Emirates Airlines: Strategic Competitiveness and Competitive Plans

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This report provides a comprehensive strategic management analysis of Emirates Airlines. It begins with an introduction to the airline, its establishment, and its position as a leading global carrier. The report then identifies the company's strategic competitiveness, offering examples of how Emirates implements its strategic plans through innovation in engineering, worldwide services, and technological advancements. The analysis further evaluates Emirates' competitive plan of action, discussing associated benefits and potential harms, such as fluctuating oil costs, health concerns, and volcanic eruptions. The report applies Porter's Five Forces to assess the competitive landscape, examining the threat of new entrants, customer service, regulatory operations, and the negotiation power of suppliers and travelers. The report concludes with suggestions and a diagnosis for the Emirates Group, emphasizing the significance of leadership, marketing strategies, and the airline's trade model, including revenue generation and strategies such as distinction and superior control. The report also touches on the company's foundations and value-added methods, such as branding and exclusive offers, to attract and retain customers. Finally, the report discusses the different sections of the flight and the strategies associated with the Emirates Group.
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STRATEGIC
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
1 The strategical competitiveness identification of the company by giving examples..........3
2. Evaluation of competitive plan of action to the company's point of view and benefits and
harms associated with the company.......................................................................................6
3 Suggestions and diagnosis for the emirates group..............................................................9
CONCLUSION :-............................................................................................................................9
REFRENCES.................................................................................................................................10
Online.............................................................................................................................................10
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INTRODUCTION
According to emirates airline, it was established in the year 1985 consisting two aircraft's
for three visiting places which includes Bombay, Karachi and new Delhi metropolis. The central
office is situated in Dubai and allied Arab emirates. The present chairman of emirates airlines is
ah-mad been saeed al Maktoum. Emirates is the central eastern largest airlines with the fleet size
of grater than 220 consisting the up-most ten transportations across globally with respect to
income and traveller distance. The emirates airline was provided by the statute title airline for
period of one year by the world airline transport. strategic management is a process of
implementing, regulating, plan of action which carry out all the management functions related
with the aviation industry. The aviation is a fastest and expensive transport through out the
globe. The strategic process related with airlines is based on the continuous process (Nyarko,
2010).
TASKS
1 The strategical competitiveness identification of the company by giving examples.
According to the Emirates airlines , the strategical implementation is completely based on
the programming and revolutionizing the different methods of planning , organizing, directing ,
controlling and staffing in order to drive the organization in a best possible ways. The innovation
and implementation programmes are based on the institutionalization methods of plan of action
and decision making criteria. There are several management related concepts and ideas which are
decided by the team of aviation professions. The team includes the director, chairman, leaders
and the industrial authority members in order to run the organization as well. Some policies and
regulations are governing by the aviation authority for the better and systematic way of
processing the company. There are different networking channels of aviation industry spread
across the world with respect to different destinations and origins. The basic motive of the
company is to determine all the crucial warnings and chances in order to compete the challenges
with the other aviation company's. There are some adopted methods which producing the idea of
following :-
Invention of engineering science- This is a method of innovation in technology by
different ways of aeronautical engineering methods in order to minimize the fuel price. The
various technological implementations used in minimizing the sound pollution created by the
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aeroplanes at the time of departure (Riha, 2012). These days various issues related with the
aviation services is the noise polluting the environment through a very unwanted and loud
sounds produced by the aeroplanes and high consumption of naphtha kerosene mixture of diesel
fuel which is very costly and increase the revenue expenditure for the travellers as a result
maximize the cost of production.
2. Wide worldwide services to investment – This is a process of generating high income
sources and attaining more amount of profits by making different services according to the
several destinations across the globe in order to create more travellers and users. The overall
concept is based on providing best services through out the world and in return generating
maximum revenue. The idea is to offer continuous diversion chances for both relaxation and
commercial enterprise landing place.
3. Technological uses- this process a carried by using several advance technologies in
order to improve the conditions of the flight , it includes toe overcome all the customer
requirements and generation of income.
There are some threats associated with the emirates airline, these are described as
follows:-
Fluctuations in the oil costs in the marketplace- this is major concern in relation with
aviation industry for the client and the dealers. The prices of fuel affect the income status of the
customers. If there is a sudden hike in the prices automatically the ticket fares pull up and hence
they face the major challenges of paying huge amount taxes and prices. The variations of the fuel
prices in the market will greatly affect to the aviation industry in order to cut down the net profit
edges. This is an adverse situation of profits and expenditure according to the oil costs. This can
be dealing with the technological advancements made by the aviation industry through designing
different types of energy saving power mode engines as well.
Wellness- there are several diseases associated with the persons who are travelling in the
same flight with an healthy individual. EBOLA virus, INFLUENZA virus and SARC. These
diseases are very common in different parts of the world which effects the common locality or an
healthy individual flight users. There should an awareness provided by the government in order
to present the warning and advising methods.
Volcanic irruptions- there are certain smoke and ash coming out from the eruption
activity. This is very dangerous for the aviation industry. According to that sometimes the
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inconvenient situations are created by the cancellation of flight , closing of airfield and
rebooking of travellers.
Enticing The Industry For The Healthy Competition
by the method and concept of PORTERS strategic approach, the company can be
compete better compete the challenges with respect to the other industries. The five forces
provided by the PORTERS is a best and approachable method in order to target customers mind
and gaining the attention towards the industry. The following diagram describes the strategies
made by the company according to the PORTERS five forces model.
(Source: Porter five forces, 2015)
The first is the threat of new entrants which describes about the different obstructions to
enter. These differences or negative aspects are related with need of enormous income essentials
in the aviation companies . The second point of consideration is to provide customers with good
services regarding the industry in order to maintain or create a better brand icon in the market.
There are some sophisticated rules and regulatory operations with respect to the airports
and travellers related with the luggage, security and precious items like gold, ornaments,
diamond,medicinal drugs, heavy weapon and heavy cash in order to investigation and security
issues at the airport.
Declaration of secondary situations- this is related with total time duration taken by the
flight with respect to the long , short and medium distance travelling according to the time of
departure and landing. In order to reach on before time with full fledged personnel facilities ,
Illustration 1: porters five forces
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people generally give their preferences to the cars , trains and buses in order to travel in the same
locality or nation (Al-Aali, 2011).
The negotiation power of businessperson or dealers is very high due to constricted
provider like Airbus and Boeing. The negotiating power of travellers is very moderate to find
many options of ticketing via online and advance booking in order to search for better and
cheaper services which in turn creates flexibility. The emirates provides the best and exclusive
offers to the travellers in order to make them least bothered about the prices with the full fledged
quality services.
There is a huge and stiff competition among the different aviation company's like jet air
ways , reliance , emirates and many more. According to the strategies of emirates group , it has
made distinction by excellent services and innovative methods. Adopted different methods of
travellers satisfaction and demands and accordingly made new concepts and ideas. It uses some
data processing methods in order to enhance affectivity and efficiency as well. It established
some programmes related with the personnel interaction with clients by developing the structural
skills , brushed skills, dressing, behaviour and emotive skills of air craft members in an
excellency. These are the different strategies adopted by the emirates group in order to meet the
challenges and compete the aviation industries across the world.
2. Evaluation of competitive plan of action to the company's point of view and benefits and
harms associated with the company.
According to the emirates group the success of the company is totally dependent on the
valuable and correct directions of the leadership. The goals ad targets of the company has
achieved by the strong leaders support as well. It is important for the company to have a strong
and powerful directing assistance in which manager plays a vital role in order to provide
direction and controlling all the powers and position in the company. The emirates group staff
committee has a very influential in order to entice the customers. They posses a very strong
attractive powers which in turn attract the travellers. The several regulations were made by the
directors in order to attain goals and visual modality. The plan of action of the company is of
top-grade among all the aviation industry across the world. It provides the reasonable and cheap
prices of tickets in order to make more and more customers through world wide. It uses the
business firm societal province which in turn attracting more no of travellers for the benefits of
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the company. The strategic implementation in the marketing condition help out emirates group
in order to improve the services of the products.
The dependent relationship of emirates provides its mutual bondings with Dubai. By
adopting some methods of developing luxury hotels, restaurants, city malls at the airport. It
provides the customers with all the requirements and facilities. These facilities also provide the
partnership with the emirate group and thus making profit of double income generation
(Tugores-García, 2012).
The target of the company is to make the company of one the topmost brand and creating
the fame across globally. The visualization aspect is based on making the private aviation
industry safe, secure and starring. The ambition of the company is to reach on quality benefits
with excellency. There are several projects related with the emirates group which are working on
reasons of attaining targets and opportunities. These foundations consists of :-
Bangladesh emirates for friendship hospital ship.
CHENNAI emirates enterprises
Dubai enterprises for providing assistance to the country. Jordan enterprises for charity. These are the foundations which are related with emirates
group.
The trade model of emirates group
The sole relationship associated with the emirates group includes Boeing , Airliner and
Dubai regime, worldwide flying field of Dubai. Airlocks , quanta and code stock consents. Their
major role is solid ground manual labour, luggage handling, maintenance management of
aircraft's , several services provided to the travellers. The sources in which these activities are
utilized is the fuel and faculty members or workers (Nataraja, 2011).
The expenditure of the passengers includes tax rate, ticket rates, fuel charges, flying field
individual charges, financial loss and faculty workers operations.
In order to create efficiency and effectiveness there are several value added methods.
These methods includes branding, some exclusive offers and discounts and the last but not the
least place of travelling or destination. The interaction and communications could be maintained
by the different networking channels like skywards and trade rewards, e business, flying field
and travelling broker. There are different types of sections in the flight according to the customer
level and ticket fare. The compartments are divided according to the fare , higher the ticket extra
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and advance facilities will be available. The different sections are basic class, enterprise class,
system class and single business class. Basic class is the first class compartment in which is for
all the common persons. Enterprise class is for business persons. Single business class is for
individual business man.
The income is generated on the basis of cargo, no of passengers, extra luggage and place
of travelling or comfortable facilities.
Strategies associated with emirates group
Distinction scheme- the strategy aims at the distinction between the products and
services available in the market and thus made sections according to the preferences.
Superior control scheme – this strategy aims at controlling the products and services
and maintaining the high standards of quality (Hensher, 2011).
Aviation training strategy- this strategy is made for the aviation faculty members in order to
provide best training and customer services. This learning process is give to the flight members
including air hostess. The training is provided by the best methods of interaction with the
passengers and full fill their basic necessities related with the different processes.
Global airlines and data processing development plan of action- this is technological
advancement strategy related with aviation industry. In this some innovative methods of
machines and software related products and programmes with the airline were developed.
Holiday resort, hotel and touristy plan of action- these types of industries are completely
interlinked with the airlines. These are related with the destinations. In order to visit any
destination, a person must be looking for a resort, hotel or restaurant. At each and every airport
there is a possibility of land mark like hotel or resort and also inside the airport there are many
resorts are available.
Facilities- inside the flight there are several facilities for the customers like WI services,
in seat messages and mails, handsets and information roaming, music, television and fun games
are available for the leisure time (Nyarko, 2010).
Negative aspects
the environment of the flight can be affected by the several hijacks, wars and terrorism,
this is serious concern to all the groups associated with the aviation. There are some changes in
the climate which in turn results to crashing of the flight. There are some orders related with the
misrepresentation which affect the flight environment as well.
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irruptions- there are certain smoke and ash coming out from the eruption activity. This is
very dangerous for the aviation industry. According to that sometimes the inconvenient
situations are created by the cancellation of flight , closing of airfield and rebooking of travellers.
These are the certain strategies and environmental conditions associated with the
industry.
3 Suggestions and diagnosis for the emirates group
In order to diversify the challenges at the emirates group , there are several suggestions
and recommendations to compete the challenges and increasing of the growth.
Adopting new innovative methods of targeting and attracting passengers with the help of
brand name strategy. By implementing new scheme of business help the the trade in order to
increase the income generation and profit margins as well (Hoskisson, 2012).
The variations of the fuel prices in the market will greatly affect to the aviation industry
in order to cut down the net profit edges. This is an adverse situation of profits and expenditure
according to the oil costs. This can be dealing with the technological advancements made by the
aviation industry through designing different types of energy saving power mode engines as
well.
The Aviation training strategy is made for the aviation faculty members in order to
provide best training and customer services. This learning process is give to the flight members
including air hostess. The training is provided by the best methods of interaction with the
passengers and full fill their basic necessities related with the different processes. These are the
several methods and diagnosis in order to drive the aviation company for the growth and success
of the industry to a grater extent.
CONCLUSION :-
According to the above discussion on the emirates group , it can be be concluded that, it
is the fastest and famous across the world through its amazing aviation services and vast
business. The target of the company is to make the company of one the topmost brand and
creating the fame across globally. The visualization aspect is based on making the private
aviation industry safe, secure and starring. The ambition of the company is to reach on quality
benefits with excellency. There are different foundations associated with the group which makes
the business to develop to the broader spectrum.
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REFRENCES
Books and journals
Hair, and et. al., 2012. The use of partial least squares structural equation modelling in strategic
management research: a review of past practices and recommendations for future
applications. Long range planning.45(5). pp.320-340.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases:
competitiveness and globalization. Cengage Learning.
Merkert, R and Hensher, D.A., 2011. The impact of strategic management and fleet planning on
airline efficiency–A random effects Tobit model based on DEA efficiency scores.
Transportation Research Part A: Policy and Practice.45(7). pp.686-695.
Molina-Azorin, J.F., 2012. Mixed methods research in strategic management: Impact and
applications. Organizational Research Methods.15(1) pp.33-56.
Nataraja, S and Al-Aali, A., 2011. The exceptional performance strategies of Emirate Airlines.
Competitiveness Review: An International Business Journal.21(5). pp.471-486.
Nyarko, Y., 2010. The United Arab Emirates: some lessons in economic development (No. 2010,
11). Working paper//World Institute for Development Economics Research.
O’Connell, J.F., 2011. The rise of the Arabian Gulf carriers: An insight into the business model
of Emirates Airline. Journal of Air Transport Management.17(6). pp.339-346.
Rahm, B.G and Riha, S.J., 2012. Toward strategic management of shale gas development:
Regional, collective impacts on water resources..Environmental Science & Policy.17.
pp.12-23.
Tugores-García, A., 2012. Analysis of global airline alliances as a strategy for international
network development (Doctoral dissertation, Massachusetts Institute of Technology).
Online
Marketing mix of emirates airlines. 2016. [ Online ]. Available through :
<http://www.marketing91.com/marketing-mix-of-emirates-airlines>. [ Accessed on 4th May 2017
]
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