Emirates VRIO Analysis Write up #3

One of the most valuable resources Emirates has is its geographic location and strategic
route planning. Emirates' hub is in Dubai, on the Arabian Peninsula which is between Europe,
Oceania, Asia, and Africa (p.25). Benefits of the location included being far from the congested
European airspace, good weather as Dubai rarely has rain or snowstorms, which is a common
cause of delays for American and European airspaces (p.25). It is also convenient for passengers
in transit and creates opportunity to increase service offerings and build market share (p.27). The
weather helps mitigate threats from European and American competitors. Route planning was an
important source of Emirates' competitive advantage (p. 26). The strategy was capturing
underserved markets with large populations but few flying options. This adds value as it gave
Emirates a first-mover advantage (p.27). They also created a unique service for connecting
emerging markets, making it convenient for Chinese citizens to do business with African
counterparts through Dubai. This enabled the opportunity to capitalize on passenger demand not
only in Europe but Asia and Africa as well (p.27).
While Emirates was the largest airline operator at Dubai Airport, it was not the only one
(p.37). Other Gulf carriers and Turkish Airlines also enjoy the same geographic location (p.37).
However, the location is still scarce for European and American competitors. Overall the
rareness of this geographic competitive advantage is medium. In terms of the strategic routes,
flagship carriers in both developed and emerging markets were also expanding beyond their
regional bases (p. 37). Not only does this decrease the rarity, even more, it also increases the
ability to imitate this strategy/capability.
Emirates has a flat organizational structure, that allows flexibility and autonomy due to
fewer levels of management. Members of management are experienced in the commercial
aviation industry with extensive careers (p.34). The diversity of their passengers reflect the
employees they hire. Emirates need crew members who were highly trained, could speak a
variety of languages and wanted nationalities to represent the route network. This way crew
members can accommodate passengers that speak their language. They are efficient in
scheduling as all flight and pilot crews were based in Dubai (p.34). Labour costs were low
compared to other airlines and employees do not receive pensions, instead, they received, tax-
free incomes, free residential housing, healthcare plans, and end-of-service benefits (p.34).