Emirates Airline: Business Strategy in a Pandemic Environment

This report provides a comprehensive analysis of Emirates Airline's business strategy. It begins with an examination of external environment trends using PESTLE analysis, identifying political, economic, social, technological, legal, and environmental factors influencing the airline. The report then delves into Emirates' internal capabilities and strengths, assessed through SWOT and VRIO analyses, highlighting the airline's ability to navigate challenges like the pandemic. Forecasting methods, including bottom-up, top-down, and historical approaches, are discussed to understand market dynamics and anticipate future trends. The strategic position of Emirates is evaluated using the Bowman Clock Model and other strategic frameworks, such as horizontal and vertical integration and hybrid strategies. The report concludes with an overview of the airline's strategic decisions and their impact on its market dominance, particularly in the context of international air travel and its cooperation with Dubai.

Emirate Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1: External environment trends that are significant from an external environment analysis
providing emirates with important clues for the future of air travel............................................3
P2. Internal capabilities and strengths of Emirates helpful in negotiating the problems of the
Pandemic......................................................................................................................................4
P3: Forecasting methods for Emirates Airline.............................................................................5
P4: Strategic position...................................................................................................................7
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Emirates are the largest airline and flag – carrier of The United Arab Emirates. It operates
and provides services to people with different cargo activities which are confiscated by Emirates
Sky Cargo (Alanezi and Al-Zahrani, 2020).The following report will examine the external
environment trends with PESTLE analysis model applied, the internal capabilities and strengths
of Emirates to negotiate the problems of the pandemic by applying forecasting methods that
assist the airlines to understand the market and the current strategic position which leads the
brand progress forward and ensure that the carrier maintains its market dominance for
international air travel in co-operation with Dubai internationally.
MAIN BODY
P1: External environment trends that are significant from an external environment analysis
providing emirates with important clues for the future of air travel
In analyses of the external environment of Emirates airlines it follows the PESTEL
analysis which is described as below-
Political Factors – Emirates airlines is the state owned airlines which has wide spread its
operations around the globe (Yusop, 2018). Airline being the most prior factor for the people
travelling therefore the government is more concerned for the passenger’s safety. And there can
be reasons that the country can affect the services if there is any rivalry between them which
affects the operations of the airlines. Thus, the investment is affected due to the government
indulgence which affects the strategic decisions.
Economic Factors – Emirates airline presents its great opportunity in the north and South
America into Europe and Asian markets as it is growing at a rapid pace. The fluctuations in the
oil prices affect the airlines which makes the condition difficult for the airlines to work in. Thus,
this factor affects the airlines in the economic forms.
Social Factors – As most of the people wish to travel in the airplane, emirates in this context
have provided cheap airfare as the income of people have been increasing since the part years
which has gained interest of the middle class people. Thus this has opened the window of
opportunity for this airline in increasing its market share and gaining more potential passengers
to travel more often.
Technological Factors – The airline has advanced its technological prospect and has developed
a navigation technique which allows the airline to carry cargo into Kabul international airport

which has enabled the airlines to offload the cargo in low and extreme high weather conditions.
And this technological advancement has proved to be of greater use for the airlines and
opportunities have created it for the better use.
Legal Factors – Legal factors have also been the concerns for the emirates airlines the lawsuits
by other companies, governments and NGO’s might fight against the company. For more than
two to three hours delay in the airlines the passengers have right to compensate which creates the
legal process to be followed. Also, the emirates airlines if causes unfair legal practices they are to
be accused on that verge of legal proceedings. Thus they take care of this factor and prove their
services best to the passengers.
Environmental Factors – Due to the climate changes, there is increasing demand of the public
to change the strategies of the airlines and plan more effective and efficient travel. Adding on to
the environmental factors global warming has been the biggest downfall for the airlines. Thus
emirates is now more concerned towards purchasing most efficient fuel so that the environmental
factors are decreased and have developed the most effective bio fuel for the airlines.
P2. Internal capabilities and strengths of Emirates helpful in negotiating the problems of the
Pandemic
The internal capabilities of the Emirates airlines is measured through SWOT analysis which
is defined as –
Strength – Emirates airlines has a strong base in Dubai which provides it the access to the
efficient connectivity. Concerning about the customer services, emirates has proven this factor to
be one of its greatest strengths and have achieved good response on the customer basis (Sarsby,
2016). The employment of the airlines provides huge workforce which helps in better
functioning. It’s branding and services are great strengths which provides diversified market to
the airlines. This pandemic has been the strength factor to the airlines as they have improved
their management and have advanced their techniques.
Weakness – Intense competition is the main reason of weakness of the airlines as there is limited
market growth rate which makes it difficult to occupy the US market structure. Their one major
weakness is that they do not care to supply middle class and lower class travellers and being an
airplane accidents happen to take place which creates the idea of less travel factor. Pandemic has
affected the airlines as people travel less and do not take risks of travelling.

Opportunities – There are various opportunities that the airlines can have which consist of the
increasing number of fleets along with various international destinations for the travellers as per
their convenience. The airlines can indulge into joint ventures and partnerships which will help it
to expand the market structure and creates an opportunity for more business growth. The
lockdown has made the airlines realise the business area to be discovered with new innovations
and ideas for the travel and comfort of the passengers.
Threat – Threat to the airlines is increase in the competition because the other airplanes cater to
all the class of passengers and Emirates only specialises in the high – class service providing
sector which automatically loses its passengers to this factor. Also, whenever there is increase in
the fuel cost, it affects the airline margins with changing policies and regulations of Government
which impact the airlines. This pandemic has created threat to the business and the growth of the
airlines.
The VRIO analysis is also explained for the internal capability factor –
Valuable - Investment of the airlines helps in analysis of the financial resources of the airlines,
the food product services, employee resource factor, its network distribution to reach out to more
and more customers and the cost structure making them a valuable aspect of the airlines (Vargas-
Hernández, and Garcia, 2019).
Rare – The financial resources of the airlines, the local food products being easily available by
the emirate competitors also the employees being rare with the other airlines and the distribution
of network is same as most of the airlines practice.
Imitable – The financial resources of the Emirates are costly to imitate as it functions
accordance to provide high services to its customers but the local food products, employees of
the airlines are not much costly to imitate but the distribution channel is costly as the competitors
will find it difficult for the airlines to consider it among its competitors.
Organization – The organizational factor of the airlines commends that the financial resources
and the distribution channel are organized to capture value of the airlines to be considered among
the best airlines across globally.
P3: Forecasting methods for Emirates Airline
COVID pandemic highly effected airline business and it decrease customer number as
well as unemployed million people. Emirates one of well known airline company in world and
provide quality services which attract large number of customers. However, corona virus has

created multiple challenges for firm and it become necessary to anticipation of business and
gathered information which can help in again gaining market control. Forecasting helps
organisation helps in setting goals and objective by looking into present performance. There are
number of method related to it and listed below.
Bottom-up method
In this various function of organisation analyse and gathered information related to work
that they are performing at work-station and provide it to forecasting team. Every department
plays important role in success of business and collecting data from help organisation in framing
proper strategy for future (Al Saed, Upadhya and Saleh, 2020). Forecasting team analysis
information in right way so that a proper business plan as well as strategy can be setup which can
help in creating market and increase profit share in changing business.
This method can be useful for Emirates and helps to identify internal strength as well as
weakness and according to changes can be done as well as proper strategy can be setup which
help in attracting customer and expanding business.
Top-down method
In this particular section and function of business analyses such as it emphasizes on
employees particular activities positive and negative aspect which can affect or grow business
and hence overall organisation time consumption can be decrease as well as decreasing
expenditure. Success of this method depends on higher authority.
Emirates can use this method when it is sure that particular part of work effecting whole
business. However, COVID has change business aspect and top down forecasting cannot help in
setting right strategy.
Historical Method
In the historical background of firm analysis which help in analysing present situation
such as before the pandemic success rate compare with present situation of organisation (Akbar
and Kisilowski, 2020). This is one of the best forecasting methods as it helps firm in
identification of all positive and negative points which impact on business.
Before COVID pandemic Emirates Airlines expanding business and gain fame all around
world. By analysing its past history and compare with present by forecasting can help in setting
effective strategy as it cover all necessary point which will be useful for planning and
organisation business for future.

P4: Strategic position
Bowman clock model-
Bowman strategic clock model which is made for organization like Emirate for
developing their organizational strategy in such a way that they are able to achieve high level of
competitive edge which will increase the goal achieving capability of the organization (Redpath,
O'Connell and Warnock-Smith, 2017). Emirate provide its services to customer all across the
globe and because of which it able to achieve high brand awareness and also at a reduced
pricing. But due to impacts of COVID-19 travelling is reduced and thus company has to face
limitations in its economic growth and because of which company has to provide creative pricing
strategy in such a way that it is able to increase its customer count.
Horizontal & vertical integration-
Horizontal integration is the organizational growth which is done by organizations like emirate
by acquiring similar but comparatively small organizations through which it can increase the
chances for achieving high competitive edge (Alanezi and Al-Zahrani, 2020). Through this
company can make sure that the it is able to provide new type of services to its customers also by
reducing the market competition, this will provide emirate a high level of goal achieving
capability. Whereas in case of vertical integration company make sure that it is able to achieve
integrate other organizations which operate in other field by which it can increase the chances of
goal achievement because it is increasing its appearance in other fields by which it can increase
its customer count this will increase the chances of goal achievement.
Hybrid Strategy-
This strategy is employed by organization in such a way that it is able to achieve high
level of competitive edge and also to achieve high profit margin by which it can increase the
profit margin and also is able to achieve high competitive edge by which it can provide new and
creative products to its customers (Miller and Verhoeven, 2020). Thus emirate can also
implement this strategy in its organizational structure by which it can provide new products to its
customers at an reduced pricing by it can attract new customers because of low and attractive
pricing. At this company can also provide new and rare products with premium pricing by which
it can achieve high competitive edge and high economical growth.
Risk factors-

The risk factors for emirate is very high while implementing this because during the present
times if COVID-19 travelling is reduced because of which organizational sales are reduced and
also company has to provide creative pricing to its customers by which it can maintain
customer’s engagement with the organization which will reduce the chances of brand switching.
This reduces pricing will reduce the profit margin of the company and also organizational
expenditures will also be reduced because company has to advertise itself in such a way that high
level of customer engagement can be achieved and also at a reduce pricing.
Conclusion
It can be evaluated from report that proper strategy needed in emirates business after
COVID pandemic. There are number of internal as well external reason which impact on airline
business such as pandemic lockdown decreases revenue of firm and on the other hand number of
employees who feel depressed because of pandemic and hence increase their productivity.
Historical method of forecasting again help firm in setting strategy for future. Report also
discusses about bowman clock method which support in setting strategic position of firm.

REFERENCES
Books and journals
Redpath, N., O'Connell, J.F. and Warnock-Smith, D., 2017. The strategic impact of airline group
diversification: The cases of Emirates and Lufthansa. Journal of Air Transport
Management. 64. pp.121-138.
Miller, R. and Verhoeven, H., 2020. Overcoming smallness: Qatar, the United Arab Emirates
and strategic realignment in the Gulf. International Politics. 57(1). pp.1-20.
Al Saed, R., Upadhya, A. and Saleh, M.A., 2020. Role of airline promotion activities in
destination branding: Case of Dubai vis-à-vis Emirates Airline. European Research on
Management and Business Economics.26.(3).pp.121-126.
Akbar, Y.H. and Kisilowski, M., 2020. To bargain or not to bargain: Airlines, legitimacy and
nonmarket strategy in a COVID-19 world. Journal of air transport
management.88.p.101867.
Yusop, Z.B.M., 2018. PESTEL analysis. COMRAP 2018, p.34.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Vargas-Hernández, J.G. and Garcia, F.C., 2019. The Link between a Firm´ s Internal
Characteristics and Performance: GPTW & VRIO Dimension
Analysis. REBRAE, 12(1), pp.19-30.
Alanezi, F. and Al-Zahrani, R., 2020, January. Strategic Management of Emirates Airlines.
In Proceedings of the 2020 2nd Asia Pacific Information Technology Conference (pp.
172-177).
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