With reduced flight and travel activity across the world, dnata's total revenue decreased by 62% to AED5.5billion (US$1.5 billion). Factors that may affect the people travel through Emirates Airline are as personal factors, cultural factors, psychological factors and most important the social factors. The SAF model applied to Emirates indicates that each of the three strategic options is essential in the airlines growth. A strategic drift arises when a firms strategies are shaped gradually by its history or organizational culture that is not in consonance with industry trends (Grant 2002). Passengers from these countries can stopover at Dubai International Airport en route to North America or Australia and New Zealand (Auckland destination). In addition, the switching costs between airlines are low. Emirates 2012, Airlines and Subsidy: Our Position. Different forces that combined together create society are references groups, family groups and opinion leaders. This is primarily due to the full year impact of the pandemic situation including a nearly 12-month shut down of the facilities in Australia which dnata had acquired only two years ago. Emirates Airline is a national carrier; therefore, it enjoys the government support (monarchy). Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. The purpose of this research is to know, how Emirates as a company in aviation came into business and to determine various strategies used by Emirates to gain competitive advantage over other. It encompasses three phases, namely, incremental change, strategic drift, a period of flux, and transformational change. The Emirates Group. We ask sample of 15 people to rate out competitors brands and our brand price quality on rating scale of 1 to 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. Therefore, people choice regarding whether to travel through this airline or any other and if yes whether to travel through economic class or business class totally depended on these factors i.e. on the income and their way of living (Personal Factors Affecting Buyers Behavior, 2010). This is IvyPanda's free database of academic paper samples. As of September 2021, Emirates Airlines served over 150 destinations in over 80 countries across six continents. The airlines fuel bill declined by 76% to AED 6.4 billion (US$ 1.7 billion) compared to the previous year, driven primarily by 69% lower uplift in line with capacity reduction. The threat of new substitutes, supplier power, buyer/customer power, and industry rivalry is high. Second aspect is that how the particular airline is going to satisfy or dissatisfy with the available services with respect to each of the priority important needs and wants. 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). British Airways : Stakeholders Objectives Parsa Lohani, FHEA, MCIM (Chartered Marketer) 8.4K views12 slides. One of the things customers value the most is receiving accurate information andomni-channel strategies ensure that proper communication is maintained at all times. Recent by ordering 140 Air Bus A380s, the company is become the second to operate these air craft after Singapore. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. 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 Some of the bases on which Emirates Airlines position their products are price, quality, demographic, by providing diversified products and many other basis. visit our help centre 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. This dramatic revenue decline was due to the COVID . The introduction of new technology will also affect the airline industry in positive as well as negative way. Customers have a high bargaining power because ticket costs vary depending on the travel option (budget or luxury option). 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. Ban on carrying electronic devices to U.S bound flights, 1. DII impact from Emirates' operations 5 Figure 4. 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. 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. These forces are further divided as the macro forces as well as the micro forces. The skilled task force is also a supplier in the business. They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.COM. Factors such as our income, occupation, our life style which include daily basic activates, interests, as well as opinions. professional specifically for you? Do you have a 2:1 degree or higher? Twenty year ago, Emirate Airline was born as the official airline of UAE. 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. Your privacy is extremely important to us. "Emirates Airlines' Strategic Choices and Decisions." The support from aviation lessors and financing partners during these challenging times reflects the financial communitys confidence in Emirates business model, and its mid to longer term prospects. Technological Environment AND Natural Environment. Moreover, as the country has flourishing tourism industry therefore, from many country every year millions of people travel to UAE for holiday. All Rights Reserved by Barakaat Consulting. From long ago the airline is applying full fledge marketing strategies to ensure the quality services they are providing to their clients. Dess, M, Lumplin, C & Eisner, F 2007, Strategic Management: Creating Competitive Advantages, McGraw-Hill, New York. Segmentation, Targeting and Positioning (STP) Analysis Report. Table 2: External stakeholders (Source: Qantas, 2020) Stakeholders' nature and implications of conflicting interests. 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. To lower the operational costs through a lean workforce and maintaining low overhead costs. These factors are one of the most vital predictor of people buying behavior. 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. Emirates is an established brand of the Emirates group. "Emirates Airlines' Strategic Choices and Decisions." The total number of employees in this company were 38797 in the fiscal year 2011 (Group, 2011). Our government affairs journal Please click here for more information. 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. Its main hub is Dubai, UAE. Airlines can utilize travel agencies, advertisements and the internet to promote their brand. 23, no.1, pp. SWOT analysis is a strategic tool for the evaluation of a firms internal and external environments to determine its strategic position in the industry (Kotler & Keller 2011). Three type of people is the target audience of Emirates Airline business people, families, and transit passengers. Trade protectionist policies of new U.S. administration, 1. (2021) 'Emirates Airlines' Strategic Choices and Decisions'. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. A detailed Porters five forces analysis is included in Appendix 2. ensure the integrity of our platform while keeping your private information safe. Emirates Airline receives rating of 4.6 rating, whereas, Etihad Airways receives an average of 3.8 rating and Qatar Airways receive the rating of 3.4. Environmental analysis is the analysis of forces around the organization that affect or make an impact on the ability of the organization to take decision. 15, no. In addition, it offers integrated in-flight catering and accommodation for travelers. The Summary report contains the SWOT & PESTLE table contents only. This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. Wide portfolio activity in hotel services, cargo, etc. Emirates is an international airline so the revenues are collected in multiple currencies - any sudden movement in the exchange rate and change in global macroeconomic conditions could lead to revenue fluctuation (Parasie, 2016). The issues are still under discussion. Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. Retrieved from https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. It has backward integration with suppliers to develop custom-made in-flight amenities for its fleet. The main stakeholders include the Dubai government, company management, passengers, travel agents, aircraft providers, and staff. However, the profit margin for the year 2017 has plunged lowest in the . Lovestock, H, Wirz, L & Keh, P 2002, Service Marketing in Asia: Managing People, Technology & Strategy, Prentice Hall, New York. In airline industry there is lot of competition. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). Therefore the no of channel between end customers are three. The aviation industry has only two aircraft manufacturers, Boeing and Airbus. Our academic experts are ready and waiting to assist with any writing project you may have. Our economic impact Please click here for more information. Therefore we take the rating scale of 1-10 to rate these factors. 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 Emirates Groups service Emirates Sky Cargo undertake the cargo activities of this airline. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. The 'acceptability criteria' applied to Emirates can indicate the stakeholders' expectations, expected returns/profits, and inherent risks. Moreover, as the aviation leader in Middle East the company is providing quality services to its passenger from long ago. 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 Company Overview Report will cover after purchase. 1.1.1. During 2020-21, dnatas Airport Operations division continued to strengthen its international reach and capability. There is a good chance the Dubai government will accept the strategies that enhance the government-owned carrier. Emirates Airlines' Strategic Choices and Decisions. The government has also establish a trade free zone for conducting businesses activities. They have competitive pricing strategy. Economically the country has seen many ups and down in the previous years. In term of quality people rate airlines as 10 for Emirates Airline and 9 and 8 for the rest two airlines. Therefore the demand for services provided by many airlines is increasing day by day as the population of UAE is increasing. Web. Travellers have many airlines to choose from, hence, the threat of substitutes is very high. 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. All work is written to order. This report is shared in order to give you an idea of what the complete Covid-19 Impact Analysis Report will cover after purchase. 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. They can impact rivalry by hiking prices or producing low-quality goods. They pay they gives to their employees are merit base pay as well as the pure performance based pay. Stakeholder Analysis: Lockheed Martin Corporation 1461 Words | 6 Pages. And its operating in many industries and sectors. The strategic decisions revolve around four main objectives. 2011). . With competition increasing, airlines are finding that offering the lowest fares is no longer enough. The wholesaler and retailer through the use of their cargo services send their products to end customer. 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. "Emirates Airlines' Strategic Choices and Decisions." To examine how Emirate Airline's marketing affects its global success. Its airport services brand, marhaba, opened an expanded and refurbished lounge at Dubai International airport, and expanded its international network with a new lounge in Manilas Ninoy Aquino International Airport. The airline operates more than 3400 flights per week. You dont fill them up, you lose a lot of money. Emirates would be concerned about potential business expansion in the attractive U.S. markets and it may affect its future growth and profitability. Emirates Airline is the global airline that serves around 155 destinations across the world. 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.. Subsidiaries, Partnerships and Collaborations Report. Key Performance Indicators (KPI's) Report. 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 reports a Passenger Seat Factor of 44.3%, compared with last years passenger seat factor of 78.5%; and a 48% increase in passenger yieldto 38.9fils(10.6US cents) per Revenue Passenger Kilometre (RPKM), due largely to a favourable route mix, fares and continued healthy demand for premium seats. 28, no. Released today in its 2020-21 Annual Report, the Emirates Group posted a loss of AED 22.1 billion (US$ 6.0 billion) for the financial year ended 31 March 2021 compared with an AED 1.7 billion (US$ 456 million) profit for last year. Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. Skilled and committed management coupled with government support has contributed to improved performance. Emirate Airline is positioning their product on the basis of price. Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs. 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. The company has diverse culture, as it has many subsidizers and more than 50 parent company. Top Quality. Emirates has roped in digital agency Amaze in 2015 to enhance its global digital platforms as part of its broader omni-channel strategy. 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. Emirates is also the fourth in the ranking of all airlines globally (O'Connell and Bueno, 2018; Redpath, O . Kotler, P & Keller, K 2011, Marketing Management, Prentice Hall, New York. 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. 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. Sheikh Ahmed said: No one knows when the pandemic will be over, but we know recovery will be patchy. It also continued to invest resources towards environmental initiatives, as well as supporting communities and incubator programmes that nurture talent and innovation to drive future industry growth. 610 - 611): 1) Arriving passengers 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! 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. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. The airline purchase its aircraft from the top companies in the world Air Bus and Boeing. Emirates carried 6.6million passengers (down 88%) in 2020-21, with seat capacity down by 83%. Increasing Competition in Middle East Market can affect business of Emirates airlines 2. This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. 1. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. The detailed complete set of references are available on request in the 'Complete report' on purchase. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. At the end of 2020-21, Emirates SkyCargos total freighter fleetstood unchanged at 11Boeing 777Fs. During the year, Emirates reactivated its strategic codeshare partnership with flydubai, and entered into agreements with new partners TAP Air Portugal, FlySafair, and Airlink in South Africa, to expand connectivity for its customers. 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. Need Strategic Analysis for this company? To expand its network into emerging markets or international destinations in Asia and the Americas. 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). The inflight catering business upliftednearly 16.9million meals to airline customers, a substantial decrease of 82%. IvyPanda. 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 . Emirates order book for 200 aircraft remains unchanged at this time. However, the staff is likely to oppose the cost-cutting measures (lean workforce) contained in the strategic action 1. Therefore, the strategic options will not reduce the financial returns/profits of the airline. This section will in detail analyze the targeted market of Emirates Airline. SWOT Analysis: Meaning, Importance, and Examples. [1] has identified the following 15 airport stakeholders: passengers, air carriers, general aviation users, airport organisation, investor holders and bondholders . Web. Emirates unique connections to/from Europe 7 Figure 6. The analysis can employ a range of analytical methods that include the SWOT analysis, the PESTEL analysis, Porter's Five Forces analysis, TOWS Matrix, and Stakeholder Analysis for the evaluation of strategic choices for the case of Etihad Airways. Sheffi, Y 2006, The Resilient Enterprise: Overcoming vulnerability for competitive advantage, Pearson Education, New Jersey. The number domestic, regional, international carriers keep on increasing. 1. Holistic Analysis Feasibility evaluation reveals that the strategies are executable because of the firms large capital base and internal resources. What is Stakeholder Analysis? 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. The GDP growth of the country is exceptional. These helped us sustain operations and retain the vast majority of our talent pool. 2011). 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. Notably, in Australia dnata began ground handling for Qantas at most of its major airports and GTA dnata, its joint-venture company in Canada, was awarded a five-year ground handling license for ramp, passenger, and cargo warehousing services at Vancouver International Airport. The airline in 1985 e started its operations, when in mid-1980s the Gulf Air cutback to Dubai. Emirates Airlines' Strategic Choices and Decisions. Emirates utilizes this strategy to reduce costs to enhance its competitiveness. Porter, M 2008, The Five Competitive Forces That Shape Strategy, Harvard Business Review, vol. DUBAI, U.A.E., 12 November 2020: The Emirates Group today announced its half-year results for its 2020-21 financial year. All Rights Reserved. We utilize security vendors that protect and Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.. Area / Region: UAE, and all six continent in the world. dnata continued to win new contracts in 2020-21. Web. According to 2007 report the airline is declared as the leading airline in term of revenue it generate, fleets (group of planes), and the passenger it carry, of Middle East. However, Emirates can integrate backwards with its in-flight amenities (strategic option 2) to compete. Therefore, ensuring the quality services is the foremost strategy of the airline. We aim to recover to our full operating capacity as quickly as possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.. In addition, many airlines depend on two suppliers for maintenance parts and services. We use cookies to optimize the website, no personal information is stored. Company Background. Importantly, the values underscore the essence of respectful interactions among employees and other stakeholders in their day-to-day undertakings. DII impact in Europe from Emirates' operations 4 Figure 3. In aviation industry the company has established the strong brand name. People from many other countries come to live in UAE or for visiting UAE. Emiratisation strategy to recruit and retain UAE Nationals, 1. Emirates should continue improving its on-board facilities, e.g., entertainment and communication (Wi-Fi), and catering services to maintain its strong competitive position. 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. However, the Emirates Airline is growing on a faster pace than its competitors. 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 only recommendation is that, they have to position their marketing activities while considering all their competitors. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Managing Change at British Airways, An Introduction Miles Agbanrin 30.4K views21 slides. Therefore, the section in detail analysis the potential customer of this airline and the different factors that affect their purchase decisions. Therefore, switching costs for carriers are very high. Emirate Airline target audience includes people of: business people, families, and transit passengers. Seat load factor and yield results cannot be compared against the previous years performance due to the unusual pandemic situation. The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. Its a huge number of seats in an aircraft and according to Mike Boyd, an aviation expert, If you manage to fill them up, you make a lot of money.
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