Emirates Airline Case study

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Emirates Airline Case study Introduction

SWOT and Pestle are effective strategic tools which aid in the identification of the advantages as well as disadvantages faced by an organisation. SWOT analysis helps in analysing the external as well as internal factors that have an impact on the operations of a company. PESTLE analysis helps organisations to ascertain the external business environment. It aids the company to plan and prepare for the identified future steps so that they do not harm the operations of these organisations. For the purpose of this study, the external and internal strengths and weaknesses of the Emirates Airlines would be analysed.

Company Details

Company Name

Emirates Airlines

Type of Industry

Commercial airline

Headquarters

Dubai, UAE

Sales/Revenue

$27.9 billion

Areas served

Airlines

Number of aircrafts

265

Competition

Etihad Airways, Qatar Airways and Lufthansa

USP

Premium airline which serves in global destinations

Target Group

Individuals who prefer luxury airlines

Products

Fashion, travel and sports products in their online store along with airline services.

Website

 https://www.emirates.com/in/english/

Table 1: Company details

Emirates Airline SWOT Analysis

Strengths

  • Has financial support from the Dubai Government
  • Consists of a large workforce
  • Provides excellent customer service leading to a large number of satisfied customers
  • Has a great advertising and marketing campaign which utilise all media channels

Weaknesses

  • Heavy reliance on customers travelling internationally
  • Faces severe competition from other airlines companies due to limited growth of market share
  • Has a high cost of maintaining their set standards

Opportunities

  • Addition of newer international destinations would help in gaining more customers
  • Increasing the production of new airlines would help in gaining the attention of more customers and investors
  • Entering into joint ventures and forming new alliances with international airlines would help in providing more business to the company

Threats

  • The rise in the competition between airlines companies in the UAE
  • The rise in fuel costs reduces the profits of the company

Table 2: SWOT Analysis

(Source: As influenced by Redpath et al., 2017)

Analysis

Strengths

As per the case study on Emirates Airlines, it has been identified that the company has a large number of satisfied customers which has been a result of the high-end services provided by them during the flights. The company also provides additional facilities to their customer prior to their flights in the form of access to high class lounges along with other benefits. 

Since the company has a strong alliance with the Government of Dubai it has a strong operational base in the country. The airline company has a strong marketing and advertising strategy with their campaigns reaching consumers all across the world. Furthermore, the company has a large working force of well educated employees dedicated to their work.

Weaknesses

As per the case study on Emirates Airlines, it has been identified that the company has internal weaknesses as its operations are highly dependent on international traffic. Furthermore, the company has to incur a high cost to maintain the luxurious facilities provided by them. 

Opportunities

As per the case study on Emirates Airlines, it has been observed that there are many opportunities for the company to explore such as entering an alliance with top players which would help in increasing the operations of the company. The company also has the opportunity to add new airlines and exotic destinations for gaining and satisfying its customers. These would help Emirates Airlines to expand its operations and provide services to a greater demographic.

Threats

As per the case study on Emirates Airlines, it has been observed that the main threats faced by the airlines are the limited growth in the market share as well as the rise in fuel prices which have led to the reduction of profits earned by the organisation. The company is required to come up with an appropriate strategy that helps in the reduction of the problems faced due to the identified threats.

Emirates Airline PESTLE Analysis

Political

  • Stable political scenario
  • Government of Dubai's regulations are required to be followed by the airlines

Economical

  • Stable economy
  • Rise in fuel prices
  • Rate of inflation is 3.08% (Dsc.gov.ae, 2018)

Social

  • Change in consumers demands
  • Socio-cultural changes in the employees and customers needs

Technological

  • Advantages in technology

Legal

  • Anti-discrimination Law- Federal Decree-Law No.2 2015
  • UAE Labour Law 2019 (Moid.gov.ae, 2007)

Environmental

  • Environmental Protection Act 2016 (Government.ae, 2016)

Table 3: PESTLionE Analysis

(Source: As influenced by Bose, 2018)

Analysis

Political

As per the case study on Emirates Airlines, it has been identified that the political factors of UAE that would have an impact on the operations of the company are the stable political environment. This has a positive impact on the operations of the company as this would ensure that there are no disturbances faced by the company. Since the airline company is owned by the Government of UAE, it has to follow the rules and regulations set by the same which may have a negative impact on the company’s growth (Dhabi, 2016).

Economical

As asserted in the case study on Emirates Airlines, the stable economic environment of Dubai positively influences the operations of the company. The rise in the inflation rate to 3.08% along with the rise in the price of fuels would increase the cost incurred by the company due to these factors reduces the profit margin (Dsc.gov.ae, 2018). This may lead to a negative impact if the company does not come up with an effective plan to manage the same.

Social

As observed in the case study on Emirates Airlines, the company is required to identify and take necessary actions for managing the changes in the demands made by consumers. This would help the company to satisfy the consumer's needs. The company has to also ascertain the needs of their employees and provide them with the same (Mason, 2018). This would ensure that the employees of Emirates Airlines are satisfied with the company.

Technological

As identified in the case study on Emirates Airlines, technological advancements have a positive impact on the operations of the organisation. The company would benefit from utilising these developments which would help them in improving the quality of services offered by them to their customers.

Legal

According to the case study on Emirates Airlines, it has been identified that the Anti-Discrimination Law Federal Decree-Law No.2 2015 safeguards the rights of the employees as well as the customers of the company from discrimination of their race, gender and religion. The UAE Labour Law 2019 provides the guidelines to be followed by the company in terms of the work conditions and working hours permitted by the Government (Hafeez et al., 2016). The company is required to conduct its operations within the legal framework to avoid facing the negative impact of the same.

Environmental

As asserted in the case study on Emirates Airlines, Environment Protection Act 2016 regulates the use of sustainable sources for conduction of operations. The company is required to abide by the rules of the same by using sustainable products in their aeroplanes to contribute to the protection of the environment (Farrag and Raafat, 2017).

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References

Bose, I., (2018). The Strategic Environment of the Aviation Industry in UAE: A Case Study on Etihad Airways. IIUM Journal of Case Studies in Management, 9(1), pp.21-27.

Dhabi, A., (2016). United Arab Emirates. Countries and Territories of the World, 2(1), pp.44-54.

Dsc.gov.ae (2018). Inflation Levels Stand at Rise by 0.51% in November 2018. Available at:https://www.dsc.gov.ae/en-us/DSC-News/Pages/Inflation-level.aspx [Accessed on: 26 August 2019]

Farrag, D.A. and Raafat, S.M., (2017). Factors Influencing Arab-Origin Brands to Go Global. In Marketing at the Confluence between Entertainment and Analytics Springer: Cham.

Government.ae (2015).Anti-discrimination law.  Available at:https://www.government.ae/en/about-the-uae/culture/tolerance/anti-discriminationanti-hatred-law [Accessed on: 21 August 2019]

Government.ae (2016). Environmental Protection Act 2016. Available at: https://www.government.ae/en/information-and-services/environment-and-energy/environmental-protection [Accessed on: 23 August 2019]

Hafeez, K., Foroudi, P., Dinnie, K., Nguyen, B. and Parahoo, S.K., (2016). The role of place branding and image in the development of sectoral clusters: The case of Dubai. Journal of Brand Management, 23(4), pp.383-402.

Mason, R., (2018). Breaking the mold of small state classification? The broadening influence of United Arab Emirates foreign policy through effective military and bandwagoning strategies. Canadian Foreign Policy Journal, 24(1), pp.95-112.

Moid.gov.ae (2007). UAE Labour Law 2007. Available at:https://www.moid.gov.ae/Laws/UAE_Labour_Law.pdf [Accessed on: 25 August 2019]

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, 6(4), pp.121-138.

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