Business Strategy for Emirates Airline

BUSINESS STRATEGY
(UNIT 32)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE and stakeholder framework used for external environment analysis in context of
Emirates airline...........................................................................................................................3
Internal environment and capabilities.........................................................................................5
Application of Porter five forces.................................................................................................7
Strategic management plan.........................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is defined as the formulation and implementation of the various
strategies for the successful running of the business in profitable manner. The business strategy
provides a guidance to company that in which direction they have to take the working so that the
company can gain profit (Bıçakcıoğlu, Theoharakis and Tanyeri, 2019). The current report will
be based on Emirates which is a state- owned flag carrier established in Garhoud in Dubai, UAE.
The current report will outline the analysis of macro and the internal environment of the
business. This is essential as this will help the company in formulating the strategy for the
development of the business and make the operations of the company profitable. Further the
strategic management plan will be made in order to manage the various types of strategies for the
development of the business.
MAIN BODY
PESTLE and stakeholder framework used for external environment analysis in context of
Emirates airline
PESTLE analysis-
Political factor-
In context of Emirates airline, It is state owned airline from United Arab Emirates, which
has operations spread all over the world. It is an subsidiary of Emirates group which is owned by
Dubai government, so it is very natural that there is a lot of government influence on firm
strategic decisions. (Tzvetkova, 2018).
Economic factor-
The cost of running planes is one of the economic factors that impact on Emirates airline
negatively. It is quite difficult to mains each and every system of planes and make up to date, it
require a lot of money which affect profit margin.
Social factor-
Income source is one of the social factors that impact on airline business positively,
because people can buy more tickets when they earn better. In current eras, Emirates airline saw
a sudden progress in their tickets sales which is quite good for its venture. It can be said that
increase in income of individual has promoted travellers to travel in airlines.
Technology factor-

Technology advancement is one of the best factors that impact positively on strategy and
success of airline. With advanced technologies, management of company can provide online
booking services to consumers. It allows them to gain attention of new passengers and satisfied
existing one as well. By providing online seat booking facilities airline can gain greater success,
they drive more passengers towards purchasing their tickets which in return increase profit
margin of firm rather than before.
Environmental factor-
Government and consumers concern for environmental safety and sustainability put high
pressure on Emirates airline to reduce their carbon foot print (Mawed, Tilani and Hamani 2020).
It significantly impacts current operations of firm and strategy to enter into new market.
Company before entering into new market change their plans and develop the new one. It can be
said that airline sector is accountable for approximately 12% of total carbon emission.
Legal factor-
Policies and regulations related to employment put affect on current employment policies
of Emirates airline in positive manner. Organization already provides their cabin crew staff all
the facilities which each applicant wants. They cater good salary package according to workers
skills and abilities without making any differences, which in return building strong brand image
of company in airline industry.
Shareholder analysis-
Keep satisfied- Suppliers is one of the external stakeholders who can put negative impact
on Emirates airline operations and business practices as well as strategy. They have high power
to increase amount of each service or supply of product, which is not suitable for company as it
affects financial performance of business.
Manage closely- Workers are another external factor or stakeholder who have low power
and low interest in success of company. Organization manage them more closely because they
are able to increasing firm strength to enter into new place.
Keep informed- these are the stakeholder of Emirates who are low in power but have
high interest in the operations of the company. These are helpful for Emirates as they work with
more efficiency as they have high interest in working of company.
Monitor- these are other set of stakeholder which includes low power and also low
interest in the working and operations of the company. They just monitor the working of the