Strategic Management And Business Planning For Emirates Airlines Marketing Essay

strategical Management And Business Planning For Emirates airways Marketing EssayAbstractThis proclaim conducted on Emirates skyways which discusses a strategic study about global airline labor, particularly Emirates Airlines.1st part of this report will be tell us in detail about Emirates airline go with with internecine and external analysis of the club. The last section is about current situation of the company with conclusion and overly expressed main problems that Emirates Airlines should address with recommendation.Table of ContentsSectionName of ContentsPage no.1Emirates Profile042External environment043Airline sedulousness Analysis044 lifespan Cycle of Airline Industry065Porters 5 Forces076Key Competitors097Strategic Capabilities of Emirates098Key Success Factors099PESTEL Analysis1010Competitive Advantage of Emirates1211 inborn Environment1312SWOT Analysis1313Summary of Internal Environment1514Conclusion and Recommendation1615Appendices1816Emirates Strategy1817Emir ates Cost Reduction Strategy1918Ancillary Revenues1919Growth Strategy2020References21ProfileEmirates Airlines was established in 25th October, 1985. Presently Emirates Airlines has 142 fleets aircrafts and destinations over more than 102 countries adult malewide. Recently it made an order for aircrafts worth $ 27 Billion for 45 Airbuses A380, in this way cit become the worlds largest purchaser of Airbuss super-jumbo. (Regarding Emirates)Emirates Airlines is very(prenominal) fast growing airlines. Emirates fool 5th tot up over the world in arrive atability. 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 pains ProfilePresently airline pains growing very well(p) and world top level profitability industry where from we can earn profit .On the other hand political and some other economic factors are affected on this industry, after 11th phr atry there was a great agitate in the motion of abroad journey for visit, studying and business purposes etc. Another great(p) factor is chop-chop rising in oil outlays over the world speci each(prenominal)y in middle east as well, ascribable to this embody change magnitude of airline industry and in this way profit has been rock-bottom and these losses 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 are watching again the trend of tourism, international trade and study of globalization and in this way song of passengers has been increased and exceed 2.3 billion by the end of 2009.(IATA).Thus, for winning and strong painting in aviation commercialize its compulsory for airlines that cut of their prices and improve their services. deportment Cycle of Airline Industry.The Product Life Cycle refers to the sequence of stages a product goes finished. Any novel product in m arket go through a sequences of stages from introduction to maturity ,growth to correct and this sequence of all stages is called product life cycle. We can in addition say the stages through which individual products build up over metre 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 stage adulthood stageDecline stageAirline Industry Life cycleAccording to product life cycle at the movement airline industry on its maturity stage due to big and perfect competition in the market. In this Maturity stage competition is more hostile in order to increasing advertisement and promotion activities. Further more many competitors increased their budgets on Research and phylogenesis (RD)Through increasing customers smear consignment many companies want to differentiate them from their competitors in their services and products. In this stage companies starts cutting their operating cost mean profit margin decreases result to the lowest degree efficient companies are not more in market. Accordingly, many companies use offensive strategies instead of defensive strategies by using methods of changing their market placement ,product development and marketing mix for stay alive and compete during this aggressive stage. (Development of new product)Porters 5 ForcesThreats of New EntrantsThe new entrants in any industry preface some threats from existing companies because new company offer more take inive product with low cost etc. In airline industry threats are low as comparatively barriers are high. Some challenges under below due to new entrants..Capital Requirements. We need huge capital for this industry for purchase new crafts and also for starting new projects and also need for attractive to customers.Brand name Customer trueheartedty Airlines companies with excellent peachywill and strong image in market will easily compete with new threat s at the time of entry. Bargaining Power of SuppliersSuppliers can easily win over market trend through their high demand and mastery on prices and quality 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 skill I reduction of the cost. Buyers are more powerful due to huge amount of passengers in market and approximately 1.8 billion yearly. (ITAT).Threat of a Substitute Products or ServicesAnother big threat of rest period 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 area or country.Rivalry amongst existing firmsHe trend of rivalry in airline industry is very famous and high due to availability of large numbers of airlines in the market which also offering outmatch services, best cost etc . For example a lot companies want to increase their share price and want to increase their image want to gain best goodwill 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 Group analysis)1st British Airways is one of the biggest in the world. 2nd Qatar Airways getting success from its aggressive growth plan. Singapore Airlines have very good repute 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 term planning to achieve business 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 StrategiesEm irates Airlines has a good and effective business flummox which is very helpful to gain company objectives and help to company become leader in the airline Industry .following are strategies of the emirates airlines strategies.Quality Control dodgeThis 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 Aviation Training strategy.This is another fundamental and key strategy of the Emirates for Aviation training .In this way company get maximum advance through extensive training of its employees .In this way not only keep their employees with it but also open new opportunities for outsiders as well.International Airline Information Technology Development Strategy.This is another fundamental and very important strategy of the company for development of its e-business form, self check services system and also maximize the profit through it s advancement in Information technology system in this way it progress to 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.Expansion of existing bases.More opportunities available as airlines close/ consol.Cost, cost, cost (long term minimization).Efficient facilities.Demographics.Geographic.Strategic.Auctioned wintertime capacity.Increasing communication of benefits.Strategic Capabilities of EmiratesStrategic capabilities means the skills are abilities to accomplish the stage for the surveillance in the market. It may be in two forms (1). Resources and (2). CompetencesEmirate has its doorway resources which include its flights, office equipment, head quarter, finance resources and employees. Emirate also has cor e resources in the form of management team, Ahmed Bin Saeed Makhtoum (CEO/Chairman).Same as resources Emirate has threshold competences which includes online booking, operations of on time delivery and point to point routing. While in its core competences includes IT development, no frill strategy and route policy strategy.Key Success FactorsDifferentiationAirline companies can be differentiated by offering current and modern services like big comfortable seats, advance aircrafts and new e-ticketing system. These all matter 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 alliances betwixt different companies is very important trend in this way different companies will share their resources thro ugh strong network and will gain benefit of wide range customers network and will develop many others routes. In this way operations cost also will be decreased.Relations with supplierStrong relations 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.Political factorsThe Airline industry is very sensitive industry and immediate affected by and changing in political conditions including wars and asymmetry in economic situation in different countries. The recently political and economic instability in pacific Asia theatrical role disturbed the business philia East and rest of world due to this Airline companies unable to join any International Alliances with top Airlines companies like American Airlines. (Growth phenomena, Nora Byman)Economical factorsModern airports along with modish technology are important factor for success of airlines business. UAE have been planed 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 chastise the dependency on oil revenues by alternatives business strategies.Social factorsThere is rapidly increasing world population and in this way increasing in number of tourist and educated people. For example, globally growing population especially in UAE according to The National Human 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 official 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, b ig example of this Bird Flue which is a killer unprocurable disease. (Economic Development)Technological factorsThe latest technology also affected in both ways positively and negatively. Negative impact is that teleconferencing decreased the need of physical and face to face business meetings which directly affects on the sale of the company and decreased the passengers. On the other hand positive impacts of e-booking system make reservation system very easy and accessible to any one and it has very good impact on the sale of the company. (Current State)Competitive expediency 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 introduce e-ticketing system in UAE.Thorough 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 topnotch jumbo Air Buses.Providing qualitative training, 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 lit and in 2006 sponsored Fifa World Cup in both way he gained its br and awareness and also makes its goodwill in market.Balance sheet facial expression earpiece and showing Profits 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 get aircrafts and application 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 great 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, hug e beautiful buildings, safe and secure environment luxury hotels and restaurant and good economic condition after 2010. apace enhancement in internet users over the world and in also in UAE.A different Aviation event like Air stage of Dubai good promotes Middle East airlines in the whole world.A lot of international companies want to shift 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 outlet very high due to terrorism activities has been increased.Rapidly increasing in the operations cost due aviation security.Recently increase in arouse prices 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 stretch of airlines companies with low cost..Modern online ticketing system can be hack by hackers and can be cr ashed 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 worst flooding situation in Pakistan as before he faced 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 bad 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 that 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 d emand, 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 veer 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 expansion strategy.Conclusion and RecommendationAt the time of strong competition which refers to maturity stage of Airline Industry so each company should approach offensive 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 plan 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 strongly 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 control 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 mo st attractive areas and Canada one of them. link 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.Advancement 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 analysis 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.