,Faculty of Business and Economics

Master Program of Business Administration

Marketing Management (BUZA633)

Assignment #2

:Submitted to

Dr. Amal Nazzal

:Done by
Nelly Odeh
1195240

Summer Course
Q1) How has Emirates been able to build a strong brand in the competitive airline industry
worldwide?
Emirates Airline is one of the largest airline not only in the Middle East but also in the world; based in
Dubai (UAE). It was founded in 1985 by the higher leadership of Dubai Emirate with the purpose of
developing the infrastructure of the UAE. It operates over 3,000 flights per week from its hub at Dubai
International Airport, to more than 148 cities in 78 countries across six continents. 1
Emirates Airline is one of the fastest growing airlines in the world catering to growing international
passenger travel industry. Its mission is to “connect people to places and business opportunities”. In 2014-
2015 financial fiscal year, Emirates reported revenue of AED 88.8 billion ($24.2 Billion), a 7.5% increase
year-over-year with profit margin of 5.1% versus 3.9% the year prior. It also transported 49.3 million
passengers an 11% increase year-over-year, while increasing its capacity by 9%. The airline has had over
25 consecutive years of sustained growth and positive margin in an industry that is regarded as highly
cyclical and competitive.2
One of the key dimensions of competition in the airline industry is unit cost. Quite simply, a low unit
cost is a competitive advantage as it allows airlines to be profitable at low fares. 3 Therefore, Emirates has
one of the most cost-efficient operations in the airline industry giving it a competitive advantage. It has a
lean workforce comparable to that of low-cost carriers and has a flat organization that keeps overhead
costs low.4 It also invested in program called “tailored arrivals”. Tailored arrivals is “a comprehensive
method of planning, communicating, and flying highly-efficient arrival trajectories from cruise altitude to
the runway threshold. Tailored Arrivals trajectories are optimized for each aircraft to permit a fuel-
efficient with arrival sequencing requirements and other airspace constraints.” 5 This allows air traffic
control to uplink to aircraft en route. It first determines the speed and flight profile from air onto the
runway and allows the crew to accept and fly a continuous descent profile, saving fuel and emissions.
The success of emirates can be attributed through the combination of marketing mix which emphasize
on excellent customer service, product and equipment. In addition, Emirates is known for its commitment
to the highest standards of quality in every aspect of their business, providing premium service be it in
first, business or economy class.6
They able to build a strong brand by lean business resource, getting support from the Dubai
government, high employee satisfaction, high customer loyalty, being innovative with time is the prime
factors to build itself as a brand in airline industry.

1
https://tickets.pl/en/avia/rating/EK/airline-reviews
2
https://digital.hbs.edu/platform-rctom/submission/emirates-airlines-the-international-carrier/
3
https://centreforaviation.com/analysis/reports/unit-cost-analysis-of-emirates-iag--virgin-about-learning-from-a-
new-model-not-unpicking-it-147262
4
https://digital.hbs.edu/platform-rctom/submission/emirates-airlines-the-international-carrier/
5
https://www.nasa.gov/centers/ames/pdf/158248main_conops_ota.pdf
6
https://www.bartleby.com/essay/Case-Study-Emirates-FKFKZZSXH3U4Z
Q2) What are some of the apparent weaknesses with the company’s strategic direction? How can
the airline address them?
SWOT stands for strengths, weaknesses, opportunities, and threats; analysis is a framework used to
evaluate a company’s competitive position and develop strategic planning. 7
In this case the Emirates SWOT analysis8:

Strengths: Weakness:
1. Strong growth and world class 1. Highly priced tickets compared to
infrastructure competitors
2. Local government support 2. Fall in oil prices a business paradox
3. Branding and sponsorship
4. Global alliances and partnerships
Opportunities: Threats:
1. Dubai world Expo 2020 to be a major 1. Emergency of strong competitors in the
business opportunity region Etihad, Turkish Airlines and Qatar
2. Emergency of Dubai as a business and Airways
tourism hub 2. Accusation of subsidy benefits by rivals
3. Untapped markets like Iran and Cuba in the United States
3. Conflicts in the Middle East and global
terror threats

Despite its many strengths, the airline company is not without faults. In its disregard for growing
regional competition, Emirates overlooks very obvious flaws in its market strategy. For instance, Etihad
Airways, an arm of the Abu Dhabi government, is offering products that appeal to travelers seeking
premium services at competitive prices. Gulf Air, which is partly owned by the Abu Dhabi government,
has also taken advantage of the open skies policy to gain free access to the Dubai airport. 9

Emirates has strongly built their

brand in airlines industry and
strategically positioning
themselves

7
https://www.investopedia.com/terms/s/swot.asp
8
https://www.swotandpestle.com/emirates/
9
https://drive.google.com/file/d/111IHME5nn1vLFXAR44Clw9-LPDF7v071/view?fbclid=IwAR1Yz0QrW1KN8-
ZNJTNHiRkt3QoDmOahUnygR-bt-2-Is8-qny4tYcC1t5Q
but they are lack in taking into
considerations of their
competitors in determining their
future
directions
Emirates has strongly built their
brand in airlines industry and
strategically positioning
themselves
but they are lack in taking into
considerations of their
competitors in determining their
future
directions
Emirates has strongly built their
brand in airlines industry and
strategically positioning
themselves
but they are lack in taking into
considerations of their
competitors in determining their
future
directions.
Emirates has strongly built their brand in airlines industry and strategically positioning themselves but
they are lack in taking into considerations of their competitors in determining their future directions.
1. They do not look into the advantage and disadvantage of their competitors. For example Etihad
airways and many other airways have also signed the open skies policy and are ready to compete
with emirates at a very competitive price with the same quality of service.
2. They only target the elite class people as their customer which is also a threat for them in future,
as because if people get same service at a low price, they will go for that.
3. Ignoring the competitors like Gulf Air company, Air France and British Airways.
4. Overlooking to the fault of marketing strategies, and over confident about their position in
aviation industry.
5. Absence of international alliance as they are not art of any alliance.
Solution to these weakness;
1. Improving inflight service meanwhile taking cognizance of completion offerings.
2. They need to develop their products.
3. They can roll packages for non- premium class direction.
4. Incorporating in budget airlines.
5. By repositioning and aggressively evolving novel strategies as per the target market response.
Although emirates has strong brand position but they need to solve those problems in order to keep going
in the future.
Q3) With the decline of fuel prices globally, airline companies continue to reap the benefits. What
impact will this have on Emirates’ business strategy in the future?

Dubai’s Emirates Airline 2015-2016 profits jumped 56 per cent to reach a new annual record, as the
fast-growing carrier saw its fuel bill decline by 31 per cent on lower crude prices. The low oil price
helped reduce operating costs by 8 per cent, with fuel now 25 per cent of operating costs, compared to 35
per cent in 2014-2015.10
If the price of fuel decline globally it will affect Emirates business strategy as the following; A) Emirate
will attract cost conscious through declining of fuel price. B) Reduce price-fluctuation risk on projected
operating costs, many airlines hedge a proportion of their future fuel needs six to 24 months in advance
by buying jet fuel or crude oil contracts from banks or on an oil futures market. C) Risked slower growth
in the coming years as heavy investments in new planes and premium-class services begin to erode profit
margins. D) When the oil is falling, options would be in favor of emirates as it is cheaper to hedge
forwards and get protection it price goes up, but if one pays a premium for options they also retain the
potential to benefit from lower oil price more immediately.

10
https://www.ft.com/content/34b48e52-bf12-3f91-9473-a7b7639dfc13