Strategic Management
Emirates Airline:
Connecting the
Unconnected
Presenters:
Kristina Joshi (21118)
Roshan Rai (21131)
Diya Shrestha (21133)
Bibhuti Kharel (21121)
Susmita Shrestha (21136)
1
Which is the world’s
largest airlines in terms
of international
passengers?
Which is the airlines having
the Guinness record for the
most nationalities on an
aircraft as passengers?
Which airlines has the
largest fleet of Airbus and
Boeing (largest airplane;
dominant manufacturers)?
Which is the first airlines to
introduce telecommunication
systems (in all 3 classes)?
Which is the first airlines
to be available in all 6
continents?
Which is the airline that
has sponsored Fifa, Real
Madrid, Arsenal, AC Milan?
Rhetorical questions
2
Emirates
Introduction to Emirates Airlines
Airlines based in Dubai
Sole owner- Government of Dubai
Since 1985, success attributed to:
● Excellent customer services
● Continuous innovation
● Locational advantage
3
Emirates
What triggered its establishment?
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Gulf Airlines reduced operations in Dubai
Concerned for regional feeder flights for other carriers
Apparent gap sensed, funded by the Royal family
Market development strategy
Began with $10m and two leased aircrafts
Extraordinarily capitalized opportunity
Gulf suffered 56% cut off of profit in first year
Constantly at the top
4
Differentiation factors
Innovative products and
services, catering to all
classes
Quietest and largest
aircraft fleet; Airbus and
Boeing
Excellent HR and management
team; efficient/planned
operations
Unique and diverse
geographical location; Own
runaways and terminal
Cutting edge technology;
investment in best cabin
products
Exclusive partnerships with
market leaders
Excellent Customer Service
5
Mission and Vision
Vision
Mission
To make the experience of civil aviation flight
safer for its passengers and leading and
sustaining growth by focusing on providing
industry-leading services.
Commit to safeguarding all customers, staff and
assets against acts of unlawful interference through
continuous reviews, training and education to ensure
a safe and secure environment while facilitating
business growth.
Mission Vision Analysis:
Ensure Safety
and Security
Continuous
Improvement
Market
Leader
Sustainability
6
Major Functional Strategy
Marketing
Human Resource
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Diversified workforce
Flat organization structure
No language and cultural
barriers
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Collaborated with tourism
agencies
Advertising Campaigns
Sponsorship agreements on
sports
Global art and culture
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Production
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In-flight experience
Strategic fleet expansion
Strategic Alliance with
manufacturer
Information System
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Safety and cost control
systems.- Flex Tracks
CRM tool- Paradise
Self-Check in facility
7
Marketing Campaigns:
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DUBAI
-an aviation hub
9
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distribution network
that unsurprisingly
resembles a bicycle
wheel
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masters Centalization
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economies of scale
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issue of hub
congestion
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dependency on
the hub
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limited direct
connections
10
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HUB
central airport that flights are routed through
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Spokes
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138 destinations (by 2013)
the routes that planes take out of the hub airport
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Dubai as a HUB
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favorable weather conditions
distant from congested airspace
oil rich emirate
global transit route
cross-section of two passenger flows: NW
to SE and NE to SW
Support from UAE Government
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Bilateral Aviation Agreements
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Dubai as a tourist center
Investment Corporation of Dubai (ICD)
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PORTER’S FIVE
FORCES MODEL
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PORTER’S 5 FORCES MODEL
01
Threat of New Entrants
High entry barriers
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Cost
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Government Approvals
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Loyalty
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PORTER’S 5 FORCES MODEL
02
Threat of Substitutes
Low substitutes for customer segment
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Rail, road or sea
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Long distance travel
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Time and cost
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PORTER’S 5 FORCES MODEL
03
Bargaining Power of Buyers
Moderate.
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Low switching cost
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Luxury Travellers
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Additional services and facilities like onboard showers
and mini bars
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‘World’s Best Airline’
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PORTER’S 5 FORCES MODEL
04
Bargaining Power of Suppliers
Moderate
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Two major players: Airbus and Boeing
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Emirates is a big player in the airline industry
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PORTER’S 5 FORCES MODEL
05
Competitive Rivalry
High competition
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Competition from both traditional and low-cost
carriers.
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Qatar Airways, Etihad, Turkish Airlines.
18
SWOT
ANALYSIS
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STRENGTHS
● Strategically placed hub
● Comprehensive network
● Modern fleet of aircraft
● The premium Strategy
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WEAKNESSES
● High operating costs
● Reliance on single hub
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OPPORTUNITIES
● Untapped market potential
● Government support
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THREATS
● Growing competition
● Anti-competitive claims
Conclusion
Emirate’s strategy is sustainable for the foreseeable
future
● Strong Brand Equity
● Successful in implementing Differentiation Strategy
(premium in-flight customer experience and service)
● Collaboration with Boeing
● Strategic
partnership
organizations
● Low threat of new entrants
with
local
tourist
Recommendation
Seize profitability
opportunities in new
market segments
(Transpacific routes between
Australasia and the Americas)
Blue
Ocean
Strategy
Create strategic
partnerships with
international airline
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THANK YOU!
DO YOU HAVE ANY QUESTIONS?
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