The airline operates the mixed air fleets which are the wide-body aircrafts. The top destinations for expansion include locations in South Asia through code-share agreements with other carriers such as Malaysia Airlines (Lovestock, Wirz & Keh 2002). Seat load factor and yield results cannot be compared against the previous years performance due to the unusual pandemic situation. 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. Today, we fly the worlds biggest fleets of Airbus A380s and Boeing 777s, offering our customers the comforts of the latest and most efficient wide-body aircraft in the skies. This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. Kotler, P & Keller, K 2011, Marketing Management, Prentice Hall, New York. Omni-channel strategy for seamless customer experience, 1. In terms of acceptability, the three strategic choices can be considered appropriate for the firm, but their utilization would require sound stakeholder management to reduce political risks. Excluding the impact of COVID-19 related cancellation of bookings, revenue from Travel division declined by 89% to AED 294 million and the TTV dropped by 83% to AED 1.7 billion. Emirates founded in 1985, is a Dubai (UAE) based global airline with operations in more than 81 countries serving 155 airports and boasting a fleet of over 270 aircrafts as of the year 2020. Top Quality. !-Keith GrencherBirmingham Business School. 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). 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 detailed Porters five forces analysis is included in Appendix 2. Copyright 2023. IvyPanda. The SAF model applied to Emirates indicates that each of the three strategic options is essential in the airlines growth. Progressing with key investments for its future growth, dnata Catering inaugurated a second state-of-the-art catering facility in Dublin, introduced new bio-digesters to reduce food waste across its operations, and solar panels at its Singapore facility as part of its commitment to reduce its environmental footprint. Therefore, their employees are also loyal to the company (Group, 2011). Strong competitors from the region such as Etihad from neighboring emirate, Abu Dhabi and Doha based Qatar Airways. dnata continued to win new contracts in 2020-21. Family Life Cycle:Bachelors, married, working women, office working people, old age people are the targets. From this mean that we have to clarify that who are our potential buyer who will enjoy our services. During the year, it provided online booking capability for London City Airport in the UK, and expanded its reach in Oman through a partnership with OUA Travel that enables Oman-based trade agents to promote and sell Gold Medals wide range of travel products to their customers. Lohman, G, Albers, S, Koch, B & Pavlovich, K 2011, From Hub to Tourist DestinationAn Explorative Study of Singapore and Dubais Aviation-Based Transformation, Journal of Air Transport Management, vol. 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. Dess, M, Lumplin, C & Eisner, F 2007, Strategic Management: Creating Competitive Advantages, McGraw-Hill, New York. The industries company is catering are airport services, hospital industry, catering, and engineering. These shared values and beliefs have great impact on consumer behavior while making a purchase a certain product. The airline was established by the Emirates government. The key trends identified in the commercial aviation industry include global/regional economic slowdowns, environmental concerns (emissions), rising fuel prices, and competition from low-cost carriers (McGee, Thomas & Wilson 2005). This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. Emirates total passenger and cargo capacity declined by 58% to 24.8 billion ATKMs at the end of 2020-21, due to pandemic related flight and travel restrictions including a complete suspension of commercial passenger services for nearly eight weeks as directed by the UAE government from 25 March 2020. Accept cookies to experience the full functionality of this page. 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. The number of aircraft turns handled decreased by 57% to 211,000, on account oflower business volumes; whereas there was only a minor 5% decline in cargo handled to 2.1 million tonnes given the strong air freight demand across many markets. IvyPanda, 23 July 2021, ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. In this article, we do a SWOT Analysis of Emirates Airlines. Study for free with our range of university lectures! 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). In 2020-21,dnatasoperating costs decreased by 48% to AED7.4billion (US$ 2.0 billion), in line with reduced operations in its Airport Operations, Catering and Travel divisions across the world. The SWOT analysis for Emirates Airlines is given below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. Emirates Airline is renowned for its superior in-flight services globally. Copyright of Emirates Airlines SWOT and PESTLE Analysis is the property of Barakaat Consulting. 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). It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. 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. The reported total transaction value (TTV) of travel services sold declined by 98% to AED 229 million (US$ 62 million). Web. The SWOT, five forces, and strategic drift analysis revealed three strategies that Emirates could utilize to strengthen its competitive position. The number domestic, regional, international carriers keep on increasing. It has never gone into receivership or merged with other airliners. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. However, airline is a leader in the luxury segment. Emirates airline reported a 34% growth in revenue in 2015 ($1.5bn) (Research and Markets 2013). The price difference between substitutes (LCC) and Emirates services is large. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Working closely with aviation stakeholders to design and implement bio-safety measures, Emirates gradually restored its passenger network and hub connectivity from mid-June 2020 as the UAE re-opened for transit travellers and later for international arrivals. Connectivity, competition and consumer choice - https://www.emirates.com/english/about-us/government-affairs.aspx. For Promotion of their brands Emirate Airline uses of traditional marketing techniques like: They allocate a handsome amount for their advertising budget. 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. 1. The huge capital investments constitute another barrier to new entry. We will write a custom Report on Emirates Airlines Strategic Choices and Decisions specifically for you for only 11.00 9.35/page. 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. 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. Cost of ownership (depreciation and amortisation) and employee cost were the two biggest cost components for the airline in 2020-21, followed by fuel, which accounted for 14% of operating costs compared to 31% in 2019-20. They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. Stakeholder Analysis (SA) is a methodology used to facilitate institutional and policy reform processes by accounting for and often incorporating the needs of those who have a 'stake' or an interest in the reforms under consideration. The inflight catering business upliftednearly 16.9million meals to airline customers, a substantial decrease of 82%. From past statistical evidence and levels of achievement, the Emirates has continued to demonstrate great care for its employees and involved stakeholders for their role in the growth of the company with emphasis on immediate environments and the communities served by the fleet of its airlines. Retrieved from https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. To track regional businesses and to the . 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. dnata continued to lay the foundations for future growth with investments in 2020-21 amounting to AED 328 million (US$ 89 million). 2011). 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. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.COM. Three type of passengers toward whom they tailored their marketing and positioning strategy are business people, families, and transit passengers. The introduction of new technology will also affect the airline industry in positive as well as negative way. To expand its network into emerging markets or international destinations in Asia and the Americas. This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. Subsidiaries, Partnerships and Collaborations Report. 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. This section is available only in the 'Complete Report' on purchase. 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. Its healthy financial position means that the firm has sufficient cash flow for investing in in-flight amenities and fund overseas expansion. Conflicts in the Middle East and Global Terror Threats: The ongoing conflicts and instability in Middle East and North Africa region including Syria, Iraq, Libya, Egypt, Yemen and Sudan are a cause of concern. The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a loss of AED 1.8 billion (US$ 496 million) for the first time. Commitment to eco-efficiency through major investments and initiatives, Emirates Airlines Porter's Five Forces Analysis, Emirates Airlines Covid-19 Impact Analysis, Emirates Airlines Segmentation, Targeting and Positioning (STP) Analysis. Analysis of Competitive Strategy and Position. Therefore we take the rating scale of 1-10 to rate these factors. Therefore the no of channel between end customers are three. Accusation of Subsidy Benefits by rivals in the United States: Emirates rivals in the United States such as Delta, United and American Airlines say that Emirates benefits from local U.A.E subsidies as its a government owned carrier. 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.. An evaluation of the strategies using the SAF model showed that the three options could contribute to the airlines growth. And the government is working hard for the development of UAE. However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now. As of September 2021, Emirates Airlines served over 150 destinations in over 80 countries across six continents. Web. 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. 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. Efficient passenger support systems and functions: Reliability and efficiency of passenger support systems and functions is critical for the operations and business continuity of an airline. Factors/ attributes on which airline positioned their brands. 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. Therefore, the threat of new entry is low. Emirates is an airline company based in Dubai. Research and Markets, 2013, Emirates Airline Strategic SWOT Analysis Review. 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. This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. Totaloperating costs decreased by46% from last financial year. In 2020-21, the Group collectively investedAED4.7 billion(US$1.3 billion) in new aircraft and facilities, the acquisition of companies, and the latest technologies to position the business for recovery and future growth. Based on the findings, the report will identify and recommend one strategy for implementation by the Emirates. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Customized Solutions Qatar Airline is another major competitor of Emirates Airline. accessibility__clear-input__text, Group revenue of AED 35.6 billion (US$ 9.7 billion) impacted by worldwide travel restrictions and border closures during the entire financial year, Results impacted by one-time impairment charges of AED 1.5 billion on Groups non-financial assets, Ends year with solid cash balance of AED 19.8 billion (US$ 5.4 billion), Revenue declined by 66% to AED 30.9 billion (US$ 8.4 billion), due to the temporary suspension of passenger flights at its hub in March 2020 and ongoing global travel restrictions, Airline capacity reduced to 24.8 billion ATKMs, with aircraft fleet size reduced by 11 aircraft, Revenue declined by 62% to AED 5.5 billion (US$ 1.5 billion), reflecting the pandemic impact across all business divisions in the UAE and worldwide, Expands global footprint with the full acquisition of Destination Asia, and the opening of new catering and retail facilities, For the first time in the Groups history, redundancies were implemented across all parts of the business. It also launched new technology platforms Emirates Partners Portal and Emirates Gateway, to better engage and serve travel trade partners. Thus, supplier power is significant. Mentioned earlier the main and the foremost thing in the marketing is target market identification. 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. 610 - 611): 1) Arriving passengers From tan till now the airline has shown tremendous growth. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! 2. (2021, July 23). Reach thousands of academicians and corporates across the globe. Cash used in financing activities, primarily payments for loans and leases, amounted to AED 548 million (US$ 149 million), while the business utilised net cash of AED 149 million (US$ 41 million) in essential investing activities. Revenue from dnatas Travel Services division has declined by 96% to AED130 million (US$35 million). From Dubai to Houston, Los Angeles, Sans Francisco, and Dallas company operate four of the world largest no stop commercial flight. We're here to answer any questions you have about our services. MarketLine 2014, Company Profile: Emirates. In term of UAE, the environment of UAE is the dynamic environment. Turkish Airlines based in Istanbul is also emerging as a formidable regional rival covering more than 280 destinations through its hub and spoke model. Moreover it has the population advantage of almost 80 million people staying in Turkey compared to just over 9 million in UAE where Abu Dhabi based Etihad also competes with Emirates. In response to the pandemic, Emirates led the industry in developing new service and operating protocols to protect its customers and employees. A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. To enhance luxury travel through integrated passenger lounge and in-flight services. Importantly, the values underscore the essence of respectful interactions among employees and other stakeholders in their day-to-day undertakings. All Rights Reserved by Barakaat Consulting. However, the Emirates Airline is growing on a faster pace than its competitors. During the year, Emirates successfully restructured various aircraft leases and loans. In term of quality people rate airlines as 10 for Emirates Airline and 9 and 8 for the rest two airlines. The airline has adopted the IATA-recommended guideline dubbed Simplifying the Business or StB to further improve the efficiency of its pre-flight lounge services. 5, pp. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. Economies and companies that entered pandemic times in a strong position, will be better placed to bounce back. Diversification is referred as offering new services to new market. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. The Emirate Airline also adopt that strategy. This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. Current strategies are built around the firms capabilities, such as resources and technological expertise. It also worked with local organisations in Australia, Ireland, Italy and the UK to support communities in need. The airline is the leading as well as the largest airline of not only UAE but also of Middle East. They helped me with my custom research and delivered before time! Therefore, the strategic options will not reduce the financial returns/profits of the airline. Moreover, as the country has flourishing tourism industry therefore, from many country every year millions of people travel to UAE for holiday.
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