Strategic Management Analysis of Emirates Airlines: BUS310 Report

This report provides a strategic management analysis of Emirates Airlines, examining its external and internal environments. It includes a PESTEL analysis, Porter's Five Forces analysis, and an assessment of Emirates' internal resources and assets that provide a competitive advantage. The report delves into the airline's business-level strategies, particularly its focus on partnerships and marketing, and evaluates the leadership activities of key figures like Sheikh Mohammed bin Rashid al Maktoum and Sir Tim Clark. The analysis considers the impact of political, economic, social, technological, environmental, and legal factors on Emirates' operations, as well as the competitive dynamics within the airline industry. The report concludes by highlighting the importance of strategic adaptation and effective leadership in Emirates' continued success.

Running head: STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
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1STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
Introduction
Emirates is a state-owned airlines based organization that is mainly based in Garhoud,
Dubai, United Arab Emirates that started its operations in 1985. Emirates Airlines is a subsidiary
company of the Emirates Group which is owned by the Investment Corporation of Dubai and is
also a part of the Dubai Government. Emirates is the largest airlines organization that has its
operations in the Middle East and operates more than 3600 flights within a week from the hub
that is present at the Dubai International Airport. The essay will be based on the detailed study of
the external and internal environment based aspects of Emirates Airlines that have an impact
strategies of the organization. The leadership related activities of Emirates Airlines will also be
analyzed in the essay in detail.
Analysis of the case study
Key forces in general and industry environments that influence strategy of Emirates
PESTEL analysis of Emirates
Political factors – The global political environment and changes have an impact on the
international operations of the flights of Emirates Airlines. Emirates has started operating its
flights in the emerging countries that have a stable environment. The security based concerns in
various countries can also have an influence on the revenues of Emirates Airlines.
Economic factors – The revenues of Emirates Airlines are collected in multiple
currencies and the macroeconomic conditions can have a negative impact on the profitability
levels. The economic growth of UAE has also been fuelled in a huge manner by the oil industry.
The decline in prices of oil have provided positive development to Emirates Airlines (Aguinis,
Edwards and Bradley 2017).

2STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
Social factors – The increase in world population has been able to influence the demand
of air travel in different parts of the world. The millennial travelers are considered to be the most
important part of the consumer base of Emirates Airlines. The expectations of millennial
travelers are however vastly different in nature and opportunities in the industry are quite huge as
well.
Technological factors – Digital technologies are used for the purpose of improving the
performance of Emirates and to enhance the levels of efficiency as well. The organization has
also been able to forecast the expectations of customers with the proper implementation of
technologies. The increase in demands for the usage of high end technologies from the customer
side is considered to be a key aspect that has an influence on the processes (Bourjade, Huc and
Muller-Vibes 2017).
Environmental factors – The operations of airlines industry leads to around 12% of total
emission of carbon in the entire transportation sector. The weather conditions on the other hand
can also have a major influence on the operations of various airlines organizations including
Emirates.
Legal factors – The growth that has been depicted by the Gulf carriers like Emirates,
Qatar Airways and Etihad are able to incentivize European and American airlines that are
competing with each other. The travel restrictions that are implemented in various countries have
an impact on the operations of Emirates Airlines (Daspit et al. 2017).
Porter’s five forces analysis of Emirates Airlines
Threats of the new entrants – The new organizations are not able to achieve the
economies of scale easily and this is able to offer a key competitive benefit to Emirates. The

3STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
differentiation of services is considered to be quite strong in the industry and the development of
standardized services is difficult as well. The requirement of investment in the industry is quite
high and this is able to provide barriers to entry of new firms (David and David 2016). Power -
Low
Bargaining power of the suppliers – The availability of suppliers in the airlines industry
are higher in comparison to the buyers. The highly efficient supply chain of Emirates Airlines
has been able to reduce the influence of suppliers on the prices of the services that are provided
to the consumers. Power - Low
Bargaining power of the buyers – The buyers in airlines industry have low power to
influence the prices of the services. The income levels of buyers have an influence on the
services that they are provided by different airlines based firms like Emirates Airlines (Demir,
Wennberg and McKelvie 2017). Power - Low
Threats of the substitute products or services – The availability of substitutes in the
airlines industry is low and this has an influence on the price of different services that are offered
by Emirates Airlines. The quality of substitutes is not able to influence the prices of services that
are provided by the organization. Power - Low
Rivalry among the existing firms – The competition that is faced by Emirates Airlines in
the industry is considered to be quite low and the market shares gained by the organizations are
also high. The fixed costs in airlines industry are high and this has reduced the levels of
competition that are provided by different organizations (Durand, Grant and Madsen 2017).
Power – Moderate
Internal resources and assets that provide a competitive advantage to Emirates

4STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
Internal resources and competencies - Emirates Airlines has aimed at conducting its
business operations with the help of a unique business model that is based on high levels of
flexibility. The organization has set the prices of its services with respect to the variations that
have taken place in the market. The management of Emirates has been able to deal with the
economic crisis with the support that is provided by the flexible operations of the organization.
The business model of Emirates Airlines supports the long haul flights and the organization also
connects different points of the world with the help of its services (Dyer et al. 2020).
The business model however does not boost the expensive short haul flights which have
the ability to reduce earnings of the firm. The number of long haul flights have been able to
enhance the earnings gained by Emirates Airlines. Pricing has become a major competitive
advantage of the organization in the airlines industry. The new technologies adopted by Emirates
are also considered to be major resources of the organization that has in turn enhanced the
customer service levels of the firm. Emirates has provided the best possible services to its
consumers with the help of “top-of-the-range” flat screens that provide an exotic feel to the
customers. US Dollar is used as a regular based legal tender by Emirates Airlines (Fan 2018).
The steadiness of Dollar has been able to provide Emirates Airlines with an effective
position in the airlines industry. Emirates operates different types of aircrafts that offer various
types of services to customers belonging to many income groups. The efficiency engines are able
to support Emirates Airlines in order to consider the environmental concerns that are related to
its operations. The fall in oil prices and growth in levels of terrorist attacks have been able to
reduce demands of services that are offered by airlines organizations. The onboard amenities
have played a major role in providing Emirates Airlines with a leading position in the airlines
sector (Grosche, Klophaus and Seredyński 2017).

5STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
The service standards of Emirates are quite high and this is considered to be a major
resource of the company. The in-flight services that are provided by Emirates Airlines have
proved to be key strength of the organization. The service supervisors of the organization
provide major levels of importance to the needs and demands of the customers and quality of
food provided to them as well. For example, Emirates provides a limousine ride to the
passengers who avail the Business class services. The business class passengers are also
provided with spa shower based services and many other amenities that help the organization to
maintain a loyal customer base (Hanson et al. 2016).
Assets of Emirates Airlines – The employees are considered major assets that have been
gained by Emirates Airlines and are able to provide the organization with a leading position in
the industry. The organization provides key levels of training to the employees based on the
ways by which better services can be offered to the consumers. The training program of the crew
of Emirates is able to play a key part in appropriate enhancement of the abilities of the
employees in the organization (Kuljanin et al. 2017). The instructions that are provided to
Emirates Airlines are mainly based on proper etiquettes, posture, evacuation and safety. The
motivational team building exercises are considered to be a major part of the training process
that is implemented by Emirates Airlines. The communication process is able to provide major
levels of growth to Emirates in the airlines industry (Hitt, Ireland and Hoskisson 2016).
Critical discussion of business level strategies of Emirates
Business level strategies - Emirates Airlines has proved to be a game changer in the
airlines industry with the help of its effective strategies and the precise services that are provided
to the customers as well. The internal change that has taken place in the mindset and strategy of
Emirates has increased its acceptance towards the development of partnerships. Commercial

6STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
value of the strategy is also considered to be quite high and changes in the business environment
have enhanced the partnerships that are formed by Emirates (North et al. 2019). The bilateral
alliances have started gaining importance in the last few years and the partnership developed by
Emirates with Qantas Airways in the year 2012 has supported the growth of the organization.
After developing a partnership with Qantas, Emirates has aimed at the formation of a
major partnership deal with American Airlines. The strategy that has been applied by Qantas
Airways is mainly based on the methods by which the firm aimed at forming partnerships which
will be able to enhance its growth in the airlines industry. The marketing based activities
performed by Emirates Airlines have also started changing in the last few years due to the
extensive use of social media. The company has started using social media in order to
communicate with the customers (Piltz, Voltes-Dorta and Suau-Sanchez 2018).
Assessment of the leadership activities in Emirates
The leaders of Emirates including Sheikh Mohammed bin Rashid al Maktoum
and Sir Tim Clark are democratic in nature and leadership also composes the
skills and ability based on proper motivation based activities. The leaders are
able to provide a huge social influence that is able to encourage the staffs so
that they can achieve the common goals. Emirates has been able to gain a
major competitive position in the airlines industry and the organization has
gained a place in the market with the support that provided by effective
leadership and management. The democratic leaders of Emirates have
encouraged the members so that they can connect themselves with different
members who are a part of the conglomerate (Scotti and Volta 2017).

7STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
Leaders of the organization have motivated the employees and have
also inspired them to gain immense levels of success in the airlines based
market. Motivation is considered to be a method used by the leaders of
Emirates to inspire the employees so that they can achieve the goals of the
organization. Sheikh Ahmed bin Saeed Al Maktoum, Executive Chairman of Emirates has
considered sponsorship to be a fundamental part of the marketing approach implemented by the
organization. The Chairman has aimed at the development of personal relationships with the
customers (Hitt, Ireland and Hoskisson 2016).
Conclusion
The essay can be concluded by stating that Emirates Airlines has been able to uphold its
position in the airlines industry with the help of changes implemented in the business strategy
with respect to the variations in the external environment and the industry environment as well.
The organization has provided major levels of significance to the improvement of services that
are offered to the consumers. The leadership of Emirates has also been able to support the
growth of the organization and the leaders have provided major inspiration to the employees as
well.

8STRATEGIC MANAGEMENT ANALYSIS OF EMIRATES
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