Strategic Management - STEPL Analysis of Emirates

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Strategic Management
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Analysis of the Key Forces in General and Industry Environments which Affects Emirate’s
Choice of Strategy
In case of the general environment, STEPL analysis will be helpful for understanding the
aspects that will be impacting the choice of strategy of Emirates.
Political Analysis- Emirates Airlines is mainly owned by the government of Dubai that
assists them in following the regulations of the government. In the current scenario, the political
stability is high and it is impacting Emirates to a large extent for operating in emerging
economies such as Africa, Iraq or Asian regions. On the other hand, there are terrorisms and
wars which can be impacting performance of Emirates negatively which need to be managed
successfully by Emirates Airlines (Emirates.com 2020).
Economic Analysis- There are fluctuations in the prices of the fuel which is creating
hurdle for Emirates and it is impacting them that they are not able to generate profitability. In
case of the Emirates Airlines, 40% and more expenses are related to fuel of jet. The other
opportunity is that potential kind of investments in Dubai economy will be encouraging more
tourists to visit and it will be impacting Emirates services successfully (Wee 2017).
Social Analysis- In the current scenario, there is increase in the number of educated
people and tourists which is the opportunity for Emirates. The organization has maintained
cultural and social diversity through offering airline services to religions or traditions. In such
scenario, it will be helping Emirates in improving their business in culturally diverse
environment (SHTAL et al. 2018).
Technology Analysis- In Emirates, the company has been capable of developing online
ticket purchasing for convenience of customers. Technology has been helpful in making the in-

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flight communication possible and it has been able to bring the entertainment to a new level that
is the opportunity for Emirates in enhancing business. In the year 2013, Emirates was first
Middle East Airlines for providing Google cards for the passengers who booked tickets via
Emirates.com (Sfantou et al. 2017).
Environment Analysis- The different natural disasters such as Earthquake can be
creating challenge for Emirates Airlines and entire airlines industry. The other threat is that the
airlines industry has been producing 18% of the carbon emission gases (Munro and Belanger
2017).
Legal Analysis- Through protectionist policies, Gulf Airlines such as Emirates or Etihad
Airlines are required to make attempts for limiting Gulf carriers’ access to their home markets.
There are different restrictions in airlines industry in Middle East wherein there is limited access
to certain countries (Leitner 2016).
Moreover, in order to understand the entire industry environment wherein Emirates
operates, the Porter’s Five Forces Model is the key aspect which will be efficient in nature.
Threat of New Entrants- It is LOW as there are various costs related to start-ups are
included that will be restricting the entry of the new firms in the airlines industry. While
entering, the airline companies need to take the approval from government and fulfillment of the
aviation standard norms. Therefore, it is highly difficult for the new entrants to enter in the
Aviation Industry and it is the opportunity for Emirates Airlines (Turner, 2019).
Threat of Substitute Products- It is MODERATE as there are different other carriers
present in the market which are providing similar services like Emirates Airlines and it is threat
for Emirates Airlines. Automobiles are the other mode of transportation available to the

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individuals for travelling to near-by locations. There is competitive pricing aspect followed by
Emirates Airlines which possess threat for Emirates Airlines (Huang 2019).
Bargaining Power of Buyers- It is MODERATE as the customers have the option to opt
for other airlines which are offering similar services at the low rate such as budget airlines.
However, the opportunity for Emirates is that customers prefer and demand for quality that is
central feature of Emirates and it enhances their profitability. In such scenario, Emirates Airlines
have been capable of establishing their brand image through the usage of the quality service
provider and customers are ready to pay high prices (Hartzell and Gilbert 2018).
Bargaining Power of Suppliers- It is HIGH as there are different suppliers who have
opportunity to showcase low flexibility in structure of pricing. While dealing with Emirates
Airlines, suppliers have benefit for gaining proper agreement with the leading global kind of
airlines (Gollay 2016).
Competitive Rivalry- It is HIGH as the rivals are creating high level of pressure on the
Emirates Airlines for development of strategy for maintaining financial supremacy.
Enhancement of services along with delivery premium services is the two key elements that are
needed to be implemented by Emirates Airlines for managing growth (Emirates.com 2020).
Analysis of How Emirates Compete
In case of Emirates, the company has different competitors present in the market wherein
they are providing similar kind of services and it enhances their presence. However, in such
scenario, Emirates compete in the following manner: