Slogan: “Be good to yourself, Fly Emirates”

Group Name:
Escorpians
Group Description:
Will complete the task at any cost.

Subject: Aviation Marketing Class: BAMM 3D

Semester: 3rd Course Instructor: Ma’am Bushra
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History
During the mid-1980’s, Gulf Air began to cut back its services to Dubai. As a
result, Emirates was conceived in March 1985 with backing from Dubai’s royal
family, with Pakistan International Airlines providing two of the airline’s first
aircraft on wet-lease. With $10 million in start-up capital it was required to operate
independently of government subsidy. Pakistan International Airlines providing
training facilities to Emirates Cabin crew at its academy. The airline was headed
by Ahmed bin Saeed Al Maktoum, the airline’s present chairman. In the years
following its founding, the airline expanded both its fleet and its destinations. In
October 2008, Emirates moved all operations to Dubai International Airport to
Terminal 3.

Introduction to Emirates Airline

Emirates is an airline based in Dubai, United Arab Emirates. The airline is
subsidiary of The Emirates Group, which is owned by the government of Dubai’s
Investment Corporation of Dubai. It is the larges airline in the Middle East,
operating 3,600 flights per week from its hub at Dubai International Airport to
more than 150 cities in 80 countries across six continents. Cargo activities are
undertaken by Emirates SkyCargo.
Emirates is the world’s fourth largest airline in scheduled revenue passenger-
kilometers flown, the fourth-largest in terms of international passengers carried,
and the second largest in terms of freight tonne kilometers flown. From March
2016 to February 2017 Emirates had the longest non-stop commercial flight from
Dubai to Auckland.
Emirates operates a mixed fleet of Airbus and Boeing wide-body aircraft and is
one the few airlines to operate an all-wide-body aircraft fleet. As of February 2019,
Emirates is the largest Airbus A380 operator with 112 aircraft in service and a
further 11 on order. Since its introduction, the Airbus A380 has become an integral
part of Emirates fleet, especially on long-haul high-traffic routes. Emirates is also
the world’s largest Boeing 777 operator with 144 aircraft in service.
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S.W.O.T Analysis of Emirates Airline

Strengths:
Strong Backing – Emirates has a string backing of the Dubai Government.
This is a Great Strength to the airline for its success in the business. The
Dubai Government is the only owner of the airline company. But it does not
interfere with its operations neither does it put any new money to it.
A Strong Hub in Dubai – Emirates has a strong hub in Dubai that gives
access to Emirates airlines across the Asia and Europe. This is a great
strength as its network connectivity will be huge.
Good Customer Service – Emirates provides good customer service and
due to this, the airline has an enormous response from the customers.
Customers are, in fact, happy with the service and it is a preferred airline of
customers.
Huge Workforce – Emirates has a strong workforce of about 50,000
employees. This will help the airline to function better.
Good Reach – Emirates airline has a wonderful reach that covers about 70
countries in about six continents.
Excellent Advertising – Emirates has excellent advertising and branding for
the airline. It is done through print, online, ads, TV, etc.
Excellent Service – Emirates has shined in customer service, inflight
entertainment, exclusive lounges, etc.
Size - Emirates airline has a great advantage of having a big size aircraft.
This is a huge strength as it can accommodate maximum passengers.
Strong Brand Equity – Emirates has strong brand equity that makes them
become more visible in the market.
Branding – During the year 1990, Emirates had launched its first set of
commercial. It had the slogan “So be good to yourself, Fly Emirates”.
Sponsorship – Emirates has sponsored many events that have strengthened
the brand. During the year 2011, Emirates sponsored the Emirates Air Line
Cable Car over the River Thames situated in London. It had also sponsored
many sports events like cricket, football, rugby, and many other sports.
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Weaknesses:
Dependence on International Traffic – The Emirates airline depends
heavily on International Onward Moving Traffic.
Intense Competition – There seems to be intense competition and limited
market share growth for the airline. There seems to be a high cost
maintaining bench-marks standards.
US Market – Emirates seems to find it difficult to occupy US market. This
is a weakness as the US market could fetch more revenue for the company.
Cater to High-class Traveler – Emirate airline does not seem to cater to the
middle class and budget traveler. This is, in fact, yet another weakness as the
target customers become less.

Opportunities:
Increase in the Number of Fleet – Emirates can introduce new fleets and
can also be used to improve customer confidence, this will also enable them
to provide more service to the customer.
Increase in the Number of International Destinations – Emirates can
increase in International destinations. This will help them with more
opportunities and to become popular among the customer.
Joint Ventures – Having many joint ventures and partnerships with many
international players can give more opportunity for the airline company.
This will help them to increase their revenue.

Threats:
Increasing Competition - Airline industries are increasing in the Middle
East market and Emirates face strong competition in the industry. This is a
serious threat to Emirates since Emirates as such carter to high-class
traveler thereby giving a chance for them to decrease the visibility.
Increase in Fuel Cost – when there is an increase fuel cost, it impacts the
airline margins. Hence, fluctuating fuel cost is also a threat to the Emirates.
Government Policies and Regulations – Changes in government policies
and regulations can also impact the airline company.
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PESTEL Analysis of Emirates Airline
Following is PASTEL analysis which helps to understand the industry situation
and determine the factors affecting growing business.

Political Factors:
Airline industry can easily get effected by any political change which shows that
the industry is sensitive in nature. The political situation includes wars and various
economic situation going on in country. The recent economic as well as political
instability in Asia has allowed Emirates airline to earn maximum profit. People
rely on Emirates airline instead of preferring flights of their country. Emirates
Airlines is bound by following Political factors:
As Emirates airline is the property of Dubai Government so, it must need to
follow the rules and regulations passed by Government.
As Emirates has signed agreements with other countries so, the routes must
be opened to world.
Terrorism and Wars does affect the service.

Economic Factor:
The economic condition of any country affects the profit, capital availability and
the demand forecast. If the cost of capital and demand buyout is low then it will be
attractive for various industries to grow and invest to make the business more
profitable. Emirates airline is one of the competitive airlines. It is stable and has
favorable stability economically. There are many airlines which have faced many
crashes and severe conditions, but Emirate have successfully managed to strive
best to have a better economic situation. It is one of those airlines which has not
faced any aviation downturn or economic condition. This is the result because of
great marketing strategies used to promote Dubai as a tourist destination and
making it look more attractive to people in other countries.

Social Factors:
The social factors do involve the taste of people and their demand. This varies
according to non-refundable income factors. The general changes in service of an
airlines may affect the companies and let go of particular threats. With time many
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products do change their market saturation, and this may happen due to the
promotion as well as pricing strategies.
Emirates is well aware of various demographic changes and may be influenced
because of regions, affluence, ages and numbers of employees working. This will
impact on the demand for particular services and products. However, culture plays
and important role in operating a flight. The crew needs to be well aware of all
culture values of different passengers. This will provide services up to customers
need.

Technology Factor:
The advancement of technology is widely used and well recognized especially in
the services of Emirates airlines. The services or the company designed
exceptionally to meet the competitive advantage. The emergence of the internet
and IT affect the services of Emirates airline because it has been operating with
integrated technology services. The company has various IT systems which allow
the users and passengers to avail during their flight. It has introduced latest trends
so that more people get attracted to it.

Environmental Factors:
Emirates is concerned about the various environmental factors. Airline services
must need to encounter or consider the environmental changes. The climate or
immediate weather condition affects or may influence the credibility of airline
service directly. Airline companies do follow strategies which provide a good
image. This is the main reason which needs to be considered. The new service
offered by the Emirates are known as recyclable cutlery which has enabled, he
passengers to get attracted to it. The eco-friendly gadgets allow you to examine
various actions and eliminate facing problems in society.

Legal Factors:
Many governments in the Pacific areas are operated under paternal policy. Many
government policies protect airline form external factors especially the political as
well as environmental factors. The changes in these factors will inevitably affect
the generated revenue and the image of the company. The regulations and policies
provided by Government must allow the airline company to be more cautions in
both international and local dealings. To avoid such common issue, it is best
practice business. The Emirates actions and various operations are legal and are
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arranged to allow the customers to enjoy safe and secure flight. The exceptional
trip has met the highest standards and in concerned about the different policies
regarding competition, law, health and safety concerns, trading laws and regulatory
bodies.
However, there are many threats associated with Emirates airlines by external
factor. The political and legal factors are the main issues which will increase the
level of risk for the company.
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PORTER’s Five Forces of Emirates Airline
Emirates is a leading business in the global airline industry, managing its
operations in more than 80 regions. The Porte’s five forces model would help in
gaining an understanding about the airline industry and Emirates position in the
market.

Threats of New Entrants

Airline industry has high entry barriers, primarily associates with huge start-up
costs involved. In addition, entering the airline industry requires taking the
governments approval as well as fulfilling the standards of aviation associations.
The companies also have to implement EPA standards, adhering to the quality of
the airplanes and keeping emission under specified limit. Starting a new airline by
penetrating into the competitive market would require capital resources, combined
with an effective market entry strategy that helps in establishing a strong position.
The airlines already present in the internal aviation industry make it difficult to get
signified market share gain in the initial years. Therefore, Emirates Airline is
facing low threats of new entrants. Well established airlines such as Emirates,
which have been operating since decades, have the capacity to handle the pressure
from new entrants.

Bargaining Power of Buyers:

The buyers in the airline industry can’t exert any significant control over the prices
charged for airfare. They have some influence on the prices, by opting for other
airlines, charging lower airfare, however the demand for quality is a central feature
for customers of Emirates. An effect of this lack of bargaining power is that the
airline companies such as Emirates can increase their prices due to the seasonal
influences, and the customers continue to avail the services despite the prices hike.
Since Emirates has established its image as a quality service provider, the
customers are willing to pay a higher price than other no-frills airlines. Based on
this analysis. It can be concluded that the buyers of Emirates have low bargaining
power.

Bargaining power of Suppliers:

The bargaining power of suppliers in the airline industry is determined by the
number of suppliers of planes and the demand of the airlines for the carriers. There
are only 2 leading companies that are manufacturing the airplanes for civil
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transport usage, namely Boeing and Airbus. The low number of suppliers present
in the aviation industry leaves ample opportunity for the suppliers to show limited
flexibility in the price structure, while maintaining high bargaining power. As a
result, they are able to have a higher bargaining power when dealing with this
leading global airline. The management has developed close ties with the suppliers,
collaborating for the purpose of developing airplane designs that are equipped with
the needed technical mechanism to enhance customer experience.

Threat of Substitute Products:

Emirates airline faces moderate level of threat of substitute products in the airline
industry. There are other carriers apart form Emirates that are providing
transportation services to the people, which can be regarded as a substitute for the
customers. Another substitute that is available for people traveling to nearby
regions is other modes of transportation such as automobiles. However, when it
comes to international travel, air travel is the main choice of consumers. The other
airlines offer tickets at competitive price, creating moderate level of threat for the
company, however, Emirates remains focused on service quality, thus charging
premium price.

Competitive Rivalry:
The global industry has a high degree of competitive rivalry, putting pressure on
the company to develop a strategy to maintain financial supremacy despite the
intense rivalry. According to the management, focus on enhancing the service
quality and updating the aircrafts and infrastructure helps in maintain an edge in
the industry. Even though Emirates has benefit of being the national airline of
Dubai, its competitors have global presence, necessitating the need to strive for
maintaining customer loyalty through brand loyalty programs. Some of the
competitors are Qatar Airways, British Airways, and Air France which have
significant market share, making quality as a key component of differentiation of
Emirates.
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Team Structure

HUSSNAIN ASLAM
(229)

HAMZA TAHIR MOHAMMAD HAYYAT

(193) (195)

MOHAMMAD ANEES BILAL RANDHAWA

(217) (186)