Analysis of Business Environment of Emirates

This report is based on the internal and the external analysis of Emirates Airlines. The industry has also been analysed with the help of the Porter’s Framework. The issues that were faced in the operations of the company and reasons behind its growth has been analysed in a thorough manner.

Running head: ANALYSIS OF BUSINESS ENVIRONMENT OF EMIRATES
ANALYSIS OF BUSINESS ENVIRONMENT OF EMIRATES
Name of the Student
Name of the University
Author Note

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ANALYSIS OF BUSINESS ENVIRONMENT OF EMIRATES
Executive Summary
This report is based on the internal and the external analysis of Emirates Airlines. This is a
prestigious airline company in the Middle East which is known for the high quality services.
The industry has also been analysed with the help of the Porter’s Framework. The issues that
were faced in the operations of the company and reasons behind its growth has been analysed
in a thorough manner. The report has been concluded by stating in spite of the various issues
faced by Emirates the company has been successful in a profitable manner in the Middle
East.

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ANALYSIS OF BUSINESS ENVIRONMENT OF EMIRATES
Table of Contents
About the case study......................................................................................................3
PESTLE analysis of environment..................................................................................4
Porter’s Five Forces analysis of Emirates......................................................................5
Competitor analysis of Emirates....................................................................................6
Value chain analysis of Emirates...................................................................................6
VRIN analysis of Emirates.............................................................................................7
Conclusion......................................................................................................................7
References......................................................................................................................8

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ANALYSIS OF BUSINESS ENVIRONMENT OF EMIRATES
About the case study
The case study is mainly based on the analysis of Emirates Airliners which is
considered to be one of the topmost airlines in the Middle East. The subsidies which were
received by the various organizations is a major part of the case study analysis. The US
airlines had protested against this practice and further demanded that the negotiation related
to the entry of flights in the US skies needed to be reviewed so that the expansion of the
airlines into the country can be reduced in the future. The US airlines were quite worried
about the loss that can be faced due to the high entry of Emirates in the US skies (Emirates.
2018). The main fear was based on the decline in sales that was experienced by the airlines
organizations in Europe due to the operations of Emirates. The other airline organizations that
were based in the Middle East like, Etihad and Qatar along with Emirates had managed to
change the entire landscape of the airlines industry in many countries. The major areas that
were affected due to the operations of Emirates are, the Europe and the Middle East. The
company had thereby been able to achieve the position in the airlines industry with the help
of various operations that were created for the convenience of the customers. The company
was also based on the highly qualified force of the flight attendants who had their bases in
more than 140 countries in the world (Emirates. 2018). The charges related to subsidies that
were made on the organizations had received a response from the president of the company.
The unique feature of Emirates that had been able to provide a different position to Emirates
in the Dubai market was based on the high levels of service that were provided to the
customers. The facilities that were created by Emirates related to training were also of high
levels. The company had organised the state-of-the-art facilities for the purpose of providing
sufficient training to the employees. The company has also created a successful

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communication structure which has been helpful in communicating with the customers who
wanted to know more about the brand (Emirates. 2018).
PESTLE analysis of environment
The external environment based factors of Emirates can be analysed with the help of
the PESTLE framework.
Political factors – The changes in the political environment can affect the airlines
industry to a large extent. Emirates Airlines needs to follow the rules of Dubai government as
it is a property of the government. The agreements that are signed with the other countries
will also be based on the political conditions.
Economic factors – The economic condition of various countries are also able to
affect the demands that are based on the demands of the customers. Emirates is a competitive
airlines organization which is favourable for the improvement of the economy of the country.
Emirates has been able to maintain its position in the market in spite of the issues that have
occurred in the external environment. The airlines have not faced any major downturn since
the establishment (Durand, Grant and Madsen 2017).
Social factors – The airlines company has taken care of the different demographic
changes that has occurred in the recent times. This has further affected the demands that have
been experienced for the products and services of the company. Culture has also played an
important role in the operations of various flights of the Emirates. The crew of the
organization thereby needs to have knowledge about the cultural values that of the different
customers.
Technological factors – The advancement of the technologies have also affected the
operations of Emirates Airlines to a large extent. The technologies are used by the company

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to provide the best services to its customers and create a competitive advantage in the market.
The emerging technologies have thereby helped Emirates to bring new changes in the
integrated services that are provided to the customers (Hill, Jones and Schilling 2014).
Legal factors – The policies and regulations that are set by the governments affect the
ways by which Emirates operates in these areas. The policies of the government protect the
airlines organization from various external factors which further helps in maintaining its
profitability in the market. The actions that are taken by Emirates in the countries of its
operations and the ways by which the company the customers are able to enjoy their safety
are also based on the legal factors.
Environmental factors – The management of Emirates is concerned about the
different environmental factors that are related to the successful operations of the company in
the airlines industry. The company has formulated and followed many strategies that are
based on the reduction of the effects of its operations on the external environment. The new
services that are provided by Emirates are based on the implementation of environmentally
sustainable methods like the recycling of products like the cutlery that is used by the
customers (Meyer, Neck and Meeks 2017).
Porter’s Five Forces analysis of Emirates
Threats of the new entrants – The airlines industry has been mainly based on the
lowest level of barriers. The flexibility of the policies is major reason behind the easy entry of
new companies in the market. The good financial sources that are provided in many areas of
Middle East is also related to the high entry of companies in the industry.
Intensity of the competitive rivalry – The levels of the competition that is provided
by the other giant organizations to the Emirates is mainly based on the services that are

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offered by the company. This power is therefore high for Emirates in the airlines based
industry.
Bargaining power of the customers – The power of the customers based on the
power of the customers to lower the prices of services provided to them by the team of
Emirates (Trigeorgis and Reuer 2017).
Threats of the substitutes – The threats that are faced by the services of different
companies are related to the luxury services and the budget services. The players who operate
in these industries are able to act as substitutes of the products that are offered by Emirates.
Bargaining power of the suppliers – The suppliers of Emirates namely, Airbus and
Boeing have high power related to the prices of the products manufactured and supplied by
them to the company (Morschett, Schramm-Klein and Zentes 2015).
Competitor analysis of Emirates
The direct competitors of Emirates in the Middle East market are Qatar Airways and
the Etihad Airways. These companies have provided huge competition to Emirates for the
past years due to the similar services that are provided by them to the customers. The
company has been showing high amounts of growth from the past few years. However, the
area of luxury services is developed in an effective manner by the two major competitors of
Emirates. The indirect competitor of Emirates in this case is Fly Dubai which also acts as a
substitute to the services that are provided by Emirates. The competition that exists in the
airlines based industry is high and Emirates has to continuously improve the services in order
to serve the customers in a better way and maintain the competitive advantage in the market
(Stacey and Mowles 2016).

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Value chain analysis of Emirates
The major areas that are a part of the value chain of Emirates include, the inbound
logistics which is mainly based on the ways of receiving the goods and the inventory and
many more. The manufacturers and the suppliers of the aircraft also belong to the airlines
industry of Middle East. The operations are based on the processes that are mainly concerned
about maintenance of the services provided to customers. The ways by which services are
offered to the customers are a part of the outbound logistics of the company (Simon,
Fischbach and Schoder 2014).
VRIN analysis of Emirates
The VRIN analysis is mainly related to competitive advantage that has been gained by
the company in the industry.
Valuable – The value that is held by the company in market is based on this factor.
Emirates has created a strong image of its brand in the airlines industry.
Rarity – The levels of customer service that is provided by Emirates has been
important for the proper operations of the company in the various areas of its operations in
the industry.
Imitability – The strong image of the company is related to the difficulty that is faced
with respect to the ways by which the services can be imitated.
Non-substitute – The services that are provided by Emirates and the substitutes of the
company available in the industry can be detected with the help of this factor.
Conclusion
The report can be concluded by stating that Emirates has been successful in the
operations that are conducted by the company. The company has been able to maintain its

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sustainable operations with the help of the unique strategies that have been developed by
Emirates. The organization has thereby been the topmost in many other airlines based
companies that are a part of the industry in Middle East.

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References
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1).
p.4-16.
Emirates. (2018). Emirates flights – Book a flight, browse our flight offers and explore the
Emirates Experience. [online] Available at: https://www.emirates.com/in/english/ [Accessed
29 May 2018].
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international
management (pp. 978-3658078836). Springer.
Simon, D., Fischbach, K. and Schoder, D., 2014. Enterprise architecture management and its
role in corporate strategic management. Information Systems and e-Business
Management, 12(1), pp.5-42.
Stacey, R. and Mowles, C., 2016. Strategic management and organisational dynamics: The
challenge of complexity to ways of thinking about organisations.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.