EMIRATES GROUP 2014 (CASE 9) STUDY OF THE EMIRATES GROUP 2014 (CASE 9)

FACULTY OF ECONOMICS AND MANAGEMENT
SEMESTER 2 2018/2019
EPPM 4014 STRATEGIC MANAGEMENT
CASE STUDY: THE EMIRATES GROUP 2014 (CASE 9)
PREPARED FOR: EN. ABDULLAH SANUSI BIN OTHMAN
PREPARED BY:
NAME MATRIC NUM.
HAMIDAH BT AZMI A153327
MARYAM BT ABDUL SHUKOR A153397
NAZATUL ASYILA BT ABU A153682
NAZZATUL AIN BT ABU HASSAN A152773
NURUL JANNAH BT MD TAUHID A156235

TABLE OF CONTENT
1.0 EXECUTIVE SUMMARY
1.1 BACKGROUND OF COMPANY 2
1.2 ISSUES STATEMENT 3
2.0 INTERNAL ANALYSIS
2.1 FUNCTIONAL ANALYSIS 5
2.2 FINANCIAL ANALYSIS 9
2.3 INTERNAL FACTOR EVALUATION (IFE) MATRIX 16
3.0 EXTERNAL ANALYSIS
3.1 PORTER’S FIVE FORCES MODEL
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3.2 COMPETITIVE PROFILE MATRIX (CPM) 22
3.3 EXTERNAL FACTOR EVALUATION (EFE) MATRIX 24
4.0 MATCHING STRATEGIES
4.1 SPACE MATRIX 27
4.2 BCG MATRIX 31
4.3 IE MATRIX 34
4.4 GRAND STRATEGY MATRIX 35
5.0 THE DECISION STAGE
5.1 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) 38
6.0 RECOMMENDATIONS 44
7.0 CONCLUSION 46
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1.0 INTRODUCTION
1.1 COMPANY BACKGROUND
Emirates Group started in 1959 as the Dubai National Air Transport Association (Dnata),
with Dnata airport operations, Dnata cargo, and Dnata agencies as segments. During the middle
1980s, Gulf Air began to cut back its services to Dubai. As a result, Emirates was conceived in
March 1985 with backing from Dubai’s royal family and was required to operate independent of
government subsidies. Started with just two aircraft: a leased Boeing 737 & an Airbus 300 B4,
Emirates now is a global airline. It is operating the world’s biggest of wide-bodied jets, flying the
largest fleets of Airbus A380 and Boeing 777 Aircraft.
Headquartered in Dubai in the United Arab Emirates, the Emirates Group is the parent of
Emirates, the largest airline in the Middle East, operating over 1,200 flights per week from its
hub at Dubai International Airport. Emirates flies to more than 130 destinations in 70 countries
on six continents and offers direct flights from Dubai to Washington, DS, San Francisco, Los
Angeles, and Seattle. With more than 67,000 employees and annual revenues of more than 73.1
billion Dirham, the Emirates Group is wholly owned by the government of Dubai and controlled
by the Investment Corporation of Dubai.
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1.2 ISSUES STATEMENT
Emirates aims becoming the world’s leading lifestyle brand. They are investing to build
strong brand image, and express their identity and personality in everything they do, includes
products, services, staff, marketing, sponsorship, etc.
As the Airline industry is in the maturity stage, there are some issues that Emirates should
address. Firstly, the operational cost is increasing due to huge investments of Emirates on
aircrafts and services and increase in fuel prices. Besides that, the challenges that faced by
Emirates is a strong competition between airline firms. Accordingly, many companies started to
focus in differentiating their services and products from their competitors by increasing their
customers’ brand loyalty. For instance many companies starts to concentrate on cutting the
operating cost, thus in this stage the profit margin decreases and the least efficient companies
leaves the market and only well-established companies are the ones that remain. Accordingly,
many companies’ use offensive strategies rather than defensive strategies through modifying
their market, product and marketing mix to survive and compete during this stage. For example,
the flydubai discount airline may pose the largest threat to the firm because the demand for low
price flights is growing rapidly globally. Flying with Emirates is high dollar, and competitors see
great potential to take market share from Emirates with lower prices.
Finally, Emirates is not a member of any airlines alliance. Alliances allow airlines to get
the benefits of a larger networks such as operational economies of scale and network benefits of
a larger route network while remaining independent companies. There are three major airline
alliances which are Star, OneWorld, and SkyTeam aim to an extended network through code
sharing agreements, where two or more airlines share the same flight these flights can reach over
a thousand destinations scattered across the globe. These alliances provides many other
advantages that is hard to achieve in Emirates group such as shared sales and marketing, shared
maintenance, shared airport lounge.
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Generally, there are various strategic management tools can be used by the management
of Emirates Group for analyzing the situation. In case of Emirates Group, it is important to
utilize various strategic marketing tools for developing new strategies for achieving sustainable
growth across the globe for long term. Therefore, the strategic models need to be applied as well
as the results will be used for designing, implementation as well as monitoring of the strategies.
This section will focus on discussing the implication of different strategic models that are
important for conducting strategic marketing activities in order to compete in the dynamic
business environment.
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2.0 INTERNAL ANALYSIS
2.1 FUNCTIONAL ANALYSIS
The Emirates Airlines is one of company of the United Arab Emirates Airline. Emirates
airline established in 25th may in 1985, their head office is in Dubai and it based on the
international airport. The Emirates Group is the parent company of the United Arab Emirates
airline. Emirates airline emirates government owns from Dubai. Emirates Airlines is one of the
fastest-developing airline
The Emirates A380 promises customers in all classes a whole new travel experience.
Designed to transport passengers on long-haul journeys in unmatched comfort, the Emirates
A380 boasts First Class Shower Spas, a spacious on-board Lounge, and our award-winning ice
in-flight entertainment system offering over 1,200 channels of movies, music and games
on-demand in all classes. Emirates Airlines is the well renowned company for its In-Flight
services. The airline serves various services to their customers at the time of their journey and
makes it pleasant one. It offers several services such as entertainment service, cabin crew
service, in-flight mobile service, food of different cuisine etc (Emirates Airlines Flight Services).
In airlines organizations, attendants are the mediator between customers and services provided
by airlines.
Emirates were the first airline to place an order for this ultra-efficient twin-deck,
four-aisle aircraft. Emirates is well known for providing excellent service for high-end
passengers in first class, but it also provides excellent service in business class and economy
class. Emirates Airline directly functions check- in services, service desks, lodging and lounge
services, and luggage. Moreover there’s also have Emirates hotels and resorts, Emirates sky
cargo, Emirates aviation college for pilot and staff training, Emirates engineering centre for
repair, maintenance and training, Emirates catering, incorporate business support are its special
services.
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First-class passengers on Emirates flights enjoy their own private suites on Airbus 380,
Airbus 350, and Boeing 777 planes. The Emirates first-class experience starts with personal
chauffeur picking up passenger and driving him or her to the airport for seamless check in.
Customers are then able to enjoy the first-class lounge while they wait for plane arrive before
boarding process begins. They also have an allow up to 170 pounds total weight. There are 3
types of first class chairs which is the full suite with doors, horizontal bed 'Sky cruiser' seat
(without doors) and 'Sleeper' seats. Furthermore, on board, the customer can enjoys suites that
include a personal mini-bar, vanity table, mirror, wardrobe, 23-inch TV with more than 1400
channels including the latest movie, sliding door for extra privacy, SMS, Internet, and much
more. If desired, the flight crew can convert the seat to a fully flat bed with mattress. To
complement the bed, pajamas, slippers and toiletries with Bulgari lotion are provided. Also
reawaken senses in the on-board Shower Spa. First-class customers have exquisite free food and
drink options. For the customer in First-class, they’ll be pampered and experience a seamless
journey from start to finish.
Emirates business-class travel on Emirates also will taste their way around the world.
Which is possibly the best in the world and also will experience a seamless journey from start to
finish. Business-class passengers enjoy many amenities and extra comfort, such as seats turning
into a 79-inch flat bed at the push of a button, power supply for laptops, extra large table, large
screen TVs with more than 1,400 channel, SMS, Internet, mini-bar built into every seat, and
privacy dividers. These amenities are provided on A380 and most Boeing 777 aircraft.
Business-class passengers also enjoy delicious food and many drink option are provided.
Complimentary champagne and vintage wines are the norm, and all food and many drinks
option.
For the Emirates-economy class customers will experience their journey in a class of its
own. They will taste the flavors of their destination and window into new worlds. Emirates
Economy Class is designed to give more room, more comfort and better service, for an all-round
better flight. Thoughtfully designed cabins mean more space for each passenger. Complimentary
beverages and superb multi-user meals are provided, as well as personal seat-back monitors to
enjoy our outstanding in flight entertainment, such as TV and audio on TV & radio. Customer
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also will enjoy more than 1,400 channels on their personal TV, meals, and Internet, phone and
SMS capabilities at their seats. Economy passengers can stay in touch with SMS, phone and
email at their seats, and of course, every passenger will enjoy the same high standard of service
from our multilingual crew that is offered in all cabins.
Emirates also provide a Sky Cargo and Ground Handling which is the Emirates Group
comprises Dnata, an aviation services company providing ground handling services at 78
airports, and Emirates Airline, the largest airline in the Middle East. Emirates Airlines flies to
over 150 destinations across 6 continents, operating a fleet of over 250 wide-bodied aircraft.
Dnata signed a 15-year joint venture agreement with China West Airport Group to provide
airport ground handling services in Xi'an Xianyang International Airport. A cargo airline based
in Dubai, United Kingdom Emirates, it is the air freight division of Emirates, which started
operations in October 1985, the same year Emirates was formed. Since then, it has been the main
cargo division of Emirates, and the anchor cargo airline at Al Maktoum International Airport, its
main hub.Emirates. Sky Cargo operates dedicated cargo flight to 20 destinations in 15 countries
from Al Maktoum International Airport and through the Emirates network has access to
additional 79 destinations.
Travel Services which is include the Airport Services, passengers may check-in between
2 to 48 hours prior to flight departure. This may be done over the counter of at the lounge within
the airport. Self-service kiosks are also available at Dubai International Airport, as well as at
certain stations of the Dubai Metro. Emirates Airport services comprises of check-in service,
boarding service and some other services. Emirates Airlines have staff of 2,200 people that
facilitates services to their customers from all outstations. It is serving various services such as
passenger services, baggage and ramp services, customer services, quality and resource planning
etc (Emirates SkyCargo Stimulating Growth in America’s International Trade).
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