Emirates Airline Strategic Analysis

This assignment delves into the strategic framework employed by Emirates Airline. It examines the airline's approach to achieving sustainable growth, fostering customer satisfaction, and navigating a competitive global market. The analysis considers various aspects of Emirates' strategy, such as partnerships, network expansion, product offerings, and its commitment to corporate social responsibility.

Running head: Marketing management
Marketing management

Marketing management
Table of Contents
Introduction.................................................................................................................................................3
Description about industry and organization..............................................................................................3
Growth....................................................................................................................................................4
Profitability..............................................................................................................................................4
Macro environment (PESTLE Factors)......................................................................................................5
Market segmentation..................................................................................................................................7
Primary Market........................................................................................................................................7
Secondary market....................................................................................................................................7
Level of involvement of primary target market in organizational decision making.....................................8
Nature of competition in Emirates airline...................................................................................................8
Strengths.................................................................................................................................................9
Weaknesses.............................................................................................................................................9
Positioning map of Emirates Airline...........................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Marketing management
Introduction
Marketing research and audit is the process for evaluating and examining the
organizational objectives, marketing environment and marketing approaches of the company for
determining its strengths, weaknesses, opportunities, and threats. It will help to assist and guide
the organization to conduct business operations and practices. Here is the discussion about the
company, which has been selected in the previous assessment, i.e. Emirates airline. The paper
also explains the current trends, growth, profitability and pestle analysis of the industry.
Additionally, there is a discussion about the market segmentation, primary target market, and
secondary market. It describes that how the level of involvement of primary market may
influence the decision-making process of the airline industry. Emirates airline is the biggest
leader in the airline industry, but still there are some rivalries that affect the financial position
and image of the company in the rivalry market. At the end, a positioning map is generated by
the organization on the basis of the primary market, their level of involvement and competition
in the industry.
Description about industry and organization
Emirates airline was founded in 1985 when the company launched operations with just
two aircraft. In today’s era, the firm flies largest fleets of Airbus A 380s and Boeing 777c in the
world. The organization provides a comfort zone to the customers in the world. Furthermore, it
also offers efficient and effective wide-body aircraft in the skies. Emirates airline inspires and
encourages travelers across the world with growing and increasing network of worldwide
destinations. It provides world-class services to clients in the global market. The company
introduces three new destinations in its global networks such as Phnom Penth, Newark via
Athens and Zagreb. In addition, the firm also introduces new and innovative updated emirates
A380 onboard lounge. Emirates and flydubai announce new partnership including schedule
alignment and network optimization and an expensive codeshare agreement. Emirates is well
known and recognized airline in the world. The organization received best in-flight
entertainment award and passenger choice awards. The corporation also opens emirates flight
training academy in 2017 to provide training to the employees. It is one of the most well known
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advanced flight training academies in the world. In this way, the company is growing and
expanding its business activities and operations across the world. The main aim of the company
is to enhance and encourage the performance and efficiency of the firm. On the other hand, the
firm is trying to attract more customers by providing effective services to them (Emirates,2017).
Growth
This statistic indicates the Emirates group’s revenue from the fiscal year of 2008 to the
fiscal year of 2017. In the fiscal year of 2016/17, the organization generated approx 94.7 billion
Arab Emirates dirhams in revenue (Statista, 2017).
(Source: Statista, 2018)
Profitability
Emirates maintains a high profit with AED 7.1 billion(US$ 1.9 billion) and airline
capacity crosses 56 billion ATKM with 29 new aircraft have been added to the fleet. On the
other hand, revenue reduces 4% to AED 85.0 billion (US$ 23.2 billion), after AED 6.0 billion
(US$ 1.6 billion) hit due to unfavorable and negative currency exchange.
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Emirates airlines seat capacity by country: 28 Dec to 2015 to 3 Jan 2016
(Source: Centre for aviation, 2017)
Macro environment (PESTLE Factors)
PESTLE analysis is conducted to understand and measure the industry situations in order
to attain desired goals and objectives. The macro environment factors include political factors,
social factors, economic factors, technological factors, legal factors and environmental factors.
The PESTLE analysis for Emirates airline has been stated below (Nataraja & Al-Aali, 2011).
Political factors: These factors play a significant role in the organization and affect success and
growth of the firm. The political factors include taxation policy, trade policy, rules and
regulations that are imposed by the Australian government. The airline plays a major role in
helping Dubai and Australian government attains its objectives to promote the city as a tourist
destination. Furthermore, the company has been protected by the rules, legislation and policies
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originated by the Australian and other countries where they are managing and operating
activities and operations. In this way, the firm can take several advantages in Australia (Shaw,
2016).
Economic factors: The economic condition of Australia affects the profit, demand forecast, and
capital availability. If the cost of capital is low down and demand is a buyout, it will be effective
and attractive for the companies to grow and invest with expectations of being profitable and
returns. Emirates airline is one of the biggest and competitive industries in the world in terms of
the airline. Thus, the challenges and risks related to economic conditions have not been faced by
Emirates airline.
Social factors: These factors do include taste, preferences, and demand of people. Furthermore,
general changes in services of an airline also affect the trading activities and operations of the
firm. It is the best opportunities to gain and let go of particular threats. This varies according to
fashion, style, and disposable income. The firm needs to focus on the culture, values, belief, and
custom of people in Australia. By analyzing and evaluating these factors, the company can make
good reputation and relations in the community (Epstein & Buhovac, 2014).
Technological factors: Technology is effective and recognized factor that affects the success
and progress of the firm. It is the part of strategic management in the organization. The company
uses effective and dynamic advanced technology for the creation of competitive benefits.
Furthermore, the new and innovative technology could render a useful input in airline industries.
Currently, the organization introduces new technology and services to attract and retain more
travelers in the competitive market.
Environmental factors: Emirates Corporation must need to consider and encounter the
environmental changes. The climate and weather conditions may influence the credibility and
integrity of airline service directly. Airline must follow strategies which help to make a good
image in the market. The environment is one of the significant concerns that need to get
importance. However, the organization is much concerned about environment, weather, and level
of population.
Legal factors: The Australia government protects Emirates airline from macro environment
factors especially environmental factors as well as political factors. The changes in these factors
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will influence the image and revenue of the firm. The company operations and activities are legal
and arranged to permit the consumers to enjoy the secure and safe flight. The policies and
legislation are provided by the government should allow the airline corporation to be more
cautious in both local and international dealings (Zuidberg, 2014).
Market segmentation
Market segmentation is the process of dividing the business market or consumers into
subgroups of consumers based on special characteristics, features and choices of people. Using
effective and unique approaches and strategies of market segmentation, the firm can divide its
entire population and consumers between primary and secondary market (Wedel & Kamakura,
2012). Emirates airline has also used different strategies and approaches of market segmentation
which helping the firm in dividing its consumers into primary and secondary target market. The
primary and secondary market for Emirates airline has been discussed below.
Primary Market
Primary target market is known as target audience of the market, which provides best and
unique opportunities to serve the clients in the global world. The airline industry focuses its
primary target audience in order generate more revenue and profitability in the competitive
market. Emirates airline is targeting its primary customers on the basis of demographic
segmentation strategy. The demographic factors include age, sex, and income of people. The
primary target market of Emirates airline is urgent travelers and business travelers and visitors,
which belong to the upper class. These are the target audience, which are the primary and
significant reason behind the profitability and returns of the firm. In addition, the primary target
market is families who travel in airlines (O’Connell, 2011).
Secondary market
Secondary market also plays an integral role to attain the long-term vision and mission of
the firm. The secondary market includes non-business consumers and middle-class people that
are frequent travelers via airlines. They would be considered older consumers who have retired
and have the money and time to holiday. In this market, demands and requirements of airline
services are less in comparison to the primary target audience. Both the market provides a long-
term customer base to attract more consumers in the global market (Vasigh & Fleming, 2016).
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Level of involvement of primary target market in organizational
decision making
Market segmentation plays an integral role in the decision making in terms of the
marketing process. Emirates airline divides its market on the basis of behavioral, demographic,
geographic and psychographic attributes and features. Primary target market plays a significant
role in decision-making process of marketing while serving the services to clients during
traveling (Hussain, 2016). When Emirates airline launches its new products and services, a
marketing research is done by the firm to increase the number of customers in the world. The
level of involvement of primary target audience is very high and unique regarding its decision-
making process. After evaluating and examining its primary target audience, Emirates airline is
making dynamic and unique decisions to gain competitive advantages in the market. The firm
develops and introduces its products after considering needs, requirements, and desires of the
target audience (Rummler & Brache, 2012).
After measuring and identifying targeting and segmentation strategies, Emirates airline
makes unique decisions in terms of positioning of its airline products and services.
Differentiation strategy is used by the organization to select the potential customers to whom
they want to sell their products and services. At the end, Emirates airline has positioned as most
favored when it comes to airline services. Value-based positioning strategies are used by the
corporation to position the services of airlines. The primary target market of the firm is upper
class, thus, the firm can increase and maximize the prices of airline services. After deciding
market segmentation, it will be easy for Emirates airline to make effective decision in terms of
advertising and promotion of its products and services. Now it is assumed that there is high level
of involvement of primary market in organizational decision making process (Wheelen &
Hunger, 2011).
Nature of competition in Emirates airline
If an organization launches a new product and service in the global market, a market
research and survey is conducted by the firm to understand and evaluate the nature, size,
strengths, and weaknesses of the competitors (O'Connell & Williams, 2011). There are various
competitors exist in the competitive market that may influence the business activities and
operations of Emirates airline (Grimme, 2011). The major competitors of Emirates airline
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include Air India, Etihad Airways, Qantas Airways, Singapore Airlines, and Jet Airways. Hence,
Qantas Airways is the main and strongest competitor of Emirates airline in Australia and both
are engaged in the rivalry relationship (Hussain, Al Nasser, & Hussain, 2015).
A contrast and comparison between strengths and weaknesses of Emirates airline and Qantas
Airways have been stated below.
Strengths
Emirates airline Qantas Airways
 It satisfies customers by providing
effective and attractive services.
 The firm employs approx 50,000
employees.
 The company uses effective and unique
advertisement and branding strategy to
maximize the number of customers in
the world.
 Emirates airline conducts its operations
and activities in more than 70 countries
across the world.
 Qantas Airways maintains strong and
unique position in domestic as well as
international market.
 It is one of the biggest and oldest
airline operators in the world.
 The corporation has more than 25000
workforce.
 It renders effective and great services
such as flyer and lounge programs for
loyal customers.
 It is the biggest airline operator in
Australia.
Weaknesses
Emirates airline Qantas Airways
 The firm is heavily relying on
international onward moving traffic.
 High and immense competition exists
in worldwide.
 There are several problems and issues
exist in the market such as pricing and
incident which affect the image and
position of the firm.
 The international presence is limited of
the firm compared to other airline
companies.
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From this competitive analysis, it can be said that Emirates airline is one of the positions
in the airline industry. The comparison of strengths and weaknesses of the organization shows
that both of the organizations are competing with their own strategies and policies to stand out
against the competitors in the world.
Positioning map of Emirates Airline
By taking consideration to the primary target audience, level of involvement of primary
market and competition, positioning map is created for Emirates Airline Corporation. By this
positioning map, the firm shows the thoughts, ideas, and perception of the customers in the
competitive market. The positioning map for Emirates airline is stated below.
Long Haul
British Airways
Emirates
Discount/no frills Comfort/service
Easy Jet
Ryan air
Short Haul
The positioning map of the Emirates airline shows that
the firm can make unique decisions after considering its primary target market. It is targeting the
businessman and urgent travelers who are from upper class and professionals which can afford
the high prices. It helps to accomplish the goals and objectives of the company.
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Conclusion
On the above-mentioned study, it can be analyzed that Emirates airline a leading position
in Australia airline industry. In today’s competitive world, the firm is increasing and maximizing
its profitability and outcomes. The Pestle analysis shows the business environment of Australia is
good for the airline industry. Furthermore, it also helps to accomplish the desired outcomes and
returns of the company. Emirates airline divides its market on the basis of demographic and
behavioral characteristics. The primary target market also helps to make effective decisions in
the market. Apart from this, competition also influences the trading activities and operations of
the firm adversely. Now it is recommended that the organization should set appropriate prices of
services and products to attract people regarding its products and services. A positioning map is
also created by considering competition and level of involvement of consumers in the world. It
helps to beat the competitors in the market and to maintain sustainability in the organization.
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References
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Rummler, G. A., & Brache, A. P. (2012). Improving performance: How to manage the white
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