Emirates Airline Strategic Management Analysis

RUNNING HEAD: MANAGEMENT 0
STRATEGIC MANAGEMENT

MANAGEMENT 1
Emirates is a state-owned airline based in Garhoud, Dubai, United Arab Emirates. It is the largest
airline in the Middle East and founded in the year 1985, the fleet size of the company is 221 in
Dubai. In the current year company operates over 3,600 flights weekly and in the year 2016, the
company earns the profit up to 8,330 which is more as compared to previous year profits
(Redpath et al., 2017). In this essay the case of Emirates Airline in 2017 is analyzed by
describing the key forces which influence the strategy of Emirates. Further, the discussion is also
made by describing the business-level strategies and challenges which company face.
Key Forces which affects Emirate’s choice of strategy
PESTEL Analysis
The changes in the population that is in the year 2016, the number of population were 9,269,610
which affects Emirates in native manner it is because through this the strategy will be changes
according to the needs and requirements of passengers (Al-Jenaibi, 2017). The socio-cultural
factors also influence the selecting strategy of Emirates this is due to the reason because the
culture of passengers in Dubai is to get ultimate superior facilities and at the same time to get
more quality of food (Redpath et al., 2017). Therefore due to more number of competitions it
also become difficult for the company to select the strategy which can satisfy the needs and
requirements of the consumers and at the same time it should be competitive so that it can be
sustained in the competitive environment. ‘
The political and legal rules also influence Emirates to conduct their operations in ethical manner
that is in the 2017, the government of UAE develop the rule that aviation sector will develop are
superior and efficient tourism-friendly policies (Kassem et al., 2017). This is the reason the
company also effects in negative manner it is because it was forced to develop these policies.
The environmental constraints is the major force which influence Emirates in selecting the
strategy that is changes in the climatic conditions of Dubai affects the company to maintain the
activities and at the same time provide efficient services to the consumers as well as moving
them to their destination places (Farouk & Jabeen, 2018). It is one of the main issue and problem
which affects the internal organization that is selecting the talented employees which provide
quality services so that they can develop efficient policies and procedures according to the
dynamic environment.

MANAGEMENT 2
The other forces is the changes in the technologies adopted by the global competitors of Emirates
that is Singapore Airways, Cathay Pacific which also affect the operations of the company to
conduct their business by competing internationally (Wafik et al., 2017). The increase in the
interest rate that is it was up to 2% in UAE which also influence Emirates to manage their profits
and sales accordingly (Al-Jenaibi, 2017). Further more competition and differences in the rules
and regulations of the international environment that is differences in the license policy also
influence the company to select the appropriate strategy so that it can expand in international
environment.
SOURCE: (Julaimi et al., 2016)
Porter’s Five Forces Model
There are also various forces in the industry environment which affects Emirates that is threats of
new entry in aviation industry of UAE new entry threat is medium it is because it require lower
investment and have higher demand but it is complex for the new entrance to provide services
like Emirates (Parakandi & Behery, 2016). Further the purchasing power of the passenger in the
aviation industry is more his is due to the reason of more competition and number of competitors
provides similar services to the passengers. The estimation describes that Emirates conduct their
operations in highly competitive environment.
General
Environment
Demographic Socio-culture
Political
Technological
Economics
Global