4.

0 The matching stage

The SWOT Matrix-The Emirates Group 2014

The strengths-Weakness-Opportunities-Threats (SWOT) Matrix is an important matching tool that
helps managers to develop.

Strengths Weaknesses
1.Revenue turnover-annually 73.1 billion 1.Customers checkout process-Need
improvement
2.Average customer -40 Million passengers
2.High prices comparing to other airline
3.Employee morale is excellent
companies
4.Newspaper adverting expenditures down 10
3. Does not cater to middle class & budget
percent
traveller
5. The largest airline in the middle east

6. Emirates became the first airline to provide

Google’s now cards for their passengers.

7. Most profitable airline in the industry.

Opportunities Threats
1. The increase of the fuel price
1.The largest population
2. Rival computers are major threats to the
2. 65 Million Training centre with simulator
business
for training pilots and crew.
3. Political instability in the middle east
3. The largest plane in the world-ordering an
region
additional plane
4. Dubai debt crises
MATRIKS SPACE

The strategic position and action evaluation (SPACE) Matrix, another important stage 2
matching pool. Its four –quadrant framework indicates whether aggressive, conservative,
defensive or competitive strategies are most appropriate for Emirates organizations.

FP

Conservative Aggressive

 Market penetration  Backward, forward, horizontal

integration
 Market development
 Market penetration
 Service development
 Market development
 Related diversification
 Diversification- related or unrelated

CP IP

Defensive Competitive
 Retrenchment  Backward, forward, horizontal
 Divestiture Integration
 Liquidation  Market penetration

 Market development

SP
SP refers to the volatility of profit and revenues for Emirates group. SP volatility (stability) is
based on the expected impact of changes in core external factors such as technology,
economy, demographic, seasonality) the higher frequency and magnitude of the changes
more unstable on SP. An industry can be stable or unstable on SP, yet high or low on IP. The
Emirates group for example would be unstable on SP yet high growth on IP. IP-Industry
position, CP-competitive position, FP- Financial positions.
Factors that make up the SPACE MATRIX Axes for Emirates Group
Internal strategic position External strategic positions
Financial positions (FP) Stability positions (SP)
Return on investment Technological changes
Leverage Rate of inflation
Liquid Demand variability
Working Capital Price range of competing product
Cash Flow Barriers to entry
Inventory turnover Competitive pressure
Earnings per share Ease of exit from market
Price earnings ratio Price elasticity of demand
Competitive Position (CP) Industry Position (IP)
Market share Growth potential
Product quality Profit Potential
Product life cycle financial stability
Customer loyalty Extent leveraged
Capacity utilization Recourse utilizations
Technological know-how Ease of entry into market
Control over Suppliers and distributors Productivity, capacity utilization
The BCG MATRIX Emirates group
Quadrant 1 of the BCG Matrix are called “Question Marks” those located in Quadrant 2 are
called “STAR”, those located in Quadrant 3 are called “ CASH FLOW” and those division
located in Quadrant 4 called “DOGS”.

STARS QUESTION MARKS

-. The largest airline in -New technology
the middle east
1
2
CASH FLOW DOGS
- Most profitable airline -The increase of the
in the industry. fuel price
3
4

Question Marks-
Have a low relative market share position, yet they compete in a high-growth industry.
Generally these firms’ cash needs are high and their cash generation is low. These business
are called question marks because the organization must decide whether to strengthen them
by pursuing an intensive strategy

Stars- Refer to Emirates best long-run opportunities for growth and profitability

Cash Cows-Emirates have high relative market share position but compete in a low-growth
industry

Dogs-Organization have a low relative market share position and compete in a slow-or no
market growth industry- as per today Emirates group perform very well, there are no bounced
back or cost reduction.
THE INTERNAL-EXTERNAL (IE) MATRIX

The Internal-External (IE) Matrix positions an organization’s various divisions in a nine-cell

display. The (IE) Matrix is similar to the BCG Matrix in that both tools involve plotting
organizations division in a schematic diagram, called as portfolio matrices. The size of each
circle represents the percentage sales contribution of each division.

The IE total weighted scores-Emirates Group

Division/Year 2013 AED m 2011-12 AED 2010-11 AED m

m

Transport Revenue 68,978 58,828 50,511

sales of goods 1,196 2,017 1,744
Food 502 245 226
Other 483 418 434
Total of revenue 71,159 61,508 52,945
Percent’s of revenue 70% 60% 50%

THE GRAND STRATEGY MATRIX

In addition to the SWOT Matrix, SPACE Matrix, BCG Matrix, and IE Matrix, the Grand
strategy Matrix has become a popular tool for formulating, alternative strategies in Emirates
Group