CASE STUDY

EMIRATES

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Submitted To: Mr. Fareed A Fareedy

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Submitted By
Roll No:
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Subject: Marketing Management

Date: September 21, 2016

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 Q1. How has the Emirates been able to build a strong brand in the competitive
airline industry worldwide?
Answer. The Emirates story started in 1985 when they launched operations with just two
aircraft. Today, they fly the world’s biggest fleets of Airbus A380s and Boeing 777s, offering their
customers the comforts of the latest and most efficient wide-body aircraft in the skies. Emirates
inspire travelers around the world with their growing network of worldwide destinations, industry
leading inflight entertainment, regionally inspired cuisine and world-class service.

Emirates continues to play an active role in public international aviation policy debates which
have a key impact on the aviation industry. They are confident that their position on competition,
liberalization and government financial intervention in aviation is strongly in the interest of
consumers. At the heart of their business model is a commitment to true international
competition and open skies. They believe that an open global economy is vital to free and fair
trade, economic growth and fuller employment.

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With a fleet of more than 230 aircraft, Emirates currently fly to over 150 destinations in more

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than 80 countries around the world, and their network is expanding constantly. Over 1,500

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Emirates flights depart Dubai each week on their way to destinations on six continents. In recent

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years, Emirates has made numerous significant announcements regarding the future of its

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already state-of-the-art fleet. Then as now, their goal was quality, not quantity, and in the years
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since taking those first small steps onto the regional travel scene, Emirates has evolved into a
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globally influential travel and tourism conglomerate known the world over for their commitment
to the highest standards of quality in every aspect of our business.
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Q2. What are some of the apparent weakness with the company’s strategic
direction? How can the airline address them?
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Answer. Emirates is the serious threat in the market. Their competitors are struggling to
compete with Emirates, particularly due to its significant cost advantage. Emirates overlooks
very obvious flaws in its market strategy. For instance Etihad Airways, an arm of the Abu Dhabi
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Government, is offering products that appeal to travelers seeking premium services at

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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. Emirates should
offer better advantages to customer then their competitors to keep its position on top.
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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?
Answer. Airlines stand to gain the most from reduced prices, given that roughly a third of their
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costs are associated with fuel. Even better, thus far airlines have yet to face direct competitive
pressures to pass fuel savings on to customers. Any ticket price reductions will be driven
primarily by competitive dynamics (old-fashioned supply and demand), rather than by reductions
in fixed fuel surcharge rates. Although the lower energy costs may not lead directly to sharply
lower airline tickets, they may bring about a better customer experience for the long-suffering
flying public. The airline endures cost pressure as fuel costs represents leading expenditures

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 accounting 30.7 percent of the overall operating costs. The company’s human resources are
already lean and it is cost effective on other cost components.
Company will now attract cost conscious through declining of fuel prices. When the oil price is
falling, options are an advantage. It is cheaper to hedge forwards and get protection if prices go
up, but if you pay a premium for options you also retain the potential to benefit from lower oil
prices more immediately

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