Strategic Management Report: Analysis of Emirates Airlines' Strategies

This report provides a comprehensive strategic management analysis of Emirates Airlines, examining its external and internal environments. It assesses the applicability of Emirates' vision, the impact of external factors, and the competitive forces affecting its ongoing strategy. The report delves into Emirates' capabilities, including Porter's generic strategies, value chain analysis, tangible and intangible resources, and VRIN analysis for sustained competitive advantage. Furthermore, it evaluates the effectiveness of Emirates' leadership. The analysis highlights the airline's differentiation strategy in a competitive market, the importance of its leadership, and the challenges it faces. The report concludes with a detailed examination of the airline's strategic positioning and recommendations for maintaining its competitive edge in the global airline industry. 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.

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Strategic Management
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Executive Summary
The report has been able to analyse the external as well as internal business environment of
the entire airlines industry wherein Emirates Airlines operates their business. In the
competitive business environment, the airline industry can face high level of challenges
which impacts the growth prospects of the company negatively. In such scenario, Emirates
Airlines has adopted the differentiation strategy which helps them in improving their status
and position in the market. In addition, the leadership of the Emirates Airlines is highly
efficient and the leaders such as CEO and the Chairman tries to communicate with the
employees and it will be impacting their business in an effective manner.

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Table of Contents
1. Summarization of Emirates Case Study.................................................................................3
2. Analysis of External and Internal Environment.....................................................................4
a) Analysis of Whether Vision of Emirates Airlines is Applicable in Present Circumstances
................................................................................................................................................4
b) Impact of External Environment on Emirate’s Strategy....................................................5
c) Analysis of Current Forces Affecting Ongoing Strategy of Emirates Airlines.................7
d) Implications of Threat of New Entrants in the Respective Industry..................................7
3. Capabilities of Emirates Airlines...........................................................................................8
a. Porter’s Generic Strategies of Emirates Airlines...............................................................8
b. Value Chain Analysis of Emirates Airlines and Challenges in Value Chain of Emirates
Airlines...................................................................................................................................9
c. Analysis of Tangible, IntangibleResources and Organizational Capabilities of Emirates
Airlines.................................................................................................................................11
d. VRIN Analysis of Emirates Airlines for Sustaining Competitive Advantage.................12
e. Assessment of Effectiveness of Leadership of Emirates Airlines....................................13
References................................................................................................................................15

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1. Summarization of Emirates Case Study
Emirates Airlines has been considered to be the three Middle East Carriers which
were taken by one of the major United States Airlines in the report which was being out on
March 5th, 2015. The report was helpful in charging the flagship airline of Dubai, along with
the Ethihad Airways along with Qatar Airways, which had received more than $42 billion in
the government related grants and the tax related breaks since the year 2004. After the claim
that it is providing the unfair type of advantage to the entire state state-owned airlines, the
U.S Airlines demanded the fact that the different treaties related to open skies which had
allowed the respective three airlines namely Emirates, Ethihad and Qatar. These are the ones
which had proper admittance to the United States and it needs to be renegotiated for
curtailing the further expansion in the country successfully (Zhao et al. 2017).
In addition, no airline company has not been able to grow like Emirates Airlines and
in a particular manner, Emirates along with the different other upstarts such as Ethihad and
Qatar Airways had been able to manage over the few years for radically redrawing map of the
world. Recently, a new terminal was being constructed with more than $4.5 billion for just
accommodating the 224 Emirates Aircraft which flew out to 145 destinations in the entire
world (Trigeorgis and Reuer 2017). The roots of the Emirates Airlines are required to be
tracked back to the Gulf Air that was the formidable airlines which was owned by
government of Bahrain, Qatar, Abu Dhabi along with Oman.
From the case study, it has been noticed that Emirates has been capable of striving to
provide the customers with the best kind of experience to their passengers in the various
sections of the entire aircraft. It is considered to be the first aircraft for offering the customers
with the in-flight television viewing experience. Emirates Airlines have been successful in
creating a sense of effectiveness in the different aspects which are being managed by the

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company and it improves the growth prospects of the company in an appropriate manner and
Emirates is known for providing the pioneered services to the customers (Steiss 2019).
2. Analysis of the External and Internal Environment
a) Analysis of Whether Vision of Emirates Airlines is Applicable in Present
Circumstances
From the analysis of the entire case study of Emirates Airlines, it can be seen that the
vision of Emirates Airlines is “To Make Civil Aviation Safe, leading and Sustainable”. The
vision which has been proposed by Emirates Airlines is applicable in the present scenario as
well as the different airline companies are able to become sustainable in nature through
following the different CSR related practices. The main aim and goal of Emirates Airlines is
to reach on top through excelling in the different prospects in whatever they perform.
Moreover, in the present scenario, the company is able to introduce the different CSR
practices such as Emiratization along with Philanthropy which impacts the business of the
company successfully (Rothaermel 2016).
In addition, Emirates Airlines include the health and safety of the employees along
with analysis of the different other environmental concerns which makes them effective in
managing their operations efficiently. Additionally, the Human Resource Department of
Emirates play a vital role in adapting the different CSR practices and in such scenario, the
department is capable of managing as well as monitoring such approaches systematically and
sustainably (Newburry, Deephouse and Gardberg 2019). As per the vision of the company,
the company wants to provide the employees with safe as well as sustainable flying that
makes them effective in managing the growth of the company in the comparison to other
competitors which includes Qatar or Ethihad Airways which are performing their business in
the respective environment.

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b) Impact of External Environment on Emirate’s Strategy
Political and Legal Analysis-In the current scenario, the aviation industry is directly
being affected by the different unstable political scenarios and changes. The entire nature of
airline industry is highly sensitive and in case of Emirates, they need to follow the different
political aspects. There are different certain agreements which are present for the specific
routes and it is needed to be followed by the Emirates Airlines (Moutinho and Vargas-
Sanchez 2018).
Terrorism may affect the entire service, moreover, Emirates operates flights in
different emerging nations in the entire world such as Iraq, Africa or South-East Asian
regions with the current stable kind of political environment. The airlines related business is
not only confined to one single country and it is essential for the global kind of political
factors. On the other hand, the legal factors such as there are different rules and regulations
which are required to be followed by the airline companies (Morden 2016). There is recent
travel restriction which has been made applicable to the different citizens from selection of
the high-risk countries which can be impacting Emirates Airlines. Moreover, there is ban on
carrying the electronic devices to the different United States bound flights (Meyer, Neck and
Meeks 2017).
Global Analysis- As a global leader in the entire airline industry, the overall company
Emirates Airlines have been able to provide the different kinds of services to the clients such
as becoming sustainable and safety to the ones who prefer travelling with Emirates (Lasserre
2017).
Economic Analysis- The different economic factors affect the margin related to
profit, demand forecast as well as the availability of the capital. In case of the Emirates
Airlines, the company will be growing and making maximum investment when the business

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if profitable. Emirates is the international airline; therefore, total revenues are being collected
in the multiple currencies- any kind of sudden kind of movement in the overall exchange rate
as well as change in the global type of macroeconomic related conditions can lead to the
fluctuation in revenue (Hitt and Duane Ireland 2017). The economic growth of entire UAE
has been mostly fuelled by the oil industry of the country and in such scenario, the low oil
price related environment is affecting overall business and economy. In addition, the
declining prices of the oil is considered to be the positive type of development for the airlines
and it helps in reducing the premium travel demand to Dubai.
Socio-Cultural/Demographic Analysis- There is quick increase in entire world
population and it is the sole factor which helps in shaping the demand for the air travel. The
profitable segment for travel is considered to be the baby boomers and millennials as they are
the emerging inspiration with the unquenchable appetite to the overall travel (Hill 2017). In
the different emerging nations, the middle-class disposable income of the consumers is rising
and these are discovering the different opportunities for Emirates to fly and manage the
different needs of customers successfully. The entire Airline industry is responsible for more
than 12% of the carbon footprint and carbon emission in the transportation industry. The
different inclement weather conditions are impacting the airline operations (Emirates.com
2020).
Technological Analysis- The proper utilisation of the digital technology for
improving the performance in the highly competitive world of the airline industry is essential
and important in nature. There is high level of demand from the side of the customers for
utilising technology and personalize the different itineraries for the sustainable travelling in
the future. It helps in carrying the opportunity for the airlines such as Emirates in precisely
customizing the different services as per the needs of the customers (Emirates.com 2020).

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Moreover, Emirates Airlines has been capable of introducing the Omni Channel Strategy for
the seamless kind of performance and providing experience to customers.
c) Analysis of Current Forces Affecting Ongoing Strategy of Emirates Airlines
Competitive Rivalry-In case of the highly competitive business environment of the
Airline industry, it has been noticed that there is high degree of competitive rivalry which is
putting high pressure on the organization for developing strategy in order to maintain the
financial level of supremacy despite of intense kind of rivalry. As per the management
officials of Emirates Airlines, there should be focus on overall enhancement of the quality of
the service as well as updation of the aircrafts along with infrastructure which helps them in
maintaining the edge in the competitive industry (David and David 2016). Due to the
respective reason, Emirates Airlines has been earning low level of revenues in the market and
it impacted the performance of the company negatively as well. The other competitor
companies such as Qatar or British Airlines, they have been able to expand their operations
and focus on the different other sectors which will be suitable for improving their efficiency
in contrast to Emirates.
Even though, in case of Emirates, they have the overall benefit of being the only
national carrier in Dubai, the competitors of Emirates have their global presence which is
necessitating the requirement for striving for maintaining the loyalty among the customers
through the different brand loyalty programs. The different competitors such as Qatar
Airways or Air France have significant share in market making it the quality as the key
component for differentiating themselves from Emirates. However, the different risks which
are being possessed by the different competitors who are avoided with the support which has
been obtainable by the overall government in terms of the entire finance or the legal related
flexibilities (Certo et al. 2016).

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d) Implications of Threat of New Entrants in the Respective Industry
The entire airline industry is always considered to be the high entry barriers, as it is
primarily related with different start-up costs which are involved. Additionally, entering in
the airline industry will be requiring the different governmental rules and regulations and the
approval of the government along with fulfilling the different standards of the aviation related
associations. The different organizations in the respective industry needs to analyse and
implement the EPA standards which are adhering to the overall quality of the airplanes along
with keeping the carbon emission under the specified limit.
The differentiation related to the products and services are high within the respective
industry wherein the firms such as Emirates tries in selling various products which are
differentiated in nature rather than a standardized product (Certo et al. 2016). The
governmental policies and procedures within the entire industry needs strict type of licensing
along with legal requirements which needs or aspects which are required to be fulfilled. It
makes highly difficult for the new entrants for joining the industry. On the contrary, the
access to the distribution related networks is easy for the new entrants, wherein they can
easily set up the distribution channels, on the other hand, the new businesses which are
planning to start up their business in the respective environment will never be successful as
there are high level of research and development costs and it impacts the effectiveness of the
company.
However, the same can be tackled by Emirates Airlines by the economies of the scale
which it has within the airline industry. There can be inclusion of high level of innovation
and other procedures which can be incorporated for improving their position in market.

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3. Capabilities of Emirates Airlines
a. Porter’s Generic Strategies of Emirates Airlines
In case of Emirates Airlines, the company follows the Differentiation Strategy
through offering the high-quality services to the different customers. In order to gain benefit
among the different competitors such as Air Asia and Qatar Airways and receive the effective
place in the competitive market scenario, in such scenario, Emirates Airlines is considered to
be the first airline company which has been offering the customers with the television
viewing experience in the different airline and they are the ones who first introduced the e-
ticketing system in the United Arab Emirates market (Certo et al. 2016).
Moreover, through the proper segmentation of the market, it has been capable of
gaining the other competitive advantage. It is considered to be the only company in the UAE
which has been capable of providing proper and appropriate training through utilisation of
latest technology which is known as plane simulator. The purpose behind all the respective
changes only became the leader company in the world in order to enhance brand name and it
will be increasing the goodwill and profitability of the company thoroughly. It helps the
Emirates Company in achieving competitiveness and allows them in achieving more than
other competitors through offering similar products as substitutes (Aguinis, Edwards and
Bradley, 2017). Therefore, from the Porter’s Generic Strategies, it can be concluded that
Emirates follow Differentiation Strategy as it is the most essential process in marketing for
the vital economic importance to the entire business.
b. Value Chain Analysis of Emirates Airlines and Challenges in Value Chain of
Emirates Airlines
Particulars Analysis
Primary Activities

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Inbound Logistics The catering system is organized and the
exclusive Emirates terminal is for the
storage of fuel
Operations There is easy check in
Service Desk Available
Boarding as well as handling
Marketing and Sales Official level of sponsorship
Awards achievement
Strategy related to pricing (Emirates.com
2020)
Outbound Logistics SkyCargo
Services Lounges in Emirates and Hotels and Resorts
as well (Emirates.com 2020)
Support Activities
Infrastructure of the Firm Vertical Hierarchy and standardized
aircrafts
HR Management Aviation College of Emirates
Accommodation and the transport
allowance
Technology Development In house research centre

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Engineering related centre
Procurement Handling of the fuel and catering system of
Emirates (Emirates.com 2020)
From the analysis of the overall Value Chain Analysis of Emirates Airlines, the main
challenge is related to the complex interdependencies and inter-relationships which impacts
the growth of the firm in contrast to Qatar Airways which is the major competitor in the
airlines market.
 The company may be losing the vision as well as the strategy through dividing the
different operations in the various activities (Emirates.com 2020)
 The entire course of division is highly time consuming along with finding required
information is highly difficult in nature
 The Emirates Airlines may be finding it difficult for getting the required type of
information if the business related information system is not being properly structured
(Emirates.com 2020).
c. Analysis of Tangible, IntangibleResources and Organizational Capabilities of
Emirates Airlines
Particulars Analysis
Tangible Resources Financial Resources- Emirates Airlines
have been successful in managing their cash
and the airlines has been successful in
generating more than 985000000 with the
operating income of more than 26200000