emirates case study strategic management
More than 250, 000 Australian who visited Dubai this year, reflect the coverage and convergence of both networks of the airline. For example, most businesses try as much as possible to expand their market shares through providing perfect prices, customer services, and some exclusive promotions. In fact, the profit plunged 82% to $340 Million for the 2016/2017 financial year as the Emirates Airline faces severe economic as well as political headwinds after the duration of untrammeled growth. (2017). The first part is strategic planning of Emirates airline. Over the duration of the past thirty years, His Highness Sheikh Ahmed Bin Saeed Al Maktoum has been at the first place of the Dubai’s remarkable economic development and growth, spearheading the successful expansion of this aviation sector. Emirates Airline consists of three types of First Class Chairs, that is, the horizontal bed “Sky Cruiser” seat, the full suite with doors, and “Sleeper” seats. Available at: http://www.atag.org/facts-and-figures.html [Accessed 27 Dec. 2017]. Emirates flew its first flights out of Dubai on 25th October 1985. The Emirates Airline Company is one of the famous employers in its home region, having over 62, 000 workers currently. Emirates Airline adopts the distinction as one of the three generic strategies to achieve the best out of the competition and gains competitive advantages amongst its competitors by providing high-quality services to their customers. This approach assists the company keeps not only their workers but also open new opportunities for the outsiders. Technical assistance that is required to the company is offered by the Emirates Engineering, while the Emirates Flight Catering provides the catering services needed in flight. A Comparative Study Between A’saffa Foods (SAOG) in... McKinsey 7S Model Factor Analysis of Amazon Inc. Furthermore, Emirates Airline is highly threatened by the introduction of long-haul low-cost airline services including the Norwegian Air, Wow Air, and AirAsia X, which are meant to increase the overall competition rate on the long-haul routes (Fehrm, 2016). The Emirates Airlines company have leveraged the international airline domain knowledge into another core profit center. For instance, Sheikh Ahmed is both a rare and valuable resources. The strategy is a long-term planning that is aimed at achieving the objective of the business through the arrangements of the resources of organization within a challenging environment. Similar to resources, Emirates Airlines consists of threshold competencies which include the operation of on-time delivery, online booking, and point-to-point routing. For example, Boeing costs approximately $2 Billion (Ashraf, Emirates Airline). By because this company has never suffered any shortage of resources to develop, the attempt of launching a subsidiary airline that is cost-effective or a low-cost business model may be an incredible opportunity that worth exploring. This will enable the company to develop some small hubs outside Dubai as well as deploy modern aircraft (ArabianBusiness.com., 2016). Porter (1985) identified the primary value making processes of a company, mainly when offering any product or service as inbound logistics, outbound logistics, operations, services, marketing, and sales. 2015). VRIO Framework Capabilities Therefore, most companies providing the airline services give the air miles systems to have the attention of customers and also, to retain them. Feasibility Emirates Airline consists of three types of First Class Chairs, that is, the horizontal bed “Sky Cruiser” seat, the full suite with doors, and “Sleeper” seats. Emirates Airlines Case Study Strategic Management the necessity of doing homework as it may influence student's grades greatly. Tan Wei Teng CEB130056 In this case, each organization or business under the Emirates group has the responsibility of establishing or producing a market specific function or services. Occasionally. If you continue browsing the site, you agree to the use of cookies on this website. 10 As Dubai is the hub for all international air travelers, this is an excellent time to improve the new services to offer to the top business executives. Emirates have many services for this group of people, and it is the reason why it introduces high-quality first-class private lounges that attract business travelers. The company have innovated in-flight entertainment and communication systems, which has made it a pacesetter in the industry (Emirates Airline Company Corporate Website, 2010). However, on the international level, most people typically use airplanes to move more comfortable and faster. Strategic Option 3 Emirates’ Corporate Strategy [online] Leeham News and Comment. The CEO of Emirates Airline has a very good reputation and he is in a position to persuade the audience as well as present his claims. The core concept or intention of the value chain is that in any action taken by the company, it is supposed to add value or think about outsourcing it to another business which can do it in the same manner or add more value compared to the first company. Therefore, the Millennial travelers are accompanied by diverse expectations from the predecessor generations. According to the revenue, it is on the seventh largest airline in the world. (2014). [online] The National. The competitive advantages are the position that the company’s signature occupies, especially against its rivals. The first portion of the study provides a brief overview about Emirates Airlines Company followed by a state of affairs analysis that includes the internal and external analysis. This brand and image realization generated from the business segment renders it a valuable strategy. The leading airline, Dubai International Airport, has the private Emirates Terminal 3. Diplomacy In Action. In cases of the regional airline services, this threat may be higher as many people can drive their personal vehicles or just use railroads as a way to travel within the same region. Technology Development Possible if any rival enter in alliance with other airlines, where they will achieve low-operational costs and more services, Yes. From the perspective of analyzing the internal and external environments, it’s worth for Emirates Airlines management to identify its overall capabilities as well as the competitive advantages. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The market demand is high mainly if the Millennial travelers are considered as the factor that has the duty of carrying the entire opportunity for the Emirates Airlines to precisely personalize and customize their services to the existing customer’s preferences and needs (Accenture, 2016). Therefore, Emirates Airline has a good as well as a practical business model, helpful in gaining the company goals and assist the company to become the leader in the airline industry (Economist.com. It is the leading international carrier of Dubai, with a politically stable region and has a strategic location, mainly for transit passengers. However, the Emirates Airlines’ efficient management is successfully operating the fleet, such that it has become an exemplary airline in the aviation sector. Threat (Jammoul, 2013) A case study analysis written by Abedelazes Safi, claimed that Emirates has been able to gain a competitive position and advantage in the market place since they started in 1985. The airline’s vice-chairman has more than 50 years of experience in the sector. In the assessment of the Emirates’ internal factors, it is clear that competitive advantage is the core to the success of this company. They include the Airbus and Boeing. The company is developing its services daily by satisfying the customer’s desires and needs. [online] Available at: https://www.flightglobal.com/news/articles/gulf-airlines-attack-european-protectionism-406308/ [Accessed 27 Dec. 2017]. Furthermore, they have a program for rewards, which enhances the overall performance of their staffs (Emirates Group, n.d.). Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. CSEB3101 Strategic Management [Online] Available at: http://public.eblib.com/choice/publicfullrecord.aspx?p=4643535. Therefore, the power of the purchasers in this industry is powerful. It has kept the large fleet for a long-term, Difficult. Presented by: The Extensive Aviation Training Strategy is a critical strategy that Emirate implements. The Middle East traffic of airlines on America and Europe routes have significantly developed in the past few years, which is attributed by the agreements to liberalize the entire air travel markets (Parker, 2013). However, in many nations, railroads, and trains are not available, such as in the United Arabs Emirates. The company provides the long-haul flight services at a low cost. Yes. [online] Available at: https://www.economist.com/blogs/gulliver/2017/03/narrowing-gulf [Accessed 27 Dec. 2017]. According to the research conducted by Upham, (2015), the increase in adverse weather conditions such as Hurricanes, snow storms, extremely high temperatures, among others might significantly affect the Emirates Airline operation.