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GROUP MEMBERS:

Faraz Qureshi
Hassan Naqvi
Hafiza Afeefa Saadat
Hira Abdullah
Mudassir Khan
Murtaza Abbas
Ramsha Abid
Tabassum Ejaz

Company Overview
Emirates

airlines launched its firrst


aircraft on 25th October 1985
More than 500 honor prizes worldwide,
62000 employees,140destinations and
more than 1200 flights every week
Emirates conveyed more than 30
million passengers and more than 1.5
illion tons of cargo.
The company dominates the worldwide
airbus A380 and Boeing 777 market

VISION AND MISSION


To become one of the top lifestyle brand in the world

CORRECTED VISION
To make civil aviation safe, leading and
sustainable.
ANALYSIS
Company not only describe where it
wants to head in future but also it
acknowledge the firms movement
towards its future plan.

CORRECTED MISSION
Our mission is to be the leader in
air transportation industry. We
intent to provide the eminent
quality service by achieving safety
and comfort for customers to reach
the ideality while unending growth
to our shareholders, sustainable
societal
development
and
employee satisfaction.

OBJECTIVE
Become the Worlds most admired service
provider
Penetrate in new markets
Increase market share

CURRENT STRATEGIES

Pioneering new partnership for growth and


sustainability
Be a worldwide airline
Being an outstanding with high quality and
maintaining global expansion

INTERNAL FACTOR EVALUATION


EVALUATION

IFE ANALYSIS AND


RECOMMENDATION
The results of IFE matrix indicate that although Emirates
Airline is performing slightly above average, its position is
vulnerable due to issues with cost effectiveness, risky
acquisitions and the lack of internal alignment between
departments. Thus, recent strategies of the company should
address these issues and eliminate them, or mitigate the
effects of employee unsatisfaction.
Further The Emirate Airline depends highly on high
income group, it could be addressed by devising pricing
plan serving low income segment and earning more profits
as the higher percentage of people belong to low income
group.

FINANCIAL RATIOS

FINANCIAL RATIOS

EXTERNAL FACTOR EVALUATION

EFE ANALYSIS AND


RECOMMENDATION
The results of EFE matrix show that Emirates Airline is in a
favorable position with regard to the external environment
factors, and it should fully utilize its opportunities in order
to increase efficiency. In particular, the most important
directions outlined by EFE matrix are increase of
competition, increase of cooperation with other airlines
and even the creation of a separate airline alliance and
rising fuel price.
So Market diversification for medium and low-cost flights
and the use of government support to develop the
initiatives of the company are other important alternatives
which should be included in strategic plans and doing
R&D efficiently which in return can help the company to
devise fuel efficient ways to operate carriers

SWOT STRATEGIES
S-O strategies (use of internal strengths to
take advantage of external opportunities):
Price diversification using available resources (and
resource optimization)
Penetration into global markets through
partnership with other companies
Penetration into additional internationl
destinations through creation of a separate airline
alliance

W-O strategies (improvement of internal


weaknesses using external opportunities):
Focusing on partnership instead of acquisitions
Attraction of low and medium cost airlines to form a
strategic alliance
Filtered recruitment of new employees
Increase of cost effectiveness due to intensive
innovation

SWOT STRATEGIES
S-T strategies (use of strengths to avoid threats
or to reduce their impact):
Increase of profits due to high diversification
Organic growth (increase of aircraft fleet and route
coverage or cargo expansion)
Provision of middle and low-cost services to address
price competition
Advertising campaign for its outstanding service
Promote Dubai as center of trade and tourism in the
Arab world

W-T strategies (defensive approach


based on reducing weaknesses and
avoiding threats):
Integration of low cost carriers to match with
current situation
Cost optimizing through higher internal
alignment
Implementation of an effective and strategic
reward system

Five porter forces

COMPETITIVE PROFILE
MATRIX

CPM ANALYSIS AND RECOMMENDATION

Main competitors of Emirates Airline can be divided into two groups:


private airline companies and airline alliances. Key airline alliances
posing strong competition to Emirates Airline are SkyTeam, Star
Alliance and oneworld. Singapore Airline is a private company also
presenting a significant competitive threat for Emirates Airline.

The weighted score of Singapore Airline is 3.47 which is slightly


greater than Emirate Airlines because they are providing services to
their customer efficiently than Emirates.

All three airline alliances have strong or even close to superior


competitive profiles, which means that Emirates Airlines should aim to
develop competitive power compared to that of the major alliances.

Emirates Airline lack in customer services as compared to Singapore


airways, so they are recommended to adopt proactive approach to
customer service. Instead of waiting for problems to occur, they
should plan to avoid them

BCG

RelativeMarketSharePosition
HighMedium
Low

High+20

1.0.50
0.0
Star
QuestionMark

RECOMMENDATIONS
Generally first of all the company should focus on holding and
maintaining its current strategic advantages: increase market
penetration and flight coverage. Secondly, in the long-term
perspective Emirates Airline should focus on utilizing its
opportunities to the maximum and increasing its EFE score in
order to pass on to sector where the strategy of market
development should be pursued. Market development can be
pursued in the long-term perspective through acquisitions,
integration with major strategic alliances or establishing own
airline alliance.
Combining the results of BCG analysis with the strategies
generating using SWOT-Matrix method, it is possible to
determine that for Emirates Airline W-O strategies are actual for
the short-term period (1-2 years) and S-O strategies are actual
for the long-term period (3+ years). Suggested short-term
strategies are:
a) Increase of profits due to high diversification or growth
(increase of aircraft fleet and route coverage or cargo
expansion)
b) Improving inconsistencies for cost effectiveness.

RECOMMENDATIONS
Formation of own
strategic airline alliance
with partner companies
Eliminating
inconsistencies

Sky Cargo Expansion

Strategy1 Formation of own


strategic airline Alliance
One key long-term strategy is the formation of own strategic
airline alliance with partner companies. This strategy was
selected as an alternative to the inclusion of Emirates Airline in
other strategic alliances.
The major causes preventing Emirates Airline from entering
these alliances are the lack of control over the strategy of the
alliance, and potential confrontation between the goals of UAE
government which are strongly affecting business activities of
Emirates Airline, and the goals of the international alliance
(General Books LLC, 2010).
A reasonable solution is to form an alternative alliance: Emirates
Airline has enough capacity and financial power in order to
organize a new airline alliance centered in Asia. In this case,
Emirates Airline would have managerial priority for the alliances
strategic decisions, and would be able to address intensive
competition of other alliances.
Long-term objectives of this set of strategies are: increase of
Asian and global market share of Emirates Airline, increase of

Strategy 2 Cargo
Expansion

Strategy3 Eliminate
inconsistencies

Strategy3 Eliminate
inconsistencies

Strategy Evaluation
Every

year the chosen strategies should be


evaluated using the comparison of financial
projections with actual results, ratio analysis and
break-even analysis, to assess financial viability of
the projections, and to adjust for the changes of
the external environment. Non-financial controls
should be based on the analysis of competitive
advantages of Emirates Airline compared to other
strategic alliances which are the main
competitors. Key indicators for evaluation and
review are market share, number of passengers,
brand popularity, and customer satisfaction with
regard to the service of Emirates Airline.

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