stakeholder analysis of emirates airlines

Freight yield per Freight Tonne Kilometre (FTKM) increased strongly by 88%, due to the unique pandemic situation which led to significantly reduced cargo capacity in the market worldwide. Candidate), not member IEEE, Lance Sherry (Ph.D.), Member, IEEE is delivered to customers, and ultimately supporting the Abstract Airports are of significant economic importance to growth of the regional economy (Figure 1). People from many other countries come to live in UAE or for visiting UAE. Emirates Airlines has been a dominant player in the Middle-East aviation industry earning enormous profits over a decade. IBM will assist the airline in areas such as improving passenger support systems, encryption of airlines data in near real-time and effective communication between airlines systems. From this mean that we have to clarify that who are our potential buyer who will enjoy our services. The values define the approach to dealing with different stakeholders, including customers and suppliers. However, skill development and proper financial development are required to support implementation. Therefore, their employees are also loyal to the company (Group, 2011). 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. The largest airline Emirates utilizes this strategy to reduce costs to enhance its competitiveness. Emirates Airlines Website - https://www.theemiratesgroup.com/, 3. Copyright of Emirates Airlines SWOT and PESTLE Analysis is the property of Barakaat Consulting. 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. Therefore, the strategic options will not reduce the financial returns/profits of the airline. It is the largest airline in the Middle East and the fourth largest globally in terms of passenger volumes, operating the worlds largest fleets of Airbus A380 and Boeing 777 aircrafts. They are following the best promotional strategies, pricing strategies, advertising strategies, and distribution strategies. Additionally, the airline has become number choice of the families around the world. Subsidiaries, Partnerships and Collaborations Report. In 2020-21, dnata executed the USs first green turnaround of a customer aircraft at New York JFK, an achievement made possible by its previous investments in zero-emission, electric ramp ground support equipment. Etihad Airways Overview Etihad Airways was incorporated in July 2003 as a national carrier. However, the successful implementation of these strategies will require staff training and development. In aviation industry the company has established the strong brand name. and the flag carrier Performance shows the airlines ability to meet strong passenger demand across regions with capacity ramp-up and high-quality products. The aim is to identify the strategic choices of the firm that could improve its competitiveness in the industry. To identify the marketing changes that have occured in the company beginning from the time the company was established to the present. 2011). 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 Accept cookies to experience the full functionality of this page. As for as natural resources are concerned UAE is rich in two of the biggest natural resources i.e. petroleum and natural gas reserves. Emirates average fleet age remains at a youthful 7.3 years. "Emirates Airlines' Strategic Choices and Decisions." connection point between two flights. In the UAE, national regulations and industry requirements act as barriers to new entry. In short, the government of UAE is stable politically, with strong political reforms. However, airline is a leader in the luxury segment. Furthermore, the second that have to make clear is the need and wants of that targeted audience. Emirates SkyCargo put in a stellar performance by rapidly responding to new demand in a changed global marketplace, contributing to 60% of the airlines total transport revenue. DII impact from Emirates' operations 5 Figure 4. 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. The prime aim of the company as well as its employees are to deliver the unique and superior customer services. To expand its network into emerging markets or international destinations in Asia and the Americas. SWOT & PESTLE.com (2023). 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. Overall, buyer power is significant in this industry. dnatasCatering business accountedfor AED1.0 billion (US$285 million) of dnatas revenue,significantly down by 68%. Recent by ordering 140 Air Bus A380s, the company is become the second to operate these air craft after Singapore. The strategic decisions revolve around four main objectives. All work is written to order. Customized Solutions Top Quality. Cash used in financing activities, primarily payments for loans and leases, amounted to AED 548 million (US$ 149 million), while the business utilised net cash of AED 149 million (US$ 41 million) in essential investing activities. However, the country has successfully take out itself from the economic crisis of 2008 and 2009, which was mostly due to world economic crisis and decline in trade. 2. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. dnata continued to win new contracts in 2020-21. The huge capital investments constitute another barrier to new entry. Unwittingly, they have been subsidising their national carriers through a fortress mentality of aeropolitical protection and the elimination of competition, and other primary sectors of their economies have suffered as a result.. 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. Emirates has roped in digital agency Amaze in 2015 to enhance its global digital platforms as part of its broader omni-channel strategy. To investigate the Emirates airline's advertisement and marketing methods and strategies that enable it to gain competitive advantages. Their position in the market is better than its competitors. It encompasses three phases, namely, incremental change, strategic drift, a period of flux, and transformational change. It involves identifying the internal and external factors that can affect a ventures success or failure and analyzing them to develop a strategic plan. For them their main aim is that they provide such services that their customers get full satisfaction. Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. Micro forces are closer to company and have influence on company ability to full fill its customers needs and wants. On the other hand, the aircraft suppliers and travel agents may not be affected by the airlines cost-reduction measures because they depend on many clients. MarketLine 2014, Company Profile: Emirates. However, we may send you emails on our new reports and solutions. 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. Environmental, Social, and Governance (ESG) Analysis Report. 5). The issues are still under discussion. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! 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. Travellers have many airlines to choose from, hence, the threat of substitutes is very high. Emirates airline reported a 34% growth in revenue in 2015 ($1.5bn) (Research and Markets 2013). The prosperity of the organization is since it is developing in the UAE, a country characterized by rapid and efficient economic development (Simmons, 2020; Almarri and Abu-Hijleh, 2017). "Emirates Airlines' Strategic Choices and Decisions." The three strategies can help Emirates reduce costs (strategy 3), increase its revenue through diversification (strategy 1), and improve the quality of customer service (strategy 2) in line with macro-environment trends. This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. This paper examines the air route development process, including key stakeholder engagement, to identify essential factors in the successful establishment of new international air services at regional airports.Data from semi-structured interviews with airports, airlines and destination marketing organisations were analysed to provide perspective regarding Adelaide, an Australian regional . SWOT Analysis: Meaning, Importance, and Examples. Our top priorities throughout the year were: the health and wellbeing of our people and customers, preserving cash and controlling costs, and restoring our operations safely and sustainably. 2011). Technological Environment AND Natural Environment. Economically the country has seen many ups and down in the previous years. Sheikh Ahmed said: No one knows when the pandemic will be over, but we know recovery will be patchy. The involvement of executive management is needed to streamline internal processes and remove administrative barriers. Research and Markets, 2013, Emirates Airline Strategic SWOT Analysis Review. Changing Govt policies and regulations Emirates Competitors Emirates hotels portfolio recorded revenue of AED 296 million (US$ 81 million), a decline of 49% over last year as the events business dried up and facilities had to shut temporarily due to the pandemic. Web. While the macro factors are the political condition of the country its economic condition, society and the technological development in the country (PESTLE Analysis of UAE 2012, 2012). These shared values and beliefs have great impact on consumer behavior while making a purchase a certain product. Your privacy is extremely important to us. What is Stakeholder Analysis? Europe also has been target of terror in recent times and these will have an impact on tourism and travel and subsequently Emirates business. All Rights Reserved. We aim to recover to our full operating capacity as quickly as possible to serve our customers, and to continue contributing to the rebuilding of economies and communities impacted by the pandemic.. The wholesaler and retailer through the use of their cargo services send their products to end customer. Its healthy financial position means that the firm has sufficient cash flow for investing in in-flight amenities and fund overseas expansion. The acceptability of a strategic choice evaluates stakeholder expectations to determine their reactions and anticipated returns or risks (Slack, Chambers & Johnston 2004). Moreover, their major aim is provide the quality services for that they have dedicated team that work day and night for ensuring the quality (Special Needs | Essential Information | Emirates Online Booking and Planning | Emirates, 2014). Released today in its 2020-21 Annual Report, the Emirates Group posted a loss of AED 22.1 billion (US$ 6.0 billion) for the financial year ended 31 March 2021 compared with an AED 1.7 billion (US$ 456 million) profit for last year. To track regional businesses and to the . Dubai based airline company is the subsidiary of Emirates Groups. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. During the year, Emirates successfully restructured various aircraft leases and loans. 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. Emirates Airline is renowned for its superior in-flight services globally. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Ban on carrying electronic devices to U.S bound flights, 1. Therefore, competitive rivalry in the UAE commercial airline industry is high. Dnata is one of the largest combined air services providers in the world, serving over 300 airlines in 35 countries. The airlines fuel bill declined by 76% to AED 6.4 billion (US$ 1.7 billion) compared to the previous year, driven primarily by 69% lower uplift in line with capacity reduction. 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. In addition, the switching costs between airlines are low. better for the environment, better for operations, and better for customers. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. While, Etihad Airways is the second brand in term of quality, good will and other mentioned factors in the mind of people. For example Emirate Airline has succeed to avoid its prices matching with what other airlines are offering product to customers at lower price. It also worked with local organisations in Australia, Ireland, Italy and the UK to support communities in need. Are you looking for a report which is not covered on our website? Moreover, the airline always try to remain first in adopting new technologies and providing unique services. Positioning is referred as creating the image of your product in the mind of that divided potential market. Based on the findings, the report will identify and recommend one strategy for implementation by the Emirates. Flight paths over Syria and many regions of Iraq remain closed which causes longer flight durations and increases costs. All Rights Reserved by Barakaat Consulting. dnata leveraged its established home market presence and the re-opening of Dubai for international travel to promote the UAE, and its UAE-based tour operating division Arabian Adventures started new experiences. Other stakeholders include Jet A 1 fuel providers, spare parts suppliers, and caterers. This includes impairment charges of AED 766 million (USD 209 million) on goodwill and other intangible assets across all its divisions. In very short time span the company has establish it some a major competitor of other airlines. As a result, the Groups. Reach thousands of academicians and corporates. Our economic impact Please click here for more information. A. Emirates invested to upgrade its signature A380 experience with new Premium Economy seats and other product enhancements. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. 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. It also has a differential advantage due to its broad portfolio. Factors/ attributes on which airline positioned their brands. 1. This is IvyPanda's free database of academic paper samples. 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. Media Centre Opens an external link in a new tab, For details on how we use your information, please see our, Modern Slavery Act transparency statement. You are free to use it for research and reference purposes in order to write your own paper; however, you Different forces that combined together create society are references groups, family groups and opinion leaders. Group revenue was AED 13.7 billion (US$ 3.7 billion) for the first six months of 2020-21, down 74% from AED 53.3 billion (US$ 14.5 billion) during the same period last year. They also follow Informative Advertising: where they try to create brand awareness and knowledge of new products or new features of existing products. Commitment to eco-efficiency through major investments and initiatives, Emirates Airlines Porter's Five Forces Analysis, Emirates Airlines Covid-19 Impact Analysis, Emirates Airlines Segmentation, Targeting and Positioning (STP) Analysis. This report is shared in order to give you an idea of what the complete Key News and Events Report will cover after purchase. DII impact in Europe from Emirates' operations 4 Figure 3. For the first time in the Groups history, redundancies were implemented across all parts of the business. The government has also establish a trade free zone for conducting businesses activities. Strengthening presence in the low-cost segment, Check out the SWOT Analysis of Global Businesses. The only recommendation is that, they have to position their marketing activities while considering all their competitors. 28, no. . For different referencing styles and detailed guidelines, please click here. Therefore, Emirate Airline has considered that also as Etihad may become threat for the Emirate Airline in future. The analysis can employ a range of analytical methods that include the SWOT analysis, the PESTEL analysis, Porter's Five Forces analysis, TOWS Matrix, and Stakeholder Analysis for the evaluation of strategic choices for the case of Etihad Airways. Consumer behavior is the acts and decision processes of the consumer which they shows during the purchase the product as well as services. Emirates [EMIRA.UL], the world's biggest long-haul airline, said on Monday it was in the process of only a "modest restructuring," two months after it reported a 75 percent decline in half-year . The airlines also bagged the Best Entertainment at the 2020 Passenger Choice Awards held during the APEX EXPO in Los Angeles. Until 2020-21, Emirates and dnata have had a track record of growth and profitability, based on solid business models, steady investments in capability and infrastructure, a strong drive for innovation, and a deep talent pool led by a stable leadership team. https://ivypanda.com/essays/emirates-airlines-strategic-choices-and-decisions/, IvyPanda. This is primarily due to the full year impact of the pandemic situation including a nearly 12-month shut down of the facilities in Australia which dnata had acquired only two years ago. Qatar Airline is another major competitor of Emirates Airline. The detailed complete set of references are available on request in the 'Complete report' on purchase. Keep it up! The main stakeholders include the Dubai government, company management, passengers, travel agents, aircraft providers, and staff. Our philosophy relating to international aviation policy and a move towards open skies can be summarised by a quote from the . *You can also browse our support articles here >. IvyPanda. With competition increasing, airlines are finding that offering the lowest fares is no longer enough. Based on this framework, the three strategies are good choices for the firm. customer services and relationship activities. In addition, it offers integrated in-flight catering and accommodation for travelers. From long ago the airline is applying full fledge marketing strategies to ensure the quality services they are providing to their clients. Politically UAE is strong and the political condition in UAE is stable. 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). Revenue from dnatas Travel Services division has declined by 96% to AED130 million (US$35 million). The airline is firmly committed to its long-standing strategy of operating a modern and efficient fleet, which underscores its Fly Better brand promise, as young aircraft are. You can use the following in your reference section in order to give credit to the source. Slack, N, Chambers, S & Johnston, R 2004, Operations Management, Prentice Hall, New York. Web. 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). [online] Available at: https://www.swotandpestle.com/emirates/ [Accessed 01 May, 2023]. 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. 23 July. Buying activities are deeply influenced by cultural factors such as: culture, subculture, and social class. Emirates has been on the forefront in developing innovations that improve customer experience through its IT section. With many award in 2012 the company is also ranked 8th best airline in term of services it is providing around the world. In 2020-21, the Group collectively investedAED4.7 billion(US$1.3 billion) in new aircraft and facilities, the acquisition of companies, and the latest technologies to position the business for recovery and future growth. 1. Today, we fly the worlds biggest fleets of Airbus A380s and Boeing 777s, offering our customers the comforts of the latest and most efficient wide-body aircraft in the skies. 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. Three type of passengers toward whom they tailored their marketing and positioning strategy are business people, families, and transit passengers. In case you need the complete report please purchase using the buy options displayed. And the company is one of the few in the world to use all wide-body aircraft. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. dnatas Travel division saw corporate and leisure travel demand dry up across markets. The airline operates a fleet of wide-body aircraft, predominantly Airbus A380s, and Boeing 777s, offering both passenger and cargo services. Emirates is an established brand of the Emirates group. Moreover, another pricing strategy that Emirate airline is following is the premium pricing strategy (Emirates flight pricing & sales strategy, 2014). Factors that may affect the airline industry are worldwide terrorisms and war. It enables the airlines to present its brand in through the most effective channels. Holistic Analysis 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. Its primary actions involve managing cargo and ground handling, catering and travel services. And toady Emirates Airline also known as low cost carrier (rodrigo, 2012). His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group, said: The COVID-19 pandemic continues to take a tremendous toll on human lives, communities, economies, and on the aviation and travel industry. With reduced flight and travel activity across the world, dnata's total revenue decreased by 62% to AED5.5billion (US$1.5 billion). This section will in detail analyze the targeted market of Emirates Airline. These factors are one of the most vital predictor of people buying behavior. According to an article it is clearly mention that Etihad along with Emirate Airline are providing tough time to its competitors. DUBAI, UAE, 15 June 2021 - The Emirates Group today announced its first year of loss in over 30 years caused by a significant drop in revenue, fully attributed to the impact of COVID-19 related flight and travel restrictions throughout its entire financial year 2020-21. The airline is a subsidiary of The Emirates Group, owned by the government of Dubais Investment Corporation of Dubai. !-Keith GrencherBirmingham Business School. Lovestock, H, Wirz, L & Keh, P 2002, Service Marketing in Asia: Managing People, Technology & Strategy, Prentice Hall, New York. The Emirates Airline also position their products on following above mention factors in mind of their divided potential market. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. Moreover, we have to look which need is least and which one is of most importance. Need a custom Report sample written from scratch by In case you want this report emailed straight into your email inbox, kindly share your details below. These are mentioned in their mission statements, vision statement and as well as on their web site. This marketing audit aims at looking at the potential markets for the airline and establishing ways of being .

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