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Emirates Airlines Draft Strategic 2013-2014
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Emirates Airlines Draft Strategic 2013-2014

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  • 1. The Finest in the Sky Written by Abu Bakar Ashidiqy Magister Management Batch .V State University of Jakarta Written by Abu Bakar, Magister Management, State University of Jakarta 1 9 February 2014
  • 2. EMIRATES AIRLINES Goals  To reach on top by excelling what we do Mission  We exist to deliver the worlds best in flight service Vision  To Make civil aviation safe, leading and sustainable Written by Abu Bakar, Magister Management, State University of Jakarta 2 9 February 2014
  • 3. EMIRATES AIRLINES Objectives (tangible goals are )  • Retain and improve frequent to business class travelers market share • Increase market share 40% to more 55% • Tap competitive cost carriers market achieve company’s return on investment • Promote Dubai Tourism International Gate to across continent Position  As the Finest in the Sky (at Premium platform) Written by Abu Bakar Ashidiqy Magister Management, State University of Jakarta 3 9 February 2014
  • 4. EMIRATES AIRLINES History & Facts  • During the mid-1980s, Gulf Air began to cut back its services to Dubai providing regional feeder flights for carriers • Emirates conceived in March 1985 backed by Dubai's royal family and instructed to operate independent company of government subsidies • Apart from US$10 million start-up capital • Start by leasing two its airplanes - Airbus 300 and Boeing 737 • Also Emirates leased a new Boeing 737–300 & Airbus 300B4-200 both from Pakistan International Airlines Written by Abu Bakar, Magister Management, State University of Jakarta 4 9 February 2014
  • 5. EMIRATES AIRLINES History & Facts  • The airline's first flight, flight EK600, was Dubai– Karachi on 25 October 1985 • Emirates operates over 1,990 passenger flights per weeks, from its hub at Dubai International Airport, to 157 destinations in 55countries worldwide • The airline ranks amongst the top 10 carriers worldwide in terms of revenue and passenger kilometers • Emirates won numerous awards and aircraft purchases over 130 aircraft in 2007 alone Written by Abu Bakar, Magister Management, State University of Jakarta 5 9 February 2014
  • 6. EMIRATES AIRLINES • Targeting • Emirates caters to high ranking executives and businessmen belonging to the age group of 30-60 who are looking for luxury and comfort in travel. It serves all customers regardless of nationality • Top Competitors of Emirates • • • • Deutsche Lufthansa AG Air France-KLM S.A. Etihad Airways P.J.S.C. Others Premium Airlines Written by Abu Bakar, Magister Management, State University of Jakarta 6 9 February 2014
  • 7. EMIRATES AIRLINES Employment & Structure  • Emirates employed a total of 38,797 staff at the end of the fiscal year on 31 March 2011 • Of which 10,785 were cabin crew, 2,237 were flight deck crew, 1,904 were in engineering, and 9,084 were listed as other • Emirates won numerous awards and aircraft purchases over 130 aircraft in 2007 alone Written by Abu Bakar, Magister Management, State University of Jakarta 7 9 February 2014
  • 8. EMIRATES AIRLINES Employment & Structure  Written by Abu Bakar, Magister Management, State University of Jakarta 8 9 February 2014
  • 9. EMIRATES AIRLINES Services which provided  Cabin, Cargo & Ground Services • Cabin • First Class • Business Class • Economy Class • Cargo • Emirates Sky Cargo is the air freight division of Emirates. It began operations in October 1985, the same year Emirates was formed. • Since then as become main cargo division of Emirates, and the anchor cargo airline at Dubai International Airport • Emirates Sky Cargo operates thirteen dedicated cargo aircraft, with ten on order • Airport Services • Passengers may check-in between two to 48 hours prior to flight departure. This may be done over the counter or at the lounge within the airport. • Self-service kiosks available at Dubai International Airport, as well as at certain stations of the Dubai Metro Written by Abu Bakar, Magister Management, State University of Jakarta 9 9 February 2014
  • 10. EMIRATES AIRLINES Environmental Scanning  are coming broaden from Internal and External • Internal Environment • • • • Commercial, brand high performance Finance, strong backup by Qatar Emirates Al Maktoum Technical, high maintenance aircraft facility for good aircraft People, Pilot, Crew and technician expert worldwide • External Environment • • • Economy, economic uncertainty situation Political, Arab upraising tension Social, high growing middle class in emerging country Written by Abu Bakar, Magister Management, State University of Jakarta 10 9 February 2014
  • 11. EMIRATES AIRLINES PEST Analysis  Politic, Economy, Social and Technology • Politic • Political situation effect an airline industry, worrying mainly wars & terrorism • Economy • • • Economic downturn in so many parts of the world European facing huge debt, especially Southern Europe such as Greece, Portugal, Spain and Italy US facing economic slump • Social • • The population of the world is increasing especially in Eastern Asia Increasing the middle class may upgrade require safety demand • Technology • New technologies boost affect this industry in negative behind or at the forefront at competition platform Written by Abu Bakar, Magister Management, State University of Jakarta 11 9 February 2014
  • 12. EMIRATES AIRLINES SWOT Analysis  Strength, Weakness, Opportunity and Threat • • • • • • • • • • • • • • • • Strength Has the advantage of Size Decision to focus on diversified market Entering the cargo business Weakness Difficult to occupy US Market Does not cater to middle class & budget traveler Not all of diversification and approach have been successful Opportunity To develop continuously new generation of more advanced airline an aviation services Budget Airlines Travel Innovation Threats Rival companies are major threats Rising fuel costs Low cost carriers upraising, Air Arabia, Al Jazeera Airways Written by Abu Bakar, Magister Management, State University of Jakarta 12 9 February 2014
  • 13. EMIRATES AIRLINES SWOT Analysis Quadrant Strength Weakness Has the advantage of Size Difficult to occupy US Market Decision to focus on diversified market Does not cater to middle class & budget traveler Entering the cargo business Not all of diversification and approach have been successful Opportunity Threat To develop continuously new generation Rival companies are major threats of more advanced airline and aviation services Airline Budget travelers operation Rising fuel costs Innovation Low cost carriers rising, Air Arabia, Al Jazeera Airways Written by Abu Bakar, Magister Management, State University of Jakarta 13 9 February 2014
  • 14. EMIRATES AIRLINES STRATEGIC FACTOR ANALYSIS RANKS COMPANIES 4 1 2 SERVICES TECHNICAL PRICES 3 5 PEOPLE SAFETY SCORE EMIRATES 5 5 4 4 4 22 LUFTHANSA 4 3 1 2 5 16 AIR FRANCE 3 1 3 1 2 10 ETTIHAD 2 4 2 3 3 14 OTHERS 1 2 5 5 1 14 Written by Abu Bakar, Magister Management, State University of Jakarta 14 9 February 2014
  • 15. EMIRATESmaintain ? with Integration AIRLINES For each strength  How to of Marketing , are • Price • Emirates Airline is using the premium pricing strategy, which is to offer a higher price than what other airlines in the market offer • Place • • Emirates Airline has about eleven travel shop branches in the UAE and about 122 branches outside the UAE all around the world that provides superior services Emirates Airline has also an online website presented in about nine languages in order to reach all its target segments from different nationalities • Promotion • For advertising, it has to advertise in newspapers that mostly attract this segment like Gulf news and International Airlines Magazine Billboards are good tool for advertising, they are attractive and people everywhere could see them • Written by Abu Bakar, Magister Management, State University of Jakarta 15 9 February 2014
  • 16. EMIRATESmaintain ? with Integration AIRLINES For each strength  How to of Marketing , are • Product • • Emirates is always the first to offer the high-quality, latest technologies and services to their customers, start to cargo business Gives travelers the ability to send and receive emails and SMS messages from any class and the first airline to implement TVs in all classes • People • Management of Emirates Airlines are able to promotes the sharing of a common goal among their employee, hence, make the organization and its team work efficient together. As they work together, they are able to focus on the needs of the entire organization which is to sustain their competitive advantage Written by Abu Bakar, Magister Management, State University of Jakarta 16 9 February 2014
  • 17. EMIRATESmaintain ? with Integration AIRLINES For each strength  How to of Marketing , are • Process • Emirates Airlines services includes the following key operating departments such as the First and Business Class Lounges, Special Services like assisting disabled passengers and unaccompanied minors, Customer Relations, Baggage Services, Check-in and Boarding, and the Millennium Airport Hotel (Emirates Wing) • Physical Evidence • Emirates fly planes release carbon dioxide through fuel burning. However, while flying planes, Emirates wants to make a different by focusing on how to be an ecologically-efficient organization. They use fewer resources and creating less waste and pollution Written by Abu Bakar, Magister Management, State University of Jakarta 17 9 February 2014
  • 18. EMIRATES mitigate ? With create AIRLINES For each weakness  How to market Segmentation, are • • • • • Most intensify and penetrate US Market and promotes Emirates Airlines services includes the following key operating such as the First and Business Class Lounges, Special Services, assisting disabled and unaccompanied minors Response Customer Relations, speed Baggage Services, simple Check-in and Boarding Business class passengers are the most profitable to Emirates and are willing to pay for their luxurious services as price is relatively reasonable for them and hence they prefer nonstop trips For program in which prior plan but loses out at implementation, should review Written by Abu Bakar, Magister Management, State University of Jakarta 18 9 February 2014
  • 19. EMIRATES could we ?, are AIRLINES For each opportunity  How • • • • • • • • • Marketing Penetration (Improving In-flight service) Retain and boost market share of Emirate airlines product and services Protect dominance of Emirates airlines on existing market Keep Innovation & Driving out competitors by restructuring market Enhance usage of existing passengers Marketing Development (Extended New Routes) It provides alternative to the traditional European airline hub as Heathrow Airport (London), Charles De Gaulle (Paris) and Schiphol (Amsterdam) Budget Finance Monitoring (Discipline of Budget) More focus budget discipline consumption in which set prior (expenses) Written by Abu Bakar, Magister Management, State University of Jakarta 19 9 February 2014
  • 20. EMIRATESwe eliminate ?, are AIRLINES For each Threat  How can • Introducing new services into existing markets implies product development is strategy which involves the development of skill and requires business to expand customized services that can apply to current market • Emirates airline has more services for business travelers that is reason why Emirates airline introduce high quality first class private lounges to attract business traveler as anticipate to rival • Using fuel controllable by forecasting fuel management, and tender fuel worldwide to find better price and supply risk moves to vendor with contract schema Written by Abu Bakar, Magister Management, State University of Jakarta 20 9 February 2014
  • 21. EMIRATESwe eliminate ?, are AIRLINES For each Threat  How can • The low cost airline offers lower prices than traditional airline by fascinate promotion. The low cost has flexibility fare that is one reason why some people is switching cost to them • Emirates Airlines be supposed to slightly spread from current marketing objectives to obtain the low cost airline market share and to retain its customer base of UAE expatriate market • The key routes should be high demand and large number of expatriate’s home country like India, Pakistan, Malaysia, Indonesia and possibility to Eastern Asia Written by Abu Bakar, Magister Management, State University of Jakarta 21 9 February 2014
  • 22. Thank You Q&A Written by Abu Bakar, Magister Management, State University of Jakarta 22 9 February 2014