Research and Markets, 2013, Emirates Airline Strategic SWOT Analysis Review. In October, Emirates SkyCargo set up a dedicated GDP-certified airside hub in Dubai for COVID-19 vaccines, and later it partnered with UNICEFto facilitate the rapid transport of COVID-19 vaccines to developing nations through Dubai. The main stakeholders include the Dubai government, company management, passengers, travel agents, aircraft providers, and staff. Dubai based airline company is the subsidiary of Emirates Groups. They pay they gives to their employees are merit base pay as well as the pure performance based pay. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. Its key elements include product differentiation to compete in the low-cost segment (Graham et al. professional specifically for you? IvyPanda. 2011). Role Of Stakeholders In Aviation - 963 Words - Internet Public Library Emirates Group Announces 2020-21 Results These shared values and beliefs have great impact on consumer behavior while making a purchase a certain product. The reported total transaction value (TTV) of travel services sold declined by 98% to AED 229 million (US$ 62 million). Our top priorities throughout the year were: the health and wellbeing of our people and customers, preserving cash and controlling costs, and restoring our operations safely and sustainably. Copyright of Emirates Airlines SWOT and PESTLE Analysis is the property of Barakaat Consulting. Are you looking for a report which is not covered on our website? Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs. Their cargo service provide on time delivery to its customers. Another entry barrier is brand equity, whereby established carriers boast of a strong presence and brand value. PESTEL Analysis of Emirates - UKEssays.com This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. Omni-channel strategy for seamless customer experience: Omni channel strategies are all about providing customers with a seamless experience. The Executive Board defines the strategic decisions. Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. From this mean that we have to clarify that who are our potential buyer who will enjoy our services. Emirates Airline is renowned for its superior in-flight services globally. Performance shows the airlines ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products. Environmental, Social, and Governance (ESG) Analysis Report. For example Emirate Airline has succeed to avoid its prices matching with what other airlines are offering product to customers at lower price. This section will in detail analyze the targeted market of Emirates Airline. Emirates Airlines strongly focuses on providing luxurious travel experiences and top-notch customer service. The StB entails five features that automate the entire traveling process, namely, e-ticketing, eCheck-In, eBoarding pass, eBaggage Management, and eFreight (International Air Transport Association [IATA] 2008). Consumer behavior is the acts and decision processes of the consumer which they shows during the purchase the product as well as services. As a result, the Groups total workforce reduced by 31% to 75,145 employees, representing over160different nationalities. Based on the evaluation, the following three strategic choices were identified: Porters five forces provide a useful framework for analyzing industry structure and processes to identify the sources of competitive advantages for a firm (Porter 2008, p. 67). The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a loss of AED 1.8 billion (US$ 496 million) for the first time. Moreover, there brand is better in term of quality, packaging and other factors to score higher these from customers. 1 british airways, stakeholder analysis, petya laleva - SlideShare Therefore, the airline is first choice of customer around the country and around the world. dnatas cargo handling declined by 18% to 575,000 tonnes, reflecting the reduced available flight capacity in the overall air cargo market over the year. Emirates closed the financial year with cash assets of AED 15.1 billion (US$ 4.1 billion), a position which would have stronger if not for a one-time payout of AED 8.5 billion for customer refunds. A SWOT matrix (Appendix 1) was applied to Emirates to reveal its internal strengths and weaknesses as well as potential market opportunities and threats in commercial aviation. Applying this model to Emirates indicates that the forces could have a significant effect on the airlines competitiveness. The Groups revenue was AED 35.6 billion (US$ 9.7 billion), a decline of 66% over last years results. The 'acceptability criteria' applied to Emirates can indicate the stakeholders' expectations, expected returns/profits, and inherent risks. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. Group revenue was AED 13.7 billion (US$ 3.7 billion) for the first six months of 2020-21, down 74% from AED 53.3 billion (US$ 14.5 billion) during the same period last year. The analysis provided us with the certain weakness and strengths of Emirate Airline with regards to its competitors. Strengthening presence in the low-cost segment, Check out the SWOT Analysis of Global Businesses. Emirates Airlines' Strategic Choices and Decisions. SWOT analysis is a strategic tool for the evaluation of a firms internal and external environments to determine its strategic position in the industry (Kotler & Keller 2011). Culture is defined as totally learned behavior that contain shared values believe, norms, customs and rituals of particular region. Together with Dubais undiminished ambitions to grow economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before., He concluded: In the year ahead, we will continue to adopt an agile approach in responding to the dynamic marketplace. To enhance luxury travel through integrated passenger lounge and in-flight services. Customized Solutions 2011). utilization of large carriers, such as Airbus A340, with a considerable carrying capacity (Lohman et al. The main point that has to be cover are as follows: first thing that is required, is the identification of the targeted audience. However, Emirates can integrate backwards with its in-flight amenities (strategic option 2) to compete. Emirates received three new A380 aircraft during the financial year and phased out 14 older aircraft comprising of 9 Boeing 777-300ERs and 5 A380s, leaving its total fleet count at 259 at the end of March. student. On the other hand, the aircraft suppliers and travel agents may not be affected by the airlines cost-reduction measures because they depend on many clients. So it shows that over all Emirates Airline is working better as compared to other competitors. Its a huge number of seats in an aircraft and according to Mike Boyd, an aviation expert, If you manage to fill them up, you make a lot of money. These flights take off from its hub at UAE to more than 133 cities in 73 countries around the world. Due to ongoing pandemic-related flight and travel restrictions, the airline reported a loss of AED 20.3 billion (US$ 5.5 billion) after last years AED 1.1 billion (US$ 288 million) profit, and a negative profit margin of 65.6%. Web. The top destinations for expansion include locations in South Asia through code-share agreements with other carriers such as Malaysia Airlines (Lovestock, Wirz & Keh 2002). Adding the option of accessing the airlines services in the customers native language can also being implemented as are 24x7 customer care services that can offer solutions to basic questions and add a human touch to the booking process. HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group. However, external constraints, such as industry rivalry and fuel prices, may affect the adoption of the first strategic option. better for the environment, better for operations, and better for customers. The industries company is catering are airport services, hospital industry, catering, and engineering. Moreover, their major aim is provide the quality services for that they have dedicated team that work day and night for ensuring the quality (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. With many award in 2012 the company is also ranked 8th best airline in term of services it is providing around the world. It also worked with local organisations in Australia, Ireland, Italy and the UK to support communities in need. Increasing Competition in Middle East Market can affect business of Emirates airlines 2. We inspire travelers around the world with our growing network of worldwide destinations, industry leading inflight entertainment, regionally inspired cuisine, and world-class service. Emirates is an airline company based in Dubai. The business saw a positive operating cash flow of AED 10 million (US$ 3 million) in 2020-21 despite the sharp decline in revenues and the unprecedented volumes of refunds in its travel division. Emirates 2012, Airlines and Subsidy: Our Position. The awards help reinforce the firms brand image globally. 205-211. The issues are still under discussion. Importantly, the values underscore the essence of respectful interactions among employees and other stakeholders in their day-to-day undertakings. They are following the best promotional strategies, pricing strategies, advertising strategies, and distribution strategies. Company Background. Emirates airline also uses fuel-efficient technologies in its fleet to cut down operational costs. Emirates in efforts to strengthen its IT infrastructure signed a 10-year technology services agreement with IBM in 2016. Emirates has roped in digital agency Amaze in 2015 to enhance its global digital platforms as part of its broader omni-channel strategy. Need Strategic Analysis for this company? The government has also establish a trade free zone for conducting businesses activities. These fundamental ingredients of our success remain unchanged. Keep it up! In today world every organization is engaged in competition. Its airport services brand, marhaba, opened an expanded and refurbished lounge at Dubai International airport, and expanded its international network with a new lounge in Manilas Ninoy Aquino International Airport. Strategies of Emirates Airlines Marketing Proposal 1-9. dnatas international business accounts for 62% of its revenue. The airline industry of UAE ha lot of potential for growth as the UAE is the hub of tourism and millions of people as a tourist visited this country. It also offers a range of in-flight amenities, including hotel services, and lounge services to corporate clients and tourists (strategic option 2). The airline operates the mixed air fleets which are the wide-body aircrafts. On social-cultural basis the country is one of the diverse in this Middle East region. There is a good chance the Dubai government will accept the strategies that enhance the government-owned carrier. Market segmentation research is an understanding of the markets product needs and wants. IvyPanda. However, we may send you emails on our new reports and solutions. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. It supplemented its existing freighter capacity by bringing into service 19 mini freighters - modified Boeing 777-300ER passenger aircraft with seats in the economy cabin removed to make room for more cargo. connection point between two flights. DII impact in Europe from Emirates' operations 4 Figure 3. Other stakeholders include Jet A 1 fuel providers, spare parts suppliers, and caterers. It also pressed ahead with key investments to strengthen the business including the opening of a new state-of-the-art cargo facility in Manchester; upgrades to technology across its leisure and corporate travel businesses; the setting up of a dedicated inflight retail centre of excellence in the UK to serve global customers; and the opening of its second catering facility in Dublin. Airlines and Stakeholders: A First Class Relationship Its primary actions involve managing cargo and ground handling, catering and travel services. 2011). Copyright 2023. Therefore, their employees are also loyal to the company (Group, 2011). The cargo division also introduced new loading protocols to safely utilise overhead bins and passenger seats to carry cargo. And the government is working hard for the development of UAE. . For the first time in the Groups history, redundancies were implemented across all parts of the business. Group records annual loss of AED 22.1 billion (US$ 6.0 billion) due to COVID-19 pandemic impact, its first non-profitable year in over three decades, Emiratesreports a loss of AED20.3 billion(US$ 5.5 billion) down from AED 1.1 billion (US$ 288 million) profit in the previous year, dnata reports a loss of AED1.8 billion (US$496million) down from AED 618 million (US$ 168 million) profit in the previous year.