bargaining power of customers is assessed to be high.
Bargaining Power of Suppliers:
In order to compete strongly, for the players in the airlines industry, it is crucial to maintain the overall quality of the supplies procured. There are very few suppliers which provide high quality supplies to its customers. Thus, this increases their overall bargaining power......................
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