Strategic Management of Emirates Airlines - Internal Analysis, VRIO Framework, Core Competencies and SWOT Analysis

This article provides an in-depth analysis of Emirates Airlines' internal resources, capabilities, core competencies, and value chain. It also includes a VRIO framework analysis, core competencies, and SWOT analysis.

Running head: STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Table of Contents
Internal analysis of Emirates Airlines............................................................................2
1.Internal resources, capabilities, core competencies and value chain analysis of
Emirates..................................................................................................................................2
2.Vrio framework analysis of Emirates Airlines........................................................3
3.Core competencies that are a part of the competitive advantage of Emirates........4
4.SWOT analysis of Emirates Airlines......................................................................5
References......................................................................................................................7

2STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Internal analysis of Emirates Airlines
1.Internal resources, capabilities, core competencies and value chain analysis of
Emirates
Emirates is considered to be one of the biggest airlines organization in the Middle
East. The growth that has been shown by Emirates Airlines within a short period of time has
been able to provide the company with a competitive position in the airlines market of
Middle East and the other parts of the world as well. The major resources of the company
include the large fleet of 777 long-range jets. The carriers of the other countries were worried
about the huge expansion that was shown by the airlines. The company has been working
quite hard to achieve the topmost position in the market with the help of various amenities
that they provide to the customers. The organization had thereby built a force of more than
18,000 flight attendants who represent 140 nationalities 1.
Value chain analysis of Emirates
Inbound logistics – Exclusive terminal is available for the flights of Emirates. The
catering system of the airlines is quite organized in nature.
Operation – The various operations that are available in the restaurant include, service
desk, check in, baggage and handling, lounge services and boarding.
Outbound logistics – The outbound logistics of the company mainly consist of
SkyCargo.
1 Emirates India. (2018). About us | Emirates India. [online] Available at:
https://www.emirates.com/in/english/about-us/ [Accessed 20 Jun. 2018].

3STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Marketing and sales – The company has official sponsorships with many different
organizations. The marketing activities of Emirates include many slogans like, “Fly
Emirates”, “keep discovering” and “hello tomorrow”. The marketing activities that are
conducted by the company are rewarding in nature.
Services – The services that are provided by Emirates to the customers are of high
quality. The different types of services that are provided to the customers include, the
Emirates Lounge, Emirates resorts and hotels and ICE 2.
2.Vrio framework analysis of Emirates Airlines
The VRIO framework can be used for the purpose of analysing the internal
environment and the internal resources which can help the company to build its competitive
advantage. The VRIO analysis of Emirates Airlines can be performed in the following
manner,
Value – This factor is mainly based on the availability of the resources of an
organization and the ways by which the resources are used to meet the expectation of the
customers. The subsidies that are provided by the government and the reductions in the
airport charges are also a part of the value that is held by the company. Emirates is known for
the high level services that is provides to the customers of various classes 3.
Rareness – Emirates operates in the high price and premium airlines sector which is a
major reason behind the high revenues of the company. The major competitors of the
2 Durand, Rodolphe, Robert M. Grant, and Tammy L. Madsen. "The expanding domain of strategic
management research and the quest for integration." Strategic Management Journal38.1 (2017): 4-16.
3 Baumgartner, Rupert J., and Romana Rauter. "Strategic perspectives of corporate sustainability management
to develop a sustainable organization." Journal of Cleaner Production 140 (2017): 81-92.

4STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
company in the Middle East are, Qatar Airways and Air Arabia. Qatar Airways has been able
to provide direct competition to the company. However, Air Arabia is known for the low
priced services that is provides to the customers. Emirates is one of those rare organizations
which has a separate terminal for the operations of its flights.
Imitability – The major advantage that is held by the company is based on the services
that are provided to the customers. The resources that are owned by the company is not easily
imitable by the other airlines organizations.
Organization – The company is also able to make good use of the capabilities and the
resources that it owns. The CEO and the management team is also strong enough to manage
the operations and marketing based activities of the company 4.
3.Core competencies that are a part of the competitive advantage of Emirates
The business model that was designed by Emirates Airlines is competitive in nature
which is able to define the corporate strategy of the company. The huge investment that has
been made by Emirates has enabled the company to provide flight related services at lower
rates. The organization has also implemented a strategy which is based on the free
competition in the market which helps in the improvement of the corporate image. Emirates
Airlines has also increased the security based activities due to the threats that have been lately
experienced. The training that is provided to the employees is at the base of the priority list of
Emirates Airlines. The company is thereby able to provide excellent services to the customers
with the help of its efficient employee base. The open skies strategy is maintained by
4 Hill, Charles WL, Gareth R. Jones, and Melissa A. Schilling. Strategic management: theory: an integrated
approach. Cengage Learning, 2014.

5STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Emirates Airlines which has helped the company to operate the flights in various areas
without any sanction 5.
4.SWOT analysis of Emirates Airlines
Strengths – Emirates is the official airlines organization of the government of
Emirates. The company has a huge advantage due to its presence in the Oil-rich Gulf States.
The company has a huge base of satisfied customers. The ground and air facilities that are
provided by Emirates Airlines have helped in increasing the trust of the customers. The
workforce of Emirates Airlines is efficient in nature which helps the company in maintaining
its standards.
Weaknesses – Emirates relies on the onward moving traffic that is based on an
international level. The Emirates airlines has thereby faced strong and intense competition
with the rival airlines. The company has to incur high costs for the purpose of maintaining
high standards 6.
Opportunities – Emirates airline has the opportunity to introduce new airplanes to the
existing fleet. The service quality needs to be enhanced in order to achieve the standards that
are expected from them. The organization can also look for new market areas for expanding
its operations and operating flights on the international routes. The confidence of the
customers can be increased by Emirates Airlines with the help of better services 7.
5 Hubbard, Graham, John Rice, and Peter Galvin. Strategic management. Pearson Australia, 2014.
6 Meyer, G. Dale, Heidi M. Neck, and Michael D. Meeks. "The entrepreneurship‐strategic management
interface." Strategic entrepreneurship: Creating a new mindset (2017): 17-44.
7 Morschett, Dirk, Hanna Schramm-Klein, and Joachim Zentes. Strategic international management. Springer,
2015.

6STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Threats – The different international companies which have their operations in the
Middle East are a huge threat to the proper operations of Emirates. The changes that take
place in the government regulations and increase in the price of fuels are important factors
that can cause future threats to the company 8.
Recommendations
The major recommendations that can be provided to Emirates Airlines is based on the
ways by which the company can enhance the strengths to improve its position in the airlines
industry. Emirates also needs to make use of the opportunities that it has in the industry to
enhance its competitive position and profitability in the airlines industry. Emirates can
thereby make use of the opportunities so that it is able to attract more customers.
References
Baumgartner, Rupert J., and Romana Rauter. "Strategic perspectives of corporate
sustainability management to develop a sustainable organization." Journal of Cleaner
Production 140 (2017): 81-92.
8 Wheelen, Thomas L., et al. Strategic management and business policy. pearson, 2017.

7STRATEGIC MANAGEMENT OF EMIRATES AIRLINES
Durand, Rodolphe, Robert M. Grant, and Tammy L. Madsen. "The expanding domain of
strategic management research and the quest for integration." Strategic Management
Journal38.1 (2017): 4-16.
Emirates India. (2018). About us | Emirates India. [online] Available at:
https://www.emirates.com/in/english/about-us/ [Accessed 20 Jun. 2018].
Hill, Charles WL, Gareth R. Jones, and Melissa A. Schilling. Strategic management: theory:
an integrated approach. Cengage Learning, 2014.
Hubbard, Graham, John Rice, and Peter Galvin. Strategic management. Pearson Australia,
2014.
Meyer, G. Dale, Heidi M. Neck, and Michael D. Meeks. "The entrepreneurship‐strategic
management interface." Strategic entrepreneurship: Creating a new mindset (2017): 17-44.
Morschett, Dirk, Hanna Schramm-Klein, and Joachim Zentes. Strategic international
management. Springer, 2015.
Wheelen, Thomas L., et al. Strategic management and business policy. pearson, 2017.

8STRATEGIC MANAGEMENT OF EMIRATES AIRLINES