Report Outlines Analysis
This report outlines some key areas of strategic management from the perspective of a given case study. More precisely the report is classified into two sections: Section A and Section B. In first section an in-depth analysis of Emirates airline’s internal and external environment is given. And the later section of the assignment proposes marketing and strategic objectives of the company, and respective strategies to accomplish such marketing objectives. Situational analysis assists decision makers of companies in determining their existing position in the industry.
It helps companies in developing more effective and efficient strategies to ensure or increase market share of the company. 1. Internal Analysis Internal analysis of Emirates airline outline the key strengths of company to develop its SOOT analysis, and it also describes the way business value chain is structured in the company, what grand strategies company is pursuing and competence of such strategies in comparison to the competitors. 1 . 1. Tangible Sources In the era of technological advancement presence of sophisticated infrastructure is highly important and essential.
Emirates Airline is in the front position of the airline industry and posses quite appreciable tangible sources including 190+ alerts, star more teen 1 AT mainly Skilled Monolinguals Ana global market AT more then 122 international destinations into 74 countries. 1. 2. Intangible Value Intangible value is created from the intangible sources such as leadership, management competence and goodwill. Emirates airline has maintained high level of benchmarks on these factors. It’s Just because of its leadership that the airline has become world’s top player of airline industry in a very short span of time (Company
Overview, 2014, n.
D. ). Apart from the highlighted intangible resources, company has also ensured high degree of performance on the basis of economies of scale, brand loyalty and absolute cost advantage 1. 3. Established Value Chain Emirates Airline a name globally renowned for its diversified business and huge range of properties.
Company has established a zero error system with its suppliers, vendors. It has signed various MOMS with bug giants of aircraft manufacturers and has developed an integrated association between its primary and secondary activities of value creation. 1. 4.
Key Strategies Employed Strategic management of company is of worth mentioning, company has developed its strategies by considering long and short term goals. Emirates right from its inception has focused on viewing and revamping its strategies (Tim Clark, 2012, n.
D). The company has adopted the rule of continuous improvement and continuous development in all of its departments and function units. 2. Customer Analysis Emirates airline has recorded highest customer base in Arabian countries, Emirates customers’ segmentation and customer management is highly efficient and effective.
Emirates has ensures value based services for such customers including Wi-If services, larger space and non stop trips. Emirates has witnesses loss on its segment which is caters economy class travelers as theses customers have shown price elastic mean Demeanor.
2. 2. Targeting & Positioning of Customers Emirates Airline targets to upper management of executives and businessman from the age bracket of 30 to 60 years, these are the individuals who strives for comfort, luxury and esteem in the travel. It is intended to serve all the customers with the discrimination of nationality. 3. Competitor Analysis
Teethed Airways, Deutsche Lufthansa GAG, Air France-KILL, and other premium airline are considered as the core competitors of the company.
Company has managed the competition very appropriately and has attained admirable position in the industry. Aggressive management in terms of acquisition, mergers and acquisition, alliance and other strategic option has helped the company in maintaining the top position from several years. 3. 1 . Competitive Strategic Factor Analysis Competitive Strategic force analysis is an effective tool that outlines the position of a company in comparison to its competitors.
It can be seen that Emirates Airline has highest score in its competitive environment.
Rank 2 3 ‘total :impasses -chemical ‘rice people ;fatty ;core immolates Edited 4 14 Air France Lufthansa 5 15 Others 4. Industry Analysis Porter’s five forces help in conducting the industry analysis. It assist in identifying the grey areas of various factors. 4. 1 . Threat of New Entrant Threat from the new entrant is low as compared to other industries because airline industry requires utilization of large initial capital requirements.
Threat of new entrant is also low because of regulatory requirement that each country deploys n the registration and operation of airline companies (CNN, 2013, n. D). In addition, the phenomenon of globalization and free trade agreement has given raise to many domestic companies to enter in the international arena. 4. 2.
Threat of Substitute Threat of substitute in airline industry is increasing day by day due to the technological advancement in the landscape of transportation.
Fast bullets trains, water cruises are gaining increasing appreciation from the customers. Apart from this, terrorist attacks and airplane accidents has also diverted the attention of customers to look for other sources or modes of transportation. 4. 3.
Intensity of Rivalry The rivalry between competitors in the sector is very intense. Intense competition, lasting years, changed the shape of many sectors, resulting in a number of acquisitions, mergers, through which the main players on the market can keep market shares and its leadership (Emirates Airline, 2013).
Many competitors similar scale sector growing slowly high fixed costs similar to Bundled Products (no differentiation) diverse actions of competitor’s large strategic benefits high barriers to exit from the sector. 4. 4. Bargaining Power of Buyer Recipients purchase significant part total sales Company, There is a large share of the costs recipient, The product is not differentiated, Switching costs for the recipient are low , There is a danger integration vertical, Product seller does not have significant impact on the quality of recipient.
Bargaining Power of Supplier There are very few suppliers, There are no substitutes, The sector is very important Recipient for suppliers, Products suppliers are varied, There is a strong threat of vertical integration. 6. Environmental Analysis Environmental analysis is highly essential in identifying the strategic position of he company. PEST framework is mainly used in conducting the macro environmental analysis of the company.
6. 1 . Political factors lenient-TLS century Is wellness a completely new Klan AT political Torte, wanly Is very broad and diverse.
Political initiatives, both nationally and internationally are creating many opportunities, but also many risks on the political scene. Political influence are present in all areas of business, let us mention only a few: Airline, Agriculture, Mining, Fuel industry.
Just look at the signed in January 2002 Free Trade Agreement between European and Arab Countries. Two important forces Political Far East reach agreement, under which both countries will benefit political, social and economic (Bernstein, S. , 1992, P. 45).
The main influences are related to restricting access of low-cost some routes, because in many cases European countries are majority shareholders of classic airlines and they would have lost to low cost companies if they be allowed to enter certain air routes.
6. 2. Economic Factors One of the key factors for any organization is the state of the economy and that both local and global. The question arises to what extent the deteriorating economic taxation in the Europe may cause a spiral effect and influence on the condition of other economies around the world?
Historical and economic indicators indicate that the economy is cyclical, going from periods of crisis to prosperity. With the recent emergence of global economic crisis, the number of calling the carriage began to decline due to financial instability and pessimistic that negatively influenced the decision to purchase the services of airlines. Understanding social factors influencing the market environment is very important.
The company must respond because the shape of the existing social infrastructure for market. Increasingly more people want to travel, whether on staff to studies or business.
Air travel becomes therefore necessary and indispensable. Consumer characteristics: age, sex, social class, the life cycle of the family, the age of the population significantly affects the overall operation and functioning of Emirates Airline (Bracken,J. , 1994, P. 379).
6. 4. Technological Factors In the past 20 years and especially the last 10, the technology developed in rapidly. The development of technology has contributed to the improvement of techniques production introduction dynamic innovation, increase efficiency and Efficiency in a way so far inconceivable.
To remain competitive, marketers must understand the need for recognition factors causing changes in technology and the need to be “up to date” with the latest technology.
Almost all promotional activities and sales are made exclusively by Internet. 7. SOOT Analysts Strength Lower costs than network carriers Fleet multiform High productivity Timeliness Low rates Point to point rides nonstop or interruptions High degree of awareness of the brand in low-cost airline segment A second low-cost airline company in Europe in number of passengers Number of air routes serving most of Europe
Perception among customers as a company with low prices but providing quality Leading-Infrastructures from EAVE to airports Strategically Geography Powerful-national hotel chains Weakness Obsolete labor-Legislation Lack with languages High share of shadow economy Little investment in R& D Highly decentralized-Administration Hotel-spray and agencies Limited budget compared to companies national air Low awareness in environments restricted access to Internet services in the global system booking air tickets Limited presence in some areas of flight Europe Opportunities Liberalizing of air transport and handling services
Is not present Creators of demand – Lesser airport charges for the use of secondary airports Exporter-sector incipient Winter season untapped Segmented ‘low cost’ hotel Great potential to attract a number of passengers Increasing tourism in Europe and making Seasonal flights on routes The high frequency of flights in many major cities in Europe Threats High unemployment, sluggish consumption and consequent Difficult access to credit Overrated-Estate Market Input of traditional airlines through Internet sales, increasing competition. – Rights to use large airports cornered by traditional airlines High Speed Train
New technologies reduce the number of travelers. Hall Tulle costs Entry of new competitors segment of low-cost The risk of terrorist threats and the economic sector, especially due global economic downturn 8.
Strategic Group Analysis There is clearly presence of strategic groups in Airline industry. Examples are named: Cathy Pacific, Santa, Air France-KILL and Lufthansa. These real players offer comparative items regarding extravagance traveler bundle, youthful flyers, in- flight entertainment and so forth. This implies that Emirates is forcefully rivaling others. Apart fro other strategic group includes other players.
British Airways is one of the greatest on the planet. Second Qatar Airways getting accomplishment from its forceful development plan. Singapore Airlines have great notoriety in business sector as most deferential travel marks in the business sector and was secured in 1947. American Airlines secured in 1930 and biggest carriers over the world because of yearly travelers of this aerial shuttle more than 80 million. 9.
Value Chain Analysis Value chain analysis is a widely used technique that describes the effectiveness of different activities in achieving and delivering the best services.