Emirates Case Study: Strategy, External Environment, and Competitive Forces

This case study explores the strategy, external environment, and competitive forces affecting Emirates Airlines. It discusses the company's vision, the impact of the external environment on its strategy, and applies Porter's Five Forces to analyze the international airline industry. The study also examines Emirates' competitive positioning, value chain activities, and internal resources. It provides insights into the effectiveness of Emirates' leadership and concludes with references.

Running head: EMIRATES CASE STUDY
EMIRATES CASE STUDY
Name of the Student
Name of the University
Author Note

1EMIRATES CASE STUDY
Table of Contents
1. Summarize the case in 300 to max 400 words.........................................................................2
2 a. Is the original vision still applicable given the present circumstances?............................3
2. b .How the external environment might affect Emirates’ strategy? Assess the political/legal,
economic, sociocultural/demographic, technological and global forces.........................................4
2.c. Which are the current forces in the industry environments that affect Emirates’ ongoing
strategy? Please apply Porter’s Five Forces of competition to the international airline industry.. .6
2.d Since some of Emirates new competitors are also fairly new airlines (Qatar and Etihad), what
implications does this have for threat of new entry into the industry?............................................8
3. a. How does Emirates compete: Overall cost leadership? Differentiation? Or focus strategy?. 9
3.b. What are the primary and support activities in the value chain of Emirates? What challenges
does Emirates have in its value chain?..........................................................................................10
3.b What are the tangible resources, intangible resources, and organizational capabilities of
Emirates?.......................................................................................................................................12
3.c Are the internal resources valuable, rare, difficult to imitate, or difficult to substitute (VRIN)
to help Emirates sustain a competitive advantage?.......................................................................13
3.e Please assess the effectiveness of Emirates’ leadership..........................................................14
References......................................................................................................................................16

2EMIRATES CASE STUDY
1. Summarize the case in 300 to max 400 words.
The case study is based on the overall operates of Emirates Airlines. The firm is one of
the largest Middle East Carriers as present and focuses to provide a flagship operations to Dubai
and to undertake initiatives which will help the firm in becoming one of the most successful
airlines as present around the globe (Emirates.com 2019). The company has been growing
considerably and with respect to this, it becomes considerably important to understand that in
case the company aims to ensure high growth in the future it would be required to compete
against the new firms as present and undertake measures to maintain its overall positioning. The
Emirates airlines along with the new upstarts like Qatar and Etihad have aimed to conquer the
global market and have come up with various strategies to ensure the same. The case study
provided then aims to talk about the overall inception of the airlines and the overall journey of
the airlines has been traced which talks about the manner in which it has been able to gain
considerable importance in the market. As Emirates new that around 2/3rd of the population
travelling to any part of the world has to travel to Dubai, they undertook advantage of this and
undertook various measures to ensure that they were largely successful in their operations and
earned a high amount of revenue. The main objectives of the firm has been traced and it can be
largely understood that the overall aim of the firm lies in ensuring that, they are successfully able
to engage in fruitful relationship with the different customers and provide them with an
experience which would enable them to gain long term success (Ethiraj, Gambardella and Helfat
2016). The airlines serves various classes of passengers and all of them are provided with an
access to a great lounge which helps them to rest while they travel.
The firm has also been able to come up with a considerable plan to provide relevant
training to the employees of the firm as present (Emirates.com 2019). The airlines realises the

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potential of the employees and provides them with adequate services which will then assist them
to meet the required measure of standardized operations which they are required to meet up with.
In the scenario of marketing, Emirates tends to undertake considerable measures so as to ensure
that it is being able to come up with advertising campaigns to let out their organizational
message in the right manner. Irrespective of the various measures which the firm is undertaking
to ignore all the challenges which take place and to ensure that it is being able to gain the
competitive advantage as present, these comprise of the competition faced by the firm from
various different competitors as present, comfortable services provided by various competitor
airlines and others.
2 a. Is the original vision still applicable given the present circumstances?
The president of Emirates, Sir Tim Clark had laid down a considerable vision for the
organization whereby the firm mentioned that, in case the firm wants to ensure long term
success, it would be required to see to it that, the company is able to meet up with its latest
visions which laid that, it wanted the firm to become a global organization and in line of this, it
wanted the world to become a smaller place by bringing about the different people together
(Ethiraj, Gambardella and Helfat 2016). Hence, it can be stated in line of this that the firm aims
to set itself apart from the other competitors as present. Hence, in line of this, it can be rightfully
mentioned that the company is not being able to meet the needs of the customers well as the firm
is simply looking out for means to increase its upper segment customers who will add up to the
profits of the firm without being able to add to the capacity. Therefore, in line of his, it can be
mentioned that the firm has been trying to improve its overall capacity and undertake measures
which will ensure that it is successfully being able to provide the convenience to the different
customers which will allow them to stay associated with the firm in the long run (Iordanova

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2018). However, it is considerably important to undertake the understanding that, when the
competition has increased and the number of challenges of the firm has also increased
considerably then in such a case, it becomes very important for the firm to ensure that, it is being
able to change its planning and hence, the vision is not getting implemented in a manner it
should.
2. b .How the external environment might affect Emirates’ strategy? Assess the
political/legal, economic, sociocultural/demographic, technological and global forces
The organization has employed more than 40000 employees and in line of this, it can be
mentioned that, the firm has earned more than $12 billion. The professional development
opportunities allows the company to develop relevant skills and will enable them to grow in the
long run. By gaining an understanding through the PEST analysis, the firm would be
successfully able to gain the knowledge of the different factors which might have a strong impact
on the overall operations of the firm.
Political Factors
The airline industry gets greatly affected by any political change and this reflects that the
industry is highly sensitive in nature. In line of this, the political situation comprises of wars as
well as the downturn of various economic conditions which then reflect on the overall travelling
aspect of the individuals and hence, the airlines gets affected. The recent political as well as
economic instability in Asia has allowed the firm to earn profit. The audience relies on Emirates
for the rights of the country (Lasserre 2017). As the firm has its prime operations in Dubai, it is
important for the firm to gain an understanding of the overall governmental laws as well as the
operations of the country so that it can undertake the right routes and related rights. Due to

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terrorism the overall operations of the different airlines has been affected greatly. The airlines
has a suitable operation in Dubai as it has great promoted the overall tourism in the county.
Economic Factors
The economic condition of a particular country relates to aspects like profit, capital
availability, the demand forecasted for the particular product or the service. If the cost of capital
and the demand buyout goes down for the different countries then it becomes very difficult for
them to ensure that they will be easily able to carry out the operations The emirates can be
understood to be one of the most competitive airlines firms as present and is influenced by a
stable and a favourable economic stability (Noe et al. 2017). The firm has been successfully able
to survive all the conditions and hence can be stated to comprising the ability to survive in all
scenarios.
Social Factors
The social factors which tend to have a strong impact on the overall operations of the
airlines can be stated to be the taste of the different people along with their overall demand.
These factors tend to vary in accordance with the non-refundable income factors. Hence, it can
be stated to be best for Emirates, to avail the opportunities which lies in its way and let go of the
different threats which exist (Moutinho and Vargas-Sanchez 2018). In addition to this, the firm
may be required to be well aware of the various demographics like the regions, audiences, ages
and the number of customers as it has an impact on the overall operations of the firm. The
cultural values of the different customers also need to be taken care of in order to ensure that
they are able to fulfil their overall vision.
Technological factors

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The different technological factors, which the firm would be required to cater to can be
considered to be as follows. The service of the airlines has been designed in an exceptional
manner which will help them to ensure that they will be successfully able to utilise the
emergence of the internet and IT advancements so as to operate along with integrated
technological services (Teece, Pisano and Shuen 1997). The firm has come up with the designs
of various new aircrafts as introduced by Boeing and Airbus which help it to avail entertainment
services.
2.c. Which are the current forces in the industry environments that affect Emirates’
ongoing strategy? Please apply Porter’s Five Forces of competition to the international
airline industry.
The Emirates Airlines can be considered to be a leading business as present in the global
airline industry and has been managing its operations in more than 80 regions as present. In line
of this, the Porters five forces model has gone a long way in helping the firm to understand the
overall dynamics of the airline industry and understand the position of the airlines company as
present in the market. The given section would apply the Porters Five forces of competition to
understand the overall positioning of the firm.
Threat of New Entrants
The airline industry can be understood to have high entry barriers and it is primarily
associated with the huge start-up costs which are involved in the firm. Moreover, the different
firms in the industry are required to possess adequate knowledge about the different
governmental laws and related regulations as present in the standards of the aviation

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associations. The different firms as present will be required to have implemented EPA standards
which adheres to the quality of the airlines and to keep the emission under control (Morden
2016). Hence, any airlines which would begin its operations in the particular industry would be
required to establish a strong position. However, in the particular industry, it would be required
to gain a significant positioning in the market. Hence, for Emirates Airlines, the threat of new
entrants is comparatively understood to be very low.
Bargaining Power of Buyers
The different buyers in the airline industry will not be having any significant control of
the prices of the airline fares charged for them. Although they have some considerate influence
on the prices by opting for the other airlines as present, it can be understood that they will be
demanding quality services (Pearce, Robinson and Subramanian 2000). A significant impact of
the particular lack of bargaining power can be rightfully contributed to the airline company as
they tend to have a seasonal influence which tends to reflect on the price hike. As the Emirates
has been able to establish its image as a quality service provider, the customers are willing to pay
high prices of the same and hence, the buyers can be stated to have a low bargaining power.
Bargaining Power of Suppliers
The bargaining power of the different suppliers as present in the airline industry can be
understood to be influenced by the number of suppliers of the different airlines and the demand
of the carriers for the same. Currently only Airbus and the Boeing are the companies which
manufacture these airlines and hence, they are easily able to reflect their power on the price
structure and reflect high bargaining power when dealing with the Emirates (Mahoney and
Pandian 1992). The management of the firm, has been able to maintain a considerate tie with the

8EMIRATES CASE STUDY
suppliers which leaves considerable scope for the development of plane designs which are
present with the required mechanism to enhance the overall experience of the customers.
Threat of Substitute Products
The Emirates can be understood to be facing a moderate level of the threat of substitutes
in the airline industry as there exist other carriers except the firm which provides various
transportation opportunities to the different customers as present (Wheelen et al. 2017). Various
customers often choose the automobiles as a medium of travel for the nearby region travels.
However, when it comes to the air travel, the airways are a common route adopted by the
different firms as present. As these other airline firms provide considerable competition, it can be
understood that the firm faces moderate threat of substitutes.
Competitive Rivalry
The global airline industry worldwide faces a high degree of competitive rivalry and this
then develops considerate pressure on the Emirates to develop a strategy such that the firm is
being able to maintain the financial supremacy. In line of this, the management has been
focusing on enhancing the overall service quality and update the different aircrafts as present so
that they are able to maintain an edge in the long run (Meyer, Nec and Meeks 2017). Although
the firm has a good market share and is the national airline of Dubai, the competitors of the firm
have a global presence and reinforce customer loyalty by enforcing brand loyalty programs.
These competitors of the firm can be understood to be Qatar Airways, British Airways as well as
Air France which has significant market share and hence, a key point of differentiation for the
Emirates.

9EMIRATES CASE STUDY
2.d Since some of Emirates new competitors are also fairly new airlines (Qatar and Etihad),
what implications does this have for threat of new entry into the industry?
It can be understood that Emirates has been largely successful in maintaining a
competitive advantage for itself. In line of this, it can also be understood that to ensure overall
success in the long run, the firm has been undertaking considerate procedures is that the
competition in the industry can be decreased or that Emirates can provide reliable services which
will assist the firm in attaining success in the long run (De Souza 2017). In line of this, it can be
rightfully mentioned that, there has been an entrance of the firms like Etihad and Qatar who are
considerably new to the industry but in a short period of time have been successfully able to
make a positioning for itself in the long run. Therefore, it can be rightfully mentioned that, this
has strong implications for the threat of new entry in the industry. These implications are that
although the airline industry can be understood to be considerably competitive industry, the new
firms as present may be able to create a strong competitive positioning for itself with the right
use of resources and the right connections with the government (Hitt, Ireland and Hoskisson
2012). As these new companies have entered, they have made use of some very strong
advertisement and other such facilities which has enabled the firm to perform considerably well.
In line of this, it can also be understood that, these firms have been able to undertake the low cost
market and cover various short distances as well which was earlier not possible for the different
clients. Hence, the overall dynamics of the industry has changed considerably with the entrance
of these new competitors as present.

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3. a. How does Emirates compete: Overall cost leadership? Differentiation? Or focus
strategy?
The Emirates tends to apply the overall differentiation to its operations. In this regard it
can be mentioned that the main aim of the organization is to understand that that Emirates needs
to see to it that it is successfully able to serve the customers in the right manner (Hill 2017). The
firm wants to ensure that it will successfully be able to provide the customers with the right kind
of opportunity and the pricing of the firm is generally kept at a high so as to ensure that the
organization is able to achieve its overall objectives and additionally the firm is able to ensure
that it is being able to maintain its long term competitive advantage as well. In line of this, it
needs to be mentioned that, the Differentiation strategy will go a long way in seeing to it that the
organization will be able to find considerable success in the long run and in a similar manner,
will be able to combat against competition so as to ensure considerable success in the long run
(Freeman 2010).
3.b. What are the primary and support activities in the value chain of Emirates? What
challenges does Emirates have in its value chain?
The Emirates believes in providing the different customers with a premier experiencing
in flying and in line with this, the firm has been able to come up with the best opportunities for
itself. The value chain analysis for the Emirates has been undertaken in the following section.
Primary activities

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 Operations: The airlines undertakes considerable initiatives so that it is successfully able to undertake
measures using which the firm will be able to save the time of the different consumers and ensure that they
will be able to undertake self-check and the boarding’s and kiosks are also set accordingly for the
customers.
 Marketing and sales: The emirates tends to portray itself as a premium brand and with respect to this, it
becomes considerably important for the firm to be able to undertake considerable initiatives which will
ensure that the firm is successfully able to enjoy a luxurious flight experience (David 2011). The firm has
undertaken various initiatives which will enable the firm to become the number one airlines.
 Services: The inflight entertainment service of the firm can be understood to be very sustainable and the
experience has been voted as one of the best experiences around the globe. In lien of this, it is required to
be understood that, the airlines keeps its passengers updated and satisfied (Trigeorgis, and Reuer
2017).
 Inbound logistics: The firm gets in association with various other companies who provide it with adequate
resources and these raw materials and resources then go a long way in assisting the firm to achieve success
in the long run.
 Outbound logistics: The airlines has a good network which helps it in maintaining the overall operations of
the firm.
Secondary activities
 Firm infrastructure: The infrastructure of the firm is derived from vertical integration arrangement. Overall
the firm enjoys a good government partnership and tax free environment.
 Human resource management: The Company is one of the leading one of the largest employees as present
in the country and tends to consider the different employees as one of the core values and associates of the
organization at large (Covin and Slevin 1989).
 Technology development: The firm tends to enjoy its own house technology and has considerable research
centres and access to research laboratories as well which help in ensuring long term success.
 Procurement: The Emirates sources its resources from various sources within the research centre and even
outside the country.

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Challenges of the value chain
The different challenges which are largely faced by the firm in line of ensuring success
with the value chain can be largely stated to be related to the challenges of the management of
the different suppliers (David and David 2016). These two suppliers ensure considerable
bargaining power and with respect to this, they are very often raising the overall price structure
of the offerings as made by them. In line of this, it also has to be understood that, hence,
Emirates is often unable to reach at a decision relating to the right choice of the suppliers to be
made.
3.b What are the tangible resources, intangible resources, and organizational capabilities of
Emirates?
The Tangible resources of the firm comprises of excellent strategies which can be made
use of by the firm to provide excellent services to the clients. The primary tangible resources
which the firm can be stated to the well-developed infrastructure which the firm has like the
private terminal, the home based airport as well as various supporting systems (Burgelman,
Maidique and Wheelwright 1996). On the other hand, the firm has an access to various resources
like the financial resources which makes the overall offering of the firm quite valued in nature.
Intangible values
The primary intangible resource which the firm has an access to can be understood to be
the overall competence of the management. The management of the firm can be understood to be

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highly talented and without the expertise, the firm would not have been able to find long run
success.
Organizational capabilities
The organizational capabilities of the firm can be stated to be as follows:
 The ability to provide good services
 The ability to provide unique pricing
3.c Are the internal resources valuable, rare, difficult to imitate, or difficult to substitute
(VRIN) to help Emirates sustain a competitive advantage?
Resource or
Capability
Valuable Rare Inimitable and
non-
substitutable
Organized to
Exploit
Impact on
competitive
advantage
Cash inflow Yes Yes No Yes Realised
comparatively
Firms
infrastructure
Yes No Yes No Realised and
sustained
competitive
advantage.
Brand name Yes Yes Yes No Realised
temporary
competitive
advantage
Good network Yes Yes No No Realised

14EMIRATES CASE STUDY
comparatively
Management No Yes Yes Yes Realised
temporary
competitive
advantage
Hence, it can be understood from the given section that through the various analysis of
the firm’s different resources, the organization has the Brand name and management which it can
make use of and utilise for the overall benefit of the firm. In line of this, it can be rightfully
understood that if the organization wants to gain long term success then, it would be required to
take into consideration the overall financial resources of the firm and also take into consideration
the operations (Beik and Galbraith 2016). Hence, the management and brand name of the firm
should be harnessed so as to ensure success in the long run.
3.e Please assess the effectiveness of Emirates’ leadership.
The leadership can be considered to be an art as well as science which goes a long way in
assisting the firm to ensure long term success. As mentioned previously, the leadership of a firm
can be considered to be very relevant which has gone a long way in assisting the firm to achieve
its actual positioning. The different organizations in Dubai generally tend to run with the
leadership style of a family. This not only assists in ensuring that, they are able integrate
adequate patience in the firm but also be able to ensure that they are able to attain consensus with

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the capability in which the firm is able to take the decisions quickly and accurately (Ansoff et al.
2018). The current leadership of the firm makes use of the leadership, which had been brought
about by the founders of the company and hence, the leaders tend to follow a charismatic
leadership style who taught the subordinates the art of productiveness and the manner in which
efficiency has to be brought about in the industry.
The leaders and the higher level management at Emirates can be considered go be rather
influential as well as democratic whereby the make use of their aptitude and well as skills to
inspire and to influence the overall behaviour as well as the thinking of the subordinates (Barney
and Hesterly 2009). The overall decision making of the leaders at Emirates can be considered to
be extraordinary where the leaders exert the right kind of leadership whereby they are allowed to
take decisions in the right manner. This can be considered to be the reason why the firm is as
successful as the leaders of the frim are empowering and engage in corporate social
responsibilities as well so that they are able to meet with the needs of the societies as well.

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