BUS310 Spring 2020: Strategic Analysis of Emirates Airlines Case Study

This case study meticulously analyzes Emirates Airlines, a prominent player in the aviation industry. It begins with an introduction to the airline and then delves into a comprehensive examination of both its internal and external environments. The analysis employs PESTEL and Porter's Five Forces frameworks to assess the key forces influencing Emirates' strategy. The study then explores the company's internal resources and assets that contribute to its competitive advantage, including its unique business model, technological advancements, and service standards. Furthermore, the case study critically discusses Emirates' business-level strategies, including partnerships and marketing approaches. The leadership activities within Emirates are also assessed, highlighting the roles of key figures and their impact on employee motivation and overall success. The conclusion summarizes the key findings, emphasizing the importance of strategic adaptation and effective leadership in the highly competitive airline industry.

Running head: ANALYSIS OF EMIRATES AIRLINES CASE STUDY
ANALYSIS OF EMIRATES AIRLINES CASE STUDY
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1ANALYSIS OF EMIRATES AIRLINES CASE STUDY
Introduction
Emirates Airlines is mainly a state-owned company based in Garhoud, Dubai, United
Arab Emirates and had started the operating in the year 1985. The organization is a subsidiary of
Emirates Group that is mainly owned by Investment Corporation of Dubai which is also a major
part of the Government of Dubai. Emirates has also been able to gain a position of the biggest
airlines organizations which operates in Middle East with the help of 3600 flights per week from
its hub that is developed at Dubai International Airport (Emirates.com 2020). The analysis in the
essay will be mainly related to the detailed study of internal and external environment related
aspects of the organizations which are able to affect the strategies of the firm.
Analysis of the case study
Key forces in general and industry environments that influence strategy of Emirates
PESTEL analysis of Emirates
Political factors – The changes that have taken place in political environment have a
major influence in the global operations of various flights of the organization. Emirates has been
able to start the operations of the flights in different countries which provide stable environment.
The concerns related to security in various countries can affect the revenues that are gained by
Emirates Airlines (Emirates.com 2020).
Economic factors – Emirates Airlines has gained major levels of revenues in different
currencies and different macroeconomic conditions will have a negative influence on levels of
profitability levels. UAE has also been able to depict huge levels of economic growth based on
changes that have taken place in the oil industry. The reduction in prices of oil can have positive
impact on the operations of Emirates Airlines (Aguinis, Edwards and Bradley 2017).

2ANALYSIS OF EMIRATES AIRLINES CASE STUDY
Social factors – The enhancement in the population of the world is able to affect the
demands related to the air travel in various countries. The major part of the consumer base of
Emirates Airlines is related to millennial travelers. The differences that exist between the
expectations of the travelers are also considered to be huge.
Technological factors – The performance of Emirates Airlines has been improved in an
effective way with the support that is provided by the implementation of modern technologies.
The expectation levels of the customers are also depicted in an effective way with the support
that is provided by the modern technologies. The high end based technologies have also been
able to enhance the requirement and demands for the services that are offered by Emirates
Airlines (Akhavan 2017).
Environmental factors – The levels of carbon emission related to the proper operations
of the organizations in airlines industry are considered to be quite high in transportation based
industry. The weather related conditions can affect the airlines based organizations like Emirates.
Legal factors – The Gulf based carriers including Etihad, Qatar Airways and Emirates
have been able to depict huge levels of growth in the last few years and they have also been able
to incentivize American and European Airlines which are competing with each other. The travel
based restrictions which have been implemented in different countries can influence Emirates
Airlines in a huge manner (Daouk-Öyry and Ghazzawi 2016).
Porter’s five forces analysis of Emirates Airlines
Threats of the new entrants – The organizations have the ability to achieve economies of
scale in an easy manner and can provide major competitive advantages to Emirates Airlines. The
levels of differentiation of the services can be considered as quite strong in nature and this has

3ANALYSIS OF EMIRATES AIRLINES CASE STUDY
been able to facilitate development of the standard services. The investment based requirement is
also considered to be an important factor that can offer barriers to entry of the new organizations.
Power - Low
Bargaining power of the suppliers – The suppliers in airlines industry are available in
higher levels in comparison to the buyers. The efficiency levels of the supply chain of
Emirates Airlines has reduced the influence that suppliers have on prices of different services
offered to the customers (David and David 2016). Power - Low
Bargaining power of the buyers – The customers who are a part of the airlines based
industry have low influence on prices related to services that are offered to them. The levels of
income of the consumers on services offered by Emirates are also quite low. Power - Low
Threats of the substitute products or services – The presence of substitutes in airlines
based industry is quite low and is able to influence prices of various services provided by
Emirates. The substitutes and their quality can affect the service based prices that are offered by
Emirates Airlines (Fan 2018). Power - Low
Rivalry among the existing firms – The levels of competition which has been faced by
Emirates in airlines industry are moderate in nature and shares gained by organizations in the
market are quite high as well. The levels of fixed costs in airlines based industry are considered
to be high and this is able to reduce the competition in the industry as well (Hitt, Ireland and
Hoskisson 2016). Power – Moderate
Internal resources and assets that provide a competitive advantage to Emirates
Internal resources and competencies – The business operations have been conducted by
Emirates Airlines is mainly based on the business model of the firm that is quite unique in

4ANALYSIS OF EMIRATES AIRLINES CASE STUDY
nature. The company has been able to set prices of different services based on the variations that
are a part of the market. The management of an organization like Emirates aimed at dealing with
economic crisis with levels of support that is offered by flexibility in the operations of the
organization. Long haul based flights of the organization have been supported effectively by the
business model of Emirates which can connect various parts of the world (Hudson and Hudson
2017).
The short haul based flights of Emirates Airlines have not been supported by the business
model of the organization and this has been able to reduce the earnings that are gained by the
firm. The profitability and revenues of the organization have been increased with the help of
huge number of the long haul based flights of Emirates. Emirates Airlines has also adopted the
new technologies which have proved to effective resource for the operations of the organization
and the services that are offered to the customers. The company aims at offering the exotic feel
to the customers with the help of the flat screens and US Dollars has been used as a regular based
legal tender (Moreno de la Santa 2018).
The position of Emirates Airlines has been facilitated in a huge manner by the steady
Dollar. Emirates Airlines has been able to operate various aircrafts that are based on different
types of services that are offered to the consumers. The efficiency levels of the engines have the
ability to support the operations of Emirates Airlines based on influence that it has on the
external environment based concerns. The reduction in prices of oil and growth that has been
depicted in the number of terrorist attacks have reduced the demands based services offered to
the consumers. The onboard based amenities are also able to play a huge role in offering a
leading position to Emirates in the industry (Morrison and Mason 2016).

5ANALYSIS OF EMIRATES AIRLINES CASE STUDY
The standards of services offered by Emirates Airlines are considered to be high and it is
able to become a major resource of the firm. The services offered by Emirates in the flights are
considered to be a major threat to the organization. The service based supervisors of Emirates are
quite important for fulfilling the demands and needs of consumers in different parts of the world.
Emirates Airlines provides limousine rides to the passengers who aim at availing the business
class based services (Newburry, Deephouse and Gardberg 2019).
Assets of Emirates Airlines – The employees of Emirates Airlines are considered to be
major assets of the organization and this has provided the organization with a major position in
the airlines industry. The training that is provided to the employees are able to enhance the
services that are offered to the consumers. Training programs of crew members of Emirates
Airlines are related to the better levels of services that are offered by the organization
(Emirates.com 2020). Emirates Airlines is provided with major instructions that are related to
posture, safety and proper etiquettes as well. The team building based exercises that are
implemented by the firm are considered to be a vital aspect related to training based process of
Emirates Airlines. Communication has also been able to play a key part in enhancing the growth
of an organization like Emirates (Nickols 2016).
Critical discussion of business level strategies of Emirates
Business level strategies – Emirates has become a game changer in airlines based sector
with proper implementation of the effective strategies and services which are provided to
consumers. Internal changes that have taken place in the industry also have an influence on the
strategy and mindset of Emirates Airlines. The strategy that has been implemented by the
organization also has a huge commercial value and changes in business environment have
improved partnerships developed by Emirates. Bilateral alliances formed by Emirates have also

6ANALYSIS OF EMIRATES AIRLINES CASE STUDY
become quite important and the partnership formed between Qantas and Emirates can lead to
enhancement of growth of the organization (O’Connell and Bueno 2018).
After the partnership that is formed by Emirates with Qantas Airways, the organization
has formed a major deal with the American Airlines. Qantas Airways has implemented a major
strategy which is mainly related to methods that are aimed at the development of partnerships to
improve the growth in airlines based sector. The activities related to marketing have been
performed by an organization like Emirates have changed in last few years based in the usage of
social media (Piltz, Voltes-Dorta and Suau-Sanchez 2018).
Assessment of the leadership activities in Emirates
Emirates has been managed by the leaders including Sheikh Mohammed bin
Rashid al Maktoum and Sir Tim Clark who are democratic in nature who have
the abilities and skills related to providing effective levels of motivation.
Social influence has been provided by the leaders in a huge manner and the
staffs are also encourages in order to achieve various common goals.
Competitive position has also been provided to Emirates Airlines that is
mainly based on management and effective leadership as well. Democratic
leaders of an organization like Emirates are able to provide major levels of
encouragement of the employees or members of the firm (Spasojevic, Lohmann
and Scott 2017).
The employees of Emirates Airlines have been motivated in a huge
manner by the leaders and the individuals who are a part of the
management as well. The levels of motivation are also considered to be

7ANALYSIS OF EMIRATES AIRLINES CASE STUDY
quite important for the leaders of the organization who are able to achieve
various goals. Sponsorship has been considered to be an important part of
marketing based approach that has been applied by Sheikh Ahmed bin Saeed Al
Maktoum, Executive Chairman of Emirates. Personal relationships that are formed by The
Chairman with the consumers are also able to support the operations and revenues of Emirates
Airlines (Wald 2016).
Conclusion
The essay can thereby be concluded by stating that a major organization like Emirates
that operates in the highly competitive airlines industry is influenced in a huge way by the macro
and micro environment based factors as well. The changes that are made by Emirates Airlines in
the business strategy are also related to the differences in industry as well as the external
environment. Emirates Airlines has also been able to offer huge levels of significance to proper
enhancement of services which are provided to the consumers. The leaders of Emirates Airlines
have also supported the levels of growth that are gained by the organization in the airlines based
industry.

8ANALYSIS OF EMIRATES AIRLINES CASE STUDY
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