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The Finest in the Sky

Written by Abu Bakar Ashidiqy


Magister Management Batch .V
State University of Jakarta

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES
Goals To reach on top by excelling what we do
Mission We exist to deliver the worlds best in
flight service
Vision To Make civil aviation safe, leading and
sustainable

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES

Objectives (tangible goals are )


Retain and improve frequent to business class
travelers market share
Increase market share 40% to more 55%
Tap competitive cost carriers market achieve
companys return on investment
Promote Dubai Tourism International Gate to
across continent
Position As the Finest in the Sky (at Premium
platform)

Written by Abu Bakar Ashidiqy


Magister Management, State University of Jakarta

9 February 2014

EMIRATES AIRLINES

History & Facts


During the mid-1980s, Gulf Air began to cut back its
services to Dubai providing regional feeder flights for
carriers

Emirates conceived in March 1985 backed by Dubai's


royal family and instructed to operate independent
company of government subsidies

Apart from US$10 million start-up capital

Start by leasing two its airplanes - Airbus 300 and


Boeing 737

Also Emirates leased a new Boeing 737300 & Airbus


300B4-200 both from Pakistan International Airlines

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES

History & Facts


The airline's first flight, flight EK600, was Dubai
Karachi on 25 October 1985
Emirates operates over 1,990 passenger flights per
weeks, from its hub at Dubai International Airport,
to 157 destinations in 55countries worldwide
The airline ranks amongst the top 10 carriers
worldwide in terms of revenue and passenger
kilometers
Emirates won numerous awards and aircraft
purchases over 130 aircraft in 2007 alone

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES
Targeting

Emirates caters to high ranking executives and


businessmen belonging to the age group of 30-60 who
are looking for luxury and comfort in travel. It serves all
customers regardless of nationality

Top Competitors of Emirates

Deutsche Lufthansa AG
Air France-KLM S.A.
Etihad Airways P.J.S.C.
Others Premium Airlines

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES
Employment & Structure
Emirates employed a total of 38,797 staff at the
end of the fiscal year on 31 March 2011
Of which 10,785 were cabin crew, 2,237 were
flight deck crew, 1,904 were in engineering, and
9,084 were listed as other
Emirates won numerous awards and aircraft
purchases over 130 aircraft in 2007 alone

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES

Employment & Structure

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES

Services which provided Cabin, Cargo & Ground Services

Cabin

First Class

Business Class

Economy Class

Cargo

Emirates Sky Cargo is the air freight division of Emirates. It began


operations in October 1985, the same year Emirates was formed.

Since then as become main cargo division of Emirates, and the anchor
cargo airline at Dubai International Airport

Emirates Sky Cargo operates thirteen dedicated cargo aircraft, with ten on
order

Airport Services

Passengers may check-in between two to 48 hours prior to flight


departure. This may be done over the counter or at the lounge within the
airport.

Self-service kiosks available at Dubai International Airport, as well as at


certain stations of the Dubai Metro

Written by Abu Bakar, Magister Management, State University of


Jakarta

9 February 2014

EMIRATES AIRLINES

Environmental Scanning are coming broaden from Internal


and External

Internal Environment

Commercial, brand high performance


Finance, strong backup by Qatar Emirates Al Maktoum
Technical, high maintenance aircraft facility for good aircraft
People, Pilot, Crew and technician expert worldwide

External Environment

Economy, economic uncertainty situation


Political, Arab upraising tension
Social, high growing middle class in emerging country

Written by Abu Bakar, Magister Management, State University of


Jakarta

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9 February 2014

EMIRATES
AIRLINES
PEST Analysis Politic, Economy, Social and Technology
Politic

Political situation effect an airline industry, worrying mainly wars & terrorism

Economy

Economic downturn in so many parts of the world


European facing huge debt, especially Southern Europe such as Greece,
Portugal, Spain and Italy
US facing economic slump

Social

The population of the world is increasing especially in Eastern Asia


Increasing the middle class may upgrade require safety demand

Technology

New technologies boost affect this industry in negative behind or at the


forefront at competition platform

Written by Abu Bakar, Magister Management, State University of


Jakarta

11

9 February 2014

EMIRATES AIRLINES

SWOT Analysis Strength, Weakness, Opportunity and Threat

Strength
Has the advantage of Size
Decision to focus on diversified market
Entering the cargo business
Weakness
Difficult to occupy US Market
Does not cater to middle class & budget traveler
Not all of diversification and approach have been successful
Opportunity
To develop continuously new generation of more advanced airline an
aviation services
Budget Airlines Travel
Innovation
Threats
Rival companies are major threats
Rising fuel costs
Low cost carriers upraising, Air Arabia, Al Jazeera Airways

Written by Abu Bakar, Magister Management, State University of Jakarta

12

9 February 2014

EMIRATES AIRLINES
SWOT Analysis Quadrant
Strength

Weakness

Has the advantage of Size

Difficult to occupy US Market

Decision to focus on diversified market

Does not cater to middle class &


budget traveler

Entering the cargo business

Not all of diversification and approach


have been successful

Opportunity

Threat

To develop continuously new generation Rival companies are major threats


of more advanced airline and aviation
services
Airline Budget travelers operation

Rising fuel costs

Innovation

Low cost carriers rising,


Air Arabia, Al Jazeera Airways

Written by Abu Bakar, Magister Management, State University of


Jakarta

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9 February 2014

EMIRATES AIRLINES
STRATEGIC FACTOR ANALYSIS

RANKS
COMPANIES

SERVICES TECHNICAL PRICES

PEOPLE

SAFETY

SCORE

EMIRATES

22

LUFTHANSA

16

AIR FRANCE

10

ETTIHAD

14

OTHERS

14

Written by Abu Bakar, Magister Management, State University of


Jakarta

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9 February 2014

EMIRATES
AIRLINES
For each strength How to maintain ? with Integration
of Marketing , are
Price

Emirates Airline is using the premium pricing strategy, which is to offer a


higher price than what other airlines in the market offer

Place

Emirates Airline has about eleven travel shop branches in the UAE and about 122
branches outside the UAE all around the world that provides superior services
Emirates Airline has also an online website presented in about nine languages in
order to reach all its target segments from different nationalities

Promotion

For advertising, it has to advertise in newspapers that mostly


attract this segment like Gulf news and International Airlines
Magazine
Billboards are good tool for advertising, they are attractive and
people everywhere could see them

Written by Abu Bakar, Magister Management, State University of


Jakarta

15

9 February 2014

EMIRATES
AIRLINES
For each strength How to maintain ? with Integration
of Marketing , are
Product

Emirates is always the first to offer the high-quality, latest


technologies and services to their customers, start to cargo
business
Gives travelers the ability to send and receive emails and SMS
messages from any class and the first airline to implement TVs in all
classes

People

Management of Emirates Airlines are able to promotes the sharing


of a common goal among their employee, hence, make the
organization and its team work efficient together. As they work
together, they are able to focus on the needs of the entire
organization which is to sustain their competitive advantage

Written by Abu Bakar, Magister Management, State University of


Jakarta

16

9 February 2014

EMIRATES
AIRLINES
For each strength How to maintain ? with Integration
of Marketing , are

Process

Emirates Airlines services includes the following key operating


departments such as the First and Business Class Lounges, Special
Services like assisting disabled passengers and unaccompanied
minors, Customer Relations, Baggage Services, Check-in and
Boarding, and the Millennium Airport Hotel (Emirates Wing)

Physical Evidence

Emirates fly planes release carbon dioxide through fuel burning.


However, while flying planes, Emirates wants to make a different by
focusing on how to be an ecologically-efficient organization. They
use fewer resources and creating less waste and pollution

Written by Abu Bakar, Magister Management, State University of


Jakarta

17

9 February 2014

EMIRATES
AIRLINES
For each weakness How to mitigate ? With create
market Segmentation, are

Most intensify and penetrate US Market and promotes Emirates


Airlines services includes the following key operating such as the
First and Business Class Lounges, Special Services, assisting disabled
and unaccompanied minors
Response Customer Relations, speed Baggage Services, simple
Check-in and Boarding
Business class passengers are the most profitable to Emirates and
are willing to pay for their luxurious services as price is relatively
reasonable for them and hence they prefer nonstop trips
For program in which prior plan but loses out at implementation,
should review

Written by Abu Bakar, Magister Management, State University of


Jakarta

18

9 February 2014

EMIRATES
AIRLINES
For each opportunity How could we ?, are

Marketing Penetration (Improving In-flight service)


Retain and boost market share of Emirate airlines product and
services
Protect dominance of Emirates airlines on existing market
Keep Innovation & Driving out competitors by restructuring
market
Enhance usage of existing passengers
Marketing Development (Extended New Routes)
It provides alternative to the traditional European airline hub as
Heathrow Airport (London), Charles De Gaulle (Paris) and
Schiphol (Amsterdam)
Budget Finance Monitoring (Discipline of Budget)
More focus budget discipline consumption in which set prior
(expenses)

Written by Abu Bakar, Magister Management, State University of


Jakarta

19

9 February 2014

EMIRATES
AIRLINES
For each Threat How can we eliminate ?, are

Introducing new services into existing markets implies product


development is strategy which involves the development of skill
and requires business to expand customized services that can
apply to current market

Emirates airline has more services for business travelers that is


reason why Emirates airline introduce high quality first class
private lounges to attract business traveler as anticipate to rival

Using fuel controllable by forecasting fuel management, and


tender fuel worldwide to find better price and supply risk moves
to vendor with contract schema

Written by Abu Bakar, Magister Management, State University of


Jakarta

20

9 February 2014

EMIRATES
AIRLINES
For each Threat How can we eliminate ?, are

The low cost airline offers lower prices than traditional airline
by fascinate promotion. The low cost has flexibility fare that is
one reason why some people is switching cost to them

Emirates Airlines be supposed to slightly spread from current


marketing objectives to obtain the low cost airline market
share and to retain its customer base of UAE expatriate
market

The key routes should be high demand and large number of


expatriates home country like India, Pakistan, Malaysia,
Indonesia and possibility to Eastern Asia

Written by Abu Bakar, Magister Management, State University of


Jakarta

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9 February 2014

Thank You

Q&A

Written by Abu Bakar, Magister Management, State University of


Jakarta

22

9 February 2014

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