Strategic Management And Business Planning For Emirates Airlines Marketing Essay

Strategic Management And Business Planning For Emirates air authoritys Marketing attemptAbstractThis depict conducted on Emirates skyways which discusses a strategic study rough global airline intentness, particularly Emirates postlines.initiatory part of this report ordain be tell us in peak ab expose Emirates airline fel misfortunateship with internal and remote analysis of the comp both. The last section is about online state of affairs of the beau monde with conclusion and to a fault expressed main problems that Emirates Airlines should citation with recommendation.Table of ContentsSectionName of ContentsPage nary(prenominal)1Emirates Profile042External purlieu043Airline sedulousness Analysis044 lifetime Cycle of Airline Industry065Porters 5 Forces076Key Competitors097Strategic Capabilities of Emirates098Key Success Factors099PESTEL Analysis1010 agonistic Advantage of Emirates1211 immanent environment1312SWOT Analysis1313Summary of Internal Environment1514Conclu sion and Recommendation1615Appendices1816Emirates dodging1817Emirates Cost Reduction scheme1918Ancillary Revenues1919Growth dodging2020References21ProfileEmirates Airlines was established in twenty-fifth October, 1985. Presently Emirates Airlines has 142 fleets aircrafts and destinations e actuallyplace to a greater extent than 102 countries worldwide. Recently it made an order for aircrafts toll $ 27 Billion for 45 Airbuses A380, in this demeanor cit become the worlds largest emptor of Airbuss super-jumbo. (Regarding Emirates)Emirates Airlines is truly fast growing airlines. Emirates throw away 5th heel e verywhere the world in profitability. Emirates earned profit on March 31,2010 is more than $3,538 since last 17 years and its growth ration more than 20% a year. (BBC News)External EnvironmentAirline Industry AnalysisAirline exertion ProfilePresently airline industry growing very well and world top level profitability industry where from we rout out earn profit .On the opposite hand political and some other frugal figures argon change on this industry, after 11th phratry there was a great change in the motility of abroad journey for visit, studying and pipeline purposes etc. another(prenominal) freehanded factor is rapidly rising in embrocate prices over the world speci all in ally in middle east as well, ascribable to this cost increase of airline industry and in this way profit has been decreased and these rednesses has been reached round $ 6 billion in 2009 (IATA) 6 billion in 2009 (IATA)Eventually, the airline industry has been restored number of passengers. We be watching again the motility of tourism, international trade and wear outing of globalization and in this way add up of passengers has been change magnitude and exceed 2.3 billion by the end of 2009.(IATA).Thus, for winning and surd image in aviation trade its needful for airlines that cut of their prices and better their services. career Cycle of Airline Industry.The Product Life Cycle refers to the duration of symbolizes a product goes by dint of. Any untried product in market place go with a rates of stages from introduction to maturity date ,growth to decline and this sequence of all stages is called product life cycle. We fecal matter to a fault say the stages through which individual products build up over time is called The Product Life Cycle. (Saaksvuore. A and Immune. A, 2008)The classic product life cycle has four stages areIntroduction Stage or Development stageGrowth stageMaturity stageDecline stageAirline Industry Life cycleAccording to product life cycle at the purport airline industry on its maturity stage overdue to king-sized and perfect disceptation in the market. In this Maturity stage competition is more hostile in order to increasing advertisement and onward motion activities. Further more m all competitors increase their budgets on Research and growing (RD)Through increasing customers marker fir mty mevery companies demand to tell them from their competitors in their services and products. In this stage companies starts cutting their operating cost mean profit margin decreases result least efficient companies are not more in market. Accordingly, m either companies use offensive strategies or else of defensive strategies by using methods of changing their market strategy ,product training and marketing mix for stay alive and compete during this aggressive stage. (Development of raw(a) product)Porters 5 ForcesThreats of New EntrantsThe new-fashioned entrants in any(prenominal) industry case some threats from existing companies because new family quip more hypnotic product with low cost etc. In airline industry threats are low as comparatively barriers are amply. Some challenges to a lower place below due to new entrants..Capital Requirements. We need considerable pileus for this industry for purchasing new crafts and also for starting new projects and also need for agreeable to customers.Brand prenomen Customer the true Airlines companies with superior good leave behind and strong image in market go forth well compete with new threats at the time of entry. negociate Power of SuppliersSuppliers can easily change market trend through their lavishly take up and control on prices and tint of their products services. Boeing and Airbus are globally suppliers of the airline industry.Bargaining Power of BuyersBuyers are also can change the industry trend due to their demands for high quality ,demand for low prices and also have dexterity I reduction of the cost. Buyers are more powerful due to huge union of passengers in market and approximately 1.8 billion yearly. (ITAT).Threat of a Substitute Products or ServicesAnother big threat of subscribe out product due to availability of substitute in the market for any product. For example people use theirs cars and use trains and buses within the same sphere or country.Rivalry amongs t existing firmsHe trend of rivalry in airline industry is very famous and high due to availability of large number of airlines in the market which also offering exceed services, best cost etc. For example a lot companies involve to increase their serving price and want to increase their image want to gain best gracility among the customers only due to offer best services, cost and also others lot of promotions to attract and attain the customers. (Thompson Strickland, 1995)Key Competitors (Strategic collection analysis)1st British Airways is one of the biggest in the world. 2nd Qatar Airways getting mastery from its aggressive growth plan. Singapore Airlines have very good believe in market as most respectful travel brands in the market and was established in 1947. American Airlines established in 1930 and largest airlines over the world due to yearly passengers of this airline more than 80 million.StrategyStrategy is thelong enclosure planning to achieve production lin e objectives through arrangement of resourcesof organization within a difficult environment, to fulfill the market needs and also satisfaction of stakeholders expectations.(Dibb.S, Simkin. L, 2008)Emirates Airlines StrategiesEmirates Airlines has a good and effective business model which is very helpful to gain familiarity objectives and help to company become leader in the airline Industry . sideline are strategies of the emirates airlines strategies. attribute Control strategyThis is the basic and fundamental strategy to achieve goals of any organization so in this way airlines have very attractive and best strategy to control its quality and standard of the brand.Extensive air travel Training strategy.This is another fundamental and key strategy of the Emirates for aura reading .In this way company get maximum derive through blanket(a) training of its employees .In this way not only keep their employees with it but also open new opportunities for outsiders as well.Internati onal Airline Information technology Development Strategy.This is another fundamental and very important strategy of the company for teaching of its e-business brass, self check services system and also maximise the profit through its advancement in Information technology system in this way it make a lot of contracts with very big companies of the world.Resort, Hotel and Tourism Strategy.This is also another fundamental strategy of the company for increased the numbers of tourist in this way it assist to local bodies and advice for development of new Hotels, Restaurants, new buildings etc.Growth strategyNew Bases. involution of existing bases.More opportunities available as airlines close/ consol.Cost, cost, cost (long term minimization).Efficient facilities.Demographics.Geographic.Strategic.Auctioned winter capacity.Increasing communication of benefits.Strategic Capabilities of EmiratesStrategic capabilities essence the skills are abilities to accomplish the stage for the surve illance in the market. It may be in two forms (1). Resources and (2). CompetencesEmirate has its threshold resources which include its flights, office equipment, head quarter, finance resources and employees. Emirate also has core resources in the form of management team, Ahmed Bin Saeed Makhtoum (CEO/Chairman).Same as resources Emirate has threshold competences which includes online booking, appendages of on time delivery and put to point routing. While in its core competences includes IT development, no frill strategy and highroad policy strategy.Key Success FactorsDifferentiationAirline companies can be differentiated by offering modish and modern services desire big comfortable seats, advance aircrafts and new e-ticketing system. These all thing not only distinguish the companies also helpful to attractive new customers for the company.(e.g. British Airways).Strong brand nameStrong brand name with loyal customers is very important for career of any company. Its proved with strong brand name companies are most untactful for customers.AlliancesIn Airline industry establishing the confederacys between different companies is very important trend in this way different companies depart share their resources through strong network and go forth gain benefit of wide range customers network and will develop many others streets. In this way operations cost also will be decreased.Relations with supplierStrong congeners with suppliers are compulsory for Airline companies through long term agreements companies remain safe in order to any future change in pricing strategy.PESTEL Analysis. governmental factorsThe Airline industry is very sensitive industry and immediate affected by and changing in political conditions including wars and dissymmetry in stinting situation in different countries. The recently political and economic instability in pacific Asia region disturbed the business Middle eastbound and rest of world due to this Airline companies unable to join any International Alliances with top Airlines companies equivalent American Airlines. (Growth phenomena, Nora Byman)Economical factors modern-day dromes on with latest technology are important factor for success of airlines business. UAE have been weather sheetd to big investment on development of Dubai and Abu Dhabi airports. This investment on airport development will exceed up to Dh 71 billion over coming 20 years.Developed airports can give us following benefits enhancing economy, increasing tourists overcome the dependency on oil revenues by alternatives business strategies.Social factorsThere is rapidly increasing world state and in this way increasing in number of tourist and educated people. For example, globally growing population e supernumeraryly in UAE according to The National world Resources Development and Employment Authority Tanmia, UAE population in 2010 has been reached up to 7. 557million from 5.63million, increased by 1.9million people as per the of ficial population statistical report issued 2006.A number of emigrants are increasing in UAE, airlines firms profits will increase due to travelling of those emigrants to their home countries. Furthermore, diseases also disturb the population of different countries, big example of this Bird Flue which is a orca unprocurable disease. (Economic Development)Technological factorsThe latest technology also affected in both ways absolutely and negatively. Negative impact is that teleconferencing decreased the need of physical and face to face business meetings which at a time affects on the sales event of the company and decreased the passengers. On the other hand positive impacts of e-booking system make reservation system very easy and social to any one and it has very good impact on the sale of the company. (Current State)Competitive advantage of EmiratesEmirates Airlines implement differentiation generic strategy by offering high quality services in order to gaining benefit among its competitors and getting palce in market as Leader Company. For this purpose the emirates airlines was the 1st Airline in the world who offered TV screen in its all airline and 1st time butt in e-ticketing system in UAE. pure(a) segmentation of market it also gained another competitive advantage. It was only company in UAE which providing training by using latest technology called plane simulator. The purpose of all changes only become the leader company in over the world in this order enhanced brand name awareness by locally, regionally and also world level and in this way it will increase profit and goodwill as well.Internal EnvironmentSWOT analysisStrengthsMembership of the Arab Alliance, which is known as Arab Air Carriers OrganizationFirst Airline company in the Arab world who introduce e-booking systemSelf check-in system at airport offered by EmiratesEmirates Airlines world biggest purchaser Airline company by order of new 45 Super jumbo Air Buses.Providing qualitative t raining, benefits and rewords and very impressive salary packages and benefits to his employees and also cutting labour cost increasing employees loyalty (People).Latest March, 2010 held Festival of Literature and in 2006 sponsored Fifa World Cup in both way he gained its brand awareness and also makes its goodwill in market.Balance sheet looking sound and showing dinero for 2009-2010 grew four-fold to $964m inspite high oil prices and tough trading environment.Latest progress of Emirates Airlines rolls out flights to San Francisco. It is ready to rule the roost to take world leader in Airline business with the latest technology in hand.WeaknessesHigh operation cost due to big investment on purchasing aircrafts and screening of latest technology.High Prices as comparatively other airlines companies.Non membership of any International Alliances.Non availability of hub in Abu Dhabi.As establishment not a good deal old just in 1985 ,so its young airline.OpportunitiesGood growth in Per capita income in UAE.Huge investment plan by Government on the development of its airports in UAE.Growth in population of the world and in also in UAE .Forecasting of World Travel Tourism Council that tourists will be increased in UAE due its best locality, huge well-favored buildings, safe and secure environment luxury hotels and restaurant and good economic condition after 2010.Rapidly enhancement in internet users over the world and in also in UAE.A different Aviation event like Air Show of Dubai good promotes Middle vitamin E airlines in the whole world.A lot of international companies want to veer their headquarters in Dubai due to safety and sound political situation so in this way bright chances for increasing in number of passengers.ThreatsEmirates airlines located in the region where politically instability going very high due to terrorism activities has been increased.Rapidly increasing in the operations cost due aviation security.Recently increase in render price s which is also cause of high operations cost.Due to non controlling of oil prices in this way might be Airline industry suffered loss by $ 3 billion (IATA)New arriver of airlines companies with low cost..Modern online ticketing system can be hack by hackers and can be crashed by virus so in this way database of the company will destroy and eventually company will suffer huge amount of losses.The natural crises and deserters in the region like earthquake, flooding and hurricane. Latest strike flooding situation in Pakistan as before he glide slope crises by earthquake as well which was worst impact on the sale of airlines companies.The quickly increase of fresh sensitive unprocurable diseases like as SARS and Bird Flue that have very unsuitable impact on airline industry sale.Summary of Internal EnvironmentWith the help of external environments, organizations or companies able to recognize their internal factors. Recognizing of that factors and make companies in this position t hat companies utilize their strengths, overcome their weaknesses, get advantages from opportunities of the companies and can easily avoid from threats of the companies.Current situation of Emirates AirlineAny new arrival or entry in any industry is considered unattractive due to very low demand, high prices and strong competition. But attractive for Emirates Airlines due to its good strategy and strong market position. Also, it has many opportunities to handle any uncertain situation because it is member of very strong Emirates Group which share its resources and reduce the company expenses.Overall, Emirates enjoying with great market position along with high profitability rate which is considered as competitive advantage of the company and high profit rate of the company of its best competing strategy and other elaborateness strategy.Conclusion and RecommendationAt the time of strong competition which refers to maturity stage of Airline Industry so each company should approach off ensive and use the offensive strategy after in detail review its internal and external environment and all related factors which directly effect the company position. The following recommendations are for Emirates airlines.Operational cost of Emirates is very high only due to huge investments on technologies, aircrafts and best quality services. Emirates should control its cost and should decrease its cost through improvement and development of operations activities .Emirates should improve maintenance process, effective and efficient flight inventory of the company and better utilization of the company resources like aircrafts etc. Another way for reduction of cost is advancement in its technologies by investment in technologies and in this way cut of labour cost. For example it is powerfully recommended to new installation of self check service system on all airports.In reply to the threat of low cost airlines in UAE market. Emirates should offer advance level services and contro l cost and this way no need to reduce the prices and in this order it should introduce its new brand as subsidiary which should be base on low cost. a subsidiaryExtension in routes strongly recommended and should be special growth in tourism UAE. In this order to it should extend its route worldwide most attractive areas and Canada one of them. Joining with global alliance will help to increase its worldwide destinations in this way should offer more impressive and effective strategy for competing low cost airlines. progression in Information Technology is most important for progress of emirates airlines and in this order it should make contracts with E-Business Company for improving its services and increase the customers satisfactions. E-CRM is the latest technology and adopted by Emirates this strategy since increasing in numbers of the internet users and this way out for keep long term relation with customers. (Jiang, 2003).Eventually, Emirates Airlines make comprehensive analys is and review of company internal and external factors and its competitors and should develop new strategies for staying and keep good position in airline industry at this maturity time.