stakeholder analysis of emirates airlines
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 airlines also bagged the Best Entertainment at the 2020 Passenger Choice Awards held during the APEX EXPO in Los Angeles. Other stakeholders include Jet A 1 fuel providers, spare parts suppliers, and caterers. It involves identifying the internal and external factors that can affect a ventures success or failure and analyzing them to develop a strategic plan. In term of quality people rate airlines as 10 for Emirates Airline and 9 and 8 for the rest two airlines. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! better for the environment, better for operations, and better for customers. Today, we fly the worlds biggest fleets of Airbus A380s and Boeing 777s, offering our customers the comforts of the latest and most efficient wide-body aircraft in the skies. Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.COM. In 2020-21, the Group collectively investedAED4.7 billion(US$1.3 billion) in new aircraft and facilities, the acquisition of companies, and the latest technologies to position the business for recovery and future growth. Emirates Airlines Annual Report 2019 - https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2019.pdf, 2. Emirate Airline target audience includes people of: business people, families, and transit passengers. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The airline has managed to maintain a good organisational fit free of conflict. Released today in its 2020-21 Annual Report, the Emirates Group posted a loss of AED 22.1 billion (US$ 6.0 billion) for the financial year ended 31 March 2021 compared with an AED 1.7 billion (US$ 456 million) profit for last year. The skilled task force is also a supplier in the business. Therefore, Emirate Airline has considered that also as Etihad may become threat for the Emirate Airline in future. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.. In recent years, the airline has received numerous awards for its in-flight entertainment system (ICE) and exceptional service. The firm already has technology (Emirates IT) to support these systems. In addition, it uses product differentiation and geographical diversification (strategic option 3) to compete. The SWOT analysis for Emirates Airlines is given below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. These helped us sustain operations and retain the vast majority of our talent pool. Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. visit our help centre Top Quality. Emirates Airlines strongly focuses on providing luxurious travel experiences and top-notch customer service. Different studies of consumer behavior has indicated that how individuals, groups and organizations make purchase decision and buy goods and servicer according to their needs and desires. Therefore, their employees are also loyal to the company (Group, 2011). Trade protectionist policies of new U.S. administration, 1. The airlines primary hub is at Dubai International Airport (DXB), also one of the busiest airports in the world regarding passenger traffic. Revenue from dnatas Travel Services division has declined by 96% to AED130 million (US$35 million). The airline is a subsidiary of The Emirates Group, owned by the government of Dubais Investment Corporation of Dubai. In 2017, Emirates was lauded as the Best Airline in the World in the inaugural TripAdvisor Travelers Choice Awards for Airlines. Economic. The firms A380 fleet is the largest in the industry globally (Lohman et al. Staff training may be necessary for front-line employees. In addition, it offers integrated in-flight catering and accommodation for travelers. Emirates unique connections to/from Europe 7 Figure 6. During the year, it launched numerous customer initiatives such as: providing the industrys first complimentary COVID-19 medical cover for all passengers; waiving fees so customers can rebook their travel without penalty; expediting refunds handling; and fast-tracking biometric processing and other technology projects that enhanced the travel experience while reducing contact at airport touchpoints. International airport operations continue to represent the largest business segment in dnata by revenue contribution. The airliner invested in 37 lounges in different destinations globally to provide dining services to passengers (Jammoul 2014). 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. Dess, M, Lumplin, C & Eisner, F 2007, Strategic Management: Creating Competitive Advantages, McGraw-Hill, New York. The risk of strategic drift for the Emirates is low because of the firms IT solutions segment. Commitment to eco-efficiency through major investments and initiatives, Emirates Airlines Porter's Five Forces Analysis, Emirates Airlines Covid-19 Impact Analysis, Emirates Airlines Segmentation, Targeting and Positioning (STP) Analysis. Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. This is primarily due to the full year impact of the pandemic situation including a nearly 12-month shut down of the facilities in Australia which dnata had acquired only two years ago. Interactive feedback can help tailor in-flight services to customer needs. On social-cultural basis the country is one of the diverse in this Middle East region. This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. The reported total transaction value (TTV) of travel services sold declined by 98% to AED 229 million (US$ 62 million). The requirements for the implementation of the strategies include financial systems, passenger management systems, and HR systems. Its primary actions involve managing cargo and ground handling, catering and travel services. Company Background. 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. People from many other countries come to live in UAE or for visiting UAE. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. 15, no. The price difference between substitutes (LCC) and Emirates services is large. Web. They pay they gives to their employees are merit base pay as well as the pure performance based pay. In this article, we do a SWOT Analysis of Emirates Airlines. The airline in 1985 e started its operations, when in mid-1980s the Gulf Air cutback to Dubai. Technological Environment AND Natural Environment. In short, the government of UAE is stable politically, with strong political reforms. Emirates average fleet age remains at a youthful 7.3 years. Web. (2021, July 23). Strong competitors from the region such as Etihad from neighboring emirate, Abu Dhabi and Doha based Qatar Airways. Factors on which these airlines positioned their brands, Above data clearly show that in term of quality, price, availability and promotional activities the top of the mind brand is Emirates Airline. However, skill development and proper financial development are required to support implementation. Emirates Airlines Revenue : AED 35.5 billion - FY ending 31st March 2021 (y-o-y growth -65.8%) AED 104.3 billion - FY ending 31st March 2020 (y-o-y growth -4.8%) AED 109.3 billion - FY ending 31st March 2019 Competitive Analysis of Emirates Airlines SWOT PESTLE The SWOT analysis for Emirates Airlines is given below: Sample Complete Report The values define the approach to dealing with different stakeholders, including customers and suppliers. This includes a one-time impairment charge of AED 710 million (US$ 193 million) mainly relating to certain aircraft which are currently grounded and are not expected to return to service before their scheduled retirement within the next financial year. The issues are still under discussion. The wholesaler and retailer through the use of their cargo services send their products to end customer. 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. July 23, 2021. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. Digital Marketing and Social Media Strategy Analysis Report. This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. This may restrict Emirates' ability to expand its presence in the U.S. Also Emirates uses Airbus A380s which has a capacity of up to 600 passengers. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. 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). 2011). This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. Etihad Airways Overview Etihad Airways was incorporated in July 2003 as a national carrier. The only recommendation is that, they have to position their marketing activities while considering all their competitors. Therefore the no of channel between end customers are three. For frequent flyers, Emirates Skywards offered generous extension on Tier status and Miles validity until 2022, and launched various initiatives to help its members earn and redeem rewards even if they are unable to immediately travel. The airline reports a Passenger Seat Factor of 44.3%, compared with last years passenger seat factor of 78.5%; and a 48% increase in passenger yieldto 38.9fils(10.6US cents) per Revenue Passenger Kilometre (RPKM), due largely to a favourable route mix, fares and continued healthy demand for premium seats. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. However, the threat of new entry is low because of the high capital/resource requirements and brand equity enjoyed by established carriers (Sheffi 2006). From this mean that we have to clarify that who are our potential buyer who will enjoy our services. The total number of employees in this company were 38797 in the fiscal year 2011 (Group, 2011). This dramatic revenue decline was due to the COVID . We use cookies to optimize the website, no personal information is stored. It is the process of dividing potentialmarketsor consumers into specific groups and offering product according to their needs. For the purpose of identifying the target audience marketer first have to divide the market into different segments and then on the basis of their needs and wants offering them the desired product (DeMers, 2012). Another entry barrier is brand equity, whereby established carriers boast of a strong presence and brand value. The Emirates Group. utilization of large carriers, such as Airbus A340, with a considerable carrying capacity (Lohman et al. IvyPanda, 23 July 2021, ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. The airline purchase its aircraft from the top companies in the world Air Bus and Boeing. The Emirates business model. In addition, the switching costs between airlines are low. The support from aviation lessors and financing partners during these challenging times reflects the financial communitys confidence in Emirates business model, and its mid to longer term prospects. The Groups revenue was AED 35.6 billion (US$ 9.7 billion), a decline of 66% over last years results. Press Esc to cancel. 2009). It also launched new technology platforms Emirates Partners Portal and Emirates Gateway, to better engage and serve travel trade partners. 1. Moreover, another pricing strategy that Emirate airline is following is the premium pricing strategy (Emirates flight pricing & sales strategy, 2014). In airline industry there is lot of competition. And its operating in many industries and sectors. Analysis of Competitive Strategy and Position. Currency fluctuations this year had no significant impact on airline revenue. From zero scheduled passenger flights at the start of the financial year, to operations in over 120 destinations by 31 March 2021, Emirates has shown its ability to adapt and respond to challenges, and the resilience of its people and business model. Your privacy is extremely important to us. Overall, the three strategies can be implemented without incurring extra costs. During the year, Emirates reactivated its strategic codeshare partnership with flydubai, and entered into agreements with new partners TAP Air Portugal, FlySafair, and Airlink in South Africa, to expand connectivity for its customers. The appropriateness of the strategic options for Emirates will depend on their relevance to the firms internal capabilities and strategic vision as well as to the macro-environment forces/trends in the industry (Dess, Lumplin & Eisner 2007). Until 2020-21, Emirates and dnata have had a track record of growth and profitability, based on solid business models, steady investments in capability and infrastructure, a strong drive for innovation, and a deep talent pool led by a stable leadership team. Thus, carriers compete by providing schemes that include cheap tickets with quality services. Jammoul, A 2014, The Strategic Diagnosis: Emirates Airlines, Sophia University Presss, Nice, France. raising its passenger capacity through short- and long-hauls to several in-demand destinations. Financial PerformanceFY 2023: Revenue up 131% to AED 50.1 billion (US$ 13.7 billion), and profit of AED 4.0 billion (US$ 1.1 billion) compared to AED 5.8 billion (US$ 1.6 billion) loss for the same period last year. Environmental Context Analysis of the UAE. The Executive Board defines the strategic decisions. Cash used in financing activities, primarily payments for loans and leases, amounted to AED 548 million (US$ 149 million), while the business utilised net cash of AED 149 million (US$ 41 million) in essential investing activities. Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. The threats in the SWOT Analysis of Emirates are as mentioned: 1. Are you looking for a report which is not covered on our website? Here is a SWOT analysis for Emirates Airlines: A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Organizations are referred as an open system, where there are many forces that directly or indirect affect the organizations. SWOT Analysis: Meaning, Importance, and Examples. 3. Emirates and Dnata are independent entities, but under common management. In the UAE and GCC region, dnatas Travel business remained steady. Economically the country is one of the fastest growing country in the world. 2023 The Emirates Group. While the macro factors are the political condition of the country its economic condition, society and the technological development in the country (PESTLE Analysis of UAE 2012, 2012). dnatas Travel division saw corporate and leisure travel demand dry up across markets. A strategic drift arises when a firms strategies are shaped gradually by its history or organizational culture that is not in consonance with industry trends (Grant 2002). This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. The later part will in detail mentioned the targeted audience and the need and wants of that targeted audience. Passengers from these countries can stopover at Dubai International Airport en route to North America or Australia and New Zealand (Auckland destination). Emirates management, which features experienced practitioners, is likely to accept measures that strengthen the airlines competitive position (Emirates Group 2015). Notably, in Australia dnata began ground handling for Qantas at most of its major airports and GTA dnata, its joint-venture company in Canada, was awarded a five-year ground handling license for ramp, passenger, and cargo warehousing services at Vancouver International Airport. Do you want us to design a market survey or write a market research report as per your specific requirements? The airline operates the mixed air fleets which are the wide-body aircrafts. The Summary report contains the SWOT & PESTLE table contents only. Emirates received a capital injection of AED 11.3 billion (US$ 3.1 billion) from our ultimate shareholder, the Government of Dubai, and dnata tapped on various industry support programmes and availed a total relief of nearly AED 800 million in 2020-21. IvyPanda. A. Copyright 2023. 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.
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