Emirates SkyCargo quickly scaled up operations and rebuilt its cargo network to meet strong demand from shippers who faced a capacity crunch when the pandemic forced airlines to drastically reduce flights. in case of Emirates Airline as it is the oldest airline of UAE and has shown the tremendous growth over the time therefore, toady its as clear cut competitive advantage over it competitors. To track regional businesses and to the . Emirates unique connections to/from Europe 7 Figure 6. DII impact from Emirates' operations 5 Figure 4. 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. This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. This includes a one-time impairment charge of AED 710 million (US$ 193 million) mainly relating to certain aircraft which are currently grounded and are not expected to return to service before their scheduled retirement within the next financial year. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. In addition, the switching costs between airlines are low. To enhance luxury travel through integrated passenger lounge and in-flight services. 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. IvyPanda. All work is written to order. With significantly reduced and constrained capacity deployment across most markets, Emirates total revenue for the financial year declined 66% to AED30.9 billion (US$8.4billion). They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. Due to ideal place for conducting businesses and due to best tourist spots in the country, the country is the ideal place for foreign investors. The financial investment to purchase and install or upgrade systems that improve the in-flight experience. The airliner invested in 37 lounges in different destinations globally to provide dining services to passengers (Jammoul 2014). Table 2: External stakeholders (Source: Qantas, 2020) Stakeholders' nature and implications of conflicting interests. Moreover, their major aim is provide the quality services for that they have dedicated team that work day and night for ensuring the quality (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). (2021, July 23). You can download the latest annual report or read our previous reports for detailed information on our commercial results and strategies. This includes impairment charges of AED 766 million (USD 209 million) on goodwill and other intangible assets across all its divisions. Emirates Group 2015, Leadership: The Senior Management Team. Emirates should continue improving its on-board facilities, e.g., entertainment and communication (Wi-Fi), and catering services to maintain its strong competitive position. 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 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). 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. 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. The reason is that to know on which basis these organizations position their products. What is Stakeholder Analysis? 2011). We're here to answer any questions you have about our services. In airline industry there is lot of competition. This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. Type above and press Enter to search. In airline industry the competition is increasing day by day as the competitors are trying to provide more quality services then each other. Etihad Airline is another growing airline of UAE. However, the Emirates Airline is growing on a faster pace than its competitors. 2. The later part will in detail mentioned the targeted audience and the need and wants of that targeted audience. 23, no.1, pp. Grant, R 2002, Contemporary Strategy Analysis, Concepts, Techniques, Applications, Blackwell publishers, London. The UAE economy's growth has been mostly fuelled by the country's oil industry, however, recent . Etihad Airways Overview Etihad Airways was incorporated in July 2003 as a national carrier. However, external constraints, such as industry rivalry and fuel prices, may affect the adoption of the first strategic option. Therefore, their employees are also loyal to the company (Group, 2011). 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 Subsidiaries, Partnerships and Collaborations Report will cover after purchase. 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%. These fundamental ingredients of our success remain unchanged. In addition to the AED 14.5 billion financing that was raised for aircraft and general corporate purposes in 2020-21, Emirates has already received committed offers to finance two aircraft deliveries due in 2021-22 and continues to tap the financial market for further liquidity to provide a cushion for the potential impact of COVID-19 on the business cash flows in the near term. The huge capital investments constitute another barrier to new entry. Highly priced tickets compared to competitors, 1. Holistic Analysis While, Etihad Airways is the second brand in term of quality, good will and other mentioned factors in the mind of people. The airline has pursued an aggressive growth strategy, often being the launch customer for new aircraft models and investing in new technologies to improve operational efficiency. 610 - 611): 1) Arriving passengers In addition to passenger flights, Emirates SkyCargo operates dedicated freighter aircraft and manages the cargo activities of the airline. Due to increasing diversity in the country there is mixed culture flourishing in the country (interact, 2014). Applying this model to Emirates indicates that the forces could have a significant effect on the airlines competitiveness. Auckland International Airport SWOT & PESTLE Analysis, Royal Jordanian Airlines SWOT & PESTLE Analysis, Yansab (Yanbu National Petrochemical Company) SWOT & PESTLE Analysis, Sharjah Islamic Bank SWOT & PESTLE Analysis, Emirates National Oil Company (ENOC) SWOT & PESTLE Analysis, 1. The airline is also the 10th largest airline in the world in term of travels who travel every week from this airline. The SWOT, five forces, and strategic drift analysis revealed three strategies that Emirates could utilize to strengthen its competitive position. MarketLine 2014, Company Profile: Emirates. The airline in 1985 e started its operations, when in mid-1980s the Gulf Air cutback to Dubai. The only recommendation is that, they have to position their marketing activities while considering all their competitors. The firms other cost-efficient operations include. Slack, N, Chambers, S & Johnston, R 2004, Operations Management, Prentice Hall, New York. *You can also browse our support articles here >. Performance shows the airlines ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products. dnatas cargo handling declined by 18% to 575,000 tonnes, reflecting the reduced available flight capacity in the overall air cargo market over the year. Moreover, it has also provide lot of opportunities for foreign investors. Jammoul, A 2014, The Strategic Diagnosis: Emirates Airlines, Sophia University Presss, Nice, France. Economic. Copyright 2023. 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). A SWOT matrix (Appendix 1) was applied to Emirates to reveal its internal strengths and weaknesses as well as potential market opportunities and threats in commercial aviation. Its product development efforts should focus on installing technologies that enhance passenger comfort and communication while on-board. As for as Emirate Airline is concerned the basic need of people through this airline are comfortable journey, quality services, quality food during traveling, and may other required facilities during traveling. 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. The database is updated daily, so anyone can easily find a relevant essay example. Emirates has reported a revenue growth since its establishment. The largest airline 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. and the flag carrier 2. It encompasses three phases, namely, incremental change, strategic drift, a period of flux, and transformational change. Therefore, the strategic options will not reduce the financial returns/profits of the airline. Looking for a flexible role? It also pressed ahead with key investments to strengthen the business including the opening of a new state-of-the-art cargo facility in Manchester; upgrades to technology across its leisure and corporate travel businesses; the setting up of a dedicated inflight retail centre of excellence in the UK to serve global customers; and the opening of its second catering facility in Dublin. Recent by ordering 140 Air Bus A380s, the company is become the second to operate these air craft after Singapore. document.write(new Date().getFullYear()); 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. Organizations are referred as an open system, where there are many forces that directly or indirect affect the organizations. Interactive feedback can help tailor in-flight services to customer needs. They can impact rivalry by hiking prices or producing low-quality goods. 2021. All Rights Reserved. International airport operations continue to represent the largest business segment in dnata by revenue contribution. 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. dnatasInternational Airport Operations division revenue declined by 43% to AED2.3 billion (US$617 million), reflecting the broad impact of the global pandemic across markets. The feasibility of the strategies based on its resources and constraints. 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. The detailed complete set of references are available on request in the 'Complete report' on purchase. Airlines can utilize travel agencies, advertisements and the internet to promote their brand. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! These airlines mostly position there brand on following factors. 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. Digital Marketing and Social Media Strategy Analysis Report. This report contains the table contents only. Furthermore, the second that have to make clear is the need and wants of that targeted audience. Emirates Airline is renowned for its superior in-flight services globally. ensure the integrity of our platform while keeping your private information safe. The Emirates story started in 1985 when we launched operations with just two aircraft. [online] Available at: https://www.swotandpestle.com/emirates/ [Accessed 01 May, 2023]. Dess, M, Lumplin, C & Eisner, F 2007, Strategic Management: Creating Competitive Advantages, McGraw-Hill, New York. Economically the country is one of the fastest growing country in the world. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. The three strategies will be analyzed to determine their suitability, acceptability, and feasibility in the commercial aviation context. The airline was established by the Emirates government. Moreover, as the aviation leader in Middle East the company is providing quality services to its passenger from long ago. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.com. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). Strong supply chain partnerships, e.g., with aircraft manufacturers, like Boeing, Integrated hotel & tourism services (5-star hotels), Primary user of the Dubai international airport an important stopover for travellers, High debt burden (up to 42.4bn Dirham in FY2014) that affects its expansion efforts, Risky acquisitions and diversification actions, Weak HR processes relies on low-wage labour for baggage handling, Declining liquidity level current ratio dropped by 21.8% to 0.8 in 2014, Huge market in China a fast-growing economy with tourist destinations, Market opportunities in the Travel & Tourism sector Dubai visitors, Partnerships (horizontal integration) with airlines like Jet Blue to minimize operational costs (strategic option 1), Rivalry from established national (Etihad), regional, and international carriers, Global recession trends in China and the EU. It also has a differential advantage due to its broad portfolio. Therefore, the threat of new entry is low. SWOT Analysis: Meaning, Importance, and Examples. Revenue fromdnatasUAE Airport Operations, including ground and cargo handling declined to AED 1.7billion (US$ 455million). The prosperity of the organization is since it is developing in the UAE, a country characterized by rapid and efficient economic development (Simmons, 2020; Almarri and Abu-Hijleh, 2017). Over 37 airlines serve Dubai. The reported total transaction value (TTV) of travel services sold declined by 98% to AED 229 million (US$ 62 million). The main point that has to be cover are as follows: first thing that is required, is the identification of the targeted audience. It has backward integration with suppliers to develop custom-made in-flight amenities for its fleet. Three type of people is the target audience of Emirates Airline business people, families, and transit passengers. With competition increasing, airlines are finding that offering the lowest fares is no longer enough. 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. Moreover, as the country has flourishing tourism industry therefore, from many country every year millions of people travel to UAE for holiday. 391-398. 1. Emirates received three new A380 aircraft during the financial year and phased out 14 older aircraft comprising of 9 Boeing 777-300ERs and 5 A380s, leaving its total fleet count at 259 at the end of March. Therefore, the airline is first choice of customer around the country and around the world. Competition from low-cost carriers (LCC) like Jazeera Airways and Air Arabia reduces the profits of carriers that offer long-haul services, such as Emirates. Europe also has been target of terror in recent times and these will have an impact on tourism and travel and subsequently Emirates business. Stakeholder Analysis: Lockheed Martin Corporation 1461 Words | 6 Pages. The Emirates Group is a highly profitable business with revenue of approximately US$ 12 billion and more than 40,000 employees. Business Strategic Analysis of RyanAir Udara Seneviratne 15.2K views15 slides. In response to the pandemic, Emirates led the industry in developing new service and operating protocols to protect its customers and employees. Study for free with our range of university lectures! Moreover, the airline is economically strong and it will never turn down. visit our help centre Emirates has roped in digital agency Amaze in 2015 to enhance its global digital platforms as part of its broader omni-channel strategy. (2021, July 23). connection point between two flights. The airline operates more than 3400 flights per week. Web. student. professional specifically for you? . Over the time they have built strong relationship with their customers. Emirate Airline is positioning their product on the basis of price. The aim is to offer customers an efficient and enjoyable traveling experience. And toady Emirates Airline also known as low cost carrier (rodrigo, 2012). 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. Thus, carriers compete by providing schemes that include cheap tickets with quality services. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. Economies and companies that entered pandemic times in a strong position, will be better placed to bounce back.
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