• Like
Requirements
Upcoming SlideShare
Loading in...5
×
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,568
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
33
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. http://blog.euromonitor.com/2010/11/emirates-airlines-the-star-of-the-middle-east.html <br />November 2, 2010<br />Emirates Airlines - The star of the Middle East<br /> <br />Analyst Insight by Nadejda Popova.<br />The recent forecast by the International Air Transport Association (IATA) points to the decreasing profitability of MENA carriers in 2011, mainly due to increased capacity which does not meet regional demand, although market players are predicted to record US$400 million profits in 2010.<br />Infrastructure developments within the air transportation sector are the focus of many governments in the Middle East which according to IATA include eight new runways in the Gulf at the cost of US$100 billion.<br />Many national carriers increased flight frequencies and added new routes in 2010, although few invested in communications or advertising. The Middle East's air transportation sector saw continued growth in traffic, the fastest in the world throughout the crisis, spearheaded by the UAE.<br />Market leader<br />Airlines in the Middle East region are seeing a rise in demand for air travel and thus the likes of Emirates and Air Arabia, who are championing the development of the sector in the region, are confidently ordering more aircraft.<br />As the UAE emerges from the crisis, Emirates Airlines is becoming one of the most profitable and fastest growing airlines in the world. The airline remains number one in the UAE, the longest running and also the most profitable in the region.<br />The player is not only committed to protecting its route network, but also sought to expand it even during the crisis. The strategy to become a global airline, joining a myriad of different global destinations transiting through Dubai, remained a priority with the network of destinations reaching 105 as Emirates added Tokyo among another 5 routes in 2010.<br />Cost control strategy<br />The carrier's main strategy is to keep a close watch on its costs and this aspect of its operations became even more pertinent throughout 2009 and 2010, amidst the global economic downturn. The company continued to look at a range of measures to keep costs down and improve efficiency. These include reviewing supplier contracts, encouraging staff to suggest ideas for cost-savings and suspending non-urgent projects.<br />Growth, quality, performance and sustainability remain staples of the company's goals. Emirates' order for the Airbus A350 XWB super-long range and super efficiency aircraft will enter the fleet from 2014. Early in the year, the airline ordered 30 Boeing 777-300ER aircraft for US$9.1 billion.<br />Bearing the fruits of hard work<br />Emirates has built up a strong brand name as a trendsetter in aviation, particularly in terms of service excellence, coupled with consistent profitability. In 2009, Emirates was voted the second best First Class by Skytrax and in 2010 the airline was voted the eighth best airline in the world by Skytrax.<br />The airline ranks amongst the top 10 carriers worldwide in terms of revenue, passenger kilometres, and was the largest airline in the Middle East in terms of revenue, fleet size, and passengers carried since the year 2007. In 2010 the airline was the sixth largest airline in the world in terms of international passengers carried and largest in the world in terms of scheduled international passenger-kilometres flown.<br />Luxury at its best<br />Emirates has a frequent flyer programme that provides a variety of awards to its members and is also strongly positioned as a luxury airline as it focused strongly on improving its first class and business class.<br />The airline's first class passengers have access to a full suite, complete with closing doors to ensure privacy, a mini-bar, a coat rack and storage. They also have a 23in LCD screen. The seats in first class convert into a 2m fully flat bed which is ideal for long distance traveling.<br />The remaining fleet feature “Skycruiser” flat beds with integrated passenger seat control, along with the ICE system and a 19in screen. First class seats sometimes include a personal minibar. The newly delivered A380-800, first class features private suites, two shower-equipped lavatories and a spa, along with access to the first and business class bar area and lounge.<br />The sky is high<br />Emirates Airlines' business fundamentals are strong and the company was already highly competitive before the downturn hit Dubai. The breadth and global spread of its business helped shield Emirates from the impact, allowing it to adjust its operations to focus on higher-growth, higher-yield markets and specific business areas.<br />Posted on November 2, 2010 at 11:49:05 AM in Africa, Company Profile, Middle East, Travel and Tourism<br />http://dinarstandard.com/marketing/global-branding-the-emirates-way/ <br />Global branding the emirates way<br />Coca-Cola, McDonald, Nokia, and Toyota are some of the world’s most valuable brands; brands that don’t exist for the purpose of winning global popularity contests, but to perform as their respective firms’ greatest assets.<br />A sampling from the 2005 Business Week/Interbrand ranking of top global brands attributed a brand value of $67 billion to Coca-Cola, $26.4 billion to Nokia, $26 billion to McDonald, and $24.8 billion for Toyota. These recognized valuations substantiate those brands’ abilities in contributing to their firms’ revenues through building customer loyalty, competitive advantages, consistent prices/margins, and effectiveness of marketing programs.<br />Most corporate giants in the Muslim world are indeed simply in awe of these global brands as well as their capabilities and their strengths. They may attempt branding on regional or local levels, but the process of building such global brands remains a sheer mystery to them. Can you think of any brand from the Muslim World that compares?<br />There is however one brand that hails from the heart of the Arab World that is beginning to make its mark on the global stage. This exception is the Dubai based and state-owned Emirates Group’s, Emirates airline (#27 on the 2004 DS100 business ranking).<br />Emirates: An Emerging Global Brand<br />Emirates is a brand that is truly emerging as a global icon with its logo represented in Arabic script as a symbol of its origin.<br />Emirates airline is building an operational and service approach of a truly global provider, delivering high quality service and boasting one of the industry’s youngest and most advanced fleet that is winning it loyal customers worldwide.<br />Today, Emirates flies to 78 destinations in 55 countries with more than 12 million passengers annually. While most of the world’s airlines have spent the past year slashing costs and trimming services, Emirates started eight new major routes in 2004 alone. Last summer, it began its first U.S. flights, to New York City’s J.F.K. airport and it’s already considering as many as nine U.S. destinations.<br />The airline has received more than 270 accolades and awards globally for all aspects of its business. One of the most notable of these accolades is the Skytrax Airline of the Year award, which is the global barometer of passenger opinions about airlines around the world and is conducted with a truly worldwide audience – comprising more than 94 different respondent nationalities in 2005 with more than 12 million eligible surveys.<br />AIRLINE OF THE YEARSkytrax 20051Cathay Pacific2Qantas Airways3Emirates4Singapore Airlines5British Airways6Malaysia Airlines7Thai Airways<br />© Skytrax Research<br />In 2005, Emirates was ranked #3 only behind Cathay Pacific and Qantas Airways, surpassing such globally recognized names as Singapore Airlines and British Airways.<br />All of these accomplishments are backed by a financial soundness that is the envy of the industry. The airline is the fifth-most-profitable airline in the world and has been growing by more than 20% a year for the past 17 years. It posted a record $637 million profit in the 2004-05 financial year-up 49% over the previous year. In the same year its revenue reached an all-time high of $4.9 billion in the same period-up 36%.<br />The Emirates Way!<br />So what does it take to build such a global brand, especially from a region where global brands have rarely emerged? Mr. Mike Simon, Senior Vice President, Emirates Corporate Communications tells us how Emirates does it with lessons that hit closer to home for many businesses in the Muslim world.<br />Before we get to that though, lets just clear away some widely held misconceptions about branding. Branding is not just about having an attractive logo, slogan and mass advertising. Rather, according to Prophet, one of the most recognized branding consultancies with clients such as UBS, BP, VISA, Kellog’s and GE, “A brand is built through deeds more than words – it is how your customers experience what you do.”<br />H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates<br />According to David Aakers, one of the founders of Prophet and the worlds most recognized authority on branding, a more specific concept, brand equity, is defined as a “set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.” This concept and managing to capitalize on the value of a brand name is very systematically elaborated in Mr. Aaker’s best selling book ‘Managing Brand Equity.’<br />An Organizational Commitment<br />With that perspective of branding in mind, the first and foremost aspect relating to Emirates’ rise as a global brand is its leadership’s vision and foresight in linking the brand to its business strategy and committing the budgets and resources necessary for its strategic and tactical impact.<br />According to Mr. Simon, “Emirates places marketing to the forefront and even in these times of cost-cutting in the industry, we do not take the easy way out by slashing corporate communications budgets. Our marketing budget is confidential, but I can tell you that we believe an effective corporate communications budget should be about three to five per cent of the company’s total revenue.”<br />Maurice Flanagan, Vice Chairman & Group President<br />Under the leadership of H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates, and Maurice Flanagan, Vice Chairman & Group President, Emirates has built an in-house corporate communications team comprising of nearly 100 professionals. This team that is led by Mr. Mike Simon works with a global network of advertising, media buying and public relations agencies, and their role is to support and implement Emirates marketing activities globally. They have also formed a unique virtual agency network called Empower. This is an extranet that links the more than 120 advertising and PR agencies working with Emirates, and features the best of the world’s creative and communication talent.<br />Beyond the support of such resources, the leadership has ensured that all aspects of its operations, its cabin service, quality of fleet, logistics management, catering etc. live up to the promise of the brand. This we’ll review later, but first, what is the Emirates brand promise?<br />Emirates Brand Positioning<br />According to Mr. Simon, “From day one, Emirates has set out to be an innovative, modern, and customer-oriented provider of high quality air travel services. Our brand positioning is that of a leading, international and quality airline serving the global community.”<br />Mr. Mike Simon, Senior Vice President, Emirates Corporate Communications Images: Emirates Airlines<br />In regards to Emirates customer segments, he adds, “Today, air travel is affordable and accessible, and for Emirates the whole world is our oyster. All customers are important to Emirates, and we strive to provide them with the best possible value for their money, regardless of which class passengers travel in. However, we’ve always considered the frequent business traveler – the people who literally “fly to work”- as pivotal to our marketing strategy.”<br />Emirates Brand Positioning<br />According to Mr. Simon, “From day one, Emirates has set out to be an innovative, modern, and customer-oriented provider of high quality air travel services. Our brand positioning is that of a leading, international and quality airline serving the global community.”<br />In regards to Emirates customer segments, he adds, “Today, air travel is affordable and accessible, and for Emirates the whole world is our oyster. All customers are important to Emirates, and we strive to provide them with the best possible value for their money, regardless of which class passengers travel in. However, we’ve always considered the frequent business traveler – the people who literally “fly to work”- as pivotal to our marketing strategy.”<br />“Emirates has set out to be an innovative, modern, and customer-oriented provider of high quality air travel services.”<br />Image: Emirates Airlines<br />Emirates’ won the prestigious Official Airline Guide (OAG) Best Marketing Campaign for its promotion of the start of its services to New York. The campaign included this 180 metre-high image of the Statue of Liberty that was displayed on a 55-storey building in Emirates’ home base of Dubai during the launch period last year.<br />Living the Brand<br />Given the aspirations of the Emirates brand in being global, innovative, and a customer-oriented provider of high quality services, the key to its success has been Emirates airlines ability to apply the brand in all aspects of its customer interactions.<br />“From the service provided at the point of ticket purchase to staff at the check-in counter; from facilities offered in our airport lounges to in-flight entertainment and service. At all customer touchpoints, Emirates pays close attention to our product and service to ensure that we deliver on our brand promise of innovation and quality.”<br />Mr. Simon further adds, “We operate a fleet of modern, wide-bodied aircraft and equip these aircraft with the latest in-flight amenities and entertainment systems; we invest in the latest technologies to enable faster and more efficient handling of such functions as ticketing, baggage and cargo handling; we recruit our award-winning cabin crew from over 100 countries around the world and train them to the highest standards – so you can be sure there will be someone who speaks your language onboard; we hire gourmet chefs to design and plan our inflight catering menus; we invest millions of dollars to provide advanced engineering support for one of the world’s youngest fleet of aircraft; and the list goes on across the airline’s business units.”<br />Sponsorships:<br />The Cornerstone of Emirates Marketing Strategy<br />Emirates branding employs all the major traditional and new marketing tools, but the medium that has helped it to connect with its customers and enhance its brand awareness the fastest is major sporting event sponsorships.<br />As Mr. Simon puts it, “When we launch a new route we don’t just go there with an advertising blitz to promote our products and services. We put together a comprehensive campaign that builds our credentials as a corporate citizen and truly promotes local social, cultural and community events. Hand in hand with our advertising and PR campaigns, Emirates chooses to sponsor events, teams or activities which attract worldwide television coverage. Our research shows that by selecting the correct sponsorships, we have been able to take quantum leaps in the promotion of our brand awareness in new markets.”<br />Emirates began its sponsorship activities in 1987, two years after it was established, and now has a long history of supporting sporting events around the world that includes major events in football, horse racing, yacht racing, rugby, golf, cricket and tennis.<br />The highlight of these sponsorship deals is its English football club sponsorship in October 2004 with the legendary Arsenal Football Club worth some £100 million. It is the biggest deal in English football history providing the airline with naming rights to the club’s new £357 million stadium, which for the next 15 years will be known as Emirates Stadium. The team will also wear the Fly Emirates shirt for eight years.<br />Challenges for Emirates as an Emerging Global Brand<br />As one of the world’s fastest growing airlines, Emirates’ biggest challenge is ensuring that its brand continues to be relevant and is consistently adopted throughout the organisation. “If you pitch yourself as an innovative airline that always offers state-of-the-art, then this is a challenge that keeps you on your toes. We are that airline and our targets are always located at new unexplored horizons.” Says Mr. Simon.<br />Mr. Sunil Varughese, of the Dubai based branding consultancy, Brand Indigo LLC, acknowledges that Emirates has built-up enviable levels of brand saliency among its target audience. However he cautions that, “High levels of brand recall concurrently raise the expectation levels of customers. In this internet era, post-travel dissonance is discussed in chat rooms and blogs by dissatisfied customers and may quickly erode carefully built brand esteem. Service recovery plans will have to be in put in place in quick earnest, or else customer franchise maybe negatively affected.”<br />“If you pitch yourself as an innovative airline that always offers state-of-the-art, then this is a challenge that keeps you on your toes.”<br />He notes that, “Only a month ago, it was reported in a Dubai based tabloid that a senior official at Emirates Airlines, had sent an internal circular stating, ‘we have been receiving more and more reports that our service levels are slipping’”. Perhaps the drop in Emirates Skytrax Airline of the Year ranking from #1 in 2001 and 2002, and #2 in 2004, to #3 in 2005 is of concern?<br />The second challenge facing Emirates deals with negative perceptions surrounding the Arab World. Mr. Varghese brushes off this concern by saying that, “today, even Brand America is facing a lot of flak. Yet, most brands originating from the USA are considered global brands and even consumers who have a differing value system from that of Brand America are seen to consume ostensibly American brands without any qualms. McDonalds, Coke, and Pepsi are mega brands in the Middle East. Having said that, Emirates is primarily a service brand and its employees can prove to be memorable brand ambassadors for the region by exemplifying the region’s intrinsic culture of hospitality. A delightful brand experience by customers of the brand can also result in positive word-of-mouth thereby ameliorating negative perceptions of the region.”<br />Finally, there’s something to be said about the strength or weakness of the name ‘Emirates’ as a brand itself. Since the millions being spent in building the brand associations are all tied to the one brand name and its symbol, the longevity of the brand name and its extensions are critical to assess.<br />Mr. Naseem Javed, founder of a corporate naming consultancy, ABC Namebank, points out that, “As a rule, naming a brand after a particular geography puts serious limits on global branding and marketing. As we are becoming more inter-active, geographical limitations inhibit our purchase decisions and places our imagination in a box full of preconceived ideas and notions related to that particular name of a city, country or a region.” He does say that exceptions do exist and that because of Emirates’ great service they have acquired a great reputation and for this reason it is a distinct possiblilty for their name to become a big global brand. However, he does caution that the generic use of the word Emirates, used by the thousands of other non-related businesses as part of the public domain will always be a serious issue.<br />Looking Ahead<br />All of the above challenges are growing pains and hurdles that Emirates has been able to master before and there is no reason to imagine it will not continue to. If the future of Emirates is in any doubt, then consider the fact that it has more than $26 billion worth of new airplanes on order, including being the world’s first and largest buyer of the new ‘super jumbo’ Airbus A380 having placed an order for 45.<br />If anything, the world should expect to hear more about Emirates, and its name on the top 100 Business Week/Interbrand Global Brands list is surely not that far off.<br /> Email This Post  Print This Post<br />Organisational Strategy-Emirates Airline<br />Posted: Feb 25, 2010 |Comments: 1 | Views: 4,012 |<br /> HYPERLINK "http://www.articlesbase.com/" o "Send to Google_plusone" <br />http://carolynsmith.articlesbase.com/flights-articles/organisational-strategy-emirates-airline-1908526.html <br />Organizational strategy emirates airlines.<br />Ads by Google<br />Fly Emirates Worldwide The award-winning luxury airline. Fly Emirates. Keep discovering. Emirates.com/in<br />Ra.One Videos on YouTube Ra.One Songs, Trailers, Videos, Interviews & More. Watch Now! www.youtube.com/RaOneMovie<br />Low Cost Flight Tickets Get Cheap Rates On All Airlines For Limited Period Only.Book Now & Save www.Yatra.com<br />UAE Visa Online Apply UAE Visa Online Quick Processing Minimum Requiremen www.dubaivisaonline.com<br />Introduction<br />Emirates Airline is one of the most reputable Airline companies in the Asian continent and also in the world over. The Company has been in the business for the past twenty three years. Emirates Airline is owned by Dubai's government; where Dubai is one of the seven cities found within the United Arab Emirates. Thus company flies to ninety destinations found throughout the world and manages to reach about sixty different countries in the world. Dubai is the capital city of the United Arab Emirates (UAE) and is one of the fastest growing cities in the Middle Eastern region. (Butler & Keller, 2000)<br />External changes that have affected Emirates Airline between 1997 & 2007<br />The external changes will be examined through PESTLE analysis.<br />Political<br />Emirates Airline has been very fortunate during the 2000s and beyond. The political scene in the region has been quite favourable because most of the countries in the Asian Pacific have been making agreements that facilitate better trade between countries especially in relation to the aviation sector. These countries have signed agreements between themselves and also with other countries in the United States and also in the European continent. These agreements have opened up Emirates to the world and have provided ready made markets for the Airline Company.<br />Any aviation company must be ready to tackle high fuel costs and Emirates is no exception,. In the year 2005, the countryreported an increase in fuel expenditure of seven percent from the previous year. Fuel costs represent the highest form of expenditure in the company as this has really eaten into their profits.<br />Economic<br />The Asian Pacific region and in particular the United Arab Emirates, has been nurturing its economy at a rapid pace. Most of the countries located there are becoming more mature. These economies are growing at a substantial rate consequently affecting their overall income. This means that most of them are earning more revenue per capita and they can therefore afford to use air transport. This is probably the reason why Emirates Airline has been steadily growing over the past few years. Markets are changing rapidly and more governments in the region are streamlining their economic policies so as to suite the Airline industry. (Tayeh, 2006)<br />Airline traffic in the rest of the world has reduced drastically. However, the Middle Eastern region has improved especially for Emirates. Emirates success is directly linked to the City's success-Dubai. Dubai is one of the most rapidly growing cities in the world. It represents a lot of potential for investment both in the tourism industry and also in the business world. First of all, there are so many projects that re coming up with time. First of all, the City is building a theme park that resembles Disney world; it has embarked on a project that will house over four hundred thousand residents through a waterfront project. As if this is not enough, there are plenty of businesses that are always coming up all the time. Real estate is one particularly interesting sector because it attracts lots of capital investment. All these business ventures are encouraging more visitors to the City and the country in general; this has been reflected in the overwhelming market for Emirates.<br />As if this is not enough Emirates Airline is located at a very suitable region in Asia, it is in the middle of the Eastern and Western regions. Consequently, the Airline is capable of tapping resources from both sides. The Asian continent has a booming economy and Emirates Airline has really benefited from this.<br />Social<br />Emirates Airlines operates in a region where there are numerous employees and workers. Most of these workers rarely demand for high compensation. When the United Arab Emirates is compared to other countries such as the United States, it can be found that there is a significant difference in labour costs as the latter country uses up thirty eight percent of its operating expenses while the UAE only uses up eight percent of its operating costs to pay its workers. Consequently, the Airline has made a lot of profits due to those differences. (Morrison and Winston, 1997)<br />Labour issues are adversely affecting employers in the region and also in the rest of the world. Workers are becoming increasingly ware of their potential and most of them are demanding more. Many Airline Companies are increasingly recruiting different types of labourers. This is especially with regard to the fact that there are numerous types of Aircrafts in any one type of Airline. For instance, an Airline Company may have regional jets, four engine planes, wide body and narrow body aircrafts. Such kinds of aircrafts are operated by different types of pilots and engineers. These workers all belong to different worker's unions and all of them may require special attention by the human resource department. Payment schedules may also be difficult to maintain if some of these workers operate in stable economies. Emirates Airlines has also been affected by this problem but not to a large extent. Emirates Airlines has not bought too many varieties of Aircrafts. Consequently, there is room for the Company to grow and without having to spend too much in the labour section.<br />Technological<br />The world had a technology boom in the nineties. However, there was a technology but in the decade 2000. Companies that were using technology to gain competitive advantage over their players in the industry may now have to look for other sources of competitive advantage.<br />Additionally, Airline companies have to deal with the advent of better informed clients. Most people are now more knowledgeable about the reputable companies. They can get all the strengths and weaknesses about a given firm using the internet. For instance, clients tend to shy away from airlines with numerous stopovers in comparison to those ones that have direct routes. These are al issues that can be checked out at the ‘touch of a button'. Emirates Airlines has been affected by this issue because it needs to ascertain that it offers better services to its clients and that it can meet future demand. (Tayeh, 2006)<br />Legal<br />It should be noted that in the past, most governments within the Asian Pacific used to operate under a paternal government policy. Governments felt that thy had to protect airlines against external factors, but after the recent policy changes, Airline industries have now been opened up to competition and this is the reason why air carriers like Emirates have grown. They can now follow the rules of economics to sustain competitive advantage instead of worrying about government hindrances. This means that there are less legal hitches when running operation in the region.<br />Environmental<br />It is a known fact that Airline Companies need to adopt strategies that provide them with a good corporate image. For instance, some Airlines may decide to take part in environmental sustainability projects such as tree planting. Additionally, some companies may also exercise extra caution in terms of the quantity of waste that they send to the landfill. This is something that seems to be taking a lot of attention from Airline companies. Lastly, the issue of recycling is also taking up a lot of precedence in the Airline industry. Some Companies are offering recyclable cutlery to their clients in order to further this campaign. All in all, it should be noted that most environmental campaigns in the Airline industry are part of the corporate responsibility strategy within a specific Airline Company. (Directory, 2007)<br />Critical evaluation of the strategies used by the Airline between 2002 & 2007<br />Strength<br />The company has adopted a very unique business model. It thrives upon flexibility and espousal to existing external environments. The company's management is quite creative and is always looking for ways of coping with their current situation. This is the reason why the Airline has been able to tackle some of the global economic problems that have attacked the aviation industry.<br />The Company has won a number of awards between the years 2003 and 2007 from the World Airline Entertainment Association. The Company was given the World Airline Entertainment Association Award for the third year running. Emirates Company has been quite effective at including technology in its customer care. The Company had an in-flight entertainment system during the world up in 2005. it was able to give al its passengers access to the matches. Those who may not have been interested in watching the entire match were give updates through their top-of the-range-screen systems. In addition to this, the company has gained a wide esteem for the inclusion of email services for all its passengers. It also allows live text news for customers in their aircrafts. The Company was also the first to introduce a Digital Widescreen System in 2005. This was something that ha not been included in other Airline Companies of the world. (Morrison and Winston, 1997)<br />Weakness<br />Emirates Airlines is quite reputable in the Asian Pacific Continent. The company has marketed itself very well in the region and as it can be seen form the able below, it is one of the most successful companies in the region.<br />Airline Market Share<br />Emirates 39%<br />Air India 2%<br />Gulf Air 8%<br />Qatar Airways 13%<br />Sri Lankan Airlines 4%<br />Singapore Airlines 26%<br />Thai Airways 8%<br />However, when the company's market share is analysed in other regions of the world, such positive and encouraging results may not be seen. Some regions such Australia have not embraced the services and benefits that come with using an Emirates Airline Aircraft. Emirates Company therefore needs to improve its performance in the global market. Most successful companies are those ones that adopt a global dimension and decide to spread their success to other regions of the world. Over - reliance on one region can bring about economic down fall in case the region is faced with a natural or man made disaster and the Airline may not have other areas to turn to. (Directory, 2007)<br />Additionally, Emirates is rather conservative about the issue of Labour Unions. This could be the reason why the company has shied away from diversifying its Airline operations. The Company seems to fear high labour costs and this is coming in the way of its improvements. The Company needs to disregard some of the labour cost that come with expansion because these costs will simply be offset by the higher rate of returns that will be achieved by the company after the passage of time.<br />Opportunities<br />Carriers within the Middle Eastern region are growing rapidly. The Asian Pacific region has an association for its airline companies. During the year 2006, the association registered an overall increase in passenger traffic of about twenty three percent. It was also found that in the year 2004, the overall traffic in the region grew by a whooping twenty four percent. The figures were deduced by the differences between passenger kilometres and seat kilometres that were available.<br />China (which is one of the most thriving economies in the region) provides the highest potential for growth and profits. The Asian Pacific Region found that traffic to and from this country had reached a whooping fifty one percent. Such positive figures indicate that there is a huge airline market in China and that the Emirates Airline needs to expand some of its operations to this country. It is also crucial from this company to understand that it can boost its performance in that country by making their services even better or by marketing themselves aggressively within China. (Tayeh, 2006)<br />Threats<br />Overall air transport within the Asian Pacific region has improved. While this can be seen as an opportunity for attracting more clients to the region, it can also be seen as a threat. The positive growth means that more and more Airlines are improving their positions within the industry. It is very likely that Emirates will be facing stiff competition within the market. It is a known fact that beyond the 2000s, Emirates has been dominating market shares in the Middle and Far East. However, this position may soon be toppled if the company relaxes.<br />Additionally, Emirates Airline has to deal with an increase number of competitors in Dubai and its environs. This is because they have realised how profitable the route. Such competition could potentially lead to diminished business. However, this has not been the case for the company. Emirates have adopted a competitive strategy. The company believes that it is quite possible to still soar above the rest even when there are other players in the market. Emirates encourage more competition because this means that overall standards in the industry will increase and there will be greater acknowledgment of good performers within the industry.<br />Impact of stakeholder pressure on strategies<br />Most airline companies are particularly fond of mergers and acquisitions. It is indeed a global trend, for companies to form alliances. However, Emirates shareholders and management believe that alliances are not an appropriate strategy to adopt for the company. They have asserted that Emirates needs to establish some sort of trend in this area. The Company needs to remain independent and mergers will com in the way of such a strategy. More so, Emirates' main business principle is flexibility. They believe that they should always have the ability to change their approaches depending on the external and internal circumstances. Consequently, making an alliance would come in the way of such a strategy. One can therefore conclude that shareholders have greatly affected the way the business conducts itself in the global arena. (Doganis, 2001)<br />Emirates decided to adopt a strategy of free competition because of mounting pressure from key persons within the company. These key persons asserted that following the trends used by other companies in the airline industry would make Emirates seem like a company that is simply trying to survive the increasing competition within the field. It would make them look like a company that has its own survival at heart and not the needs of the customers. The Company is built upon the premise that the customer comes first. This is the driving force behind the company strategy. Additionally, the reason behind the company's financial success is the fact that the company is not linked to other business interests. Consequently, stakeholder pressure has affected the company positively because it has yielded encouraging results.<br />The government of the United Arab Emirates is a key stakeholder in the operations of the Company because they are part owners of the Company. They have created a lot of pressure in the manner in which the airline conducts its operations. It has created a liberal market in the Far East in order to enable the Airline operate in liberal markets. This is especially in contrast to some of the strategies that other stakeholders in the Middle Eastern region have adopted. Airline companies in such areas have no idea what it means to compete in the aviation sector. (George, 1982)<br />Coping and encouraging competitiveness is a key element in the Company's strategy (this is called the Open Skies strategy) and this can be highlighted in the way the company conducts its businesses. For example, Emirates shares its Dubai airports with one hundred other Airlines. This would have been ordinary if the foreign companies were operating in regions outside the Asian Pacific region. However, it has been found that they actually target one hundred and fifty destinations in the region. Additionally, surveys conducted in Emirates' main hub found that fifty percent of their passengers belonged to other Airlines. This is in huge contrast to what goes on in other regions of the world. For instance, in the United Kingdom, it may be possible to find that one Airport is filled up with passengers who belong to one airport. This means that Emirates is acting as a leader in this arena if it has managed to achieve what some seemingly ‘sophisticated markets' have not achieved in the market today.<br />Evaluation of future strategies<br />It is possible that Emirates Airline will expand its operations into other non – Asian countries/. This means that there will be greater need for the company to take up some of the global trends. For instance, they may increase their flights to the United States. Consequently, the company will have to adopt some of the approaches that air carriers in those regions use. While creativity has been an essential part of Emirates operations, it may be necessary to re-channel some of these creative efforts in the field of technology. (Doganis, 2002)<br />Some of the Airline carriers in the US are constantly coming up with new ways to increase customer satisfaction through technology. For instance, online booking may have to take greater precedence that it does currently. It may also be necessary to improve customer care in the luggage section through employment of better technologies in keeping customer's luggage. The Company may also have to employ these same technologies in the security problems. Most US air passengers were quite shaken up after the September eleventh attacks. Consequently, security is a crucial part in the US aviation industry. Passengers are demanding greater levels of security through surveillance cameras and the like. These are all issues that Emirates will have to incorporate once it becomes more global.<br />In the future, Emirates may not be able to access certain markets because of its ‘open skies' strategy. This strategy requires that the Company remained independent of others and hence the reason why the company has stayed away form, alliances. Presently, the Company has met some stiff resistance from certain countries such as Australia. Consequently, Emirates has been prevented from accessing such markets. In the future, it is likely that Emirates may be forced to relax this policy of staying away from alliances. It may decide to maintain such a strategy in most markets but in the event that it meets too much resistance from certain countries, it may be necessary to bend some of its rules. (Smith, 2002)<br />It is also likely that Emirates Airline will consider expansion strategies as one of the most viable options for the Company in the future. This means that the Company will need to come up with Company representatives in those regions.<br />Emirates Airlines will have to accommodate greater varieties of employees and this means that the Company will need to leave out a substantial portions of its annual budget to meet this greater increase. However, this is not a totally bad idea for the Company because it stands to get a lot of returns on its investments.<br />Al in all, the most suitable strategy for Emirates in the future will be a fit strategy. It has been operating on the stretch strategy but this is mostly appropriate in the region. Such a strategy may not work in the rest of the world.<br />Conclusion<br />Emirates Airlines was a started in the year 1985 and has undergone numerous changes over those two decades. It is now the best Airline in the Asian Pacific region with awards for innovation in its in-flight entertainment systems. The company has also gained a lot of mileage for its Open skies strategy. It believes that free market solutions are the best drivers for any Airline Company and this is why the company has stayed away from mergers and acquisitions. However, the company needs to embrace more global markets and this will force it top comply with some of the rules in operation within those markets. This means that the company will have to relax some of it open skies policy. It will also have to embrace online systems as a sound marketing tool in the global arena.<br />Reference:<br />Butler, G.F., Keller, M.R. (2000): Handbook of Airline Operations. Aviation Week;<br />McGraw-Hill Companies<br />Doganis, R. (2002): Flying off Course: The Economics of International Airlines, 3rd edition. Routledge, New York.<br />Directory: (2007): World Airlines", Flight International, 2007-04-03, p. 77.<br />Doganis, R. (2001): The Airline Business in the 21st Century. Routledge, New York,<br />Smith, M. J.  (2002): The airline encyclopaedia, 1909-2000. Scarecrow Press<br />Morrison S. and Winston C. (1997): The fare skies: air transportation and Middle America, Brookings Fall<br />Tayeh, T. (2006): The View From Dubai: a speech by Senior Vice President Planning, international and Industry Affairs Emirates Airline; Euro control report (May 20th)<br />George S. Yip (1982): Gateways to Entry; Harvard Business Review 60 (September–October 1982): 85–93<br />Watch your traffic increase just by submitting articles with us, click here to get started.Liked this article? Click here to publish it on your website or blog, it's free and easy!<br />Carolyn Smith - About the Author:<br />Author is associated with ResearchPapers247.Com which is a global Research Papers and Term Papers Writing Company. If you would like help in Research Papers and Term Paper Help you can visit Custom Essays> and Custom Research Papers> or Term Paper Help><br />Read more: http://carolynsmith.articlesbase.com/flights-articles/organisational-strategy-emirates-airline-1908526.html#ixzz1Z27xfh8f Under Creative Commons License: Attribution No Derivatives<br />http://www.speedyadverts.com/SATopics/html/global_business1.html <br />Table of Contents<br />IntroductionLocal ResponsivenessPressure for Local ResponsivenessEmirates Airlines’ SubsidiariesGlobal IntegrationEmirates Airlines Global Business Goals and ObjectivesGlobal Operational IntegrationA driving force in globalisation is TechnologyThe Virtual Office – The InternetIn-Flight mobile & Internet AccessNetwork InfrastructurePressure for Global IntegrationEnrolment of Global WorkforceDetermining the balance of Global Integration vs. Local ResponsivenessGlobal consistent customer serviceGlobal StrategyGlobal RoutesCreating value and achieving goalsAttracting customersGlobal Aviation StrategyEmirates aim to redraw the world aviation mapConsiderationsBibliographyIntroductionIn today’s competitive global market the success of multinational enterprises (MNEs) rely heavily on their differentiated geographically dispersed subsidiaries being fully or partially owned subsidiaries, regional offices, representative offices etc...Given the increasing globalisation of the competitive environment, the dual imperatives of global integration and local responsiveness are becoming more critical than ever before for the survival and growth of MNEs (Access My Library, 2001).A fast growing multinational enterprise in the world is Emirates Airlines which forms part of Emirates Group. Emirates Group is based in Dubai and is primarily composed of Emirates Airlines, Emirates Holidays and Emirates SkyCargo. Emirates Group was founded in 1985 and today they operate globally in over 100 destinations in 62 countries with a new location added on average every two months. Emirates Airlines is a fast-growing global airline with one of the youngest fleets in the sky and with more than 300 awards for excellence worldwide. Emirates Airlines operates a fleet of aircraft to various destinations in Europe, the Middle East, the Far East, Africa, Asia, Australasia, and North America; literally in all continents of the world.Global integration concerns the coordination of activities across countries in an attempt to build efficient operations networks and to take maximum advantage of similarities across locations. A multinational solution that combines both global integration and local responsiveness is essential for economic growth and this can be achieved through the orchestration of operations on a global level i.e. striking a balance between global integration and local responsiveness of operations. Local responsiveness concerns the attempt to respond to specific needs within a variety of host countries while foreign subsidiaries must be differentiated enough to successfully confront cultures, markets, and business practices that contrast distinctly with those of the home country. This flexibility must be accommodated within a structure that will provide maximum contribution to corporate performance, thus, an asymmetrical treatment of various subsidiaries is necessary for coordinating worldwide businesses within an intra-organisational network (University of Alabama, 2005)."The forces of globalisation create tension just as they create opportunities. These tensions must be managed." - Nemir A. Kirdar Founder, President and Chief Executive Officer, Investcorp. Local ResponsivenessLocal responsiveness is all about attempting to understand and to respond to specific needs and to adapt to host country conditions. Local decisions and policies pertaining to foreign subsidiaries should be geared to the unique parameters of the local environments such as business culture, consumer demands, competition, government regulations etc... In other words MNEs need to employ strategies that align properly with the structural attributes of the host industry.Local responsiveness in a dynamic environment can be classified into three categories:National environmental factors within a host countryIndustrial structural factors which determine the conduct, behaviour, and strategy of firms in that industryOrganisational factorsHigh local responsiveness is required if an MNE attempts to maintain a strong and sustainable competitive position in a host country. In this scenario foreign subsidiaries depend heavily upon their global strategic resources to compete against local rivals which may be well established enjoying traditionally a loyal customer base.High local responsiveness: Taking the example of Emirates Airlines in Malta, Emirates Airlines is competing aggressively with renowned airlines such as British Airways, Lufthansa and other low cost carriers such as Ryan Air which operate common routes. Emirates Airlines’ success in this field is attributed to its unique strategy of excellence in service provided with a superior value to customers which is second to none.“Continuing our explosive growth while continually striving to provide the best service in the industry is the secret of Emirates’ success” (Emirates.com, Undated). Pressure for Local ResponsivenessMNEs are confronted with environmental pressures, namely the pressures of local responsiveness. The local responsiveness pressures are driven by several factors, such as subsidiary government regulations, local competition, the need to satisfy the unique tastes and references of local customers, the size and importance of local subsidiary markets, and infrastructure differences between different countries. In a way these pressures are the driving force to enhance, align and implement the global strategy in different countries and to improve the overall services and global operations.We may divide pressures for local responsiveness into two major categories being ‘Customer Divergence’ and ‘Governmental Policies’.Customer divergence consists of:differences in culturenational attitudeseconomic conditions etc... Host government policies include:economic freedomwork-place policiesservice/product regulationslocal legislation etc...(International Business, 2001) & (University of New South Wales – Sydney, 1999)Emirates Airlines’ subsidiaries: One of the global strategies of Emirates Airlines is to work with well established agents or subsidiaries in different countries. In Malta, Emirates Airlines works hand in hand with ROCKS Group in an effort to penetrate the market while minimising the burden and concerns regarding customer divergence since these are catered for by the local agents. By doing so Emirate’s Management can concentrate its efforts in negotiating and resolving host government policies with the respective local authorities since most of the local groundwork would have been already carried out by the local agents or subsidiaries. Global IntegrationThe major two driving factors for organisation to go global are the economic and technological factors.Global integration encompasses the integration of foreign business efforts into the domestic business, and the integration of the global businesses with each other and the existing domestic business.The company’s Global integration comprise of both the ‘Business Strategy Integration’ and the ‘Operational Integration’ between the domestic and its foreign subsidiaries.Business Strategy IntegrationThe following areas of the business strategies must be integrated:Business Model: How you realise profits and incur costs must be integrated and coordinated, respecting universal and local elements.Business Objectives and Goals: The metrics for revenue achievement, realisation of profits and market penetration must be accepted and believed achievable.Emirates Airlines Global Business Goals and Objectives are: To position Emirates Airlines as a global airline and the carrier of choice to the Gulf and the Middle East and points beyond.To promote Dubai as one of the most modern, progressive, safe and technologically advanced commercial centres in the Middle EastShowcase the airline’s outstanding and award-winning service levels, in-flight experiences, profitability, fleet, safety record and global reputationFocus on the airline’s highly professional and seasoned senior management to create a leadership position in the aviation industry(M Silver Associates Inc. PR, Marketing & Communications , Undated) Operational IntegrationThe company’s operational processes, procedures and reporting functions must accommodate all the international business and must be coordinated, i.e. the domestic requirements with the foreign requirements and vice versa, and the resulting activities and impact of information must be integrated.International Business will increase the areas where processes, procedures and reporting functions are essential. This will add additional layers to the company’s compliance activities such as: Product/services developmentInternational marketing programsSales and distribution channelsManufacturing requirementsManagement and organisationAccounting and reportingDue diligence and compliance(Local Tech Wire, 2008)Global Operational Integration: Global Operational Integration also requires an international skilled workforce and a major challenge is to overcome language barriers. At the end of March 2008, Emirates employed about 35,300 people and hired more than 7,000 staff, including 2,000 cabin crew and 400 new flight deck crew representing 145 nationalities which is a show case of strong globalisation (GulfNews.com, 2008).A driving force in globalisation is Technology: Innovation and technology have always been an important quality for Emirates. As an example, the airline was the first to offer seatback entertainment to all passengers, regardless of class.Emirates Airlines’ investment in advanced technology is part of a global strategy for ensuring long-term growth. As an example Emirates are using Danware’s NetOp advanced technology remote control solution which helps the global organisation reduce the time and cost of providing world-class IT support (NetOp, Undated).The Virtual Office – The Internet: Due to Emirates Airlines’ increasing international presence, Emirates needed to develop more than 30 multilingual sites including Arabic & Japanese to help operations.  Emirates needed its regional offices worldwide to be capable of updating their own content while simultaneously maintaining a level of centralised control over the content and publishing process. Tridion Content Management Solution was implemented globally by Emirates Airlines to manage the content for its global Internet presence. This has enabled Emirates Airlines to reach a wider audience, and replicate common information across all its domains in different languages (SDL Tridion, 2005).In-Flight mobile & Internet Access: Technology makes globalisation a reality and Emirates strive to introduce innovative technological solutions bringing superior value to its client’s worldwide. Emirates is the first airline in the world to commercially launch an in-flight mobile telephone service. The innovative airline will be investing some US$27 million to fit its fleet with the AeroMobile system which ensures that passenger mobile phones operate at their absolute minimum power, thereby allowing their safe use on the aircraft (Travel Daily News, 2008).Emirates and AeroMobile also plan to add Internet access in all its flights. The service will support the use of BlackBerry and Palm Treo devices, in addition to mobile data-enabled PDAs and notebooks (CIO – Business Technology Leadership, 2006).Network Infrastructure: Due to Emirates explosive growth, Emirates are working together with the IT giant Sun Microsystems to scale their IT infrastructure in order to sustain this rapid growth while simultaneously reducing the operational costs. With the dual objectives of increasing IT capacity while driving down operating costs, a decision has been reached by Emirates’ Management to migrate business applications which were running on Sun EnterpriseTM 10000 servers to the next generation technology from Sun Microsytems - the Sun FireTM (Sun Microsystems, Undated).Keeping abreast with technology is of vital importance since technology is today the main player in global organisations. Pressure for Global IntegrationThe pressure of global integration is reflected by factors such as:global competitionglobal coordination of value-chain activitiestechnological changes and complexitythe need to reduce cost by exploiting global scalescope economies i.e. efficiencies primarily associated with demand-side changesThe major pressures for Global Integration can be categorised into 2 categories, being ‘Globalisation of Markets’ and ‘Globalisation of Production/ Services’.Globalisation of markets:the convergence of customer preferences for similar productsminimal costsmaximum value Globalisation of production/services:efficiency gains via standardisationthe maximisation of location economiesIt is worth mentioning that a commodity serves a universal need across countries and cultures and is traded strictly on the basis of price which adds even more pressure to the global strategy.(International Business, 2001) & (University of New South Wales – Sydney, 1999)Enrolment of Global Workforce: Due to global competition one of the major challenges for Emirates Airlines is to find enough skilled staff around the globe for employment. "We are preparing for the future, which will see the airline becoming one of the biggest international carriers," Shaikh Ahmad said. "As we plan for the next decade, our biggest challenges will be to find more pilots, engineers, cabin crew and skilled staff across our various business units," he added. (Gulf News, 2008) Determining the balance of Global Integration vs. Local ResponsivenessManaging the tension between global integration and local responsiveness in order to convert a unique strategy into superior value is all about determining the right balance between global integration and local responsiveness. Global integration helps in managing risks and driving down enterprise costs while local responsiveness facilitates an efficient integration with local economic conditions and partners.Pressures for Global Integration vs. Local Responsiveness can be categorised into 4 categories:Centralised BusinessProvide global integration but have less need for local responsiveness.Provide consistent product and customer experiences globally, and seek to maximise synergies by centralising assets and capabilities. Federated BusinessProvide both global integration and local responsiveness.Achieve global efficiency and flexibility and to adapt products and services locally. Parent-led BusinessMedium to low pressures for both integration and local responsiveness.Adapt parent business policies and practices across the local businesses. Multi-local BusinessStrongly pressured to provide local responsiveness.Build strong local bases and emphasise self-sufficiency.Global consistent customer service: Since global airlines such as the Emirates Airlines must present the same face and procedures to its customers everywhere they operate in order to provide a consistent service and customer experiences globally, their strategy revolves around a Centralised Business strategy (Information Week, Undated).Emirates strive to provide consistent product and customer experiences globally. An example is in its global e-Ticket system. Emirates continues to lead the way in e-ticketing, recently concluding its 100th interline e-ticketing agreement. This means the airline’s e-ticketing product is now even more widely available, enabling more travellers to enjoy the benefits of e-tickets when flying with Emirates. “Electronic ticketing benefits both the customer and the airline by providing greater convenience, reduced processing time, simplified operations and faster check-in” (Scoop Business, 2008).Global StrategyA Global Strategy views the world as a single market taking business expansion into foreign operations that champions worldwide consistency, standardisation, and cost competitiveness. Global firms strive to convert global efficiency into price competitiveness via production, services and location economies. Value is created by designing, developing and marketing products and services for a world market as effectively and efficiently as possible.The core global strategic principles being:attracting customersmarket positioningconducting operationscompeting effectivelycreating valueachieving goals(Business Administration, Undated)When it comes to global strategy, most organisations make two assumptions:the central challenge is to strike the right balance between economies of scale and responsiveness to local conditions,the more emphasis companies place on scale economies in their worldwide operations, the more global their strategies will be.Because MNEs differ in pursuing different strategies ranging from multi-domestic to global strategies, each subsidiary plays a specific role that fits into the overall corporate strategy. Therefore, it is likely that subsidiaries with a higher degree of strategic interdependence will share organisational knowledge more actively with peer subsidiaries.(Harvard Business Review, 2007) & (University of Alabama, 2005)Global Routes: Nearly 800 Emirates flights depart Dubai each week on their way to destinations on six continents. In fact, Emirates' flights account for nearly 40 per cent of all flight movements in and out of Dubai International Airport, and Emirates’ aim is to increase their market-share to 70 per cent by 2010 without compromising their reputation for quality.Creating value and achieving goals are important strategic principles in globalisation: Emirates Airlines are continually working to improve their services globally. Emirates recently achieved a new milestone as it touched down to the vibrant beats of the African drums at Cape Town – its 100th global destination in South Africa and also launched a new service to Brazil; a daily non-stop Dubai-Sao Paulo operation effective 1st July 2008 (Travel Daily News, 2008).Attracting customers is the major strategic global principle: Emirates are always in search of new ways for innovation. Emirates Airlines just opened its new futuristic lounge at Brisbane International Airport, unveiling the facility that offers a stunning 360 degree view and is the first airline lounge in Australia capable of boarding passengers directly to the aircraft, including the upper deck of the Airbus A380 (Travel Daily New, 2008). This is convenient to customers and is a big jump in quality offering superior value when compared with other airlines.Global Aviation Strategy: Thanks to the success of Emirates Airlines, over the past 15 years Dubai International Airport has developed into one of the largest hubs in world aviation. Emirates bases its strategy on the fact that its planes can reach any point on the globe nonstop from Dubai and can connect any two city pairs with just one stop in the Middle East (International Herald Tribune, 2007)."They have a geographic advantage that no one else has," Diogenis Papiomytis, a commercial-aviation consultant with Frost & Sullivan, told MarketWatch.com. "Within 8,000 miles, they can reach something like 80% of the world." A new airport, said to be the world's largest, is now under construction near Jebel Ali, a large complex consisting of a port, airport, residential areas, hotels and a free-trade zone about 19 kilometers, or 12 miles, from the city center (GulfNews.com, 2008) bringing new challenges and opportunities to Emirates Airlines.Emirates aim to redraw the world aviation map: Emirates have made various announcements regarding the future of its already state-of-the-art fleet which forms an integral part of its global strategy. With a huge pot of money to spend of about $82 billion, the airline has ordered 55 super-jumbo A380s to create the biggest fleet of these double-decker planes in the world thus adding more value to its customers. Its first-class seats feature flat beds with in-seat massage and personal mini-bars, while its in-flight entertainment includes 600 channels, e-mail connections and seat-to-seat telephones for in-flight chats etc… state of the art innovative technology."What we are witnessing today is the rewriting of the world's aviation history and the beginning of a new era of global aviation." … "We've never seen anything like it before," said Robert Cullemore, a consultant at Aviation Economics, an aerospace advisory firm in London. "We've never seen growth at this rate” (International Herald Tribune, 2007).ConsiderationsToday, global business is considered as the most important business-and-economic trend in the world."The Middle East is taking over the aerospace industry and Dubai is at the heart of it," Doug McVitie, an aerospace consultant with Arran Aerospace, told MarketWatch.com recently.Emirates Airlines is reaping the benefits and in a huge way. Last year profits increased by 54% reaching $1.45 billion and sales jumped 32% as the airline carried more than 21 million passengers which is an increase of 21% from the year before (Money Morning, 2008). These results are encouraging for Emirates Airlines and are proof that they found the right balance between global integration and local responsiveness and have the right global ingredients to convert a unique strategy into superior value.Global StrategyA Global Strategy views the world as a single market taking business expansion into foreign operations that champions worldwide consistency, standardisation, and cost competitiveness. Global firms strive to convert global efficiency into price competitiveness via production, services and location economies. Value is created by designing, developing and marketing products and services for a world market as effectively and efficiently as possible.The core global strategic principles being:attracting customersmarket positioningconducting operationscompeting effectivelycreating valueachieving goals(Business Administration, Undated)When it comes to global strategy, most organisations make two assumptions:the central challenge is to strike the right balance between economies of scale and responsiveness to local conditions,the more emphasis companies place on scale economies in their worldwide operations, the more global their strategies will be.Because MNEs differ in pursuing different strategies ranging from multi-domestic to global strategies, each subsidiary plays a specific role that fits into the overall corporate strategy. Therefore, it is likely that subsidiaries with a higher degree of strategic interdependence will share organisational knowledge more actively with peer subsidiaries.(Harvard Business Review, 2007) & (University of Alabama, 2005)Global Routes: Nearly 800 Emirates flights depart Dubai each week on their way to destinations on six continents. In fact, Emirates' flights account for nearly 40 per cent of all flight movements in and out of Dubai International Airport, and Emirates’ aim is to increase their market-share to 70 per cent by 2010 without compromising their reputation for quality.Creating value and achieving goals are important strategic principles in globalisation: Emirates Airlines are continually working to improve their services globally. Emirates recently achieved a new milestone as it touched down to the vibrant beats of the African drums at Cape Town – its 100th global destination in South Africa and also launched a new service to Brazil; a daily non-stop Dubai-Sao Paulo operation effective 1st July 2008 (Travel Daily News, 2008).Attracting customers is the major strategic global principle: Emirates are always in search of new ways for innovation. Emirates Airlines just opened its new futuristic lounge at Brisbane International Airport, unveiling the facility that offers a stunning 360 degree view and is the first airline lounge in Australia capable of boarding passengers directly to the aircraft, including the upper deck of the Airbus A380 (Travel Daily New, 2008). This is convenient to customers and is a big jump in quality offering superior value when compared with other airlines.Global Aviation Strategy: Thanks to the success of Emirates Airlines, over the past 15 years Dubai International Airport has developed into one of the largest hubs in world aviation. Emirates bases its strategy on the fact that its planes can reach any point on the globe nonstop from Dubai and can connect any two city pairs with just one stop in the Middle East (International Herald Tribune, 2007)."They have a geographic advantage that no one else has," Diogenis Papiomytis, a commercial-aviation consultant with Frost & Sullivan, told MarketWatch.com. "Within 8,000 miles, they can reach something like 80% of the world." A new airport, said to be the world's largest, is now under construction near Jebel Ali, a large complex consisting of a port, airport, residential areas, hotels and a free-trade zone about 19 kilometers, or 12 miles, from the city center (GulfNews.com, 2008) bringing new challenges and opportunities to Emirates Airlines.Emirates aim to redraw the world aviation map: Emirates have made various announcements regarding the future of its already state-of-the-art fleet which forms an integral part of its global strategy. With a huge pot of money to spend of about $82 billion, the airline has ordered 55 super-jumbo A380s to create the biggest fleet of these double-decker planes in the world thus adding more value to its customers. Its first-class seats feature flat beds with in-seat massage and personal mini-bars, while its in-flight entertainment includes 600 channels, e-mail connections and seat-to-seat telephones for in-flight chats etc… state of the art innovative technology."What we are witnessing today is the rewriting of the world's aviation history and the beginning of a new era of global aviation." … "We've never seen anything like it before," said Robert Cullemore, a consultant at Aviation Economics, an aerospace advisory firm in London. "We've never seen growth at this rate” (International Herald Tribune, 2007).ConsiderationsToday, global business is considered as the most important business-and-economic trend in the world."The Middle East is taking over the aerospace industry and Dubai is at the heart of it," Doug McVitie, an aerospace consultant with Arran Aerospace, told MarketWatch.com recently.Emirates Airlines is reaping the benefits and in a huge way. Last year profits increased by 54% reaching $1.45 billion and sales jumped 32% as the airline carried more than 21 million passengers which is an increase of 21% from the year before (Money Morning, 2008). These results are encouraging for Emirates Airlines and are proof that they found the right balance between global integration and local responsiveness and have the right global ingredients to convert a unique strategy into superior valuePdf 1: http://www.scribd.com/doc/57017999/Strategic-Analysis-on-Emirate-AirlinesPdf 2: http://www.micm-canada.org/Emirates_Apr07.pdf pdf 3: http://www.donsull.com/downloads/hub_of_the_world.pdf pdf 4: http://www.aerlines.nl/issue_38/38_Knorr_Eisenkopf_Emirates_Business_Model.pdfhttp://ivythesis.typepad.com/term_paper_topics/2009/02/emirates-airlines-leadership-analysis.html    <br />