Emirates - Case Study

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UPDATE: Bổ sung thông tin câu trả lời:

2.1 “ What are some of the apparent weaknesses with the


company’s strategic direction ? ”

2.2 “How can the airline address them ? ” (Solutions)

3. “ 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 ? ”

Dàn bài
+ - Some information about Emirates
- To build strong brand => Core competencies
+ Competitive advantages (lợi thế cạnh tranh): resources
(nguồn lực), markets (thị trường)...
+ Difficult to imitate: có điểm gì khó bắt chước không
+ Wide applications: có tính ứng dụng rộng rãi không

1. - What is Em’s strategic direction?


- Weaknesses of that direction? -> the reason why they are weak,
explain it.
- Compare to their competitor (choose a competitor to do):
+ What’s that competitor’s strengths?
+ With Em’s weaknesses, did the competitor did well? or they
can add (bổ sung) something?

2. - Why did Em get benefits in that condition (the decline of fuel


prices globally)? (Opportunities)
- What impact on them in the future?
+ Technology
+ Globalisation
+ Social responsibility
3. Conclusion.

I. INTRODUCTION

Emirates Airlines or Emirates stands out as one of the leading carriers in


commercial air transport worldwide.

- Since its establishment in 1985 in Dubai,

-The airline has grown to cover over 142 destinations globally (Emirates
Group par. 2).

- It provides a range of integrated services, including regional and


international passenger travel, postal, and freight transport. The airline
is also a provider of in-flight catering and accommodation for
passengers and IT services.

- It runs a fleet of over 217 Airbus and Boeing carriers with an active
presence in 80 countries.

- Its passenger number also increased from 44.5 million to 49.2 million
over the same period, Passenger seat factor increased by 0.2% to 79.6%.

Mission

Vision

Values

Slogan: Fly Better

“We’ve always pushed to offer you experiences beyond expectation.


It’s why we put showers and lounge bars on board to make that journey
as comfortable and as memorable as possible. It’s why in Economy
Class you can enjoy a choice of entertainment that would take you years
to watch, on the largest touchscreen TVs in the sky.
Everything we do is for you. So that when you fly with us, you’ll get a
better and more enjoyable experience every single time. This is our
promise to you.
Fly Emirates, Fly Better.”
II. THE MARKETING MIX OF EMIRATES AIRLINE
● Product
Currently, Emirates Airlines offers customers with four cabin classes:
Economy, Premium economy, Business, and First-class. Thus, as
other commercial airlines, Emirate’s services include customers’
consultation, baggage safekeeping, hospitality features such as
lounges, meals, entertainment, and flight assistants’ high-quality
services.
The highlight of the high-quality service of Emirates is delivering a
unique in-flight experience for all classes. In particular, for the first
class, Emirates Airlines is the first company to provide private
showers on flights and private suits.
Moreover, customers also have the opportunity to experience the in-
flight space of both Emirates A380 and Boeing 777 anywhere through
the "Explore our cabins in 3D" platform and experience Emirates in
virtual reality, from the pilot's cockpit to First Class luxury at VR
Immersion with Oculus Rift on the website.
Becoming the top safe and comfortable transportation of customers
is the core goal of this airline.

● Place
Emirates is the world's largest international airline with more than
269 aircrafts, flying to158 destinations in 85 countries around the
world. The main airport hub is in Dubai, where this airline receives
millions of tourists to visit and an abundance of oil reserves.
Customers can book plane tickets online through the website or
buy them at distribution agents. This tactic allows Emirates to
meet the needs of a wider range of consumers.

● Price
Since Emirates airlines has its hub in Dubai, it serves low cost
tickets to its consumers compared to other airlines.
Emirates airlines has a varying pricing strategy in its marketing mix.
It has developed shorter and low cost routes without any layover.
Although the prices of these routes is lower, the company generates
revenue through volumes. Due to direct flights, Emirates airlines has
adopted an effective price policy for the shorter routes. In order to
attain flexible pricing for the seats and extract the maximum profits
the company also adopts dynamic pricing policy levying the highest
cost per seat. In general, the company identifies the needs of the
customers with different needs and belonging to differential
financial statuses. Emirates airlines also uses premium price policy
for its premium customers who demand luxurious and customized
services at flights.

● Promotion
Emirates airlines engages itself in various promotional activities
through advertisements in magazines, newspapers, television, radio,
websites etc. The focus of Emirates' marketing strategies is on
sponsoring sports leagues. The company also sponsored ICC
cricket world cup in 2011 as well as 2015 thereby increasing its
reach to millions . Emirates airlines often generates promotional
discounts during the off season pricing the tickets at affordable
rates attracting the tourists across the world to Dubai. The company
also runs innovative campaigns like “The Kids go free” wherein
meals, tickets and accommodation of the kids was free with two
paid members which generated a lot of business for the company.
Non-profit entity: The Emirates Airline foundation is committed to
providing aid to various countries during difficult times. The airline
also offers frequent flyer programs & loyalty rewards to its regular
customers via discounts, lounge access, free tickets etc.

● People
- Emirates airlines have a strategy of always focusing on customers.
Emirates has got an employee force of more than 50,000 people
worldwide. This includes management, pilots, crew and other staff.
The airline carries more than 50 million passengers worldwide.
- Human resources management is a critical aspect for Emirates
Airlines as the team is part of the customer experience. The
company places particular emphasis on recruitment and selection,
hiring the best candidates. Emirates Airlines has special
requirements for the appearance of candidates, as well as
knowledge of the English language, which complicates the
selection. The company offers a detailed training program for new
employees.
- Key skills training also offers the empowerment of workers
through the provision of valuable experience and increased job
satisfaction. Teamwork is a fundamental requirement for the
successful delivery of cabin crew services, which is a priority.
Empowerment in air travel enables teams to make decisions faster
in difficult situations by delivering better service. In this situation,
communication is key, linking gab three and gab 5. At the same
time, empowered workers require a more flexible reward and
performance assessment system, which is rather underdeveloped
at Emirates Airlines.

● Process
- Emirates focuses a lot on its services which become the backbone
of its processes. The airline has first class lounges, special
services, customer relations and additional services which have a
stream-lined end to end process. Every global operation and
service is looked after by the management and priority is given to
customer services.
- Customer satisfaction and quality of service are a priority for the
company, therefore, are measured using satisfaction indexes
obtained through customer surveys. The perceived quality in this
situation may not be measured quite correctly since the
measurements take place in a fairly general format, which does
not make it possible to identify specific problems. The main
problem is the lack of a system for evaluating various services for
which more detailed information could be obtained.

● Physical evidence
Physical environment is the last part of this marketing mix of
Emirates airline. Emirates airline has a very user-friendly
website. Relevant videos and images add beauty to the airline’s
physical environment. The cabin crews wear stylish uniform and
follow certain beauty standards. Stylish offices, lounges at
airports, and in-flight entertainment are some other important
elements of the airline’s physical environment.
https://www.emirates.com/us/english/dubai-experience/ : platform gần
đây của Emirates cho phép khách hàng tự thiết kế chuyến đi của riêng
mình đến Dubai. (including flights, hotel stay, visits to major tourist
attractions, and other banqueting and leisure experiences in Dubai and the
UAE)

III. SWOT ANALYSIS


● Strength
Largest airline and a strong hub in Dubai
- Emirates is an extremely popular airline located in Dubai. It was launched
in 1985 and is situated in Dubai. The airline is a member of The Emirates
Group which is controlled by the government of the Dubai Investment
Corporation of Dubai.
- The UAE’s flagship carrier, Emirates Airline ranked among the world’s
top 100 most reputable companies in 2022.
- Emirates has a strong hub in Dubai that gives access to Emirates airlines
across Europe, Middle East, Africa, Asia and Australia. This is a great
strength as its network connectivity will be huge.

Huge and diverse workforce


- “It employs over 52,000 people from 162 different countries”.
The workforce of Emirates consists of employees which in total, are from
over 160 nationalities.
=> Emirates promotes inclusivity not only for its passengers but also its
workforce. This builds the positive reputation of Emirates. Moreover, This will
allow the airline to function more efficiently.

Environmentally cautious
- “The company’s global strategy aims at efficient competition, exceeding
far beyond the limits of the Arabian Gulf and the Middle Eastern
markets. In 1985, the Dubai government, cognisant of the country’s
limited oil resources, launched the flag carrier as an alternative means to
economic growth in UAE”
For this environmental aim, Emirates tries to be as environmentally
cautious as it can be while traveling. The airline keeps its emission
release in check and even tries to reduce it. Emirates is also responsible
for its consumption and how they source items or dispose of waste.
=> This increases Emirates’ reputation and makes them appealing to the
customers.

Strong growth and world class infrastructure


- “Emirates is looked upon as an innovative organization in terms of
technology due to its acquisition of the groundbreaking storage
infrastructure in the Middle East.”
This means that Emirates would like to offer excellent customer service
and as a result, the airline has received a huge response from customers.
Customers are, in actuality, very satisfied with the services, and they are a
favorite airline for customers.
=> Customers are, in fact, happy with the service and it is a preferred airline for
customers.

● Weakness
Ignoring competitors
- “In its disregard for growing regional competition, Emirates overlooks
very obvious flaws in its market strategy.”
Even though Emirates has strongly built their brand in the airline
industry and positioned themselves, they are lacking in taking into consideration
their competitors in determining their future directions. They ignore the
competition and do not look into the pros and cons of their competitors like
Gulf Air, Etihad Airways,....

Intense competition and high cost


- “Gulf Air, which is partly owned by the Abu Dhabi government, has also
taken advantage of the open skies policies to gain free access to the
Dubai airport.”
For example, Gulf Air 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.
=> The airline industry has become very competitive in recent years. Therefore,
Emirates Airlines has to invest a lot of resources to maintain its market position.

Unavailable in the USA


Although Emirates is an extremely well-known airline, in any case, Emirates
doesn’t cater to a lot of places in the USA. Emirates seems to find it difficult to
occupy the USA market.
=>This is a weakness as the USA market could fetch more revenue for the
airline company.

● Opportunities
New fleet
The current fleet of Emirates Airlines comprises Boeing777 and Airbus A380.
At the present, the organization should purchase airplanes from other
manufacturers. It would lessen the risk and increase the trust of customers.

More international destinations


Emirates Airlines is currently offering 157 destinations in 80 countries. In the
near future, the company may add more destinations to its route list. It would
increase airlines’ market reach and influence in the international market.

Expand further in the USA


Emirates should improve its weakness to become more competitive. The USA is
a potential market for Emirates because The USA is the leader in this industry
and the world’s biggest rich customer market => Emirates can generate a lot of
revenue

Partnership and alliance


Emirates could make strategic alliances with other international airlines in
different markets, such as in the USA. It also means that Emirates could expand
its routes. It would assist Emirates Airlines with extending its geographic
market and attract customers.

● Threats

External elements in the environment that could cause trouble for the business
or project by identifying. Our threats we can work on strategies to counteract
them. Emirates airline threats include:

+Increasing competition in all markets fluctuating.

+Fuel costs impacting the airline’s margin changes.


+ In government, policies and regulations can also impact the airline
company.

+Decline in local and global travel industry due to natural disasters terror
activities political uncertainty and Covid-19

IV. STP
● Segmentation
- Emirates follows the traditional approach in segmenting its
customers. Market segmentation of Emirates is as follow:
❖ It divides based on business travelers and travelers’
price sensitivity
❖ They also segment based on customer loyalty.
❖ Emirates also uses psychographic segmentation to
divide the customers based on their interests, lifestyle,
behavior, attitude, opinions of customers.
- Geographic: Emirates Airlines operates in different geographical
segments. They operate in Europe, America, Australia, Asia, the
Middle East, and Africa. As they are able to operate in areas
around the world, Emirates, therefore, works to adapt itself to
diverging cultures witnessed in each country. However, the airline
is predominantly focused on countries located in the Asia Pacific,
the Middle East, and Africa.
- Socio-Demographic: In the “socio-demographic” market segment,
the variables commonly regarded are gender, age, income,
education, and marital status. We can clearly identify that Emirates
targets more working-class individuals here who typically have
families. Both genders are targeted, more specifically business
working individuals who travel due to their career.
- Psychographic: Psychographic factors are those that consider the
emotions and lifestyle of customers, such as their leisure
activities, interests, and values. Emirates is an excellent company
that delivers a high standard service. Therefore, directs its
marketing mainly to customers that have a good living standard,
those who appreciate a luxury lifestyle, and who belong to a social
class that can bear the expense of such lavish flights. Consumers
who see themselves as successful, in work and life. However,
although it mainly targets the upper-class where the highest
revenue lies, Emirates targets many groups. For instance,
customers from lower-income classes may utilize Emirates if they
seek comfort in travel.
- Behavioral: The extravagant atmosphere of Emirates Airlines has
made it a world-class airline because of its exceptionally
comfortable seats and peaceful environment. Customers have
always preferred luxury along with comfort in their trips. Therefore,
Emirates Airlines provides numerous unique customer services.
These services include personal valet at the airport, outstanding in-
flight entertainment, and high standard of service that are offered
in all three cabins. The present standing of Emirate Airlines,
according to the customers, has been through many quality
evaluation practices, then now it maintains the highest customer
standards to deliver the finest services.

● Targeting: Upper-class and upper-middle fliers, Value-


seeking fliers, non-price sensitive fliers who are seeking a
comfortable flying experience are the target users for
Emirates.
- Emirates uses the differentiated (segmented) marketing strategy.
The use of this strategy is evident in the fact that they sell
different types of seating for the same flight.
- Here Emirates is targeting 3 different segments:
❖ The first segment that they are targeting is middle-income
families or individuals that would like to travel. They are
targeted through the option of economy seating. Within the
economy seating, there is a subsection for those in the
upper-middle class by providing economy premium seats
closer to the front and with a bit more legroom.
❖ Emirates also targets business travelers. These individuals
are targeted by having business partnerships or being for
some companies, the recommended airline to take;
Therefore, these are offered business seats. Their business
seats are marketed and priced higher than economy seats.
They are marketed higher by emphasizing the bigger and
more comfortable seats as well as better quality of food and
service.
❖ Finally, Emirates targets one last segment and this would be
upper-class travelers with their first-class seating. These are
priced even higher than the business seats, with sometimes
personal cabins to give the guests the ultimate privacy. This
is why Emirate’s marketing strategy is a differentiated
marketing strategy.

● Positioning
Regarding this positioning statement, it is clear that the main
target of Emirates is frequent business travelers, which is
also the most profitable segment of the company. More
specifically, the persona of Emirates is a frequent business
traveler with a high level of income, aged from 30-50, who
needs to work and travel between Europe and Asia and who
wants to enjoy high-quality flight time.

The reason why Emirates targeted this segment is that,


firstly, as mentioned above, the perfect location is a unique
advantage, which has not been owned by its competitors.
Also, this advantage is hard to be placed and copied.
Secondly, business class passengers are the most profitable
to Emirates and are willing to pay for their luxurious services
as the price is relatively inelastic for them.

The second reason why Emirates chooses its market target


also demonstrate the POD (Point of Difference). POD is the
points that differentiate the brand with other competitors or
rivalries. For Emirates, POD is their location connecting
Europe and Asia and their high-quality service.
Có thể nói qua Emirates vận dụng BCG Matrix ntn trong phần này
tại bữa mới học: https://bcgmatrixanalysis.com/bcg-matrix-of-
emirates-airline/

V. CONCLUSION & SUGGESTED SOLUTIONS

Emirates Airlines is indeed one of the world’s leading airlines. The global
economic recession, increasing maintenance costs, regulations, and
onward moving traffic are some of the main challenges. Emirates
Airlines should expand its market by making alliances and partnerships
in other geographic markets in order to address these issues.

PHÂN CÔNG
PPT: Hồng Ân
I, V: Quế Anh
II: Quách Hân, Duy Bảo, Hồng Ân
III: Minh Giang, Quế Anh
IV: Quách Hân, Duy Bảo

Deadline:
Nội dung: 12h59 CN
PPT: 21h00 T3

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