Strategic Management and Competitive Analysis Report: Emirates Airline

This report provides a comprehensive analysis of Emirates Airline's strategic management and sustainability practices. It begins with an introduction to strategic management, emphasizing the importance of internal and external environmental analysis. Task 1 delves into Emirates' competitive strategies, including identifying industry profiles, life cycles, and conducting a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats. Task 2 evaluates the competitive strategies employed by Emirates, such as cost control, product development, product and service strategies, pricing strategies, and promotion strategies. The report highlights the advantages and limitations of each strategy. Finally, Task 3 offers recommendations based on the analysis. The report concludes with an overview of the findings and their implications for Emirates Airline's continued success in the competitive airline industry. The report is based on the analysis of the external environment, internal capabilities, and competitive dynamics of the airline industry.

STRATEGIC
MANAGEMENT AND
SUSTAINABILITY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Competitive strategy in order to develop current competitive position.................................3
TASK 2............................................................................................................................................5
Evaluation of competitive strategics utilised in development of competitive position..........5
TASK 3............................................................................................................................................8
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The strategic management refers too the preparation of plans and implementing them to
achieve goals and objectives of the company formulated and implied by the upper level
management of the organisation in behalf of the owners of the business. The preparation of the
strategic management includes the internal and external observation and analysis where the
organisation competes(Freema., 2010). The analysing of the external environment where
business competes is necessary to formulate the strategies. The examination of the external
environment includes political, economical, social, technological and legal environment which
helps to determine the opportunities and threats of the organisation.
The emirates airline provide services in the air transport sector in three business segments
i.e. airline, in flight catering and other segments such as wholesale and retail of consumers goods
, food and beverage.
TASK 1
Competitive strategy in order to develop current competitive position.
Emirates airlines is the fastest growing airlines in the current business market. The is on
the 5th position in all over the world in profitability. With the increasing number of competition
tends to decrease the profitability of the business who have not properly developed and
implemented the strategies in the business organisation(Helfatand Winter., 2011). For

developing the good strategies the organisation must have to analyse the business market
condition and the internal and external environment.
Identification of airline industry profile:- In today's business market it is not possible to
determine the future profitability of the business due to the increase in the competition. For
retaining the business in the competition the industry must identify the market condition. The
identification will help the emirates airlines to maintain the profitability in the market. The
evaluation(Hess,and Rothaermel., 2011). The airline have utilised the strategy of evaluation of
the other competitor in the airline industry which have helped emirates to make a stable growth
in the business world with increased profits in the business. The identification will help in
planning strategies the strategies in advance to compete significantly unplanned strategies will
reduce the growth rate of the business.
Identifying life cycle of airline industry:- All the product life cycles have its four stage
which are introduction and development stage, growth stage, maturity stage and at last decline
stage. In today's market the some of the airline industries are at its growth stage where some of
the good airline are the maturity stage in the competitive market where they are working
significantly. At the stage of maturity there is a need to differentiate there services among the
consumer to develop the brand image which can be only possible by determining the competition
and developing the strategies for How they can differentiate there service? These differentiation
can be done by marketing, developing the product which will help to compete in cut throat
competition(Hill., Jone and Schilling., 2014). The emirates airlines is on maturity stage where he
have made proper strategies to differ his service among the public which have helped to retain in
the competition. The emirates airline have differentiated his service by providing modern
services to the consumers such as comfortable seats, online ticketing services and advance air
crafts. These helped the airline to gain the customer satisfaction.
SWOT analysis:- For developing and implementing the strategies the emirates airline
have significantly evaluated its strengths, weakness, opportunities and threats. In achieving the
goals and objectives of the any organisation it is necessary to develop strategies in which SWOT
of the organisation must be taken as key factor these will help in preparation of good strategies.
 Strengths:- The emirates airlines is the only first airline company who have established
the online ticketing system in Arab world. These helped the customers to reserve seats in
the airline from any where through online. With the online ticketing system it also

provide self check-in system to the customers. Emirates airline is one of the biggest
investor who have invested in purchasing of new air crafts(HittIreland,and Hoskisson.,
2012). The airline have good profit earnings in the competition. These analysis of
strengths have helped in motivating to develop new good strategies.
 Weakness:- The emirates airlines have certain weak points in the operation of the
business. Which effect the working of the organisation. By analysing the weakness
emirates airline have developed good strategic management to overcome from these
weak points which held in attaining the goal and objective of the organisation. The
emirate airline have invested much more on purchase of aircraft which lead to the high
operational cost for the company(Hodgkinsonand Healey., 2011). The cost of the airline
in providing service is not reasonable then the available services in the market. These
airline is also the new comer in the market as compared to the other airlines and have a
higher rate for service which can lead to decline in the number of consumer taking
service.
 Opportunities:- It is necessary to pre determine the opportunities in advance which will
help the organisation to achieve these opportunities in near future effectively and
efficiently. The pre determination will help the top level manger in formulation and
implementation of the strategics to grab the opportunities. The strategic management help
to ease the grabbing power of the organisation. The opportunities such as development
plans by government for the airports directly increases the number of customers. The
increase in development of travel and tourism. By determining the upcoming
opportunities emirates airline done good strategic management to grab it.
 Threats:- Every organisations in the business world have certain threats which effects the
working of the organisation. These threats may be so much harmful for the organisation
that may even lead to shutdown of the company. The predetermination of these threats
have helped emirates airlines to do proper strategic management. The emirates airline
was have political threats as it was located in the region where there was political
instability due to the increase in terrorism(MakriHitt, and Lan., 2010). The operation cost
of the airline was decreasing due to the rapid increase in the prices of fuel which made
the air line to suffer from the huge loss . With the help of analysing these threats the

emirates made a good structure of strategic management which supported airline to over
come from these threats.
TASK 2
Evaluation of competitive strategics utilised in development of competitive position.
Behind every successful business in today's competition there is an well developed
strategies and plans which helps them to achieve the goals and objectives of the organisation
with effectively and efficiently. These plans and strategics of the organisation helps to increase
the brand image and growth of the business on the global level. The only factor responsible for
the growth of the firm is pre determination and strategic management. The emirates airlines have
opted for many strategies to increase is profitability and growth in the competitive market. These
strategies helped the emirate airlines in retaining his business within the huge competitor and
made him to compete(Powell and Lovalloand Fox., 2011).
Cost control strategy:- The emirates airlines have used the cost control strategy to
compete with the competitors in the business world of airline industry. The cutting of cost was
done remain in the market as many of the substitutes were available in the market providing
service with the lower price which were attracting the customers towards their services. The
emirates made a strategy to cut the cost was also done rule the market by providing his quality
and effective services to the consumers in the budget. The cost was lowered for the customers
which helped to increase the usage of this airline service by his existing customers.
Advantages:- The cost control strategy helped airline in the increase of number of
customers receiving his services as it started providing services in the budgets of the public
which lead in the brand building. The cost control helps in retaining the use of services by
existing service.
Limitations:- The cost control strategy has certain limitation in implementation. The cost
control can not benefit all the time to the emirates airlines as cutting the service cost can occur
the loss for the business.
Strategy of developing product:- The company planned and developed the strategy of
product development. The emirates airlines keep on developing the product and services to
attract the new customers. The airline have developed and introduced the new quality
comfortable seats, first class private lounges to attract the business profile personnels. They

developed a service by introducing new premium class private suite which provide a customers a
desk, mini bar and personal storage with coat cabinet which helps in diversifying his services
among the competitors in the business world(Powell., Lovalloand Fox., 2011).
Advantages:- The strategy of development of the product and services helps to provide
better quality services to the customers these helps in retaining the brand loyalty and image
among the served customers. The development of new suite and first class cabinets helps to
increase the business class customers and high profile personnels.
Limitations:- The development of new services cannot be beneficial all the time for the
emirates airlines. The development of new cabin and high class suite can be only afforded by the
high class business personnels. These kind of high end service costs much for the service and
general public cannot think to take this service. These do not help in increasing the number of
customers attaining the service.
Product and service strategy:- The expansion in product and services helps to increase
the profitability of the organisation(Terziovski., 2010). The emirates airlines provides intangible
services such as holiday packages, hotel services and cab services to the passengers using their
airline service. The product strategies include the development and extension of the product.
These helps in satisfying the customers in various services provided by them. The product
extension also help in excess earning from the services.
Advantages:- The extension of business product helps in earning excess from the
different services provided by the organisation. The extension helped the emirates to earn and
increase its profitability by providing the services in cabs, hotels, and holiday packages.
Limitations:- There are certain limitations in the product and service strategy. The
extended service cannot be used by the some customers . These cost of providing these services
are to high that a common public can't afford this. It has a major limitation that these services are
only available for the passengers using its airline service.
Pricing strategy:- The pricing strategy is used by the emirates airline service to attract the
customers by providing the service at cheaper rates than their competitors in the business market.
The pricing strategy depends upon the class, seasons and the location where the passengers is
flying(Wheelenand Hunger., 2011). These pricing strategy helps to formulate the offers for the
public to attract them to use their service.

Advantages:- The pricing policy help to attract the customers which increases the number
of persons taking the service. This policy helps to retain the customers for using their service for
next time.
Limitations:- The policy cannot be used in every seasons it has certain limit on
developing these strategy as these can't be applied in all the classes of the flights. These pricing
policy increase the cost beard by the emirates airlines which can incur the loss for the business.
Promotion strategy:- The promotion of the emirates is generally done through the
launching of the different ad campaigns. The “Hello Tomorrow” campaign is one of the best
example of the emirates airline which helps in bringing people closer, connect and encourage
them to form the positive impact on society(Zhou and Wu., 2010). The emirates promotes its
services on global level by means of mass media, newspapers and by social broad casting.
Advantages:- There are many advantages of promotion of with the help of these the
public around the world gets the knowledge about the working and services provided by the
airline. The promotion on global level help to differentiate his services from his competitors in
the airline industry.
Limitations:- The promotions are not useful in the backward regions. The promotion
done in the backward regions only incur the cost to the industry. It do not help in generating the
customers.
Place strategy:- The company makes the strategy of place to work and operate their
business. At present they operate 3000 flights daily from Dubai international airport. The place
strategy helps to evaluate the industry that where he has to operate which makes more profit for
the business(What is Strategic Planning. 1998-2017).
Advantages:- The place strategy helps in the expansion of the business in new countries
and areas. The expansion increases the customers in new countries which have advantage in
profit earning of the firm. The new expansion also helps in building the corporate image of the
airline. These all shows the growth of the business at the global level.
Limitations:- There are many limitation in formulating the place strategy. The place
strategy cannot be successful as operating in the countries having bad economical and political
environment will decline the growth rate of the airline these can also lead to the occurrence of
the loss for the industry. The contraries having more effects of terrorism on the economy lead to
the failure in operation of the business in that area((Freema., 2010)).

TASK 3
Recommendations
The top level management of the emirates airline must focus on the personnel which they
employee to provide the services to the customers personnels such as flight attendants, cabin
crews, air hostess and the staffs of the flights. Which will help to provide quality services to the
passengers((Zhou and Wu., 2010)).
The emirates airlines must work on the pricing policy of the air services. The good and
low price with quality service will help emirates airline to generate the new customers and helps
in retaining the existing passengers who are already using their services.
The airline should expand his business in new countries and develop their brand image so
that it will be helpful for the airline to increase its growth level among the competition.
The emirate have already invested much on the purchasing of the new air crafts and so
now it is recommended that he should not focus on the investments in may lead to loss for the
airline(MakriHitt, and Lan., 2010).
It is recommended that the emirates airline must also focus on providing services in flight
courier and cargo services.
CONCLUSION
From the above report it is being concluded the Emirates Airlines is working significantly
with the stable growth in the airlines industries. The emirates have competed nicely with the
increasing competition in the business world. It is been seen that the emirates is achieving good
customer satisfaction by providing quality services. It have also extended his services in the
field of providing hotels, cab service and self check in service to the passengers using his
services. The emirate have successfully developed his services by providing high class suites
with private desk and compartment which help the airline to satisfy the need of high profile
business personnels. From these report it is being concluded that with the proper formulation and
implementation of the strategies in became possible for emirates to succeed and face the
competition in the airline industry.

REFERENCES
Books and journals
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Hitt, M.A., Ireland, R.D and Hoskisson, R.E., 2012. Strategic management cases:
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reflexion and reflection in strategic management. Strategic Management Journal.32(13).
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Terziovski, M., 2010. Innovation practice and its performance implications in small and medium
enterprises (SMEs) in the manufacturing sector: a resource‐based view. Strategic
Management Journal.31(8). pp.892-902.
Wheelen, T.L and Hunger, J.D., 2011. Concepts in strategic management and business policy.
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Zhou, K.Z. and Wu, F., 2010. Technological capability, strategic flexibility, and product
innovation. Strategic Management Journal.31(5). pp.547-561.
Online

What is Strategic Planning. 1998-2017. [Online]. Available through:
<https://www.balancedscorecard.org/BSC-Basics/Strategic-Planning-Basics>.
[Accessed on 3rd May 2017].