9. The Emirates Group
has spread its wings
into every aspect of
travel and tourism to
become a leading
global corporation in
its field.
10. Spanning a portfolio
of more than 50
brands and
employing over
65,000 people, the
Emirates Group is
one of its kind in the
Travel and Tourism
Business
13. Emirates is looked
upon as a Global
Company based out of
the Middle East, and
not as an Arab Airline
operating
internationally.
14. This has made Emirates a
serious threat for its
competitors who are
struggling to compete
with it due to its
significant cost
advantages, and accuse
the airline of cashing in
on UAE subsidies and
exemptions.
15.
16. • Emirates needs to consider the
competitive pricing offered by
competitors like Etihad Airways for
premium services and accordingly
align its marketing strategies.
• Free access to Dubai Airport by
other airlines using open skies
policy.
• To be able to have long term
advantages, the company should
become a shareholder in the Airbus
or Boeing companies.
17. Question 1
How has Emirates been able to build a strong brand in the competitive airline industry?
Answer
I feel Emirates has been able to build a strong brand in the competitive airline industry because of its
core competencies.
The airline is launched by the Dubai Government who are endowed with unlimited oil wealth. This made
funding and investment easy. Also, fuel costs, one of the major airline expenses were substantially low
for Emirates due to the availability of oil in the country.
Also, the company has invested largely on maintaining the youngest air fleet and the highest number of
the A380 jumbo jets. These things, along with Emirates’ emphasis on Product, Equipment and Excellent
Service gave it a quality image like none of its competitors.
Further, its image of being a Global Company based out of the Middle East, and not as an Arab Airline
operating internationally gives it a big advantage over competitors.
Business diversification into everything encompassing travel & tourism, cost advantages and subsidies
and exemptions by the UAE Government are also factors that have helped Emirates build a strong brand
in this competitive industry.
18. Question 2
What are some of the apparent weaknesses with the company’s strategic direction? How can the airline
address them?
Answer
The weaknesses in the company’s strategic direction are –
1. Over emphasis on premium customers.
2. Its image of being beyond the means of the economy-passengers.
3. Overlooking flaws in marketing strategy.
4. Disregard to growing competition.
The airline can address these concerns by –
1. Catering to the economy-passengers by introducing budget packages for these travelers.
2. Developing customer loyalty by offering more tangible benefits, to ensure customer return and
retention.
3. Leverage its global positioning and geographical reach to become leaders across the different
segments.
4. Understand and appreciate the threats offered by competitors and align its strategy around keeping
this growing competition at bay.
19. Question 3
With the decline of fuel prices globally, airline companies continue to reap the benefits. What impact
will this have on Emirates’ business strategy on the future?
Answer
The impact on Emirates’ business strategy is as follows –
1. The low oil price helped reduce operating costs by 8 per cent, with fuel now 25 per cent of
operating costs, compared to 35 per cent in 2014-15.
2. Profits jumped 56 per cent to reach Dh7.1bn ($1.9bn,) a new annual record, as the fast-growing
carrier saw its fuel bill decline by 31 per cent on lower crude prices.
3. Reduced fuel prices can lead to increased revenues for airline companies. This puts the profit
margin of Emirates at risk since its major cost advantage is reduced fuel costs, which will now be
shared by other airlines too.
20. Summary
1. Started in 1985 by the Dubai Government, Emirates Airlines is the 4th largest airline in the
world today.
2. Emphasis on Product, Equipment and Service standards gave it a quality image like none other.
3. Recipient of over 500 international awards till date, Emirates is a world leader in the airline
industry.
4. Diversification into other industries in the Travel & Tourism sector have helped increase the
Emirates Group’s revenues and customer offerings.
5. Its Corporate Positioning and Core Competences against competitors give it a significant cost
advantage and have helped it remain profitable for the 28th consecutive year this year.
6. Although it has so many benefits, it faces challenges from growing competition and need for
updating its marketing strategies.
7. Emirates if addresses these challenges, there is nothing that can stop it from retaining the
