STUDENT ID:

21420599

Submitted to:
MS. Sneha
Thakkar

STRATEGIC
MANAGEMENT REPORT
Word Count: 1934
Executive Summary
The Emirates airlines in a countrywide carrier for the Dubai government.
Two licensed airplanes which were Boeing 737 and Airbus 300 B4
started their market activities with the airline. The segment of the report
provides the readers with an outline of Emirates airline in support of its
mission. Environment analysis section, gives a brief about the analysis
of PESTLE, company analysis, customer analysis, and main competitors
analysis. This report consists of the internal and external analysis of
Emirates airline. Marketing strategy section, offer a perspective on
Emirates airline's placement strategy. Budget section; give investors the
aspirations of Emirates airline targets for the next year. The calculation
that Emirates airline's promotional efforts are effective by evaluating the
results in an acceptable monitoring and assessment area.
Contents
1. INTRODUCTION...................................................................2
1.1 Overview of Emirates airlines.................................................2
1.2 Our Mission...............................................................................3
1.3 Our Vision..................................................................................3
2. Internal Analysis..................................................................3
Micro environment...........................................................................3
2.1 VRIO.........................................................................................3
2.2 Value Chain Model...................................................................5
2.3 BCG Matrix................................................................................6
3. External Analysis.................................................................7
Macro Environment.........................................................................7
3.1 PORTERS FIVE FORCES......................................................7
3.2 PESTEL Analysis.....................................................................8
3.3 Competitive rivalry....................................................................9
4. Conclusion...........................................................................9
5. References.........................................................................10
 1. INTRODUCTION
1.1 Overview of Emirates airlines.
Emirates links the globe to our global gateway in Dubai and through it. The story of
emirates started in the mid-1980 and began the operating since 1985. The President
of the Dubai Civil Audio-visual Authority, Sheik Ahmed bin Saeed Al Maktoum, is
CEO and Chief Emirates Group President, Dubai World President, and Noor Takaful
Insurance company. Sheik Ahmed bin Saeed. The first flight of the emirates has
flown on 25th October 1985. (Emirates, 2020). The emirates travel 159 destination
across the globe. There are 59 million passengers have flow in the year 2018 –
2019.
1.2 Our Mission
The mission of Emirates is to offer the highest product quality to support with the
company operation throughout the aviation sector and to achieve full consumer
satisfaction through creativity and enhancement of quality of service (Emirates,
2020).
• Be an effective company of strong quality employees
 An interpretation with our clients and investors.
• Providing top class aviation and transportation facilities.
 To adopt a community of performance and efficiency.
 The business grows locally and even beyond.
 Honoring our financial and organizational obligations

1.3 Our Vision

Emirates vision is to achieve sustainable growth by building a worldwide distribution
system, by contributing to the ' supply chain ' of our consumers, by delivering quality
technological solutions with a relentless focus on service enhancement and cost
control.
Emirates has undertaken to efficiently meet its customers expectation, to contribute
to Dubai's success, and to make the city the new 21st-century global aviation centre.

In a row at the prestigious Skytrax World Aviation Awards 2018, Emirates received
the World's Best Inflight Entertainment award for the 14th year. In 2019 the airlines
won the award for best service to airline employees in the Middle East (Emirates,
2020). Emirates develops its airline industry through quality and no quantity.

2. Internal Analysis
Micro environment
Microenvironment states that the environment in which it is the straight interaction
with the firm and can affect the operating procedure of the company automatically. It
is connected to a minor part from which the firm operates. The microenvironment is a
collective of most of the factors connected to the business. They will impact the
financial performance of the company and everyday processes but only in the short
term. The components include manufacturers, rivals, marketing representatives,
consumers and the organization itself. (Safi, 2011)
 2.1 VRIO
The Emirates airlines VRIO Analysis displays that that Emirates Airline’s personnel
are valued reserve to the organization. A large part of employees are very qualified,
leading to greater efficiency for the company. The Staff are also committed to the
company, so turnover levels are high (Knott, 2015).
Recommendations
 Although Emirates Airlines invests more than company's standard spending on
technology development, it spends much lesser than a certain stakeholder who have
had a major benefit as a result of the quality goods.
 It takes time to buy and sell goods is high than the market average, ensuring that
Emirates Airlines draws on stock and adds extra expenses to the company.

2.2 Value Chain Model

The Value Chain implies that a firm should view such operations as forms of unearned
income. By using the value chain analysis, Emirates airlines can pick and find decent
standard raw resources and build consumer satisfaction on the basis of that, and build brand
image (Fearne, Garcia Martinez and Dent, 2012).
Recommendations
 Good application of the Emirates Airlines Value Chain Analysis will boost the
movement of goods and items due to increased demand and revenue
predictions.
 Inventory management can also be improving as Emirates Airlines can
reduce disruptions across the distribution chain by monitoring operations.

2.3 BCG Matrix

The BCG Matrix for Emirates Airlines will help the firm in implementing the corporate
level strategies for its corporate units. The analysis identifies where the tactical
corporate units of Emirates Airlines come under the BCG Matrix for Emirates Airlines
(Oivind Madsen, 2017).

Market
growth rate

Market share
Recommendation
 The lack of proper budgeting with respect to income statement at Emirates
Airlines, leads to certain situations as there is not enough income as needed
contributing to needless unscheduled lending .
 Compared to existing liability, the firm has low amounts of existing assets and
this can cause cash flow problems in activities for it.

3. External Analysis
Macro Environment
Macro Environment is described as the overall environment inside the economy that affects
the job, efficiency, decisions and policy of all corporate groups at the same time. It is
dynamic in nature. Hence it constantly changes (Gillen and Gados, 2008).

3.1 PORTERS FIVE FORCES

Threats of New Entrants:
The Aviation sector is an industry with low capital obstacles. Financial services is the most
important entry obstacles, is accessible in the Gulf and it is also possible to buy technologies
and skills. Airline competitiveness will be reduced by the challenge of new entrants (Mhlanga,
2018).

Power of Suppliers:
Boeing and Airbus are the two major manufacturers, and very strong rivalry between them.
They also purchased 32 of the double decked planes from Emirates Airline. The Airbus A380
is Emirates Airline's largest supplier. Suppliers of the firm's manufactured goods, process,
labour, and resources can be a power source throughout the firm. Suppliers decline to work
with the company or demand unreasonably high rates for the exclusive products (Mhlanga,
2018).

Power of Buyer:
Aviation industry customers in the Gulf region have a somewhat weak negotiating power.
The negotiating power is the ability of clients to increase pressure on the company and it
also influences the response of retailers to market adjustments (Mhlanga, 2018).

Availability of Substitutes:
In spite of the distances in the Gulf countries and the rapid rate that has become a
characteristic of the region the risk is very small.

Competitive Rivalry:
The aviation industry is usually very profitable and high rivalry sectors in general. Because
the production costs are high, they gain low yields, which can prove problematic in some
durations. Around thirty-seven flights going a certain route from Dubai. In addition, the
aviation industry are rapidly competitive across continuous creative services such as
reclining chairs, on-board spas and other such facilities (Mhlanga, 2018).
Recommendations
 Global trade laws continue to change and this means that businesses comply
if the company are to work internationally.
 Also, alternative goods accessible and are increasing, which is a common
challenge to the entire aviation sector because existing product use is
decreasing this impact on the company.

3.2 PESTEL Analysis

Emirates group earns a high turnover of at least $12 billion with more than 40,000
employees. The incentives for career development to encourage the workers to learn further
skills that will help them to expand their professions in future. This is PESTEL analysis that
helps to explain the condition of the market and to assess the factors influencing growing
business.

Political Factors
Any political change that indicates the sector is fragile in existence, will easily influence the
aviation industry. The political situation involves the conflicts that are happening in the
country and specific financial condition.

 As Emirates airline is the property of the Government of Dubai, it must follow the
laws and legislation followed by the Country.
 As Emirates signed deals with other countries, it is necessary to open the way for the
world. Terrorism and conflicts affect the services.
Several governments have limited the restrictions, particularly on external shipping
companies. Speaking about Dubai airlines, it plays a big part in reaching the goal of tourism
promotion. This is helpful for Dubai Government policies and rules. (Reuters, 2017).

Economic factors:
Flight jet fuel provides for about 40 per cent of operating expenses and is therefore highly
vulnerable to any changes in oil and gasoline levels on the global market. Since Dubai, the
native country of Emirates is a petroleum-rich firm which is an essential factor in the nation's
development. But it is also vulnerable to economic recession, which afflicts the country.
(Babatunde, & Adebisi, 2012).

Social and Cultural factors:

There had been a significant rise in tourism for leisure, academic and job reasons and it has
improved the fortunes of the aviation industry and owing to its network and tactical channel in all
communities around the world, Emirates has been a perfect benefit of that growth (Yüksel
I.2012).

Technological factors:
Despite high supply and demand a business needs to keep up despite technical changes in
the economy. Emirates aims to invest in better and futuristic technology as one of these
improvements, and follows the distinction policy by buying the newest aircraft types for its
fleets. The business is also starting to upgrade technologies, such as online ticket booking
facilities (Reuters, 2017).

Environmental factors:
Emirates systems are environmentally friendly, as they integrate different technologies aimed at
reducing environmental impact. (Shabanova, Ismagilova, Salimov, & Akhmadeev, 2015). For
example, the current Emirates-induced Airbus 380 uses lesser gasoline, and it has much lesser
in emissions. The aviation industry, however, is vulnerable to a natural disaster such as storms
and other climate and weather changes that can have a significant impact on the company's
operations.

Legal factors:
The aviation industry is prone not only to its native nation's laws and legislations but also to
comply with the laws of the nation in which it operates. Some changes in a country's laws
and policies will affect the firm’s activities, productivity and earnings (Gupta, 2014).

Recommendations
 Continuous advances in technology require training of the staff, since the
failure to keep pace with these improvements will contribute to charitable
contribution for Emirates Airlines.

3.3 Competitive rivalry

The global aviation industry has a high level of competitive rivalry, pressuring the firm to
create a plan to retain revenue dominance despite the rivalry. Focusing on improving the
level of service and upgrading the aircraft and equipment, as per administrators, helps to
control a market advantage. The Emirates has the advantage of becoming Dubai's national
airline, its rivals have an international presence, requiring a need to work for brand
recognition services to sustain customer satisfaction. Most of the rivals are Qatar airways,
British airways and Air France that have a large market share, allowing consistency a major
part of Emirates distinction (Maggitti et al., 2012). Using the competitive rivalry model the
following analysis of Emirates CompSet.
CompSet - Qatar airways, British airways, Air France, Lufthansa
Advantage - The Emirates Airline runs a very special market structure incorporating
flexibility. That has allowed the firm to offer fairly cheap and market-specific creative
products. Emirates Airline has an efficient business strategy to guarantee that, while
experiencing their journeys, travellers paid relatively cheaper air prices.
Disadvantage – The Emirates airlines have only its popularity in the gulf market as they have
no tie ups with one world, Skyteam with which many airlines companies have been working
on.
Opportunities - The amount of social media users around the globally has gone up. The
Emirates airlines can use the social media to endorse their products and interact with clients.
 4. Conclusion
The goal of this report was to analyze the main successful factors for suiting
emerging airlines, based on Emirates airlines research as the framework to imitate.
The Emirates marketing strategy is essentially informed by the VRIO analysis. The
Emirates airlines prominent risks has to include increasing legislation, market
downturns, challenges from existing products, as well as political conflicts and
terrorism. The Emirates airlines are on the right path from this review to maintain
their share of the market and achieve more success through distinction. Therefore,
emerging and failing airlines urge to imitate the operational strategy of the Emirates
airlines, concentrate on leveraging the opportunities available, protect against the
risks and grow above the limitations such as fixing the vulnerabilities.

5. References

Adebisi, B. (2012). The Economic Development of the Emirates. International Affairs, 58(2), pp.379-
380.

Asad, M. (2012). Porter Five Forces vs Resource Based View - A Comparison. SSRN Electronic
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Babatunde , A.(2019) The moderating effect of price perception on purchase perception: a study on
emirates airlines, DUBAI. (2019). SKYLINE BUSINESS JOURNAL, 14(2), pp.67-81.

Castillo, L. and Salem, D. (2012). Value chain and technical efficiency: an empirical analysis in
industrial firms. International Journal of Value Chain Management, 6(3), p.187.

Emirates (2020). About us | Emirates India. [online] Available at:

https://www.emirates.com/in/english/about-us/ [Accessed 27 Feb. 2020].

Emirates wins 14th consecutive World’s Best Inflight Entertainment award at Skytrax World Airline
Awards 2018. (2020). Emirates wins 14th consecutive World’s Best Inflight Entertainment award at
Skytrax World Airline Awards 2018. [online] Available at: https://www.emirates.com/media-
centre/emirates-wins-14th-consecutive-worlds-best-inflight-entertainment-award-at-skytrax-world-
airline-awards-2018 [Accessed 28 Feb. 2020].

 Fearne, A., Garcia Martinez, M. and Dent, B. (2012). Dimensions of sustainable value chains:
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Gillen, D. and Gados, A. (2008). Airlines within airlines: Assessing the vulnerabilities of mixing
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 Gupta, G. (2014). Logic based program synthesis and transformation. 1st ed. Cham: Springer, pp.35-
43.

Kim, E. (2019). An Analysis on the Core Competence Through the VRIO Model. Journal of the Korea
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Knott, P. (2015). Does VRIO help managers evaluate a firm’s resources? Management Decision,
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Maggitti, P., Coff, R., Hatfield, D. and Ferrier, W. (2012). Dynamics of Competitive Rivalry. Journal of
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