Strategic Management Report: Competitive Strategy of Emirates Airline

This report provides a comprehensive analysis of Emirates Airline's competitive strategy, focusing on the application of Porter's generic strategies, including cost leadership, differentiation, and focus. It evaluates the advantages of the strategies, such as strong corporate identity and economies of scale, while also critically assessing the disadvantages, such as the potential for being 'stuck in the middle' and limitations of the static market structures. The report includes recommendations for future growth and expansion, emphasizing resource management and environmental considerations. The report aims to provide insights into how Emirates can maintain and enhance its competitive advantage in the airline industry by adapting its strategic approach to the evolving market dynamics and competitive landscape. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
COMPETITIVE STRATEGY................................................................................................3
Critically evaluation of competitive strategy.........................................................................4
Disadvantages of adopting Porter's five forces Model...........................................................5
Recommendations..................................................................................................................7
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
In the recent times it has been seen that many businesses have expanded and this
expansion has caused due to different reasons, one of which businesses now a days are more
relaying on the strategies they follow. In order to get that extra edge over their competitors make
the profits more, they have used different competitive strategies in relation to it. Further which
has helped a lot in achieving the objectives they have strived for. The present report deals with
one such organizations which in the recent times have emerged as great influencer to customers
to buy their services in the industry(Dinnie, 2015). Thus to understand what strategy they have
adopted in this regard and what should be the possible outcomes, opportunities and threats of
undertaking that strategy has been mentioned in the reports. In addition for the future of the
business recommendations have been made.
TASK
COMPETITIVE STRATEGY
The competitive strategy can be defines as a long term plan that assist the firm to a gain
sustain in the competitive advantages over their industrial rivalry. Thus, it is that type of strategy
which is used by the firm often discrediting the competition products or services. The main
benefits from this strategy is that it able the organisation to compete effectively in the
competitive market. In regard to this, the Emirates adopts the porter’s generic competitive
strategies is the best ways to compete the market in most desired manner. It shows the company
to determine the position within the airline industry whether the cited airline can able to get
profits above or below the industry average. The phenomenon behind this is that if the company
earn above the average profitability in longer time period that is sustain the competitive
advantages (Spear, 2013. Therefore, there are two types of competitive advantages which
Emirates airline can possess that are low differentiation and cost. There are mainly three generic
strategies that helps the Emirates to attaining above average performance within the industry and
these are mainly includes are the cost differentiation, cost leadership and focus. Therefore, the
focus strategy are categorised into variants that are differentiation focus and cost focus. The
Emirates airline adopts all such generic strategy of Porter’s Generic competitive strategies which
are as describe as follows-

Cost leadership: It is that type of strategy under which the organisation can able set out to
become the lower producer in their industry. The sources that are used for competitive
advantages that are change and it is also depends on the industry structure as well. It involves
mainly such as proprietary technology, economies of scale, raw material and various other
factors. Therefore, if the company able to attaining all such whole cost leadership then it will
definitely able to get the above average performer in their industry. Thus, the set prices that are
near or at the industry (Shanbhag, Dutt and Bagwe, 2016). In regard to this, the Emirates used
cost leadership strategy under which they can effectively sustain in the competitive advantages.
For this they keep their fare or air ticket prices that are near or at their industry average.
Thereafter, there are various competitor of Emirates due to which they keep their price at low
cost in the airline industry that able them to compete in the competitive market in most effective
manner.
Differentiation: It is that type of strategy under which the company can seeks or looks for the
unique thing that are needed to introduce in their industry to compete in the market. It is that type
of dimension in their industry which used widely valuable for the buyers. For this, they establish
more than on attributes so many purchaser cab perceive under its industry. It effectively created
their unique position if the company want to meet anytime. In regard to this, the Emirate applied
differentiation strategy for the purpose of make unique position in their airline industry. The
unique strategy adopts by the Emirates under which they offer a discount in combo of airline
ticket and hotel.
Focus: It is that part of porter’s generic strategy under which this mainly focus rest of the part
that means that they choice the narrow competitive scope in their industry. It can be further
describes that the company needs of focus only one target segment in this strategy and remains
other segment in their industry. Thus, the target segment is differ from the other segment in the
industry as it either seeks unusual needs, buyers and production that serve best.
Critically evaluation of competitive strategy
Advantages
Strong corporate identity- The Emirates adopts the differentiation strategy under the
porter generic strategy in which they charge premium price for the fares. Thus, it directly
increased confidence as they can able to developing the Strong corporate identity. It will also

make a loyal customer in most effective manner as they can stabilize their revenues due to
customer loyalty.
Economies of scale- The Emirates adopts the porters generic strategy through which they
can effectively able to increase economies of scale as they perform more cheaper in their
industry(Mahadevan, 2013). It has an ability to put the cost of certain thing as lower such as
research and development cost and advertising which increase sales volume. It is main source
through which it able them to save cost.
Unique position- Emirates makes their unique positions in their airline industry in which
they make their presence in the competitive market. The company attain the differentiation
strategy in which they incorporates feature due to which they provide the utility to its customer
and fulfil the customer needs by match their needs as well as preferences. They can effective
increase the customer satisfaction level through both tangible and intangible ways. Apart form
this, they offer a high quality of products or services. It enabling that the customers can claim
distinctiveness and improve their status within the airline industry.
Advantages of differentiation strategy- There are various advantages that are get by the
Emirates is that they command a premium prices over their products or service as they also gives
the unique characteristics which does not provide by any other airline within their industry. They
can effectively increase the sales as they other buyer won by over the differentiate strategy. They
effectively gain the customers loyalty through its brand as most of visitors or clients are attached
with the distinctive features (Kumar, 2013). They can also increase their improves their brand
loyalty as they are lack competitive rivalry due to differentiation features. The another benefits
from this strategy is that it act as a entry barrier as the differentiation strategy is high expensive
in nature so, the new firms can compete more effectively with the exists firms.
Disadvantages of adopting Porter's five forces Model
As far as this model is concerned it has very wide organizational implication and always
have catered in making the businesses achieve well through application of it in the operations.
But when there are positives for any situation, there are negatives too. For any strategy to
implement it take time and resources to implement it effectively and thus making the right
selection and execution is important and if not undertaken properly then it might get ugly for the
businesses in context of operations(Kumar, 2013). The main limitation of this model here is that
they provide the good starting point for the framework and implementation of the strategy but in

the long-run for the fast growth they may not provide and routes or way to achieve the desired
objectives for the future. There are different scenario's where this strategy will not suit the
emirate's business and they are:
Stuck in the Middle: It is important for the Emirates business to find the best suitable strategy
for the business, as this process is an implementation process and if the resources become short
or some deviations have been occurred than this situation is quite hard for the company as from
this hey will not be able to go at the starting point and also can't go further which impacts them
until and unless they are rescued from this(Mahadevan, 2013). This model has been making
emphasis on the wide organizational view and that's a better thing for the broad strategic
analysis.
Cost Leadership: Cost Leadership strategy or differentiation strategy, Emirates company can
follow any one strategy thus this is the biggest limitation of the model as it has impacted the
people in a major way. Putting emphasis on one cannot do for the other. Taking decisions in lieu
of differentiation strategy will entirely make cost and focus strategy to fall apart(Santos, 2016).
Thus for an organization like emirates it is important for firm to make the adjustments to
examine strategy and their impact on the business and then choose accordingly with respect to
undertaking the different resources which can be utilized. It is very difficult for emirates to
completely ignore the cost factor, no matter what their product offering in the market.
Static Market Structures: One more important limitation in order to deal with these sort of
strategy is that it is an strategy which considers broad framework thus this strategy can't be used
for the small or simple market structures. It is important for the strategist or analysts or the
manager to keep in mind that this framework cannot be applied in the shorter format of the game,
it is for the big game(Shanbhag, Dutt and Bagwe, 2016). Thus The main limitation of this model
here is that they provide the good starting point for the framework and implementation of the
strategy but in the long-run for the fast growth they may not provide and routes or way to
achieve the desired objectives for the future.
Resource Utilization: The important part of the limitations of the emirates is resources.
Everyone knows that resources are scarce and using it businesses should take care of not
harming, wasting the environment as a whole. Further it can be classified that many new
businesses have opened and the resources are on the verge of extinction. Thus resource
utilization should be proper in order to take out one of the three strategies by the businesses as it

is the duty of the businesses that whatever is given by society, should be given to society in full
settlement(Spear, 2013). Effectively and efficiently utilizing the resources will make them to
achieve the broader view of the problem and thus makes them to take decisions in order to
remove those.
Recommendations
In order to have that extra edge over age over the competitors, businesses like emirates
needs to make some changes on their current undertaking and introduce more powerful and
unique et of things which attracts the customers so that firm can build a good an better brand
image in the minds of the customers(Shanbhag, Dutt and Bagwe, 2016). Further it can be said
that many new businesses have arrived which has caused the major drop down of the emirates in
the industry and thus by making the look at different scenario's or elements they can further
make the most of the resources and the capabilities of the employees such that to achieve the
broader image in the minds of the customers. Things which need to be taken care of by the
emirates to expand its operations in the future are:
o Emirates need to take care of the resources as by utilizing the resources in such a manner that it
should not harm the environment and also not harm the people at the major level is the key in
delivery of the products. Environmental point of view should be kept in mind considering
different resource utilization. The resources will make them to achieve the broader view of the
problem and thus makes them to take decisions in order to remove those.
o Emirates is currently into using the porter strategic model which is broad and a major strategic
analysis thus rather the need of using this analysis is not needed at this point of time since this
analysis will only give emphases on the cost, differentiation of the products and focus on some
specific thing, rather on the internal capabilities, expansion and penetration opportunities
making the analysis own and outsider analysis is important for the firm such that emirates can
know whether who are the firms are entering into the markets(Spear, 2013). Further it can be
noted that Emirates can use the Swot analysis, Pestle analysis like strategies to examine what's
going inside e and outside of the organization such that it will give the major view of both micro
and macro environments.
o Use of Porter's generic strategic analysis should be kept limited to the broader strategic analysis,
for holistic strategic analysis mostly used models are Swot analysis and Pestle analysis.

o Emirates if wants to use this model than they should not use this model with undertaking both
the strategies together which is cost and differentiation because they may get stuck in the
middle of the something which can be time consuming for them and thus this will make them
loose time and as well as the brand image in eye's of customers ad stakeholders(Spear, 2013).
o Efficient and effective use of the resources should be there. The resources will make them to
achieve the broader view of the problem and thus makes them to take decisions in order to
remove those.
CONCLUSION
Summarizing the whole report it has been concluded that the porter generic strategy is best
for the Emirates Company as they can effectively improves their performance. It can be possible
through becomes a cost leader in the airline industry, adopts differentiating in their products or
service from the other firms and they are focusing on the narrow target segmentation in the
competitive market. It has been further analysed that there are various advantages of porter
generic strategy that helps the Emirates to make their distinct position in the competitive
environment. Beside this, there are some pitfalls due to which there an another competitive
strategy recommended to the Emirates.

REFERNCES
Books and journals
Dinnie, K., 2015. Nation branding: Concepts, issues, practice. Routledge.
Kumar, A., 2013. Impact of West Bengal Politics on India–Bangladesh Relations. Strategic
Analysis. 37(3). pp.338-352.
Mahadevan, P., 2013. The Changing Politics and Geopolitics of Burma. Strategic
Analysis. 37(5). pp.596-609.
Michelon, G., Boesso, G. and Kumar, K., 2013. Examining the link between strategic corporate
social responsibility and company performance: an analysis of the best corporate
citizens. Corporate Social Responsibility and Environmental Management. 20(2). pp.81-94.
Santos, R. B., 2016. Crime analysis with crime mapping. Sage publications.
Shanbhag, M., Dutt, M. L. and Bagwe, S., 2016. Strategic Talent Management: A Conceptual
Analysis of BCG Model. Imperial Journal of Interdisciplinary Research. 2(7).
Spear, J., 2013. Defence offsets: A system-level view. Strategic Analysis. 37(4). pp.430-445.