Evaluating Emirates' Strategy and Performance

Emirates, a global airline venture, has its operations throughout the world. This report highlights the description of strategy that they should focus on in the future. It also provides information regarding different models used for making effective strategies such as BCG matrix, Ansoff matrix, and SWOT analysis. With this document, readers will gain relevant insights to support strategic decision-making.

STRATEGY AND PRACTICE

TABLE OF CONTENTS
INTRODUCTION............................................................................................................................3
ANALYSIS OF ORGANISATION STRATEGIC OBJECTIVES AND RECOMMENDATIONS
ON IMPROVING STRATEGIC PRACTICE.................................................................................3
About Emirates Airlines .............................................................................................................3
Strategic objectives .....................................................................................................................4
Emirates products and services ..................................................................................................4
Service process of Emirates ........................................................................................................5
Environmental analysis for Emirates ..........................................................................................6
SWOT analysis ...........................................................................................................................7
PESTLE analysis ........................................................................................................................8
Competitive advantage for Emirates ........................................................................................10
Porter five forces for Emirates .................................................................................................11
Recommendations on strategy practice ....................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES...............................................................................................................................15

ILLUSTRATION INDEX
Illustration 1: Illustration 1: SWOT analysis...................................................................................9
Illustration 2: PESTLE analysis.....................................................................................................11
Illustration 3: Porter five force model............................................................................................13

INTRODUCTION
Strategy can be described as a plan of action which is used by business enterprises to
achieve their long term and overall goals and objectives. It is the one which originates from work
and the same is formed by the top level management so that operations can be carried out in
more efficient and suitable manner (Jiang and et.al., 2012). Practice is undertaken by the top
manager in order to increase their effectiveness so that firm gets competitive advantage over the
other companies who are working in the same industry.
By taking the above topic into consideration, the organisation undertaken for the present
study is Emirates Airline which is aviation firm of Dubai and is wholly owned by the Investment
Corporation which is a sovereign wealth fund owned by government of the nation. This present
work will focus on understanding the strategic activities of the company ways to improve their
tactical practices.
ANALYSIS OF ORGANISATION STRATEGIC OBJECTIVES AND
RECOMMENDATIONS ON IMPROVING STRATEGIC PRACTICE
About Emirates Airlines
Emirates Airline is one of the largest air services in the Middle East which operates in
more than 3,300 flights per week from the Dubai airport. It also has its effective operations in
more than 78 countries in 148 cities. Further, cited firm also deals in Cargo facilities which help
venture in improving its revenue and productivity. Further, they are also treated as the seventh
largest airline in the world in terms of fleet size, profits and turnover. Organisation is also at
fourth position in the world with respect to international passengers carried from one destination
to another. They also have more than 56,000 employees who are giving their productive services
throughout the globe (Emirates to Dubai, 2016).
Mentioned firm is a subsidiary of The Emirates Group and their operations are so
successful that firm increases its operations every year. Moreover, they also have base of loyal
customers who continuously help them in improving their outcome and productivity (Meredith
Belbin, 2011). Moreover, cited firm knows that they are working in dynamic environment and
there exist many competitors who are working at same platform with good market share and
capital. Employees are core strength of this organisation and are regarded as their real asset.

They provide the best of services to customers which maximises their needs and wants also in
order to give good return of the fund invested.
Strategic objectives
Emirates Airlines has some core objectives which eventually provides them competitive
advantage over their rivalry firms. Further, major goals of this company, their mission and vision
statements have been discussed down as under:
 Goals:
Their goal is to reach on the top by providing excellence in work done by them.
 Mission:
Emirates focus on delivering the world's best in-flight experience to the customers.
 Vision:
Emirates vision for 2020 is to make the civil aviation safe and sustainable. Cited firm is
also emphasising on improving the economic, environmental and social impact in a meaningful
manner.
Moreover, cited firm focuses on different objectives in order to accomplish its goals. Few
of them have been discussed down as under:
 Focusing on improving business class traveller's market share.
 By the end of 2018, increasing the market share up to 50%.
 Tapping the low cost airlines so that firm can achieve its return on investment.
 Boosting the tourism activities of Dubai.
Emirates products and services
Mentioned organisation provides three types of services and these are on the basis of
customer’s convenience and satisfaction (Crook and et.al. 2011). These have been discussed
down as under with respect to the mentioned organisation:
The first class:
 It consists of full suites with doors
 A mini bar Full sized bed of 2m
The business class:
 Customers have privacy with certain partitions

 17 inch wide TV
The economy class:
 In-flight entertainment system with more than 600 channels
 Wider seats of 31 inches
Apart from it, there also exist different products which are generally served by Emirates
Airways in all its three classes. There exists lounge at the major airports along with chauffeur
drives (The Emirates experience, 2016). Cited organisation also gives spa and shower services in
some of its airlines. With all these features, Emirates is working on gaining customer’s attraction
and are able to achieve its goals and objectives in specific manner.
Apart from it, organisation has also started its services in the Cargo segment as well
where fleets are carrying goods from one country to another in order to make smooth functioning
of its business operations. There exist 13 dedicated cargo aircraft that are efficiently carrying the
functions across the world.
Service process of Emirates
Cited organisation has effective process as compared to other airlines. Their working
procedures are well executed that enable them to easily satisfy the needs and demands of their
customers (Guest, 2011). Mentioned airline firm is giving services like:
 Booking of complimentary chauffeur- driven car online.
 Customer can use online services which are offered by the venture.
 Individual can choose a seat of his/her choice and print boarding pass for the same
 Signing up for SMS and email alerts.
 Emirates also have more than 25 lounges where individuals can wait for their plane
arrival.
 Organisation also has more than 60 lounges in six different continents.
Further, cited venture also provides different board services to their travellers and some
of them have been discussed down under:
 Complimentary newspapers and beverages
 Wi-Fi facility
 Recliner and flat massage seats
 The seat facility also provides charger which is helpful to individuals for different
purposes

 On board lounge
Apart from it, when it comes to food, people of different nation have different taste and
eating preferences. Customers are given outstanding food experience by providing the required
dishes and refreshment according to their geographic locations. There also exist complete bar of
cocktails and also champagne (Hill and Jones, 2007). Further, the crockery used by the airline is
the dinnerware is from China which is of the finest cutlery. This service generally seeks the
interest of travellers and with it; firm is able to get a competitive advantage over other
competitors in the same industry. Apart from these basic facilities, there also exist some other
provisions as well which are in form of:
 Special services provided to first and business class lounge
 Bag facility
 Assistance for handicapped individuals
 Customer’s relationship which generally starts from check in point at airports.
Technology used by Emirates Airways is also updated because the top management of
cited venture knows that they are working in the dynamic environment and is crucial for them to
get acquainted with recent and latest tactics (Hollensen, 2015). Along with it, with the use of
same, cited firm also emphasises on protecting the environment which generally help them in
reducing the carbon emission. Some of the facilities related to the use of technology provided by
this airline to its customers are:
 Mobile phones
 Wi-Fi
 On seat telephone, SMS and e-mail
Environmental analysis for Emirates
Environmental scanning plays a crucial role for Emirates Airline because their operations
are done in dynamic environment. This is necessary for cited venture to scan the arena in which
business activities are undertaken before implementing plans and policies. These analyses are
generally done by the top management along with the HR manager so that they can identify the
solutions for the problems which persist in their operations. Environmental analysis is of two
types; one is internal and other is external (Hair and et.al., 2012). Internal analysis is defined as
the scanning of interior environment of business organisation as it assists organisation in

identifying the weaknesses that exist there. By knowing them, they will be able to modify their
threats into strengths and will be able to improve their performance and productivity.
SWOT analysis
This is considered as the analysis framework which is simple but is the most useful
agenda as it helps organisation in knowing its strengths, weaknesses, opportunities and threats.
Strengths show the positive points which organisation has in order to acquire competitive
advantage (Matthew, 2015). Weakness is the drawback which firm faces during its operations
and are worked out through effective measures. Opportunities are the possibilities which
company has in order to expand its business (SWOT Analysis – How to do SWOT Analysis?
2016). At last, threats are the problems which persist in the environment which reduces the profit
earning capacity, revenue and turnover of the enterprise. SWOT analysis for Emirates Airlines
has been discussed down as under:
Strength:
 Strong power of Dubai government
 Big hub in Dubai
 Huge base of loyal and satisfied customers
 Strong workforce of around 56,000 employees
 Eco-efficient air craft engines Operations in 148 cities, 72 countries and 6 continents
Weakness:
 Cited venture rely heavily on International Onward Moving Traffic
 Venture generally pays low wages to their workforce who works as a baggage handlers,
cleaners and caterers (Gu and Nazmy, 2014).
 Highly dependent on government for developing suitable policies
Illustration 1: Illustration 1: SWOT analysis
(Source: SWOT Analysis – How to do SWOT Analysis?
2016)

Opportunities:
 Expansion to international destinations which is more famous in the eyes of customers
 Huge economic growth is also an opportunity for Emirates
 Emerging new markets High demand of air transportation
Threats:
 Rise in fuel costs
 Effective strategies of their competitors
 Change in government rules and regulations
With this analysis, top management of Emirates will come to know about the major
strengths and opportunities available to expand its operations as it will help them in increasing
the operations throughout the globe (Jones, Hillier and Comfort, 2014). Further, with it, firm will
be able to improve its efficiency in aviation industry with the increase in revenue, profits and
turnover.
PESTLE analysis
This analysis is done by organisation in order to ascertain certain strategies for the future
which generally help firm in achieving its goals and objectives. Further, this evaluation is done in
order to scan the external environment as by doing that they will be able to know about the
factors which are affecting their operations and solve them effectively in order to achieve their
vision and mission. This interpretation for Emirates Airline has been discussed below:
Political:
 Industry in which the Emirates Airline is working is quite sensitive and is immediately
affected by change in political conditions due to wars and also due to economic
situations which exist in different nations (Sheth, 2011).
 Business relations between the airline organisations also influence the performance of
cited business venture Fuel price is also a major concern because the price in one country differs with that of
another.
Economic:

 Economic downturn has affected the economy and has severely impacted the sales and
marketing campaign of business organisation.
 Developing new airports will give benefits in the form of enhancement of economy,
increase in tourists, etc. Reducing dependence and operational costs are other economic factors which
organisation has to take into consideration.
Social:
 Population of different nations is increasing continuously and thus; there is increase in
number of tourists and educated individuals (Jones, Hillier and Comfort, 2013).
 Organisation has to give all those service which maximises consumer’s wants as with
that; they will be able to enhance the operations in more effective manner.
 Tourism also has impact on Emirate’s operations as firm cannot force individuals to
choose their airline as a form of conveyance.
Technological:
 Cited venture has to upgrade its technology from time-to-time basis so that they can have
the best of its operations (Gregor and Hevner, 2013). E-booking system has saved the time for individuals and now-a-days, it is considered as
the most common source of booking tickets.
Legal:
Illustration 2: PESTLE analysis
(Source: Introduction to PESTLE Analysis, 2015)

 Emirates have to follow all the legal laws which are linked with their operations
effectively because by not following the acts, the impact of same is evidenced on their
performance up to a great extent. These acts are related from employees to aviation and by successfully implying results
into achievement of organisation goals and objectives.
Environmental:
 Mentioned organisation focuses on carbon emission policy as-well-as protection of
environment so that they can contribute their best in the growth and development of
nation (Introduction to PESTLE Analysis, 2015).
Competitive advantage for Emirates
Emirates airline can be said as new in the aviation sector because it has its
commencement in the year 1985. Further, cited firm implements the differentiation generic
strategy by offering high quality services which generally helps venture in gaining certain
benefits and act as a leader in the industry (Motro and Smets, 2012). Their new concepts and
innovation makes them a leader and cited firm was the first to introduce the TV screen in all its
airlines. Further, Emirates was the pioneer in introducing the concept of e-ticketing in UAE.
Further, mentioned company appeals towards all the segments of market and with this;
they have gained competitive advantage over their major competitors who are working in the
same industry (Sheth, 2011). With all these developments, cited firm is considered as a leader in
the aviation sector which eventually enhances their brand name, profit and revenue for the
enterprise.
Porter five forces for Emirates
Rivalry among existing firms
This force is high because there is large number of competitors who are fighting for
attracting individuals towards their airlines. Further, the major rivals of Emirates are the Easy Jet,
British Airways, etc. There are companies who focus on increasing the share prices and also
work on improving their brand image by offering the best of the facilities with different
promotional techniques.
Threats of new entrants

This threat is very low because there are already few giants who have effective operations
throughout the globe and Emirates is one of them. Some major challenges for new entrants are
capital requirement and customer loyalty (Steger and Milicevic, 2014). If any firm plans to set its
operation in this sector then, it requires huge fund for purchase of new crafts and for starting new
projects. Further, organisations which have their operations since years have huge base of loyal
customers and it will be hard for business venture to gain trust quite soon.
Threats of substitute products
This threat can be said moderate or high as substitute products means alternative
available for individual for reaching to the particular destinations. In this case, substitute can be
seen in the form of cheap tickets by low cost airways and also different sort of transportation
facilities available with individuals in form of car, bus, trains, etc (Short and et.al., 2015).
Bargaining power of buyers
This threat for Emirates is high because it is the perception of individual that whether
they choose Emirates as a medium to reach their destination or not. Organisation cannot force
individuals to use their conveyance but can only attract them through the help of effective
advertisement (Porter’s Five Forces of Competitive Position Analysis, 2013). Further, buyers are
in large number and can generally change the trend of the industry because their taste and
Illustration 3: Porter five force model
(Source: Porter’s Five Forces of Competitive
Position Analysis. 2013)

preference differ from one customer to another. Moreover, they are heterogeneous and have to
imply suitable promotional message to seek their interest.
Bargaining power of suppliers
Threat of suppliers is also high for the Emirates because they are the one who change the
market trend with their high demand and control of the prices and also for the quality of products
and services (Boersma and Johnson, 2012). Some of the common suppliers for mentioned
organisation can be seen in form of Boeing and Airbus. Further, mentioned venture also has
suppliers who provide raw material in form of vegetables, fruits, etc. This is essential for giving
quality of services to their customers in board.
Recommendations on strategy practice
Emirates Airline is a global airline which has its effective operations throughout the
world. It is necessary for cited venture to have stable practices so that they can achieve its goals
and objectives in clear and effective manner. Their employees are major strength and thus; it is
necessary for business organisation to motivate them from so that they can work with the best of
their efficiency and capability. Further, implementation of motivational tool will also act as a
morale booster for them as it will make them dedicated towards their work in order to achieve
the organisation mission and vision.
Moreover, aforesaid enterprise can focus on improving its operations by scanning the
environment effectively. The top management of Emirates should have proper paper work and
focus on tapping the countries which have not been served yet. By setting up their operations in
that location will help them in increasing productivity, revenue, profits and brand image (Caniëls
and Bakens, 2012). Effective strategy need to be developed for the same so that firm can enhance
its operations and get a competitive edge over their major competitors who are working in the
same industry.
Further, there exist different other analysis tool which firm can execute and use from
assessing its performance in the competitive environment. Mentioned venture can implement
BCG matrix, Ansoff matrix, etc. Further, with this, Emirates will come to know that on which
stage they have to focus on with respect to equivalent chances that they will get success in the
strategy so implemented. Further, for making an effective plan for setting new operations
requires paper work, fund, appropriate staff, etc. Top management of venture has to consider all
these elements before implementing the designed plan. Further, as stated many time, their

employees are quite talented and they work with best of their efficiency and capability to achieve
their individual and organisational goals and objectives.
Cited venture should also rely on democratic style of decision making where employees
should participate at the time of making plans and policies for venture. Top management should
consider their valuable suggestions and implement whatever meets with the vision and mission
of the firm (Jones, Hillier and Comfort, 2013). With this, employees will be boosted up and will
work with the best of their dedication to achieve their individual and organisational aim and
goals.
CONCLUSION
From the above report, it is clearly evident that Emirates is a global airline venture who
has its operations throughout the world. This report clearly states the description of strategy
which they should focus in the future. With this document, reader will gain all the relevant
information regarding the different models which are so used for making effective strategy. This
report also shows SWOT, PESTLE, Porter Five Force framework to achieve organisation’s goals
and objectives. At last, this work concluded with the recommendations that organisation can take
into consideration in order to improve its operations.

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