BC 1 Business Communication: Emirates Report - Strategic Analysis

This business communication report examines Emirates Airline, a prominent UAE-based international airline serving numerous global destinations. The report begins with a company background and introduction, followed by external and internal analyses using PESTEL and Porter’s Five Forces models to identify opportunities and threats. The analysis delves into the company's corporate strategy, highlighting its focus on differentiation and premium services. Key challenges, including socio-political tensions, economic fluctuations, and competition from low-cost carriers, are discussed. The report also explores internal factors, such as firm infrastructure, human resource management, and technological advancements, using a value chain model. Finally, the report concludes with recommendations for the airline’s sustainable future, emphasizing the importance of adapting to changing market conditions and maintaining a strong focus on premium service offerings.

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Business Communication: Emirates
Report
Student name
4/20/2020

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Table of Contents
Introduction................................................................................................................................2
Company background................................................................................................................2
External analysis........................................................................................................................3
PESTEL Analysis...................................................................................................................3
Porter’s Five Force model......................................................................................................4
Internal analysis.........................................................................................................................5
Company’s corporate strategy....................................................................................................7
Issues and challenges faced by the Emirates..............................................................................7
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
This business communication report is based on researching a well-known UAE
headquartered organization as Emirates Airline. The key purpose of this discussion is to
narrate the strategic management issues as well as challenges faced by the company of UAE.
Based on in-depth strategic management analysis of Emirates Airline, the paper will provide
future recommendations for the sustainable future of the airline company. In general,
Emirates Airline is an international airline company which typically serves more than 159
destinations all around the globe (Emirates , 2020). The main headquarter of the UAE based
airline company in Dubai, UAE. In this way, the report will firstly provide a background and
introduction of the company chosen for demonstrating business communication in a modern
context. The paper will also include external and internal analysis of the company so that
company can work on its sustainable business future. In addition, the report is going to talk
about the company’s corporate strategy while identifying the key challenges and issues faced
by the Emirates recently (Alcacer, 2014). Finally, based on the research the discussion will
include a concise summary while recommending future business strategies to Emirates
Airlines.
Company background
Emirates airline is providing travel facility in 159 destinations across the world. The
headquarter of the company is situated in Dubai. The company has started with two aircraft in
the year 1985 (Emirates , 2020). Now, Emirates has managed their business from more than
265 aircrafts. Most of the operations are well managed by the company. Every week, more
than 1500 flights have operated across the world. Emirates airline has included various
counties in their region such as Asia Pacific, Western Europe, Middle East and Africa, the
USA, and others. However, the company has created stability in different regions including
African, Asian, and oceanic reasons (Emirates , 2020). It makes huge impact on the services
of the company as well. Emirates airlines have created a good market in the Asian reason,
which is a good source of profit as well (Emirates , 2020).
In this discussion, strategic challenges and issues of the Emirates Airline will discuss based
on the internal and external factors. However, Emirates has purchased the Boing 777 is
between $260 million, which is a good amount for better services. However, A-380 has
purchased at $390 million (Emirates , 2020). The company has adopted better technologies in

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checking and other services. It makes huge impact on the passengers as well. There are some
opportunities for Emirates airlines, which are helpful in their goth and stability in Asian
regions. The company has focused on their luxury services because the passengers has
provided preference to the company. Moreover, diversification of routes can be a good
opportunity for the company as well (Bischoff, 2018).
Besides, there are some major threats for the company, which is socio-political factors that
makes a huge impact on passenger demand for travel. In addition, low cost airlines
competition is a big threat in front of the company. Moreover, international regulations make
huge impact on the business of the company as well. In addition, Brexit has affected the sales
and profit of the company as well. There are many restrictions in the USA, which makes
business more critical for the company (Squalli, 2014). In addition, US dollar has affected the
business of the company as well. It makes major affected in most of the markets. The
company has reduced their profit from 75 % because of economic changes in European
countries. Moreover, African countries have faced challenges in their economic condition,
which makes a huge impact on Emirates profitability (Alcacer, 2014). Emirates have
provided luxurious services to their passengers that make a good reputation in the market as
well.
External analysis
External analysis has used for identification of main threats and opportunities of a firm. In
this section, Porter’s Five Force analysis and PESTEL analysis will be conducted based on
the various factors of the company (Woodruff, 2019).
PESTEL Analysis
This analysis provides challenges and issues of the company. it will consider all the external
factors, which are influences the company strategic objects (O’Connell, 2011).
Political:
The firm has faced socio-political tensions in the Europe reason including Paris, London,
Nice, and others. Besides, terror attacks make critical issues in the entering of new route by
the airlines. Most of the companies have faced this issue because of political changes
(ZHANG, 2016).
Economic:

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There are many factors in the market that makes huge impact on the working and services of
the company. Emirates airlines have faced a huge challenge because of the huge effect of the
economic conditions of various countries (Bischoff, 2018).
Social:
Emirates has supported sustainably developed, as the demand patterns are changing rapidly
because of technologies including websites, and mobile applications. Passengers can easily
book their flights using mobile applications and other web services (Woodruff, 2019).
Technological:
Emirates have used three types of aircraft for providing travel services to their valuable
customers, which are Airbus A380, Airbus A330, and Boeing 777. The company has used
these aircraft for better deploying of pilots, which is easy for passengers as well. The
company has used advance level of security systems in their aircraft and stations.
Environmental:
Emirates have supported sustainable development including various products and services.
The company has been using low-sulphur diesel, which is better to reduce carbon dioxide
emission. In addition, Emirates has used better quality of fuels for managing all the things
(Woodruff, 2019).
Legal:
Legal restrictions should be followed for better relationship in the future as well. Emirates
has faced legal issues from different countries, as China has provided a list of 1.3 billion
people that cannot be severed by the company without permission of Chinese government (E.
Dobbs, 2014).
Porter’s Five Force model
Threats of new entry:
Airline industry is very expensive, as cost of aircraft and other services are costly. However,
competition is very tough among the airlines in the UAE. Moreover, Emirates has faced
international competition as well.
Buyer Power:

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Passengers are satisfied with the services of the company. thus, price is not the main consent
in front of the company (E. Dobbs, 2014).
Threat of substitutes:
Generally, passengers look for luxury as well as budget at the time of booking an airline
(IAG, 2019). Thus, the company might lose business. However, Emirates will be preferred by
the passengers for luxury as well (E. Dobbs, 2014).
Power of Suppliers:
There are only two main suppliers in the airline industry, which are Airbus and Boeing. Thus,
the supplier concertation to company is very low.
Competitive rivalry:
In Dubai, Emirates has used the position, as the transit to connect to the long-distance flights.
The company has provided luxury services to their passengers (E. Dobbs, 2014).
In this way, this section has provided impacts of external factors for Emirates airlines.
Internal analysis
Internal analysis is an important part of a firm to analysed internal strengths and weaknesses
using value chain models, VRIO framework and competency framework.
Value chain model:
This model has used for analysing various factors of a company, which are helpful in
managing business functions in a better way ( Hamilton & Webster, 2018).

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Source: (Mohapatra, 2012)
Firm infrastructure: Emirates have used a proper firm structure to provide luxury services to
their valuable customer. The company has not entered into alliance, which provides many
benefits to the company as well. It makes huge impact on the company image in the
international market as well (Woodruff, 2019).
Human Resource Management: the company has used proper training schedules and courses
for their employees to provide better services. Emirates Aviation College has provided
training to their employee that is a good impact on the services (Noe, et al., 2017).
Technology development: Emirates airlines have used their in-house research and
development centre for designing the reservation system and other technological innovations,
which are helpful in the business of the company (Mak, et al., 2009).
Procurement: the company has provided better products and services on-board. The company
has taken fuel from better companies, which are Shell, Chevron and BP.
Inbound logistics: Emirates has provided hassle-free technological services to their
passengers. It makes huge impact on the profit of the company as well. Emirates provide
many products and services in flight, such as food, wine, and paper (Mayer, et al., 2014).
Operations: the company has operated many operations including airport landing, crew
hotels, baggage services, CIP lounges, and check-in (Kaynak & Kucukemiroglu, 2015).

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Marketing and sales: Emirates in order to attract travellers from different sources including
local tourist firms. The company has sponsored many events for marketing as well. It is
helpful in the management of various services.
Service: Emirates is running the Skywards reward program for 16 years. It has provided
benefits to their members in differ ways. Emirates has been affected by the employees’
productivity and performance as well. However, it is not high because of UAE labour market
is not high as well. Most of the crew members are females in the company as well. The cost
of labour is low in Emirates as compared to other airlines (E. Dobbs, 2014).
This section has provided internal strengths of the organization as well as weaknesses of the
Emirates.
Company’s corporate strategy
Emirates airline has used two different types of strategies that are focused differentiation and
differentiation. It is a strategy of the company to provide highest level of services, which they
are required (Alcacer, 2014). The company has created their brand based on their services
and their quality. It makes all the things better for their passengers. The differentiation
strategy makes impact on the focused differentiation strategy as well (Bhasin, 2018). The
company has focused on the first and business class services, which are the highest perceived
service (Bischoff, 2018). Emirates airlines have provided a premium service experience to
their customers from locality programs. The company has avoided competition from other
airlines that has provided low cost package (Bischoff, 2018).
From Dubai, 37 airlines are fly, which is a good source of income for the government as well.
However, Etihad Airways has provided low prices to their customers as well. Emirates
airlines have earned more money form international destinations. It is necessary to provide
efficient crew, technological innovation, and personalised services. The passengers will
choose Emirates for better services (Bischoff, 2018).
It is an important part of the service as well. Environment supported system has been using
by the company for reducing all the gas emissions. Most of the airlines companies has used
better navigation systems for saving fuel and reduce emission of carbon dioxide, which is
suitable for the company as well (Sadik, 2018). Emirates has used the Flex Track system that
is a routing system, which is helpful in the favourable weather. It makes all the thing smart
and sustainable. It has provided better travel experience to the passengers. It makes huge

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changes in the various conditions of the system as well. however, price can be changed
because of Socio-political changes in the various countries. It makes huge impact on the
demand as well. The company has focused on the longest non-stop flights. Emirates has taken
regulatory approval for international demands as well ( Luiz & Sanchez, 2018).
Issues and challenges faced by the Emirates
The company has faced different types of issues that make a huge impact on their business
and growth as well. The main external challenge is socio-political challenges that has affected
the profitability (Kolachi, 2014). It has affected their profitability by 75% in the year of 2016-
2017. According to their leadership team, this challenge has made impact of tensions in the
Europe as well as strong dollar currency (O’Connell, 2011). Besides, this challenge has faced
by the company because of many reasons, which are low oil prices, economies of Muscat,
Saudi Arabia, and Yemen. the company has faced high level of competition from Etihad and
Qatar. There are many destinations, which has covered by the company (Roy, 2014).
There are many challenges in the airline industry, which is not easy to handle. However, the
company operate as sole owner (ZHANG, 2016). The company has supported from their 200
stakeholders with good rating. It can be better for the company in the future as well (Sadik,
2018).
Moreover, the company has provided their premium services to their clients, which are
suitable for their older customers. However, premium service cannot provide for millennial
generation from their aircrafts (Sultan, 2019). The company has ordered new aircrafts to
provide better services to their customers as well (Squalli, 2014). It is the best way to manage
all the services in better way. The main challenge has faced by the company is socio-political
changes in the other countries including Europe. It makes huge impact on the business of the
company as well (O’Connell, 2011).
The company has reduced competition using their better services. It can be more beneficial
for different types of services. Moreover, customers have got better offers from loyalty
rewards program as well. There are many permanent customers of the company because of
their quality services (Kierr, 2020). Emirate airline can provide better packages to their
passengers.

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Recommendations
Emirates airlines have created a good image in the passengers from luxurious services, which
is helpful in the branding of the company. Emirates have used internal resources for
managing their operations. However, there is a huge risk in front of the company that is
entering in new routes, as Emirates has restricted on exploiting new routes. The company has
not provided low cost packages to their passengers, as other airlines, such as Etihad Airways.
The company must things about their strengths to grab the new opportunities to the company.
In addition, Emirates can provide low-cost packages to a few customers for increasing their
profit as well. It can be a good way to increase the market in the world. However, marketing
and sales will affect the profitability of the company as well (IAG, 2019). Most of the
operations have management using technologies and innovations in the company as well.
The company should focus on these recommendations, which areas:
 Develop low-cost packages for passengers
 Create new technologies for aviation industry
 Provide better training to their employees ( Hamilton & Webster, 2018)
 Follow all the regulations that are provided by the international authorities
Conclusion
In whole, this discussion has successfully demonstrated a business communication practice
with the help of researching Emirates Airlines. The organization is working as the leading
airline company all across the world while headquartered in Dubai, UAE. It has been found
that Emirates airline is continuously serving worldwide travellers and society since 1985. The
airline company is also working towards increasing their customer base so that global
expansion strategy can be implemented. The internal and external analysis of Emirates
airlines while using different models has been done successfully. Based on this research, it
can be said that Emirates Airlines is working efficiently at present however its sustainable
future cannot be predicted because of the external factors affecting the company. Thus, the
company needs to work towards a sustainable business future while utilising the future
recommendations suggested in the report. Also, the company does not need to lower their
flight fares by lowering the quality of the flight experience as the airline is known for its
convenient and comfortable flight services.

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References
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Journal of Business Strategies, 8(1), p. 101.

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