Introduction

                        Emirates airlines are the basic airline that is based in Dubai, United Arab Emirates. According to research, this airline is regarded as being the main subsidiaries of The Emirates Group that is completely owned and governed by the investment corporation of Dubai. As a result of that, it has the ability of operating and managing at least 3, 600 flights per week in several states across 6 continents. The general handling of cargo is ultimately handled by the Emirates SkyCargo. Conversely, the company has the ability of operating mixed fleet of airbuses as well as Boeing wide body aircrafts (Betz, 2010). The importance of that is because it has made it to be regarded as being one of the few airlines that have had the ability of operating an all-wide-body aircraft fleet.

                                                            PESTEL analysis

Political – various airlines can be easily affected by some political changes which the industry is ultimately sensitive with. The main political situations take into account conflicts and other economic conflicts going on in the airline industry. Some of the recent political and economic instability has enabled the company to obtain maximum profit. Since various states have also restricted some regulations, it has enabled the airline to play a key role in realizing the goal of promoting tourism (Mandina & Karisambudzi, 2016).

Economic factors – since Emirates airline is one of the most competitive airlines globally, it has managed to have favorable economic stability. Although several airlines have for years faced crashes and relentless conditions, the Emirates airline has had the ability of striving to maintain better economic situation. This has been enhanced by its better marketing strategies that are used by Dubai in promoting tourism as well as making it look more attractive internationally (Report: Dubai 2008, 2008).

Social factors – the airline is always aware of some of the demographic changes that might be influenced by ages, affluence, regions, as well as the number of employees working with it. This has the ability of impacting the demand for certain products and services. However, the airline’s crew ought to be conscious about all the cultural values of customers so as to offer services that meet the needs of the passengers. The airline requires that equal advantages and chances have been provided to all passengers (Sull et al., 2005).

Technological factors – technological advancement it highly taken into consideration by the airline so as to meet its competitive edge. For instance, the emergence of information technology (IT) and the internet impacts the services the airline offers because of operating and managing integrated technology services. The presence of IT systems has also enabled passengers or users to avail during flight.

Environmental factors – the airline always takes into consideration some of the environmental changes it might encounter. The intermediate weather conditions or climatic conditions have the ability of affecting or influencing its credibility directly. The recyclable cutlery service the airline provides has allowed it to be more attractive to passengers. Also, the eco-friendly gadgets enable the airline to examine actions as well as eliminate problems facing their society (Sull et al., 2005).

Legal factors – some of the government policies established in Pacific areas have the ability of protecting the airline from external factors, particularly environmental and political factors. Any change in these policies has the potential of affecting the revenue as well as the image of the airline. The policies and regulations offered by the government should have the ability of enabling the airline to be cautious in its local and international dealings. The actions and the operations of the airline are ultimately legal and arranged in a manner that will enable passengers to enjoy secure and safe flight. Despite that, legal and political factors are some of the main issues that have the likelihood of increasing the risks to the airline (Mandina & Karisambudzi, 2016).

                                                            SWOT analysis

Strengths

Presence of world class infrastructure enabling strong growth – the company have currently managed to achieve a 10 percent annual growth in ASK (available seat kilometers) for years as well as doubling its size within the last seven years. Other than owning at least 250 aircrafts, it has the ability of ordering more than 20 airlines to cater for the needs of the passengers.

Support from the local government – the company has managed to have a strong banking of their local government.  As a result of that, in the Arab kingdom, the airline has managed to become a symbol of economic turnaround (Betz, 2010). Likewise, since its existing chairman comes from the royal family, it means that the airline has the opportunity of being operationally and financially well positioned in the market.

Sponsorship and branding – taking into consideration the airline’s “Be There” campaign that introduced in partnership with the national geographic channel has ultimately become famous in several social media views. The company has also partnered with Hollywood Star Jennifer Aniston and Boeing in other various promotions. Moreover, the company has also managed to be the leading brand sponsors in various sports (Betz, 2010).

Global alliance – the airline boasts at least twenty codeshare partners as well as more than 150 interline partners globally. Likewise, the interline agreements has the ability of providing convenience to its customers who reaches their various destinations (Abed et al., 2006). 

Weaknesses

The presence of strong corporate culture means that not all approaches and diversification have been successful to the extent of developing innovative generation of a more advanced aviation and airline services. The presence of highly priced tickets offered by the airline has the ability of reducing the profits to be generated as compared to other rivals in the same industry (Abed et al., 2006). Conversely, the decrease in the prices of oil is also regarded as being one of the business paradoxes affecting the airline.

Opportunities

One of its main opportunities is the establishment of the Dubai World Expo 2020. Moreover, the presence of the modern Al Maktoum International airport is one of the factors that assisted the company to unlock its growth. Dubai also been regarded as being a tourism and business hub hence opening some of the untapped markets, for instance, Cuba and Iran.

Threats

Strong competition – the airline is experiencing strong competition from other airlines like Qatar, Turkish airlines, and Etihad. The same competition has also been tremendously increased by the emergence of modern airlines. As a result of that, it means that passenger share has to be shared amongst theses airlines.

Accusations of subsidiary returns by competitors in U.S – the United States airline competitors, for instance, United and American Airlines, and Delta airlines says that the benefits that the company gets from local U.A.E subsidies are as a result of acting as the government owned carrier (Gorgenländer, 2011). Although these issues are yet to be approved, has the ability of restricting the airline from expanding its presence in the United States. Moreover, because the airline’s aircrafts have more passenger seats, it is becomes difficult to fill them all hence affecting its profitability and future growth.

Global terror threats and conflicts – the ongoing conflicts and Middle East’s political instability are the main causes of concern. Since Europe have also been regarded as being the main target for terror attacks has the potential of impacting tourism, Emirate’s business, and subsequently the airline’s day-to-day operating activities  (Abed et al., 2006).            

                                                            Conclusion

            Since the company is also regarded as being one of the leading combined air service provider globally, serving at least 300 airlines in 35 states, its main functions entail catering, managing goods and ground handling, and offering travel services. The vision statement of this airline company entails maintaining international recognition as one of the leading company, in the act of security related services, offering aviation as well as setting a benchmark these services within their industry. Its mission statement also highlights the airline’s commitment towards safeguarding customers, its staff members, and goods against any unlawful interference via training, education, and continuous review. The reason for that is to ensure that its management authority have had the potential of implementing not only international but also other formulated industry practices and standards

 

 

                                               

                                                           

 

                                                            References

Abed, I., Vine, P., Hellyer, P., & Vine, P. (2006). United arab emirates yearbook 2006. London: Trident.

Betz, F. (2010). Creating and managing a technology economy. New Jersey: World Scientific.

Gorgenländer, V. (2011). A Strategic Analysis of the Construction Industry in the United Arab Emirates. Hamburg: Diplomica Verlag GmbH.

Mandina, S. P., & Karisambudzi, J. (2016). Customer Retention Strategies: A Panacea to Reducing Attrition in the Zimbabwean Airline Industry. Journal of Marketing Development & Competitiveness, 10(2), 91–110. Retrieved from http://165.193.178.96/login?url=http%3a%2f%2fsearch.ebscohost.com%2flogin.aspx%3fdirect%3dtrue%26db%3dbth%26AN%3d131724604%26site%3deds-live

Report: Dubai 2008. (2008). Place of publication not identified: Oxford Business Group. Oxford Business Group

Sull, D. N., Ghoshal, S., & Monteiro, F. (2005). The Hub of the World. Business Strategy Review, 16(1), 35–40. https://doi.org/10.1111/j.0955-6419.2005.00350.x