On the other hand, one potential strategy is expanding its network to overseas markets. Emiratisation strategy to recruit and retain UAE Nationals, 1. 1.1.1. 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. During the year, Emirates successfully restructured various aircraft leases and loans. The feasibility of the strategies based on its resources and constraints. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Its key elements include product differentiation to compete in the low-cost segment (Graham et al. Emirates is an airline company based in Dubai. The aim is to offer customers an efficient and enjoyable traveling experience. The appropriateness of the strategic options for Emirates will depend on their relevance to the firms internal capabilities and strategic vision as well as to the macro-environment forces/trends in the industry (Dess, Lumplin & Eisner 2007). With competition increasing, airlines are finding that offering the lowest fares is no longer enough. 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. Over the time they have built strong relationship with their customers. Emirates current strategies include improving in-flight services for travelers and lowering its operational costs to enhance efficiency. Environmental Context Analysis of the UAE. !-Keith GrencherBirmingham Business School. Emirates Airlines Financial Transparency - https://www.emirates.com/in/english/about-us/business-model/financial-transparency.aspx, 4. Emirates Airline: Strategic Management Report - SlideShare Adding the option of accessing the airlines services in the customers native language can also being implemented as are 24x7 customer care services that can offer solutions to basic questions and add a human touch to the booking process. Passengers often consider ticket prices and in-flight and lounge services when selecting a flight. Sheikh Ahmed said: No one knows when the pandemic will be over, but we know recovery will be patchy. The financial investment to purchase and install or upgrade systems that improve the in-flight experience. The airline operates the mixed air fleets which are the wide-body aircrafts. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. As for as, their employees are concerned, for them employees are their key assets and they provide many benefits to the employees including the old age benefits, fringe benefits, bonuses and many other benefits. "Emirates Airlines' Strategic Choices and Decisions." The inflight catering business upliftednearly 16.9million meals to airline customers, a substantial decrease of 82%. Changing Govt policies and regulations Emirates Competitors 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 the following in your reference section in order to give credit to the source. Due to ongoing pandemic-related flight and travel restrictions, the airline reported a loss of AED 20.3 billion (US$ 5.5 billion) after last years AED 1.1 billion (US$ 288 million) profit, and a negative profit margin of 65.6%. document.write(new Date().getFullYear()); (2021, July 23). Emirates order book for 200 aircraft remains unchanged at this time. The detailed complete set of references are available on request in the 'Complete report' on purchase. 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. A detailed Porters five forces analysis is included in Appendix 2. Organizations are referred as an open system, where there are many forces that directly or indirect affect the organizations. This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. 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. The database is updated daily, so anyone can easily find a relevant essay example. And the company is one of the few in the world to use all wide-body aircraft. dnatas cash balance was AED 4.7 billion (US$ 1.3 billion), a decline by 12%. The airline industry of UAE ha lot of potential for growth as the UAE is the hub of tourism and millions of people as a tourist visited this country. 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. 28, no. And try to rate them on term on 1 to 5 rating in scale in term of quality by asking from people. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. These helped us sustain operations and retain the vast majority of our talent pool. On the other hand, the aircraft suppliers and travel agents may not be affected by the airlines cost-reduction measures because they depend on many clients. Different studies of consumer behavior has indicated that how individuals, groups and organizations make purchase decision and buy goods and servicer according to their needs and desires. The PESTLE analysis for Emirates Airlines is given below: We do not share your information with anyone. However, the profit margin for the year 2017 has plunged lowest in the . 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. Therefore, the section in detail analysis the potential customer of this airline and the different factors that affect their purchase decisions. Emirates in efforts to strengthen its IT infrastructure signed a 10-year technology services agreement with IBM in 2016. In term of quality people rate airlines as 10 for Emirates Airline and 9 and 8 for the rest two airlines. In case you need the complete report please purchase using the buy options displayed. The introduction of new technology will also affect the airline industry in positive as well as negative way. 2021. Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. IvyPanda. Emirates local competitors include RAK Airways and Etihad Airways. 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. 5, pp. (PDF) Innovative Options for Future Strategic Directions A Particular https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. 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. Holistic Analysis 2011). PDF ii Frontier Economics | February 2015 They are following the best promotional strategies, pricing strategies, advertising strategies, and distribution strategies. "Emirates Airlines' Strategic Choices and Decisions." 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. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. 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. Increasing Competition in Middle East Market can affect business of Emirates airlines 2. Lufthansa Corporate Strategy - 3126 Words - Internet Public Library 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. However, the successful implementation of these strategies will require staff training and development. In addition to supporting global supply chains for food, medical and other trade items, Emirates SkyCargo also tapped on its pharma capabilities and infrastructure to support the worldwide distribution of COVID-19 vaccines and humanitarian relief to Lebanon in the aftermath of the Port of Beirut explosions. Therefore, Emirate Airline has considered that also as Etihad may become threat for the Emirate Airline in future. At Ethical Systems, we contend that these two approaches should go hand in hand, because good ethics is good for business. 2. These helped us sustain operations and retain the vast majority of our talent pool. The Groups cash balance was AED 19.8 billion (US$ 5.4 billion), down 23% from last year mainly due to weak demand caused by the various pandemic related business and travel restrictions across all of the Groups core business divisions and markets. Consumer behavior is the acts and decision processes of the consumer which they shows during the purchase the product as well as services. Trade protectionist policies of new U.S. administration, 1. Overall, buyer power is significant in this industry. In short, stakeholder theory presents an opportunity to infuse business analysis with ethical standards ( Freeman, 2015 ). Moreover, the airline is economically strong and it will never turn down. Kotler, P & Keller, K 2011, Marketing Management, Prentice Hall, New York. While making purchase decision many factors affect consumer buying behavior (Dudovskiy, 2013). In 2020-21, dnata executed the USs first green turnaround of a customer aircraft at New York JFK, an achievement made possible by its previous investments in zero-emission, electric ramp ground support equipment. DII impact from Emirates' operations 5 Figure 4. However, we may send you emails on our new reports and solutions. Therefore the demand for services provided by many airlines is increasing day by day as the population of UAE is increasing. The Group consists of Dnata, the successful Airport Ground Services and Travel Industry division, Emirates Airline. However, the threat of new entry is low because of the high capital/resource requirements and brand equity enjoyed by established carriers (Sheffi 2006). The price difference between substitutes (LCC) and Emirates services is large. Emirates order book for 200 aircraft remains unchanged at this time. The airline is considering a geographical diversification strategy to spread its operational risks. These shared values and beliefs have great impact on consumer behavior while making a purchase a certain product. Etihad Airline is another growing airline of UAE. Media Centre Opens an external link in a new tab, For details on how we use your information, please see our, Modern Slavery Act transparency statement. In addition to passenger flights, Emirates SkyCargo operates dedicated freighter aircraft and manages the cargo activities of the airline. Emirates Airlines' Strategic Choices and Decisions. Web. IvyPanda. Society has also great influencer on purchasing decision of consumers in different situations. So it shows that over all Emirates Airline is working better as compared to other competitors. 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 . We inspire travelers around the world with our growing network of worldwide destinations, industry leading inflight entertainment, regionally inspired cuisine, and world-class service. 2011). It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. (PDF) Analysis of airport stakeholders - Academia.edu It also has a differential advantage due to its broad portfolio. IvyPanda, 23 July 2021, ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. From long ago the airline is applying full fledge marketing strategies to ensure the quality services they are providing to their clients. Additionally, Emirates has expanded its global reach through partnerships and codeshare agreements with various airlines worldwide. This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. Factors that may affect the people travel through Emirates Airline are as personal factors, cultural factors, psychological factors and most important the social factors. In term of UAE, the environment of UAE is the dynamic environment. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. Emirates hotels portfolio recorded revenue of AED 296 million (US$ 81 million), a decline of 49% over last year as the events business dried up and facilities had to shut temporarily due to the pandemic. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. Economically the country is one of the fastest growing country in the world. Politically UAE is strong and the political condition in UAE is stable. In recent years, the airline has received numerous awards for its in-flight entertainment system (ICE) and exceptional service. This section of the report will in-detail analyze some of the major direct and indirect competitors of Emirates Airline. Emirates closed the financial year with cash assets of AED 15.1 billion (US$ 4.1 billion), a position which would have stronger if not for a one-time payout of AED 8.5 billion for customer refunds. The various cost reduction initiatives returned an estimated saving of AED 7.7 billion during the year. Ban on carrying electronic devices to U.S bound flights, 1. Airlines and Stakeholders: A First Class Relationship 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. Reach thousands of academicians and corporates across the globe. Emirates. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.com. Emirates SWOT Analysis, Competitors & USP | MBA Skool Feasibility evaluation reveals that the strategies are executable because of the firms large capital base and internal resources. To lower the operational costs through a lean workforce and maintaining low overhead costs. Emirates Airlines, founded in 1985, is the largest airline in the Middle East, based in Dubai, United Arab Emirates (UAE). With reduced flight and travel activity across the world, dnata's total revenue decreased by 62% to AED5.5billion (US$1.5 billion). The firm has won several accolades for its quality in-flight products, including the Airline Passenger Experience Award and the British Travel Award, among others (Lohman et al. From tan till now the airline has shown tremendous growth. The Summary report contains the SWOT & PESTLE table contents only. During the year, dnata completed the purchase of Destination Asia, bringing one of Southeast Asias top destination management companies fully under the dnata Travel Group umbrella. DII impact of Emirates' A380 deliveries in 2013 6 Figure 5. 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. Thus, the LCC-dominated markets in Asia, including China, India, Malaysia, and the Philippines, are potential destinations for Emirates (Damuri & Anas 2008). Additionally, the airline has become number choice of the families around the world. With significantly reduced and constrained capacity deployment across most markets, Emirates, Due to ongoing pandemic-related flight and travel restrictions, the airline reported a, Emirates carried 6.6million passengers (down 88%) in 2020-21, with, With the strong demand in air freight throughout the year, Emirates cargo division reported a, The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a, With reduced flight and travel activity across the world, dnata's. This paper provides an overview of Emirates Airlines, analyzes internal and external factors that affect their business, addresses stakeholders' expectations, and looks into the challenges. Strategic Management Project: Emirates Airlines Report These forces are further divided as the macro forces as well as the micro forces. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. 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. A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Emirates Airline is renowned for its superior in-flight services globally. The Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. Subsidiaries, Partnerships and Collaborations Report. Twenty year ago, Emirate Airline was born as the official airline of UAE. The StB entails five features that automate the entire traveling process, namely, e-ticketing, eCheck-In, eBoarding pass, eBaggage Management, and eFreight (International Air Transport Association [IATA] 2008). 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. International Air Transport Association [IATA] 2008, Fact & Figure Environment. The airline purchase its aircraft from the top companies in the world Air Bus and Boeing. Are you looking for a report which is not covered on our website? Technological the country is also growing, likewise in telecommunication industry Etisalat is the market leader, and providing best services in telecommunication industry around the world. Emirates Group 2015, Leadership: The Senior Management Team. This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. Therefore, their employees are also loyal to the company (Group, 2011). Customized Solutions This report presents a strategic analysis of Emirates Airline, a Dubai-based national carrier with operations in three segments: airline, in-flight, and all other (MarketLine 2014, para. Role Of Stakeholders In Aviation - 963 Words - Internet Public Library 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. You are free to use it for research and reference purposes in order to write your own paper; however, you Today the economy of the country is growing on fastest pace and the recorded economy in 2013 was 4.4 percent, which was expected to reach at 4.8 percent this year. IBM will assist the airline in areas such as improving passenger support systems, encryption of airlines data in near real-time and effective communication between airlines systems. Current strategies are built around the firms capabilities, such as resources and technological expertise. Our economic impact Please click here for more information. In case you want this report emailed straight into your email inbox, kindly share your details below. 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. 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. This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. Emirates Airlines SWOT Analysis - The Strategy Story Therefore, the airline is first choice of customer around the country and around the world. Our business model | Financial transparency | About us | Emirates - Global For the first time in the Groups history, redundancies were implemented across all parts of the business. Different forces that combined together create society are references groups, family groups and opinion leaders. This marketing audit aims at looking at the potential markets for the airline and establishing ways of being . Emirates Airline Company Analysis | Free Essay Example - StudyCorgi.com Analysis of Stakeholder Definitions and Goals To examine the role of the airport stakeholders a precise definition of stakeholders and their goals for the airport is . The requirements for the implementation of the strategies include financial systems, passenger management systems, and HR systems. Emirates is also the fourth in the ranking of all airlines globally (O'Connell and Bueno, 2018; Redpath, O . Therefore, switching costs for carriers are very high. The airline started its operations in 2003 and from that time till today the organization has shown exceptional growth in term of providing quality to the passengers who travel through this airline. No plagiarism, guaranteed! 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. It also worked with local organisations in Australia, Ireland, Italy and the UK to support communities in need. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. They also follow Informative Advertising: where they try to create brand awareness and knowledge of new products or new features of existing products. 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). The firms A380 fleet is the largest in the industry globally (Lohman et al. The government has also establish a trade free zone for conducting businesses activities. In the UAE and GCC region, dnatas Travel business remained steady. The Emirates business model. Emirates Airlines Revenue : AED 35.5 billion - FY ending 31st March 2021 (y-o-y growth -65.8%) AED 104.3 billion - FY ending 31st March 2020 (y-o-y growth -4.8%) AED 109.3 billion - FY ending 31st March 2019 Competitive Analysis of Emirates Airlines SWOT PESTLE The SWOT analysis for Emirates Airlines is given below: Sample Complete Report
Rudy Gobert Touching Mics Gif, Articles S