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Emirates Airlines

Presented By: Harjot Singh: M00374994 Isha Kembhavi: M00378694 Nidhi Sagar: M00379585 Tabish Shaikh: M00374995

CONTENT
Micro (Internal) Analysis
Competitors Analysis Macro Analysis

SWOT
Recommendations Reference List

INTERNAL ANALYSIS
Internal analysis takes into consideration the resources an organization has or lacks. Internal analysis for emirates has been divided into: Tangible and Intangible. Tangible resources: Emirates poses the latest technology and excellent service strategies to compliment its most modern fleet of over 115 aircrafts, over 100 destinations in 62 countries and over 12,800 highly skilled staff. The intangible resources consist of: Brand loyalty Managements competence

COMPETITORS
Qatar Airways
Strength

Wide destinations, Cabin crew awarded as best in ME, Innovative services


Profit never measured exactly, reduced goodwill. Increase market share, and goodwill. Increase customer value by 15% by 2015

Etihad Airways
New & technologically advanced fleet, excellent management, diversification

Weakness

Fewer destinations, weak support, delayed process by compensations Short Term- Break even by 2011, Maintain customer service while decreasing cost. Long Term- Increase profit by 5-10%, increase customer value by 8-10%

Objectives

MACRO ANALYSIS
The major external and uncontrollable factors that influence and organizations decision making process, affecting its performance and strategies. The major factors that affect Emirates performance are: Political factors: Aviation rules among governments affect the airlines operations to a large extent. While most governments have strict policies to protect local airlines, Dubais open sky policies have helped Emirates. Economic factors: The demand in the industry depends enormously on economic conditions. Despite the recession, Emirates has earned profits. This is mainly because it operates from and to countries with a powerful GDP. Also, the increasing demand for airfare by the high-income group for business and leisure has lead to Emirates increase revenues in 2011 to 15%.

MACRO ANALYSIS
Social (and cultural) factors: Both, domestic and international markets where Emirates operate have cultural diversity. Factors like values, religion affect its decisions. For example, not serving alcohol onboard for Saudi bound flights. Also, in countries like America, or parts of Europe it is socially enhanced to travel annually. Technological factors: Latest technology is the success driver in the industry. With constantly changing technology, it is a must for Emirates to keep updating themselves. So far, it has done an excellent job, earning awards such as: Best IT Developer in in-flight entertainment, Best Global Airline, Best in-flight entertainment, etc.

STRENGTH: 1. Advanced technology and continuous innovation 2. Developed infrastructure 3. Large and young fleet 4. Stable financial records 5. Skilled and diverse staff 6. Brand loyalty and good will

WEAKNESS: 1. Heavily dependent on oil export 2. Local economy dependence: home government subsides

SWOT
OPPORTUNITIES: 1. Higher global market expansion due to liberalization and deregulation 2. Reducing competition on duopolistic routes 3. Possible entry into low cost market penetration. 4. Expansion into cargo THREATS: 1. Fuel price fluctuation 2. Environmental constrains: climate change, shortage of resources, air pollution 3. Low-cost revolution: more intense competition 4. Unstoppable deregulation and liberalization

RECOMMENDATION
Emirates has the potential to expand and grow. It can utilize its resources and opportunities, overcome weaknesses and threats in the following ways: To cut down costs, Emirates can outsource operations such as maintenance, catering. This also provides them high expertise and efficiency. Market penetration is recommended through lowering prices in certain markets. This is to achieve short-term objectives and face competitors. From competitive advantages and economies of scale, Emirates can also strengthen or expand Emirates cargo flights.

REFERENCE
Emirates.com (2012) About Emirates | Emirates United Arab Emirates. [online] Available at: http://www.emirates.com/ae/english/about/about_emirates.aspx [Accessed: 19 Mar 2012]. Etihadairways.com (2003) Corporate profile. [online] Available at: http://www.etihadairways.com/sites/etihad/ae/en/aboutetihad/corporateprofile/Pages/Cor porateProfile.aspx [Accessed: 19 Mar 2012]. Logos.wikia.com (2012) Emirates - Logopedia, the logo and branding site. [online] Available at: http://logos.wikia.com/wiki/Emirates [Accessed: 19 Mar 2012]. Qatarairways.com (2000) Corporate Social Responsibility | Qatar Airways UAE. [online] Available at: http://www.qatarairways.com/ae/en/csr.page [Accessed: 19 Mar 2012]. Scribd.com (2011) Etihad Airways Marketing Strategy. [online] Available at: http://www.scribd.com/doc/54943204/Etihad-Airways-Marketing-Strategy [Accessed: 19 Mar 2012]. Unknown. (2012) [online] Available at: http://www.nyitonline.com/nyit/MRKT601/Class/AssignmentArticles/Sohail_sampleCase2.pdf.