Strategic Management Analysis of Emirates- PDF

Running head: STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
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STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES1
Introduction
Emirates is a state-owned airlines based organization that is mainly based in Garhoud,
Dubai, United Arab Emirates that started its operations in 1985. Emirates Airlines is a subsidiary
company of the Emirates Group which is owned by the Investment Corporation of Dubai and is
also a part of the Dubai Government. Emirates is the largest airlines organization that has its
operations in the Middle East and operates more than 3600 flights within a week from the hub
that is present at the Dubai International Airport. The essay will be based on the detailed study of
the external and internal environment based aspects of Emirates Airlines that have an impact
strategies of the organization. The leadership related activities of Emirates Airlines will also be
analyzed in the essay in detail.
Analysis of the case study
Key forces in general and industry environments that influence strategy of Emirates
PESTEL analysis of Emirates
Political factors – The global political environment and changes have an impact on the
international operations of the flights of Emirates Airlines. Emirates has started operating its
flights in the emerging countries that have a stable environment. The security based concerns in
various countries can also have an influence on the revenues of Emirates Airlines.
Economic factors – The revenues of Emirates Airlines are collected in multiple
currencies and the macroeconomic conditions can have a negative impact on the profitability
levels. The economic growth of UAE has also been fuelled in a huge manner by the oil industry.
The decline in prices of oil have provided positive development to Emirates Airlines (Aguinis,
Edwards and Bradley 2017).

STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES2
Social factors – The increase in world population has been able to influence the demand
of air travel in different parts of the world. The millennial travelers are considered to be the most
important part of the consumer base of Emirates Airlines. The expectations of millennial
travelers are however vastly different in nature and opportunities in the industry are quite huge as
well.
Technological factors – Digital technologies are used for the purpose of improving the
performance of Emirates and to enhance the levels of efficiency as well. The organization has
also been able to forecast the expectations of customers with the proper implementation of
technologies. The increase in demands for the usage of high end technologies from the customer
side is considered to be a key aspect that has an influence on the processes (Bourjade, Huc and
Muller-Vibes 2017).
Environmental factors – The operations of airlines industry leads to around 12% of total
emission of carbon in the entire transportation sector. The weather conditions on the other hand
can also have a major influence on the operations of various airlines organizations including
Emirates.
Legal factors – The growth that has been depicted by the Gulf carriers like Emirates,
Qatar Airways and Etihad are able to incentivize European and American airlines that are
competing with each other. The travel restrictions that are implemented in various countries have
an impact on the operations of Emirates Airlines (Daspit et al. 2017).
Porter’s five forces analysis of Emirates Airlines
Threats of the new entrants – The new organizations are not able to achieve the
economies of scale easily and this is able to offer a key competitive benefit to Emirates. The