Introduction
Emirates is a United Arab Emirates-based government-owned airline. Several changes were made over the development phase to accommodate the company’s growth. Despite Emirates being a relatively young airline, it has swiftly become one of the world’s most recognizable. Using cutting-edge technology and well-trained employees are the keys to their success. People should expect Emirates to continue to make its mark in the aviation industry. The company’s parent companies come from a broad variety of backgrounds. This airline has the most “Airbus A 380 superjumbo aircraft,” with more than 50 currently in the air and more on the way.
Customer traffic has continually increased since the company’s beginning. It had 15.5 million subscribers in the first six months of the fiscal year, which was the highest figure in the company’s history. The company’s sales increased by 3.6 percent, resulting in a far-fetched revenue of 3538 million dirhams. Fly Emirates’ long-term development plans call for the business to purchase and operate 120 Airbus A380s, which implies the firm will need to make an additional $30 billion order for 30 planes. This paper would look at the company’s SWOT analysis and make recommendations for the same.
Emirates is a government-owned airline located in the United Arab Emirates. During the development period, the corporation made several modifications to meet its expansion. Although Emirates is a relatively new airline compared to others, it has quickly established itself as one of the world’s most known. Their success is based on the employment of cutting-edge technologies and efficient team members. Emirates has made a name for itself in the aviation business and will continue to do so in the future. It has around 50 parent firms with a wide range of cultures. Emirates values its workers and provides practical training to keep them happy.
Emirates’ network is constantly increasing (Zhang, 2016). Every week, almost 1500 planes leave from Dubai Airport, reaching six continents. The airline’s total performance is built on adhering to sound business ethics and meeting consumer needs. The airline’s primary goal is to provide the most pleasing in-flight experience possible (O’Connell & Bueno, 2018). The firm is facing several issues due to numerous new airline services that offer much lower pricing.
This airline is the biggest in terms of “Airbus A 380 superjumbo aircraft,” with some already in the air and more than 50 more on the way. Since its inception, the company has consistently seen a growth in customer traffic. It had 15.5 million customers, which was the most significant number in its history for the first six months of the fiscal year (O’Connell & Bueno, 2018). The corporation saw a 3.6 percent growth in revenue and a far-fetched revenue of 3538 million dirhams.
Fly Emirates’ future expansion plans call for the company to buy and operate 120 Airbus A380s, which means the company will need to place an extra order for 30 aircraft for more than $10 billion (Zhang, 2016). The Fly Emirates would expand into new markets throughout the world as it strives to grow the number of destinations it serves, resulting in increased income (Redpath, O’Connell, & Warnock-Smith, 2017). The airline operates entirely on a commercial scale and receives no financial assistance or protection from the state (Alshubaily, 2017). Due to Dubai’s public airspace policy, Fly Emirates has been lucrative and able to survive in a market crowded with established aviation firms.
SWOT Analysis
Strengths
The Emirates hub’s central position in Dubai is one of its greatest assets since it allows many people from all over the globe to go directly to Dubai. Because of its position, the area serves as a suitable stopover for long-distance travelers, allowing Emirates to grow quickly since its inception. It has also improved its global reputation and expanded its horizons in many airline-related areas. Emirates has a vast route network that spans six continents and is serviced by a growing fleet of contemporary aircraft, providing a high-quality and convenient form of transportation for many international travelers (Zhang, 2016). It has a competitive advantage over the other airlines which is achieved through offering the first-class EnSite to travelers.
Weaknesses
With the large number of crafts they buy, Emirates airline is too optimistic and has an unsustainable future expansion. They primarily concentrate on luxury travel, which may be dependable with the elderly, but it is uncertain how they would promote themselves to future generations that have an insatiable need for convenience. Other airlines have accused Emirates of obtaining government subsidies and failing to pay taxes. Despite the company’s denials, they create a poor impression on many individuals (Redpath et al., 2017). The company can increase its number of trips, gaining much more through its luxurious travel, and buy more airplanes. This would raise enough money and thus not receive government funding as other airlines claim.
Opportunities
Even though Emirates’ premium travel segment approach has been demonstrated to be effective, low-cost long-haul carriers are also creating chances for millennial travelers. Because Emirates has never had a financial crisis, the introduction of a low-cost business aircraft subsidiary might be an interesting chance to investigate further. Despite servicing more than 155 destinations, it can develop by linking European destinations and by expanding internationally under the freedom rights granted to it by the European Union (Zhang, 2016).
Threats
The United States and European airlines have never had a decent rapport with Emirates Airlines since they believe Emirates receives government subsidies. Obtaining government subsidies for commercial purposes in the United States or the European Union is prohibited since it offers Emirates an unfair competitive edge. As a result of the airline’s lobbying efforts, it is possible that Emirates could be forced to curtail operations on European and North American destinations (O’Connell and Bueno, 2018). The increased security measures adopted for flights to and from the United States had a detrimental effect on Emirates, which forced them to restrict their US travel schedule. Finally, long-haul low-cost carriers are posing a significant challenge to the airline (Redpath et al., 2017). The company can make good relations with other airlines and make it clear they don’t receive government support. The company can also venture into other nations that other airlines have not yet explored.
Importance of Basic General Functions of Management and The Importance of Efficiency and Effectiveness in Management to Emirates Airline
Understanding the distinctions between efficiency and effectiveness and how Emirates Airlines may use both to the organization’s advantage is essential for efficient business management. The efficiency of the actions is measured in terms of the methods it uses to accomplish its goals. Working efficiently means that the company utilizes fewer resources and people to do their tasks. The quality of the outcomes it creates is measured by the ultimate result, which is called effectiveness (Alshubaily, 2017). Effective employees routinely achieve goals and objectives, such as doing high-quality work or selling products.
There are several approaches for Emirates to increase income per seat-mile. They may, for example, raise ticket prices, add more seats, fly more fuel-efficient planes, or negotiate better compensation with their personnel (Redpath et al., 2017). Shareholders may praise efficiency and effectiveness, but Emirates must also account for consumer happiness, resulting in additional expenditures.
Recommendations
To succeed in today’s competitive business climate, strategic management is an ongoing process of planning that focuses on achieving the organization’s long-term objectives by using resources to benefit the company. Implementing these tactics, several suggestions could assist achieve the goals. The airline’s operating costs are relatively expensive due to significant aircraft, technology, and client service excellence. They must endeavor to keep their expenses and pricing under control (Redpath et al., 2017). As a reaction to the emerging low-cost airlines that have entered the UAE market, Emirates Airlines should deliver exceptional service quality while keeping costs under control (Alshubaily, 2017). This will aid in price reduction. Lastly, they may consider launching a new subsidiary. This will help battle with low-cost carriers while still maintaining its position, class, and profit through the main company.
Conclusion
In the aviation industry, safety is of the highest significance. As a result, Emirates can maintain its position as the world’s most significant airline business because of its extensive fleet and meticulous maintenance and safety procedures. It is safe to say that the airline has never had an incident involving a passenger being injured. To meet the needs of its clients, it employs innovative technology and a wide variety of aircraft. The airline’s leadership is a model for other airlines in the sector. The airline’s goal is to become a global aviation market leader by implementing a strategy of quality, sophisticated technology, human resources, competitive edge, business expansion, and determination.
References
Alshubaily, A. (2017). Exploring the critical success factors for young airlines. A focus on emirates airlines and its regional competitors’ strategy for success. Saudi Journal of Business and Management Studies, 2(1), 30-37.
O’Connell, J. F., & Bueno, O. E. (2018). A study into the hub performance of Emirates, Etihad Airways, and Qatar Airways and their competitive position against the major European hubbing airlines. Journal of Air Transport Management, 69, 257-268.
Redpath, N., O’Connell, J. F., & Warnock-Smith, D. (2017). The strategic impact of airline group diversification: The cases of Emirates and Lufthansa. Journal of Air Transport Management, 64, 121-138.
Zhang, Y. W. (2016). A Strategic Analysis of Emirates Airline. DEStech Transactions on Social Science, Education, and Human Science, (icaem).