SWOT Analysis of Emirates Airline

The provided assignment is a detailed report on the strategic management of Emirates airline. It includes a SWOT analysis, which identifies the strengths, weaknesses, opportunities, and threats of the company. The report also uses Porter's five forces model to determine the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and competitive rivalry among existing competitors. Additionally, the report provides recommendations for the company to follow in order to expand its business in the future.

Organisational strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
Pestle analysis ............................................................................................................................1
SWOT analysis............................................................................................................................4
Porter five forces.........................................................................................................................5
Stake holder perspectives............................................................................................................6
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Organizational strategy is the strategy to achieve some long term goal of the company.
Organizational strategy is important part of the business. Because this is provided the strategic
plan to the company which helps to recognize the basic outline and directions of the company.
Organizational strategy is the tool to provide the guideline of day to day decisions which helps to
increase the growth of the company. Also, it is provided the different strategy to use in the
business and complete the task that increase the future growth of the company. The project report
is based on the organizational strategy, For better understanding the organizational strategy.
Taken the Emirates airlines. Emirates airlines is the Dubai based company the airlines is the
subsidiary of the Emirates group. The project report will describe the pestle and swot analysis
these analyses is help to company for increase the growth in the external or internal environment.
The project report will further explain the porter five forces model that describe how the
company take advantage in the market and also this model is helps to increase the competitive
advantage. Also provide some recommendation that company should follow to increase the
growth of the company (Destler, 2015).
Pestle analysis
Pestle analysis is stands for the political, economical, social, technological, legal,
environmental factor. These all factor is help to company for analyse the external environment of
the company which helps to identify the Negative and positive impact of the company.
Political Environment
Emirates airlines is a Dubai based company which is into the business since 34 years,
Nevertheless, facing various challenges in the airline industry it is the fourth largest airlines in
the world. And also the largest airlines in the middle east operating over 3600 per week from
Dubai.
 Military invasion and terrorism does not have much effect the market.
 Emirates airlines works under the governance of Dubai government.
 Being into the airline industries since 34 years emirates has signed agreements and bound
to be open to the world flexibly.
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Economic factors
 The highest turnover is at-least 12 billion with more than 40,000 employees and as a
result emirates has never faced any downfall or issues in serving because of there polices
and strategies (Fraj, Matute, and Melero, 2015).
 Dubai is basically known for low oil price environment effects the economy. The rapid
growth of population is an important factor for demand of air travels. Increase in fuel
price has increased the rate of bankruptcies of many airlines.
 Emirates is 34 year old Dubai based government company as it the international brand
has collection of multiple currencies worldwide.
 Emirates in 2013 has also launched its corporate and private charters.
Social factors
 The social factors mainly depends on how the airline is client friendly regarding there
demands and general needs, seeking the examples like emirates provides Muslim
passengers snakes and drinks during the month of Ramadan.
 Air travels connect developing countries to developed countries resulting the emirates
airlines provide equal attention to the passengers and look after there cultural values as
well.
 Automation is also one of the factor as nowadays people prefer Skype and conference
calls instead of travelling (Destler, 2015).
Technical factors
 Emirates provides its passages digital booking as well as cheek- ins due to this service
the airline is gaining more profit.
 Emirates has imposed its own digital agency which has 24*7 customer service providing
serving in there native language this IT infrastructure has been built within 10 years.
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 New internet and technology services have been beneficial for the passenger
entertainment facilities.
 Omni channel strategy for seamless costumer service.
 The company uses flextracks, the technology used for the plan and optimize routes
efficiency and load factor.
 Emirates has stared the versions of the A380 – 800 will offer fuel economy of 3.1 litres
per 100 passenger km.
Environmental factors
 Emirates airline service is commitment to eco – efficiency through major investments and
initiatives. Airline industry is responsible for 12% of carbon emission.
 Air pollution caused by aircraft has lead to various number of diseases.
 Flying across the time zone can confuse body clock causing jet lag or travel fatigue.
 Noise pollution caused by the aircraft cause negative effect on the health of people and
quality of life specially on children and risk of heart attack in old age group people.
 Terrorism has also led to many death over 3000 people during al- Qaeda September 11th
on world trade centre.
 Development of bio flues to reduce environmental impact.
 Emirates has invested in tailored arrivals for speed and flight profile from the air onto
runway for saving fuel (Fraj, Matute, and Melero, 2015).
Legal factors
 Emirates airlines offer safe travel along with the high quality services as they have their
own rules and regulations to impose the safety of there passenger.
 There is ban on carrying electronic devices in the air craft.
 There are separate rules and regulations made when an air craft is been made responsible
for an air crash.
 Several agreements are been signed by the emirates worldwide for the security treaty of
passengers.
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SWOT analysis
SWOT (strength, weakness, threat, opportunity) analysis is the model to use in the business for
evaluating strength and weakness of the company. Also, increase the competitive advantage of
the company and help to make the strategic planning.
Strength
Emirates were received 12th award for best flight entertainment at skytrax world air line
award 2016. This is the world best airline. Emirates has central hub in Dubai airport. Dubai is the
best destination for tourist in the worldwide. So the picture of the city has reflective on the airline
that resulting its powerful brand image. Further, company provided the best customer services
and amenities have also created the big role to increase the brand (Parnell, Long, and Lester,
2015).
The main strength of the Emirates is its location. Dubai is the leading tourist destination
in all over the world, the highly majority of the population in the world could be travelled in the
single flight of the company. Company has reduced the airline dependence of third party
because Company has diversified their air travel industry in different segments. Such as catering,
Maintenance, Ground handling etc. Emirates has provided the best service to the customer such
as rebooking facility. 'Self service' kiosk in the terminal, also for the international passenger
company could provide highly quality and best transportation solutions. Emirates has best route
network to manage the server in different continents.
Emirates airline has a powerful sponsorship portfolio with the most celebrity face of
football club in the world. e.g. Real Madrid, paris Saint, AC Milan. This sponsorship is deal
with the football club that is provided the opportunity of holing the board as name Emirates
stadium that increase the popularity and Brand image of the company. Also, Emeritae has a deal
with the Asian foot ball this deal is also provide the opportunity to expand their business in all
over the world (Kono, 2016).
Weakness
Emeritae has faced some issue related to the government rules and regulations. Emeritae
does not pay the tax that results has increasing the tax liability. And also negative impact on the
people mins that company does not follow the rules and regulation according to the government.
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Also, some other airlines have allegiant to the company that they received the subsidies of
government.
Recently the revenue of the Emirates has decline because the marketing plan is not good
and unsustainable future growth plan. That increase negative impact on the company future
growth. Further, Company may focus on the premium travel segment which might be describe
the older generation. So the new generation does not consider they not happy related this
segment. That decrease the brand image as well decrease the future growth of the company.
Opportunities
Emeritae take advantage to provide the best travelling facilities to the customer they
serve their services in more than 150 tourist destinations provide the affordable travelling to rise
the demand of the company. So the ideas of expand the international travel could be an
opportunity to increase the future growth of the company. Further, company introduce the
subsidiary budget airline as an innovative ideal that help to explore the business in the market
(Chowhan, 2016).
Threat
Decline the tourism in Dubai can also affect the company growth. Because Dubai is the
central hub of the company. Also, some other factor may decline the brand image of the
company likewise political, economical, legal, environmental these all factor is affected the
company and rapidly decrease the demand of the company.
Competitors are the main threat of the Emeritae airlines. Many competitors are take
advantage. Such as Turkish Airlines, Qatar Airways they provide the good services to the
customer and they rapidly expand the business for increase the threat to Emirates (Destler,
2015).
In American market company have threats to three main domestic airlines. Because the
government has organized the campaigning for restricted the other airlines on the routes. Only
some air lines can fly into the US such as Emirates, Etihad, and quatar. So this rules is the
biggest threat of the company in the American market (Butler, and Wilson, 2015).
Porter five forces
Threat of new entrants
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Emirates has faced the low threat regarding the new entrants. Because in airline industry new
entrants has faced the entry barriers related to the rules and regulation by the government. Such
as highly cost of start up the airline company, also the airline industry has required the
government approvals that take lot of time. The new company also have to maintain and
implement the best EPA standard in the flights. Also, when new company would enter in the
competitive market that require the huge capital to sustainability and resources (Parnell, Long,
and Lester, 2015).
Threat of substitutes
Threat of new substitutes for the Emirates airline is the other modes of transportation like auto
mobiles. But also the main preference of the customer is international travels. Air travel. The
other substitute is the different and reasonable tickets that attract the customer also provide the
best travelling services such as best food services that creates the threat of the company.
Bargaining power of customers
The buyers have influence the price when other company is reduced the price of tickets that leads
the threat to the company. However, Emirates airline provide the best service to their customer
so customers have willing to pay the high prices on the tickets.
Bargaining power of suppliers
There are two company who supply the raw material and manufacturing the air plane the name is
Boeing and Airbus. These both company have high bargaining power because of the lack of
availability of suppliers. So as the result they charge the high price on the manufacturing when
thy contract with airline as Emirates (Fraj, Matute, and Melero, 2015).
Competitive rivalry
The biggest threat of the company in the American market. Only some air lines can fly into the
US such as Emirates, Etihad, and quatar. Emirates airline have threats to three main domestic
airlines. American, Delta, and United have been organized the campaigning for restricted the
other airlines on the routes. So this rules is affect the company because only few airlines in the
market that increase the competition.
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Stake holder perspectives
Figure 1 Stake holder analysis
 Customer has satisfied with the service of the Emirates airline. They also pay the high
price to travel in the Emirates airline (Chowhan, 2016).
 When Emirates airline increase their market share. So the shareholder of the company has
also taken advantage for increase the returns.
Recommendations
 Emirates airline Should provide some technology services while travelling like
Automation is also one of the factor as nowadays people prefer Skype and conference
calls during travelling (Kono, 2016).
 Development work and technology do not always have the same requirements and the
same timelines. It is fundamental to make sure that when organizations collaborate, all
information about requirements, timelines and expectations is exchanged and clarified in
advance.
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 Emirates Airline should also prepare the proper organizational structure, so that each
member in the team is assigned with the job that matches their skills and talent (Butler,
and Wilson, 2015).
 Emirates Airline can also make use of ICT tools, which is an integral part of already
existing ecosystem. This system is must recommended as it can help the organization in
coordinating and communicating well to their employees and also they with this they can
remain in contact with the consumers.
CONCLUSION
From the above report it has been summarised that the organization has been affected
through the political instability in various market segments. It has also been concluded that
company has engaged in following the various organizational strategy to increase the brand
image. Further report concluded about the swot analysis of the Emirates airline and also describe
the pestle analysis this analysis which helps to recognize the internal or external environment
that can affect the company. The report has also concluded that how the porter five forces model
has assisted company in determining the threat. The report concludes that organizational strategy
is the best strategy to achieve the future goal of the company. At the last report has concluded
some recommendation that company should follow to expand the business In the future.
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REFERENCES
Books and journals
Butler, R. and Wilson, D.C. 2015. Managing voluntary and non-profit organizations: Strategy
and structure. Routledge.
Kono, T. 2016. Strategy and structure of Japanese enterprises. Routledge.
Chowhan, J. 2016. Unpacking the black box: understanding the relationship between strategy,
HRM practices, innovation and organizational performance. Human Resource Management
Journal. 26(2). pp.112-133.
Bryson, J.M. 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Orna, E., 2017. Information strategy in practice. Routledge.
Jarzabkowski, P. and Kaplan, S. 2015. Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal. 36(4). pp.537-558.
Effing, R. and Spil, T.A. 2016. The social strategy cone: Towards a framework for evaluating
social media strategies. International journal of information management. 36(1) pp.1-8.
Keyes, J. 2016. Implementing the IT balanced scorecard: Aligning IT with corporate strategy.
Auerbach Publications.
Fraj, E., Matute, J. and Melero, I. 2015. Environmental strategies and organizational
competitiveness in the hotel industry: The role of learning and innovation as determinants of
environmental success. Tourism Management. 46. pp.30-42.
Madsen, T.L. and Walker, G. 2015. Modern competitive strategy. McGraw Hill.
Fabbe-Costes, N. and Colin, J. 2017. Formulating logistics strategy. In Global Logistics And
Distribution Planning (pp. 83-104). Routledge.
Destler, I.M., 2015. Presidents, bureaucrats and foreign policy: The politics of organizational
reform. Princeton University Press.
Parnell, J.A., Long, Z. and Lester, D. 2015. Competitive strategy, capabilities and uncertainty in
small and medium sized enterprises (SMEs) in China and the United States. Management
Decision. 53(2). pp.402-431.
Vaara, E. and Lamberg, J.A. 2016. Taking historical embeddedness seriously: Three historical
approaches to advance strategy process and practice research. Academy of Management Review.
41(4). pp.633-657.
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