Emirates Airline - Business Strategies

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TABLE OF CONTENT

1. Introduction ________________________________________________________ 2

2. Global Position in the Industry _________________________________________ 3

3. Key Business Strategies _______________________________________________ 4

5. Lessons to Learn _____________________________________________________ 9

6. Conclusion __________________________________________________________9

7. References _________________________________________________________ 11

8. Appendices _________________________________________________________ 11

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1. Introduction

Emirates is one of the main airline of UAE, its headquarter is based at the Emirates of Dubai. The airline is one of those organizations that are possessed by the government of UAE and working under the Investment Corporation of Dubai government. It is one of the biggest carrier in Middle East having more than 3,350 flights for every week from Dubai International Airport, these flights flyover to roughly 148 goals incorporating different emirates in UAE. Emirates Airline additionally provide cargo services as well under the name of Emirates Sky Cargo. Emirate is the third biggest global carrier of the world, it is the main carrier to dispatch relentless and longest business flights from Dubai to Panama City since February 2016. Emirates started its services since March 1985 the financial support was provided from the royal family of Dubai, the initial two air-crafts were rented from Pakistan International Airlines (PIA) alongside the training facilities to train Emirates staff. The startup capital was 10 million US Dollars so it was committed to work freely without government help. The airline was driven by Ahmed bin Saeed Al Maktoum who is still the chairman of the organization, the years after the establishment of Emirates airline it has extended its services to a vast level to numerous new and untouched locations around the world.

1. Global Position in the Industry [pic 6]

Aviation is a standout amongst the most essential supporters of worldwide financial and social improvement – especially in the developing world. The aviation industry directly employs more than 5.6 million individuals worldwide and contributes up to USD 1.3 trillion for every year to world GDP.

1. Industry Ranking

Emirates airline has considerably enhanced its position during the last few years including 2016 and 2017, during the past few years emirates has not only became the most valuable brand in the aviation industry but it has also improved its ranking in the market, as per the ranking delivered by world bank emirates is now holding the 4th best airline position in 2017 out of 100, In 2016 Emirates was at 1st position among these 100 so it has dropped its position by 3 ranks in 2017.

1. Market Share

Following chart depicts the market share of the seven best airlines of the world, the ranking is according to the sales and revenue of the airlines the comparison was held by World Bank and comparison was held within 320 airlines, at the first position is Qatar Airways with 25% of the market share, than at the second position is Singapore Airlines with around 20% of market share, at third position is the British Airways with 16% of the market share as per the ratio of sales and at the 4th position is Emirates Airlines which hold more than 15% of the overall market share both according the sales and revenue. Below is the graph with details;  

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1. Key Business Strategies

1. Significant Strategies

So far Emirates has held back to join any of the major Global airline alliances and not just holds back but it also questions the benefits this alliance will bring upon the airlines and the customers despite its heavy membership cost. Emirates strategic behavior can be best described as proactive but at times as an opportunist.

1. Threat of New Entrants

The threats of entering a new entrant in the market is very high because the finances and technology required are easily available at the market, but Emirates have a competitive advantage over the new rivals entering the market because emirates have a vast no of locations and now Emirates have started offering long distance flights as well.

1. Market Penetration

The Middle East is the Emirates prime market fragment and the fragment that defended the production of the organization in any case. This market is in effect altogether infiltrated by Emirates in a ponder approach of market entrance.

1. Product Development

Emirates product development strategy is of modest proportion because Emirates believes in product specialization rather than offering new products every year, but still innovation is a key factor of Emirates success.

1. Market Development

Emirates Market development strategy is of aggressive nature because it has entered into the new markets in a very short span and now planning to grow its flights in the United States.

1. Market Diversification

Emirates entering into the new markets, introducing new products, starting cargo services, storage market, financial market and hospitality market are the examples of Emirates market diversification.

1. Positioning Strategy

Emirates airlines grown rapidly from just few aircrafts to hundreds of them including all small, wide-body aircrafts to Boeing aircrafts as well shows that Emirates airlines has positioned itself among the biggest airlines from the beginning and made itself as a lifestyle brand to gain maximum market share.  

1. Pricing Strategy

Emirates is offering a very competitive price to its customers because it has a financial support from the government as we as it has an advantage of low labor cost, Emirates has also a strong strategy to offer dynamic pricing strategy that can be attractive for all groups of people.

1. Distribution Strategy

Emirates have a strong distribution and supply channel throughout the world, it has a very extended supply channels to support its airline and cargo services. Emirates offer a variety of distribution strategies like intensive distribution strategy, exclusive distribution strategy and selective distribution strategy.