Emirates

Bridging Report
UID Number 2225942
Ahmed Kardame
Table Of Contents

1. Aim of the Report

2. External Environment

3. Internal Environmental

4. Summary

5. References

6. Appendices
1. Introduction
1.1 Aim of the Report
To Experience and Elaborate on research based on Emirates’ external and internal factors
that influenced its Strategic decision.
1.2 Brief Summary of the organization
His Highness Sheikh Mohammed bin Rashid al Maktoum who was the UAE Minister of Defence
and member of Dubai's upper house, asked then-DNATA Managing Director Sir Maurice
Flanagan to research creating an airline in 1984. In March 1985, Maurice Flanagan was given
$10 million to start an airline in 5 months. "Look good, be good, make money," he was told.
Dubai's open skies policy prohibits aero political subsidies and protection. Emirates flew to
Karachi and Mumbai on October 25, 1985, using a Pakistan International Airlines Boeing 737
and Airbus 300 B4. Emirates' first Airbus A310-304, A6-EKA, flew from Toulouse to Dubai on July
3, 1987. In its first five years, Emirates added 14 destinations. (Emirates, 2021) (Benham, 2008)
Dubai, Mumbai, Delhi, and Karachi in 1985 Amman, Colombo, Cairo, and Dhaka in 1986. Male,
Frankfurt, Istanbul, 1987 Damascus, 1988; Jeddah, Kuwait, 1989. (Emirates, 2021)

1.3 Evolution Over Time

Emirates pioneered in-flight entertainment by installing video systems in all its seats. Emirates'
order for seven Boeing 777s with seven options signalled its ambitions and boosted the Gulf
War-devastated industry.
Emirates is the first to offer telecommunications on all three Airbus classes.
Emirates is the first airline to offer in-flight fax service on its Airbus fleet.
Emirates order seven Airbus A380s with options for five more at the Farnborough Air Show.
The largest commercial plane will be the company's flagship for 20 years. (Emirates, 2021)
(Annual Report 2021, 2021)

2. External Environment
The External environment of the business refers to the factors which are not under to control of
the business and can be investigated with the help of PESTEL Analysis.

2.1 Political Factors

As the government strives to keep traveller safety as a top priority, the aviation industry is
particularly susceptible to political influences. The government can influence the Company's
business not only in terms of clients, but also if its home country competes with the country in
which it must operate. Emirates Airlines is an international state-owned airline based in the
United Arab Emirates. It could be very costly for Emirates Airlines. In addition, the service is a
subsidiary of Emirates Group, which is owned by the Dubai government. Consequently, it is
extremely common for the government to significantly influence this airline's crucial decisions.
(Oxford Business Group, 2014)

2.2 Economical Factors

In 2020, the UAE was predicted to have the world's 35th highest annual nominal GDP (gross
domestic product), at a whopping 353.899 billion dollars. The Gulf state ranks 19th in the world
in terms of per capita income, at $41,476. Covid-19, the travel ban, and the mass lockdown
have all contributed to a significant slowdown in the country's economic growth.
The United Arab Emirates is a member of the United Nations, the Organization of the
Petroleum Exporting Countries, the Organization of the Islamic Conference, the Arab League,
the International Monetary Fund, the World Bank, and the Non-Aligned Movement. Her
participation in multiple alliances and memberships on various platforms attests to her
dedication to international issues. Oil and gas, gems, and both refined and crude petroleum are
among the United Arab Emirates' most lucrative exports. She currently ships her wares to
customers in Switzerland, Oman, China, Japan, and India. The country's primary imports,
however, are refined petroleum, diamonds, automobiles, jewellery, and gold. The countries of
origin for the goods she imports are Turkey, the United Kingdom, Germany, India, and China.
UAE is among the countries with the highest GDP and per capita income in the world. There has
been a significant influx of FDI due to the country's booming economy and wealth of natural
resources. The United Arab Emirates’ FDI inflows were valued at around $14 billion in 2019.
More money came into the country than any other country in the region, even Turkey. The
United Arab Emirates does not tax personal income. The nation has recently implemented a 5%
corporate value-added tax. However, depending on their income level, foreign oil and gas
companies and banks must pay a corporate tax of up to 55%. (Annual Report 2021, 2021)

2.3 Social Factors

UAE's integration with other developed nations over the past two decades proves it is the only
developed and liberal nation in the Gulf region. The country is now a global centre of Asian
commerce. The UAE has 9.89 million residents. The population is 20% Emirati. UAE men and
women live 76 and 78 years, respectively. The state and popular religion are Islam. Government
and population speak Arabic. UAE residents represent more than 200 countries, more than any
other country. Most come from India, Pakistan, Nepal, South Africa, the Philippines, China,
Canada, Iran, the USA, the UK, and Bangladesh. UAE natives are friendly and sociable. Care,
cooperation, traditional tribal structures, and religious and philosophical pluralism are defining
characteristics. High divorce rates, racial discrimination, high living costs, drug abuse, obesity,
and wealth gap. According to estimates, 1% of Emiratis hold more than half of UAE's wealth.
(Annual Report 2021, 2021)

2.4 Technological Factors

Emirates Airlines uses technology like other businesses. The rate of technological development
is so fast that any advanced innovation affects business performance. Cutting-edge technology
allows airlines and businesses to upgrade their systems. To remain the world's most expensive
airline, Emirates must innovate. Emirati nationals spend about three hours per day on social
media, based on their online activity. 82% of her friends use Facebook. Tumblr, Pinterest,
LinkedIn, Instagram, and YouTube are popular alternatives. (Shamsul, 2022)

2.5 Legal Factors

Employment law is an umbrella term that covers various laws protecting employees’ rights,
such as fair wages, equality, equity, inclusion, fairness, health, and safety. In some countries,
there is no effective enforcement of employment laws, but some countries impose strict
penalties upon violation of any of the employees’ stated rights. While entering/operating in
those countries, Emirates Airlines should ensure work environment safety. Proper mechanisms
must be placed to discourage any sort of direct and indirect discrimination. Effective
compliance with the employment laws can help Emirates Airlines in strengthening its employer
brand image, which is important for attracting and retaining top talent from the market amid
the ongoing war for talent. (Swot & Pestle, 2021)

2.6 Environmental Factors

In recent years, the United Arab Emirates (UAE) has made remarkable economic gains.
Desertification, land degradation, air pollution, waste pollution, overfishing, freshwater scarcity,
carbon emission, and noise from construction work are just some of the environmental
challenges caused by the increase in population.

3.0 Internal Environment

This is to Study the Aspects that are under the control of the Organisation.

3.1 Organisational Structure

The rise of new technologies and the adoption of more efficient organisational structures have
resulted in the flattening of the world. The "age of the global village" is a term that has been
used by other authors to describe our current era. Emirates is impacted in some way by the so-
called "flattening" of the world.
It has a hierarchical ownership structure that is quite hierarchical, with the president of the
airline overseeing the entire aviation business and reporting to the executive vice chairman of
the group. In addition to this, the President oversees the central carrier operation, which
oversees the freight business, airport services, hotel and vacation business, and other related
industries.
Its growth and development have been aided by its flat organisational structure, which enables
straightforward communication and prompt decision-making. (Aali, 2011)

3.2 Organisational Culture

Organizational culture can be defined as a set of shared beliefs held by all company members. It
is the organisational culture that determines which actions and behaviours are acceptable in
the workplace. Often, a company's success is determined by its culture, and Emirates' success is
in part due to its culture.
To comprehend how organisational culture has contributed to Emirate’s success, it is first
necessary to examine the different types of culture.
There are four distinct types of organisational culture, with most organisations utilising a
combination of these models. The hierarchical approach is the conventional method for
structuring a business and fostering its culture. This culture places a high value on formal
structure and authority. All employee communications and interactions are governed by
institutional procedures, and it is frequently challenging to implement change in such
institutions. Through the implementation of uniform monitoring, one of the primary objectives
of the hierarchical culture is to increase the efficacy of individual processes. Unpredictable
endeavours are frequently disregarded due to the possibility of unfavourable outcomes.
(Driskill, 2018).

3.3 Strategies
The goals of the company's strategies revolve around increasing its global presence. Ever since
it was founded, the primary objective of the company has been to become the industry leader
across the globe in the field of airline transportation by offering global air connections. To put it
another way, the strategies the company employs are geared toward making the aviation
industry more competitive on a global scale. The business continues to maintain its position as
the market leader in the industry by implementing a differentiation strategy and offering high-
end luxury services to VIP customers as well as the public. The company stands out in the
industry thanks to the close relationships it keeps with aircraft suppliers like Boeing.
Additionally, the business places a strong emphasis on the development of high-quality
infrastructure while simultaneously making investments in airports and supplementary
services. (Emirates, 2021) (Davahran, 2014)

3.4 Marketing Strategy

Market segmentation is used to divide customers into distinct groups based on their individual
needs, as each customer has unique requirements. By developing these strategies,
segmentation into these groups enables the organisation to meet the needs of these groups.
Emirates segments its customers using conventional methods.
The market is segmented into two categories: business travellers and budget-minded travellers.
Additionally, they segment based on customer loyalty.
  Emirates also employs psychographic segmentation to categorise customers based on
their interests, lifestyle, behaviours, attitudes, and opinions.

 Emirates' target market consists of upper-class and upper-middle-class fliers, value-

seeking fliers, and non-price-sensitive fliers seeking a comfortable flying experience.

 Emirates employs a preference strategy in areas where there are two major passenger
groups: business and leisure. They both have distinct service preferences. In this
business, frequent fliers are given greater or additional importance than leisure fliers.

 Customers are also segmented based on future demand. Business travellers expect
more space and services including phone connections, Internet access, and workspace,
whereas leisure travellers expect entertainment amenities.

Emirates' target customers are upper-class and upper-middle-class fliers, value-seekers, and
non-price-sensitive fliers seeking a comfortable flying experience. (Shastri, 2022) (Mateo, 2018)

3.5 Marketing mix of emirates

The marketing mix is the study of a company's series of promotional actions for a brand, its
products, or its services. It includes Product, Place, Price, and Promotion.

3.5.1 Product
 Emirates provides its customers with brand-new aircraft such as Airbus A380s and
Boeing 777s.
 Emirates offers three different classes to its customers: Diamond First Class includes the
most opulent and exceptional services. There are comfortable seats that convert into
beds, in-seat mini-bars, chauffeur service, a Bulgari amenities kit, and private suites,
among other amenities.
 Pearl Business Class - The second class is specifically designed for business executives
with privacy partitions, USB ports and sockets, massage functions, and a winged
headrest.
 Economy class-This class is for those who wish to travel on a limited budget. The size of
the seats is standard. It provides internet access, entertainment options, and headrests
as standard amenities. (Shastri, 2022) (Cabin Features, 2022) (Aviationnews, 2020)
3.5.2 Price
 Dubai's link between East and West has helped Emirates. Because it offers short-distance
nonstop flights. Emirates has cheaper tickets than rivals. Direct flights allow for competitive
pricing. Emirates charges more for luxury services than other airlines. Emirates' prices vary.
Cabin class, flight season, and holidays affect cost. Emirates uses multiple pricing strategies,
not one. (Abro, 2019)

3.5.3 Place
Emirates operates 3500 flights per week. From its hub in Dubai, UAE, Emirates' global
network spans six continents, eight countries, and 153 destinations. Between Dubai and
Auckland, Emirates operates the longest nonstop flight. Emirates has maximised its
advantages as a global transporter by utilising its hub as a strategic location. It has also
developed customer-beneficial short-distance flights and services that have benefited both
customers and the company. (Abro, 2019)

3.5.4 Promotion
Emirates has adopted numerous advertising strategies, including:

• Advertising

• The Web of Things

• Sponsorship

• Exhibits and Other Events

• Community Relations

• Online advertising/Marketing on the Internet

Off-season flights are discounted. Emirates sponsored the 2011 and 2015 ICC World Cups
and Arsenal. Emirates' slogan, "Hello, Tomorrow," aims to inspire people about the future.
"Hello" invites a person, place, or experience. The Emirates Airline Foundation helps countries
during disasters and tragedies. Emirates did a great job promoting the brand throughout the
year. (Abro, 2019) (Sambidge, 2015)

4.0 Summary
Maurice Flanagan received $10 million in March 1985 to start an airline in 5 months. On July 3,
1987, Emirates' first A310-304 flew from Toulouse to Dubai. Emirates added 14 destinations in
five years. Emirates Airlines must innovate to remain the world's priciest airline. Low fares and
rising incomes encourage air travel.
Airline competition has reduced ticket prices, allowing working-class people to fly. Emirates'
growth and development have been helped by its flat organisational structure, which allows for
easy communication and quick decision-making. New technologies and better organisational
structures have flattened the world. The "global village" affects Emirates. Emirates value
formality and authority.
The company's strategies aim to boost global aviation competition. Each customer has unique
needs, so market segmentation divides them into distinct groups. Emirates' target customers
are upper-class and upper-middle-class, value-seeking, non-price-sensitive fliers. Business
travellers want more space, services, and workspace, while leisure travellers want
entertainment. Emirates has leveraged its hub as a global transporter.
It has also developed customer-beneficial short-distance flights and services. Emirates' slogan,
"Hello, Tomorrow," aims to excite people about the future.

5.0 References
References
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[Accessed 4 9 2022].

Abro, S., 2019. GoFrixty. [Online]

Available at: https://gofrixty.com/emirates-airline-marketing-strategy/
[Accessed 5 september 2022].

Annual Report 2021, 2021. C.ekstatic.net. [Online]

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[Accessed 5 September 2022].

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[Accessed 5 september 2022].

Cabin Features, 2022. Emirates.com. [Online]

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Emirates, 2021. [Online]

Available at: https://www.emirates.com/in/english/about-us/timeline/
[Accessed 21 August 2022].

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[Accessed 5 september 2022].

Mateo, S., 2018. GlobeNewswire. [Online]

Available at: https://www.globenewswire.com/news-release/2018/06/26/1529392/0/en/Crop-One-
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[Accessed 5 september 2022].
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[Accessed 5 September 2022].

Sambidge, A., 2015. Arabian Business. [Online]

Available at: https://www.arabianbusiness.com/industries/sport/emirates-adds-benfica-sports-
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[Accessed 7 September 2022].

Shamsul, 2022. WiseLancer. [Online]

Available at: https://wiselancer.net/emirates-pestle-analysis/
[Accessed 4 9 2022].

Shastri, A., 2022. IIDE. [Online]

Available at: https://iide.co/case-studies/marketing-strategy-of-emirates-airlines/
[Accessed 4 9 2022].