Background of Emirates Group
Emirates group is one of the largest airlines situated in United Arab Emirates. The group was founded in the year 1985 and the parent organization is named as The Emirates Group. The operations of the group comprise of Dnata as well as ground handling services and Emirates Airline. The group flies over 142 destination and across 6 continents thereby operating over 233 wide bodied airplanes. Due to the high economic power, the group has been able to operate efficiently across the globe (Redpath, O’Connell and Warnock-Smith 2017). The organization allowed the region to survive within the competitive advantage and there has been various competitive advantage that allowed it to become significant competitors in the industry. The primary operational base of the Emirates Airline is Dubai International Airport. In terms of passengers carried as well as revenue, the group is one of the largest airport carriers in the industry. Globally, Emirates group is ranked within the top ten carriers. The following section of the essay will denote PRESTCOM analysis and SWOT analysis of Emirates group as well as recommend course of action for the analysis.
The following section of the analysis will denote the PRESTCOM analysis and SWOT analysis of Emirates Group and will recommend future course of action on the basis of the analysis.
Emirates group has globalized operations across the globe and there can be various political factors with which the government is ensuring that the passengers are safe and secure. Government interventions within the airlines industry can affect the situation of the group negatively and affect the overall situation significantly. the political situations also include wards and other conditions across the globe can significantly affect the operations of the group. During war and other economic downturn, government can restrict the access to the aviation service which can severely impact the operations of the group. Further, due to the significant impact of Brexit, it has been evident that the Emirates group has seen a steep decline in the annual profitability which has pressurized the firm to reduce its price of ticket significantly.
The facilitation of UAE’s air cargo is found to be within 26 out of 124 countries which can provide emirates with enough opportunity to improve the facilitation of its services across the globe. The development of Emirates is growing at fast pace with adherence to the civil code principles and the Islamic Shari’ah. Different sets of federal laws and regulations can be affecting the airlines industry hence the firm must acknowledge the fact before proceeding with any considerations (CHEDUP 2020).
The GDP of UAE is expected to increase over the years which further attributes to the fact that Emirates will have a significant amount of opportunity to significantly enhance its operations and provides them the opportunity to capitalize on the economic setting. The improvement of economic setting and environment will allow the group to improve its business operations in future timeframe. Further, it has been also evident that the UAE has played a narrative role in improving the economy of the industry. Therefore, economic growth of Emirates can be possible with the increase in ticket price which will allow it to improve its revenue significantly. Recent reports also reveals that the changes in regulatory environment can allow some business to have 100% foreign ownership.
Political Analysis
The population within the UAE is increasing and the increase in population will attribute to the increase in the ticket price. Further, it is also evident that the airlines industry demand is increasing and the location is attracting many visitors from the globe. Hence, the world class aviation service will be able to improve positively in the next five years. Increase in tourist count from across the globe will allow Emirates to improve their revenue as well as will allow them to perceive growth over the future timeframe (Kamarudeen and Sundarakani 2019).
In the aviation sector, it is perceived that the technological development and changes are occurring at significant pace. In this case, it is evident that the group employs technology rapidly and uses artificial intelligence, big data and automation within its process. Further, there are a set of teams who are consistently working forward to create and develop the airlines sector.
Etihad Airways is the UAE’s second largest airline and one of the most significant competitors of Emirates Airlines. It was founded in 2003 and is located in Abu Dhabi. It is controlled by the Abu Dhabi government. This airline conducts over 1000 flights each week and serves approximately 55 countries globally. Qatar Airways, a key Emirates rival, is a state-owned airline located in Qatar that was founded in 1997. With a fleet of over 180 current generation 180 aircraft, the airlines connect over 150 foreign destinations. It is the world’s youngest international airline, servicing six continents. The firm operates flights to a variety of leisure and commercial locations across the world. Fly Dubai, a Dubai aviation firm founded in 2008, is controlled by the government and operates as a low-cost airline.
Emirates Airlines has tall organizational structure which allowed the firm to grow significantly. Further, the management levels within Emirates Group have been found to be hierarchical and the firm has been able to achieve significant level of supervisory control over the organizational structure. The organizational structure of the group consists of different managerial levels. The decentralized organizational structure has allowed the firm to have effective control over the operations and every department has specific objectives that allowed it to achieve it significantly (Krzymowski 2021).
The market structure of the airlines industry in which Emirates are operating is characterized by oligopoly market. It is evident that the structure is assisting in forming imperfect competition thereby affecting the industry. The companies operating within the oligopoly market structure can consider with cost cutting or enhance market share significantly. Every firm within the industry competes interdependently and recognizes that the market power is susceptible to attrition by the new market entrants.
The SWOT analysis of Emirates group consists of the strength, weakness, opportunities and the threats existing to the business operations. The following section contains the SWOT analysis of Emirates Group.
The group always tried to maintain excellent services thereby enhancing customer satisfaction towards the business. With the help of different social media marketing platforms, the group has been able to grow rapidly. The large customer base of the company is very loyal and they always enjoy premium service from the company. Further, it is also evident that the brand value of the company was 6.3 billion dollars and the firm has been able to improve rapidly over the years (Wilkins 2019).
The airlines industry has been facing significant amount of competition in the recent timeframe hence the firm will have to invest in its resources in order to maintain and enhance its market share. Further, it is also evident that the covid 19 pandemic has massively affected the operations of the business significantly.
Due to the increasing market share and value, the firm has the opportunity to form alliance and partner with different international airlines which will allow it to improve its geographical market share significantly. Further, the firm can offer more destinations to its customers which will improve the influence of the firm in the global aviation sector.
Increasing regulations within the business environment has made it difficult for Emirates to establish its name in the Western and American market. Further, it is also evident that the middle east is very competitive and there are various companies offering better service than Emirates in the region which can affect the overall operations of the firm significantly.
Based on the above course of analysis, the following set of recommendations can be given
- The business must have to invest into high quality aircraft products and services which can allow them to improve the customer satisfaction and service satisfaction level.
- Emirates will have to constantly contact with its customers and follow up with them to understand the customer concerns and priorities which will allow them to improve the business position significantly (FARGUES, SHAH and BROUWER 2019).
- The business will have to focus on adhering to the regulatory changes made by the government in order to improve the current business framework. Further, they will have to understand the air cargo infrastructure.
Conclusion
On a concluding note, it can be evident that the airline business has seen a large level of rivalry in recent years, therefore the company will need to invest in its resources in order to preserve and increase its market share. Furthermore, it is clear that the covid 19 epidemic has had a considerable impact on the business’s operations. Because of its growing market share and value, the company has the ability to create alliances and collaborate with several foreign airlines, allowing it to dramatically increase its geographical market share. Furthermore, the company may provide new locations to its consumers, which would increase the company’s impact in the global aviation business. The company must invest in high-quality aviation products and services in order to enhance customer happiness and service satisfaction. Emirates will need to maintain continual touch with its consumers and follow up with them in order to understand their worries and goals, which will help them to considerably enhance their commercial position.
References
CHEDUP, S., 2020. Communication Technology in Knowledge Management: Focusing on the Emirates Group. International Journal of Communication and Computer Technologies, 6(2), pp.13-13.
Fargues, p., shah, n.m. And brouwer, i., 2019. Working and living conditions of low-income migrant workers in the hospitality and construction sectors in the United Arab Emirates: a survey among migrant workers through focus group discussions. European University Institute.
Kamarudeen, N. and Sundarakani, B., 2019. Business and supply chain strategy of flying above the dessert: A case study of Emirates airlines. In 8th International Conference on Operations and Supply Chain Management, Cranfield (pp. 1-17).
Krzymowski, A., 2021. The Visegrad Group countries: The United Arab Emirates Perspective.
Redpath, N., O’Connell, J.F. and Warnock-Smith, D., 2017. The strategic impact of airline group diversification: The cases of Emirates and Lufthansa. Journal of Air Transport Management, 64, pp.121-138.
Wilkins, S., 2019. The positioning and competitive strategies of higher education institutions in the United Arab Emirates. International Journal of Educational Management, 34(1), pp.139-153.
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