Emirates Airlines is a primary global business being one of the biggest in the world. The headquarters of the company are in Dubai. The Company works enormous air related services globally. The achievement of Emirates in the airline industry extremely depends on the aptitude of the promotion and advertising group, selected to endear the company to existing and possible clients. Additionally, through communication and marketing, Emirates Airlines is able to uphold its aggressive edge over key players worldwide.
After the recession that affected the financial years 2001 and 2002 for emirates which is one of the toughest airlines worldwide, the company has currently shown a great potential in increasing its market share. The company started flying nonstop to New York, adding flights from south Asia to North America and so many other extensions. Currently it has a large market share and this has also lead to increase on investments. In 2010 the company announced a profit rise to 925.8 million U.S Dollars thus leading to 26.4 billion dirham in revenue.
The vision of Emirates Airlines is to constantly be a safe and profitable Airline so as to guarantee World Class Service. The mission is; To provide the highest level of customer satisfaction, Maximize stakeholder value consistently ,to uphold the maximum level of safety and security, to be committed to Corporate and Social Responsibilities and whilst maximize employees satisfaction. Emirates airline is known globally for its first class services to its customers thus the competitive edge against its competitors. So the Objectives are; to be the airline of Choice in Africa, to develop and be a premier core in worldwide, to follow a business model that will bring reliable level of profitability and to achieve world class standards in service delivery, operational performance and product quality. Emirates Airlines is dedicated to investing in developing of world -class in order to gather ability, analysis and interpretation in order to facilitate quicker and making the correct business decision. Emirates Airlines wish to improve ability for rapid response to threats, opportunities, and challenges in the market place. They aim to grow into a definitely leading carrier in the world in the next 20-30 years, while operating a modern fleet of 30-40 aircraft. To maintain the maximum safety standards, satisfying their customers and improving the quality of their products and services.
The driving forces that affect the airlines are the; i) rivalry whereby competition among rival airlines drives profit to zero, ii) threat of substitute, the airline’s price elasticity is affected by substitute airlines, when there is availability of more substitute the demand becomes more elastic since customers have more substitute, iii) Buyer power, it’s a market where there are many suppliers than buyers so the buyer sets the price. IV) Supplier power and v) Threat of new entrants and entry barriers. My assumptions are that the Airline should change prices, being creative by using channels of distribution, product differentiation improvement and exploiting relations with suppliers. The fact that many companies have invested in providing the same services as Emirates Airlines do has brought a high level of competition in the service industry. This is a great threat especially when the competitor is providing the same services at lower prices in order to acquire a successful response from the market.
The Emirates airline SWOT Analysis are as follows; The Strengths includes innovation, strong management team, cost advantage, strong brand fairness, market share leadership; the Weaknesses are -high spoilage rate, expensive and requires enormous capital outlays, affected by bad weather /climate, large workforces spread over large geographical areas; The Opportunities are Emerging markets and expansion abroad, takeovers, sales offered on plane, acquisitions, financial markets and airline expansion and the Threats are competition, oil price, external changes, price wars, terrorism, economic slowdown, outbreak of diseases, lower cost competitors or imports.
The strategic issue is a basic policy question or serious challenges that affect product level and mix, an organization’s mission, values and mandate ,organization, financing, cost or management or clients, payers or uses. The strategic issues analysis includes the Financial Analysis, PLC, Gap analysis, BCG Matrix, SWOT Analysis. The airline should be in the ability to meet its short term obligations, good level of debt financing, use its resources effectively, should be capable of maintaining economic position and effectiveness should be shown by returns on sales and investments. The alternative corporate strategies of the Airline are, i) The Cost leadership which relies on the whole industry rather than a role market and focuses on the price seeing it as the main lead to success. Offering the lowest price, the airline is able to secure a large market share; ii) Market leadership uses a factor to attract customers. No single factor that must be used, those factors that win over customers are services, convenience, quality among others; iii) Low-Cost Focus, it only focus on a little segment of the market instead of the whole market.
A company that uses this alternative will offer the lowest prices in that particular market segment and will not be having the lowest prices in the broad market and iv) Differentiation which is a niche corporate strategy. The pros and cons of pursuing corporate or business strategy is that the company can either offer the same value of goods or services as its complement for a lower price, the company can figure out how to gain a competitive advantage over others in the field. It offers a great slice of the market, by using the strategy the organization can make a decision of increasing their market penetration. It also leads to an increased revenue and lead the company to more efficiency by using the same or few resources to deliver more services. Through the corporate strategy, it helps the firm focus on achieving the goals.
Strategy implementation is the way that a business should build up, exploit and merge organization structure, culture and control systems to pursue the policies that lead to better performance and competitive advantage. The organization structure of the airline assigns special worth developing responsibilities and roles to the workers and they state how they are correlated to maximize quality, efficiency and client satisfaction. They also require control system in the organization which equips executives with motivational enticement for workers, their feedback and the performance of the organization. The organization background refers to the anthology of values, norms, beliefs and attitudes shared by executive members and grouping.
Evaluation and Control
Evaluation and control of strategy is the final stage. Here the managers determine whether the recommended strategy is achieving the objectives of the organization. The basic evaluation of strategy and the control activities are measuring performance, appraising internal and external factors that are the foundation for current strategies and taking remedial action. Emirates airlines have taken the initiative of carrying out effective market research programs, training their employees, updating their technological services and motivating their employees in order to ensure the company’s objectives are fully met for the satisfaction of employees. The managers ensure that the company is practicing effective and efficient strategies in the market so as to deliver quality services to their clients and maintain their loyalty.
Hephaestus Books, Oct 1, 2011. Articles on the Emirates Group, Including: Emirates (Airline), Emirates Skycargo, Emirates Destinations, Emirates Fleet, Emirates Business Model, Tim Clark (Emirates Airline), Emirates Airline Subsidiaries, Emirates Skycargo Destinations. ARAB: Hephaestus Books, , Oct 1, 2011.