While making purchase decision many factors affect consumer buying behavior (Dudovskiy, 2013). customer services and relationship activities. DII impact of Emirates' A380 deliveries in 2013 6 Figure 5. We're here to answer any questions you have about our services. Airlines can utilize travel agencies, advertisements and the internet to promote their brand. The appropriateness of the strategic options for Emirates will depend on their relevance to the firms internal capabilities and strategic vision as well as to the macro-environment forces/trends in the industry (Dess, Lumplin & Eisner 2007). The number of aircraft turns handled by dnata in the UAE declined by 59% to 78,000. All work is written to order. Environmental analysis is the analysis of forces around the organization that affect or make an impact on the ability of the organization to take decision. It is a subsidiary of the Emirates Group which is owned and backed up by the government and the Dubai royal family. "Emirates Airlines' Strategic Choices and Decisions." The 'acceptability criteria' applied to Emirates can indicate the stakeholders' expectations, expected returns/profits, and inherent risks. 2011). The SWOT analysis for Emirates Airlines is given below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. Stakeholder Analysis: Lockheed Martin Corporation 1461 Words | 6 Pages. Emirates is also the fourth in the ranking of all airlines globally (O'Connell and Bueno, 2018; Redpath, O . The airline is a subsidiary of The Emirates Group, owned by the government of Dubais Investment Corporation of Dubai. The prosperity of the organization is since it is developing in the UAE, a country characterized by rapid and efficient economic development (Simmons, 2020; Almarri and Abu-Hijleh, 2017). In October, Emirates SkyCargo set up a dedicated GDP-certified airside hub in Dubai for COVID-19 vaccines, and later it partnered with UNICEFto facilitate the rapid transport of COVID-19 vaccines to developing nations through Dubai. Our global presence Please click here for more information. In addition to supporting global supply chains for food, medical and other trade items, Emirates SkyCargo also tapped on its pharma capabilities and infrastructure to support the worldwide distribution of COVID-19 vaccines and humanitarian relief to Lebanon in the aftermath of the Port of Beirut explosions. Freight yield per Freight Tonne Kilometre (FTKM) increased strongly by 88%, due to the unique pandemic situation which led to significantly reduced cargo capacity in the market worldwide. (PDF) Analysis of airport stakeholders - Academia.edu Consumer behavior is the acts and decision processes of the consumer which they shows during the purchase the product as well as services. Do you want us to design a market survey or write a market research report as per your specific requirements? Emirates Airlines with its consecutive 22 years of profit and customer satisfaction has the mission and vision to serve customers, stakeholders and environment as well. Economically the country has seen many ups and down in the previous years. Emirates SkyCargo put in a stellar performance by rapidly responding to new demand in a changed global marketplace, contributing to 60% of the airlines total transport revenue. Type above and press Enter to search. We will write a custom Report on Emirates Airlines Strategic Choices and Decisions specifically for you for only 11.00 9.35/page. Reach thousands of academicians and corporates. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. dnata continued to lay the foundations for future growth with investments in 2020-21 amounting to AED 328 million (US$ 89 million). However, the country has successfully take out itself from the economic crisis of 2008 and 2009, which was mostly due to world economic crisis and decline in trade. The firms A380 fleet is the largest in the industry globally (Lohman et al. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. Before we dive deep into the SWOT analysis, let us get the business overview of Emirates Airlines. Moreover, the airline always try to remain first in adopting new technologies and providing unique services. Stakeholder engagement in the development of - ScienceDirect The later part will in detail mentioned the targeted audience and the need and wants of that targeted audience. Lovestock, H, Wirz, L & Keh, P 2002, Service Marketing in Asia: Managing People, Technology & Strategy, Prentice Hall, New York. Based on the evaluation, the following three strategic choices were identified: Porters five forces provide a useful framework for analyzing industry structure and processes to identify the sources of competitive advantages for a firm (Porter 2008, p. 67). The strategic decisions revolve around four main objectives. Emirates closed the financial year with cash assets of AED 15.1 billion (US$ 4.1 billion), a position which would have stronger if not for a one-time payout of AED 8.5 billion for customer refunds. Here is a SWOT analysis for Emirates Airlines: A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Diversification is referred as offering new services to new market. Second aspect is that how the particular airline is going to satisfy or dissatisfy with the available services with respect to each of the priority important needs and wants. During 2020-21, dnatas Airport Operations division continued to strengthen its international reach and capability. Emirates Airlines SWOT Analysis - The Strategy Story Study for free with our range of university lectures! This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. Politically UAE is strong and the political condition in UAE is stable. In addition to the AED 14.5 billion financing that was raised for aircraft and general corporate purposes in 2020-21, Emirates has already received committed offers to finance two aircraft deliveries due in 2021-22 and continues to tap the financial market for further liquidity to provide a cushion for the potential impact of COVID-19 on the business cash flows in the near term. The airline operates more than 3400 flights per week. Auckland International Airport SWOT & PESTLE Analysis, Royal Jordanian Airlines SWOT & PESTLE Analysis, Yansab (Yanbu National Petrochemical Company) SWOT & PESTLE Analysis, Sharjah Islamic Bank SWOT & PESTLE Analysis, Emirates National Oil Company (ENOC) SWOT & PESTLE Analysis, 1. Our economic impact Please click here for more information. Released today in its 2020-21 Annual Report, the Emirates Group posted a loss of AED 22.1 billion (US$ 6.0 billion) for the financial year ended 31 March 2021 compared with an AED 1.7 billion (US$ 456 million) profit for last year. Current strategies are built around the firms capabilities, such as resources and technological expertise. Therefore, the strategic options will not reduce the financial returns/profits of the airline. To lower the operational costs through a lean workforce and maintaining low overhead costs. Labour force, which comprises engineers and pilots, tends to be unionized. Moreover, the airline is economically strong and it will never turn down. The issues are still under discussion. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. In Singapore and Australia, it introduced new high-tech cool dollies to enhance its pharma and perishables handling capability; in Italy its subsidiary, Airport Handling SpA, partnered with Beta Trans to provide full cargo services to customers at Milan Malpensa Airport; and in Indonesia, dnata entered the market through a partnership with PT UNEX Rajawali Indonesia (UNEX) where both entities will make joint investments in ground handling facilities, equipment, and training. Emirates Airlines strongly focuses on providing luxurious travel experiences and top-notch customer service. Dess, M, Lumplin, C & Eisner, F 2007, Strategic Management: Creating Competitive Advantages, McGraw-Hill, New York. connection point between two flights. Our government affairs journal Please click here for more information. From tan till now the airline has shown tremendous growth. professional specifically for you? Emirates founded in 1985, is a Dubai (UAE) based global airline with operations in more than 81 countries serving 155 airports and boasting a fleet of over 270 aircrafts as of the year 2020. Emirate Airline is positioning their product on the basis of price. Different studies of consumer behavior has indicated that how individuals, groups and organizations make purchase decision and buy goods and servicer according to their needs and desires. Web. Technological the country is also growing, likewise in telecommunication industry Etisalat is the market leader, and providing best services in telecommunication industry around the world. Change Management in The Emirates Airlines Report For the first time in the Groups history, redundancies were implemented across all parts of the business. Emirates utilizes this strategy to reduce costs to enhance its competitiveness. With significantly reduced and constrained capacity deployment across most markets, Emirates total revenue for the financial year declined 66% to AED30.9 billion (US$8.4billion). Economic. Europe also has been target of terror in recent times and these will have an impact on tourism and travel and subsequently Emirates business. Throughout an incredibly tough year with a fast-changing global travel environment, dnatas Travel division focussed on initiatives to support its customers and provide value. Passengers often consider ticket prices and in-flight and lounge services when selecting a flight. Emirates is an airline company based in Dubai. Its main hub is Dubai, UAE. The Executive Board defines the strategic decisions. The firm already has technology (Emirates IT) to support these systems. For frequent flyers, Emirates Skywards offered generous extension on Tier status and Miles validity until 2022, and launched various initiatives to help its members earn and redeem rewards even if they are unable to immediately travel. Progressing with key investments for its future growth, dnata Catering inaugurated a second state-of-the-art catering facility in Dublin, introduced new bio-digesters to reduce food waste across its operations, and solar panels at its Singapore facility as part of its commitment to reduce its environmental footprint. Today the economy of the country is growing on fastest pace and the recorded economy in 2013 was 4.4 percent, which was expected to reach at 4.8 percent this year. 1 british airways, stakeholder analysis, petya laleva - SlideShare To track regional businesses and to the . The aviation industry has only two aircraft manufacturers, Boeing and Airbus. and the flag carrier With the only aim of providing the quality services as well as the comfortable journey to its travelers the airline is the leading airline of Middle East region. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. Changing Govt policies and regulations Emirates Competitors SWOT & PESTLE.com (2023). These fundamental ingredients of our success remain unchanged. Currency fluctuations this year had no significant impact on airline revenue. Please note that you agree to receive email updates from us on our new reports and solutions. PDF Analysis of Airport Stakeholders - George Mason University dnatas international business accounts for 62% of its revenue. Although each of the three strategic alternatives represents a viable option for Emirates, cost, financial risk, and customer service considerations make the second strategy the best choice for implementation. Dubai based airline company is the subsidiary of Emirates Groups. Thus, supplier power is significant. A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. Group revenue was AED 13.7 billion (US$ 3.7 billion) for the first six months of 2020-21, down 74% from AED 53.3 billion (US$ 14.5 billion) during the same period last year. This section of the report will in-detail analyze some of the major direct and indirect competitors of Emirates Airline. The SAF model applied to Emirates indicates that each of the three strategic options is essential in the airlines growth. As for as natural resources are concerned UAE is rich in two of the biggest natural resources i.e. petroleum and natural gas reserves. US$ figures are converted at 1US$ = 3.67AED and are based on the AED figures rounded off in millions. 2, pp. Different sub-types of passengers have been identified (Neufville & Odoni 2003; pp. The reported total transaction value (TTV) of travel services sold declined by 98% to AED 229 million (US$ 62 million). 1. Performance shows the airlines ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products. Highly priced tickets compared to competitors, 1. Moreover, their major aim is provide the quality services for that they have dedicated team that work day and night for ensuring the quality (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). The total number of employees in this company were 38797 in the fiscal year 2011 (Group, 2011). In addition, the switching costs between airlines are low. The cargo division also introduced new loading protocols to safely utilise overhead bins and passenger seats to carry cargo. These forces are further divided as the macro forces as well as the micro forces. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry. The acceptability of a strategic choice evaluates stakeholder expectations to determine their reactions and anticipated returns or risks (Slack, Chambers & Johnston 2004). Once a targeted audience is identified we have to look the need and wants of that targeted audience. Together with Dubais undiminished ambitions to grow economic activity and build a city for the future, I am confident that Emirates and dnata will recover and be stronger than before., He concluded: In the year ahead, we will continue to adopt an agile approach in responding to the dynamic marketplace. Copyright 2023. However, the profit margin for the year 2017 has plunged lowest in the . (PDF) Analysis of airport stakeholders - ResearchGate In 2017, Emirates was lauded as the Best Airline in the World in the inaugural TripAdvisor Travelers Choice Awards for Airlines. 15, no. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Overall, the threat of substitutes is high in this industry. Unfortunately, we still had to make the difficult decision to resize our workforce in line with reduced operational requirements.. The main stakeholders include the Dubai government, company management, passengers, travel agents, aircraft providers, and staff. SWOT analysis is a strategic tool for the evaluation of a firms internal and external environments to determine its strategic position in the industry (Kotler & Keller 2011). Today, we fly the worlds biggest fleets of Airbus A380s and Boeing 777s, offering our customers the comforts of the latest and most efficient wide-body aircraft in the skies. Emirates' Economic Impact in Europe Figure 1. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. must. Passengers from these countries can stopover at Dubai International Airport en route to North America or Australia and New Zealand (Auckland destination). As, Etihad Airline is also doing well and providing tough time to its competitors. Unwittingly, they have been subsidising their national carriers through a fortress mentality of aeropolitical protection and the elimination of competition, and other primary sectors of their economies have suffered as a result.. The main point that has to be cover are as follows: first thing that is required, is the identification of the targeted audience. In addition, it offers integrated in-flight catering and accommodation for travelers. It involves identifying the internal and external factors that can affect a ventures success or failure and analyzing them to develop a strategic plan. In airline industry the competition is increasing day by day as the competitors are trying to provide more quality services then each other. In today world every organization is engaged in competition. They pay they gives to their employees are merit base pay as well as the pure performance based pay. Our philosophy relating to international aviation policy and a move towards open skies can be summarised by a quote from the . The requirements for the implementation of the strategies include financial systems, passenger management systems, and HR systems. Table 2: External stakeholders (Source: Qantas, 2020) Stakeholders' nature and implications of conflicting interests. All Rights Reserved by Barakaat Consulting. Totaloperating costs decreased by46% from last financial year. Emirates Airlines SWOT & PESTLE Analysis | SWOT & PESTLE In addition to passenger flights, Emirates SkyCargo operates dedicated freighter aircraft and manages the cargo activities of the airline. "Emirates Airlines' Strategic Choices and Decisions." During the year, Emirates reactivated its strategic codeshare partnership with flydubai, and entered into agreements with new partners TAP Air Portugal, FlySafair, and Airlink in South Africa, to expand connectivity for its customers. Emirates airline embarks on 'modest restructuring' as growth slows Emiratisation strategy to recruit and retain UAE Nationals, 1. Key Performance Indicators (KPI's) Report. However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now. Feasibility evaluation reveals that the strategies are executable because of the firms large capital base and internal resources. Thus, carriers compete by providing schemes that include cheap tickets with quality services. 2023-2029 Airline Catering Market Share, Growth Prospects - MarketWatch Therefore we take the rating scale of 1-10 to rate these factors. Internal and External Stakeholder Analysis - Peachy Essay In recent years, the airline has received numerous awards for its in-flight entertainment system (ICE) and exceptional service. dnata Travel Group continued to secure growth opportunities. The Summary report contains the SWOT & PESTLE table contents only. Micro environment of UAE is its trading partners, competitor i.e. other countries in the Middle East region and UAE itself. Emirates Airlines Annual Report 2019 - https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2019.pdf, 2. The acceptability criteria applied to Emirates can indicate the stakeholders expectations, expected returns/profits, and inherent risks. However, external constraints, such as industry rivalry and fuel prices, may affect the adoption of the first strategic option. The industries company is catering are airport services, hospital industry, catering, and engineering. Analysis of Competitive Strategy and Position. Disclaimer: Information contained in the press releases published on our media centre is accurate at the time of publication. The introduction of new technology will also affect the airline industry in positive as well as negative way. International airport operations continue to represent the largest business segment in dnata by revenue contribution. Other stakeholders include Jet A 1 fuel providers, spare parts suppliers, and caterers. We aim to recover to our full operating capacity as quickly as possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.. 1.1.1. Some modules are disabled because cookies are declined. Analysis of the Emirates Airlines | Business Paper Example The detailed complete set of references are available on request in the 'Complete report' on purchase. Based on this framework, the three strategies are good choices for the firm. dnata leveraged its established home market presence and the re-opening of Dubai for international travel to promote the UAE, and its UAE-based tour operating division Arabian Adventures started new experiences. Emirates average fleet age remains at a youthful 7.3 years. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. In response to the pandemic, Emirates led the industry in developing new service and operating protocols to protect its customers and employees. Family Life Cycle:Bachelors, married, working women, office working people, old age people are the targets. Emirates order book for 200 aircraft remains unchanged at this time. To enhance luxury travel through integrated passenger lounge and in-flight services. With two aircrafts in 1985, Emirates airline owns 265 aircrafts and serves 80 countries globally. Keeping a tight control on costs, across the Group, financial obligations were restructured, contracts renegotiated, processes examined and operations consolidated. Emirates Airlines' Strategic Choices and Decisions. The StB entails five features that automate the entire traveling process, namely, e-ticketing, eCheck-In, eBoarding pass, eBaggage Management, and eFreight (International Air Transport Association [IATA] 2008). Some of the bases on which Emirates Airlines position their products are price, quality, demographic, by providing diversified products and many other basis. Technological Environment AND Natural Environment. Emirates Airlines has been a dominant player in the Middle-East aviation industry earning enormous profits over a decade. Emergence of Strong Competitors in the region like Etihad, Turkish Airlines and Qatar Airways: Emergence of new airlines around the globe, has increased the competition for the airlines tremendously. Another entry barrier is brand equity, whereby established carriers boast of a strong presence and brand value. document.write(new Date().getFullYear()); Its healthy financial position means that the firm has sufficient cash flow for investing in in-flight amenities and fund overseas expansion. Therefore, competitive rivalry in the UAE commercial airline industry is high. Emirates. Emirates has reported a revenue growth since its establishment. Twenty year ago, Emirate Airline was born as the official airline of UAE. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Financial PerformanceFY 2023: Revenue up 131% to AED 50.1 billion (US$ 13.7 billion), and profit of AED 4.0 billion (US$ 1.1 billion) compared to AED 5.8 billion (US$ 1.6 billion) loss for the same period last year. Strong supply chain partnerships, e.g., with aircraft manufacturers, like Boeing, Integrated hotel & tourism services (5-star hotels), Primary user of the Dubai international airport an important stopover for travellers, High debt burden (up to 42.4bn Dirham in FY2014) that affects its expansion efforts, Risky acquisitions and diversification actions, Weak HR processes relies on low-wage labour for baggage handling, Declining liquidity level current ratio dropped by 21.8% to 0.8 in 2014, Huge market in China a fast-growing economy with tourist destinations, Market opportunities in the Travel & Tourism sector Dubai visitors, Partnerships (horizontal integration) with airlines like Jet Blue to minimize operational costs (strategic option 1), Rivalry from established national (Etihad), regional, and international carriers, Global recession trends in China and the EU. * By clicking on "Buy Now" you agree to accept our ", On purchase the Emirates Airlines SWOT & PESTLE Analysis PDF report will reach you. 5). We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. As a result, the Groups. This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase.
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