Question 1

Vision, Direction, Support; LEADERSHIP: The Emirates Airlines success has been the
continuity of its management team, many of whom have been with the airline since its start of
the company. There is a consistency in leadership goals.
Small Wings- Big Dream: From the very beginning management designed a strategy
(ideological/deliberate Strategy) of differentiation unlike its competitors (regional, local).
Emirates focus was to build a premium brand rather than just running an airline.
Customer Service at Core: In an industry characterized by decreased service amenities and
increased discomfort to improve bottom lines, part of Emirates appeal to many passengers
was its emphasis on a premium service experience. Differentiating itself through service not
only enabled Emirates to build passenger loyalty and reap subsequent value, it also allowed
the airline to avoid direct competition with low-cost competitors based on price.
As Emirates was successful in creating a premium brand that resonates with its target
customers, thus creating competitive advantage and willingness to pay.
Location and Government: Dubai benefited from relatively good weather; aside from
occasional fog and the general heat, airport operations remained relatively free of the rain and
snow, thus ensuring smooth operations. Relative distance from other hubs also made Dubai
favourable as flights could be connected anytime.
3-type Fleet:
Youngest fleet, equipped with latest airplanes Enhancing customer experience and low fuel
cost)
Optimized its pilot deployment.
Effectively served its long-haul routes.
Other Factors:
Gripped the shift from transatlantic bases to multipolar model.
First-mover advantage in markets with fixed demand for international travel (locking up the
market).
Tapped BRICS countries.

Question 3:
Currently emirates is following differentiation strategy. It has pioneered in providing all
high-end services and amenities. No doubt differentiation strategy and tapping in to new
markets or emerging markets have paid-off Emirates where other players in industry are
facing losses. However, if differentiation strategy in terms of services (that had never been
provided before) is measured on the criteria of VRIO, it shows that competitive advantage
created by Emirates is not sustainable specifically in long-run. Services like walk-up bar,
shower-spas and other amenities are certainly valuable to Emirates and they are also

organized/aligned with organizational philosophy and strategy, however these services are
easily imitable (as mentioned in case, competitors have already copied them) and therefore
are not rare, thus leading to competitive convergence. In addition,
Barriers

to

entry

Bargaining power of suppliers:

Bargaining of customers
Threat of substitute
Threat of new entrants
Tim Clark has done very well and gave his best to the company. But as he is close to
retirement he, well company cannot find any successor to him, which shows that strategy of
the organization has not been communicated and new person might come up with another
strategy and do not support the current strategy or may be the new person faces
understanding issues.
Considering government support as an edge to Emirates, it is valuable and non-i

Small wings, Big dream Capitalization of the Initial Fund: In contrast to other major Airline
operators such as Air France and British Airways, who have often received huge bailout
packages or debt reliefs from the government; The Dubai government had given the airline a
total

of

just

$18

million,

including

the

start-up

money.

The leadership in the organisation were able to capitalize on this initial funding by the Dubai
Royal Family and flew out of Dubai with just two aircrafts, leased Boeing 737 and an Airbus
300 B4 from the Pakistan International Airlines. The first flights connected to the
neighbouring cities of Karachi, Pakistan and Mumbai, India, and they soon started an
operations

to

the

capital

of

India,

New

Delhi.

The Positioning1: The location is a strategic one A well-oiled hub centred in a major
catchment area. Emirates enjoy the low price of fuel and also the low cost labour in this
region, which is more than just convenient for an Airline operator. Emirates moves
passengers west-east, east-west, north-south and vice-versa and many of them only touch
Dubai
...

in

transit.