Ban on carrying electronic devices to U.S bound flights, 1. The impact of COVID-19 was felt across all dnata businesses, and in 2020-21 dnata recorded a loss of AED 1.8 billion (US$ 496 million) for the first time. Therefore, capital is not a problem. Performance shows the airlines ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products. This paper provides an overview of Emirates Airlines, analyzes internal and external factors that affect their business, addresses stakeholders' expectations, and looks into the challenges. Analysis of Stakeholder Definitions and Goals To examine the role of the airport stakeholders a precise definition of stakeholders and their goals for the airport is . A core part of our strength as a business stems from the 'open skies' environment at our main operating base, Dubai International, where we compete with over 100 other scheduled airlines. For Emirates, the main stakeholders include the government, customers, suppliers, services providers, prospective customers, the press, the public, and the community. Their cargo service provide on time delivery to its customers. Strategies of Emirates Airlines Marketing Proposal In addition, it uses product differentiation and geographical diversification (strategic option 3) to compete. Notably, in Australia dnata began ground handling for Qantas at most of its major airports and GTA dnata, its joint-venture company in Canada, was awarded a five-year ground handling license for ramp, passenger, and cargo warehousing services at Vancouver International Airport. 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. The values define the approach to dealing with different stakeholders, including customers and suppliers. It has backward integration with suppliers to develop custom-made in-flight amenities for its fleet. The Emirates Group. Travellers have many airlines to choose from, hence, the threat of substitutes is very high. dnata continued to lay the foundations for future growth with investments in 2020-21 amounting to AED 328 million (US$ 89 million). Based on this framework, the three strategies are good choices for the firm. With many award in 2012 the company is also ranked 8th best airline in term of services it is providing around the world. (2021, July 23). The airlines primary hub is at Dubai International Airport (DXB), also one of the busiest airports in the world regarding passenger traffic. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. Emirates Airlines' Strategic Choices and Decisions. In recent years, the airline has attracted traffic from the S. Asian market to N. America, enabling travelers to avoid passing through EU airports such as Heathrow and Frankfurt (Lohman et al. Lufthansa Corporate Strategy - 3126 Words - Internet Public Library Emirates Airlines SWOT & PESTLE Analysis - SWOT & PESTLE.COM. The Executive Board defines the strategic decisions. 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. The main stakeholders include the Dubai government, company management, passengers, travel agents, aircraft providers, and staff. Business Strategic Analysis of RyanAir Udara Seneviratne 15.2K views15 slides. 28, no. Web. Strong competitors from the region such as Etihad from neighboring emirate, Abu Dhabi and Doha based Qatar Airways. However, the successful implementation of these strategies will require staff training and development. The price difference between substitutes (LCC) and Emirates services is large. This is IvyPanda's free database of academic paper samples. For the purpose of identifying the target audience marketer first have to divide the market into different segments and then on the basis of their needs and wants offering them the desired product (DeMers, 2012). The airline reports a Passenger Seat Factor of 44.3%, compared with last years passenger seat factor of 78.5%; and a 48% increase in passenger yieldto 38.9fils(10.6US cents) per Revenue Passenger Kilometre (RPKM), due largely to a favourable route mix, fares and continued healthy demand for premium seats. The feasibility of the strategies based on its resources and constraints. 2011). This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. Increasing fuel costs has impact on margins 3. This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. 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. American airline stakeholder analysis Free Essays | Studymode You are free to use it for research and reference purposes in order to write your own paper; however, you 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. Overall, the threat of substitutes is high in this industry. In term of UAE, the environment of UAE is the dynamic environment. 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. Emirates Airlines' Internal and External Factors Case Study In addition, it offers integrated in-flight catering and accommodation for travelers. Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). In the UAE and GCC region, dnatas Travel business remained steady. This includes a one-time impairment charge of AED 710 million (US$ 193 million) mainly relating to certain aircraft which are currently grounded and are not expected to return to service before their scheduled retirement within the next financial year. Analysis of Competitive Strategy and Position. Customers have a high bargaining power because ticket costs vary depending on the travel option (budget or luxury option). Emirates average fleet age remains at a youthful 7.3 years. In addition, Emirates Airline has a large fleet size (217 large carriers), integrated services, and brand equity (intangible resource) to support its growth. Emirates order book for 200 aircraft remains unchanged at this time. Emirates Airlines Annual Report 2019 - https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2019.pdf, 2. 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. Nevertheless, shareholder value retains a tenacious hold on the minds of investors. Moreover, as the aviation leader in Middle East the company is providing quality services to its passenger from long ago. The UAE economy's growth has been mostly fuelled by the country's oil industry, however, recent . From tan till now the airline has shown tremendous growth. 8.6 Major Downstream Buyers of Airline Catering Analysis 8.7 Impact of COVID-19 and the Russia-Ukraine war on the Upstream and Downstream in the Airline Catering Industry 9 Players Profiles Type above and press Enter to search. Sheikh Ahmed said: No one knows when the pandemic will be over, but we know recovery will be patchy. IvyPanda. dnatas cargo handling declined by 18% to 575,000 tonnes, reflecting the reduced available flight capacity in the overall air cargo market over the year. 1. "Emirates Airlines' Strategic Choices and Decisions." 1-9. The full 2020-21 Annual Report of the Emirates Group comprising Emirates, dnata and their subsidiaries is available at: www.theemiratesgroup.com/annualreport. The largest airline Emirates is an airline company based in Dubai. Once a targeted audience is identified we have to look the need and wants of that targeted audience. Skilled and committed management coupled with government support has contributed to improved performance. 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. From this mean that we have to clarify that who are our potential buyer who will enjoy our services. Therefore, ensuring the quality services is the foremost strategy of the airline. 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. 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). Table 1 Emirates Airline receives rating of 4.6 rating, whereas, Etihad Airways receives an average of 3.8 rating and Qatar Airways receive the rating of 3.4. Customized Solutions Retrieved from https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/. IvyPanda. Emirates Airlines SWOT & PESTLE Analysis | SWOT & PESTLE These are mentioned in their mission statements, vision statement and as well as on their web site. Web. It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. A core part of our strength as a business stems from the open skies environment at our main operating base, Dubai International, where we compete with over 100 other scheduled airlines. This paper examines the air route development process, including key stakeholder engagement, to identify essential factors in the successful establishment of new international air services at regional airports.Data from semi-structured interviews with airports, airlines and destination marketing organisations were analysed to provide perspective regarding Adelaide, an Australian regional . We use cookies to optimize the website, no personal information is stored. It also continued to invest resources towards environmental initiatives, as well as supporting communities and incubator programmes that nurture talent and innovation to drive future industry growth. 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. Emirates Airlines' Strategic Choices and Decisions. Meet & Greet Opens an external link in a new tab, Eurail Opens an external link in a new tab, Media centre Opens an external link in a new tab, Careers Opens an external link in a new tab, The Emirates Airline Foundation Opens an external link in a new tab, Skywards Exclusives Opens an external link in a new tab, COVID-19 information and disrupted travel. Omni-channel strategy for seamless customer experience, 1. The top destinations for expansion include locations in South Asia through code-share agreements with other carriers such as Malaysia Airlines (Lovestock, Wirz & Keh 2002). Current strategies are built around the firms capabilities, such as resources and technological expertise. According to 2007 report the airline is declared as the leading airline in term of revenue it generate, fleets (group of planes), and the passenger it carry, of Middle East. Emirates utilizes this strategy to reduce costs to enhance its competitiveness. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. It also worked with local organisations in Australia, Ireland, Italy and the UK to support communities in need. (PDF) Innovative Options for Future Strategic Directions A Particular DUBAI, U.A.E., 12 November 2020: The Emirates Group today announced its half-year results for its 2020-21 financial year. Do you want us to design a market survey or write a market research report as per your specific requirements? Consumer behavior is the acts and decision processes of the consumer which they shows during the purchase the product as well as services. For them their main aim is that they provide such services that their customers get full satisfaction. Trade protectionist policies of new U.S. administration, 1. Are you looking for a report which is not covered on our website? Diversification is referred as offering new services to new market. 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. We will write a custom Report on Emirates Airlines Strategic Choices and Decisions specifically for you for only 11.00 9.35/page. They pay they gives to their employees are merit base pay as well as the pure performance based pay. Staff training may be necessary for front-line employees. Therefore we take the rating scale of 1-10 to rate these factors. 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. During the year, dnata completed the purchase of Destination Asia, bringing one of Southeast Asias top destination management companies fully under the dnata Travel Group umbrella. All work is written to order. The main point that has to be cover are as follows: first thing that is required, is the identification of the targeted audience. Emiratisation strategy to recruit and retain UAE Nationals, 1. 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. dnata Travel Group continued to secure growth opportunities. The firm already has technology (Emirates IT) to support these systems. Interactive feedback can help tailor in-flight services to customer needs. McGee, J, Thomas, H & Wilson, D 2005, Strategy Analysis and Practice, McGraw Hill, New York. The government has also establish a trade free zone for conducting businesses activities. 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. The SAF model applied to Emirates indicates that each of the three strategic options is essential in the airlines growth. (PDF) Analysis of airport stakeholders - ResearchGate Emirates airline embarks on 'modest restructuring' as growth slows Adding the option of accessing the airlines services in the customers native language can also being implemented as are 24x7 customer care services that can offer solutions to basic questions and add a human touch to the booking process. Therefore, people choice regarding whether to travel through this airline or any other and if yes whether to travel through economic class or business class totally depended on these factors i.e. on the income and their way of living (Personal Factors Affecting Buyers Behavior, 2010). Emirates current strategies include improving in-flight services for travelers and lowering its operational costs to enhance efficiency. However, the staff is likely to oppose the cost-cutting measures (lean workforce) contained in the strategic action 1. Reach thousands of academicians and corporates. The airline in 1985 e started its operations, when in mid-1980s the Gulf Air cutback to Dubai. In 2020-21,dnatasoperating costs decreased by 48% to AED7.4billion (US$ 2.0 billion), in line with reduced operations in its Airport Operations, Catering and Travel divisions across the world. Revenue fromdnatasUAE Airport Operations, including ground and cargo handling declined to AED 1.7billion (US$ 455million). Positioning is referred as creating the image of your product in the mind of that divided potential market. Strengthening presence in the low-cost segment, Check out the SWOT Analysis of Global Businesses. Emirates Airlines also operates a frequent flyer program called Emirates Skywards, which allows passengers to earn miles and redeem them for flights, upgrades, and other travel-related benefits. Emirates received a capital injection of AED 11.3 billion (US$ 3.1 billion) from our ultimate shareholder, the Government of Dubai, and dnata tapped on various industry support programmes and availed a total relief of nearly AED 800 million in 2020-21. An evaluation of the strategies using the SAF model showed that the three options could contribute to the airlines growth. You can reach us out at [emailprotected] .Disclaimer: The views and opinions expressed in any article on the website are solely those of the authors and do not necessarily reflect the official policy or position of companies in context. Emirates Airline is a national carrier; therefore, it enjoys the government support (monarchy). Family also have great influence on buying behavior (Perreau, 2013). Increasing Competition in Middle East Market can affect business of Emirates airlines 2. Our government affairs journal Please click here for more information. They can impact rivalry by hiking prices or producing low-quality goods. The key trends identified in the commercial aviation industry include global/regional economic slowdowns, environmental concerns (emissions), rising fuel prices, and competition from low-cost carriers (McGee, Thomas & Wilson 2005). It also offers a range of in-flight amenities, including hotel services, and lounge services to corporate clients and tourists (strategic option 2). Moreover, as the country has flourishing tourism industry therefore, from many country every year millions of people travel to UAE for holiday. Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. Emirates total passenger and cargo capacity declined by 58% to 24.8 billion ATKMs at the end of 2020-21, due to pandemic related flight and travel restrictions including a complete suspension of commercial passenger services for nearly eight weeks as directed by the UAE government from 25 March 2020. This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. Economically the country is one of the fastest growing country in the world. Etihad Airline is another growing airline of UAE. With the strong demand in air freight throughout the year, Emirates cargo division reported a revenue of AED 17.1 billion (US$ 4.7 billion), an increase of 53% over last year. 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. The firms other cost-efficient operations include. During the year, Emirates successfully restructured various aircraft leases and loans. The threats in the SWOT Analysis of Emirates are as mentioned: 1. Emirates has reported a revenue growth since its establishment. This dramatic revenue decline was due to the COVID . Therefore, switching costs for carriers are very high. As a result, the Groups. 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. Totaloperating costs decreased by46% from last financial year. Emirates Airlines Website - https://www.theemiratesgroup.com/, 3. Being a service provider the major aim of the airline is to provide comfortable journey to its customers. 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' Strategic Choices and Decisions Report Market segmentation research is an understanding of the markets product needs and wants. This report presents a strategic analysis of Emirates Airline, a Dubai-based national carrier with operations in three segments: airline, in-flight, and all other (MarketLine 2014, para. "Emirates Airlines' Strategic Choices and Decisions." 2011). 2. 1 Paper Number: 109 Analysis of Airport Stakeholders David Schaar (Ph.D. They offer various cabin classes, including Economy, Business, and First Class, each offering a distinct range of services and amenities. Their position in the market is better than its competitors. The Groups revenue was AED 35.6 billion (US$ 9.7 billion), a decline of 66% over last years results. It encompasses three phases, namely, incremental change, strategic drift, a period of flux, and transformational change. The prices are not fixed they are flexible and its due to economic condition around the world. Dubai World Expo 2020 to be a major business opportunity, 1. This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. . Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. To lower the operational costs through a lean workforce and maintaining low overhead costs. 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.
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