Documente Academic
Documente Profesional
Documente Cultură
1. Introduction……………………………………………………………………………
2. Business Strategy……………………………………………………………………
3.1. Mission…………………………………………………………………………….
3.3. Values……………………………………………………………………………
4. Marketing Plan………………………………………………………………………..
5. Evaluation……………………………………………………………………………..
7. Conclusion…………………………………………………………………………….
9. Bibliography…………………………………………………………………………..
1) INTRODUCTION
With just purely two aircrafts, the Emirates airline was established in the
year 1985 by the ministry of Dubai. After two decades Emirates has
expanded its empire with 83 aircrafts soaring to 78 destinations in more
than 55 countries worldwide. Emirates Airlines has a one of the largest
number of cabin crews hailing from 95 different nationals.
With such strong history Emirates Airlines are still venturing further in to
the future. They have recently made orders which are worth more than 26
billion US dollars for about 45 numbers of A380 Airbus. This will make the
company to be the world's largest purchaser of Super-Jumbo Air bus.
Emirates Airline is expected to become not only one of the greatest
budding airlines but also the fifth most gainful airline in the world.
The airline industry is in its prime of life, hence there is a tough competition
in the market and the rate of sales growing faster before beginning to
stabilize gradually. In this stage advertising and promoting sales makes it
obvious that the competition is getting more aggressive. Furthermore to
find best services required in gaining the attention of customers, many
competitors have increased their research and development (R&D)
budgets.
Emirates airlines are facing stiff competition with major international and
national airlines on the market shares. However the major competitors
identified here are the national airlines of other states of UAE.
Air Arabia
After success stories of American and European low-cost airlines Air Arabia
modeled low fares on customized local preferences. They focused on their
business mission by offering most convenient and frequent online booking
as well as less expensive air fares in the market with better service and
safety standards.
Air Arabia's worthy scheme "Pay less. Fly more", enables customers to
make smart travel choice; those who can't afford and were hesitant to
travel in the past, to start flying and those who traveled more frequently,
benefiting both and vacation travels.
Etihad Airways
Etihad Airways first captured the skies in November 2003, with only four
member team organization. Now it stretched out to a family of over 2500
employees spread across region. Etihad airline has also reputed as the
national airline of the UAE (Abu Dhabi) by a royal decree of Sheikh Khalifa
bin Zayed Al Nahyan (President of UAE) with investment of AED 500 million.
Compared to 2006, Etihad conceded more than 4.6 million passengers in
2007. It has also been designated as the World's leading New Airline two
years in a row, in 2004 and 2005.
RAK Airways
The fourth national airline of the UAE is RAK Airways which was established
under an Emiri Decree by Ruler of Ras Al Khaimah in February 2006
Another instance, along with other airline company like Qatar Airways,
Emirates airlines provided training courses by using the most modern
machines, called plane simulator. This was a feather to the hat of Emirates
airlines. The aim of such change is to be on top of the industry thus increase
the awareness nationally and internationally which in turn increase the
demand and the profit.
3) STRATEGIC MARKETING FOCUS
In this section we shall take a peek into mission, goals, core competencies
and external and internal environments in regard to the Emirates airlines.
3. A - Mission
Objectives
3. D - Core Competencies
Differentiation
Alliances
Political Political situations that affect the airline industry will be mainly
wars and terrorism. For instance, due to the terrorist activities in different
areas of the globe, namely in USA, Palestine, Iraq etc made these areas
unpleasant for not just tourists but businessmen to travel.
Economical
One of the factors following the success of any airlines is to have the
most sophisticated airports which are facilitated with cutting edge
technologies to meet customer’s requirements. UAE has major plans on
investing to develop such international airports in Abu Dhabi and Dubai.
The benefits are to enhance the economical growth, reduction on oil
revenues, to increase the number of tourists plus thereby driving profits to
airline firms.
Social
The population of the world is shooting at high rates. Thus the social
factors also increase. For instance, the population is expanding in UAE, this
there is because UAE is a multicultural country. As the expatriates number
in UAE increase, the profit obtained by the airline company also increase.
Technological
New technologies affect this industry in negative and positive manner. For
example, the teleconferencing reduced the necessity for face to face
business meetings. This reduced the number of businessmen traveling and
hence the purchase of business tickets.
Strengths
Skywards Miles FFP shared with many airlines including Sri Lankan
airways
Weakness
Opportunity
Threat
Low cost carriers are another threat for traditional airline operators.
Information security vulnerabilities poses danger to electronic ticket
system
In a nut shell, Emirates Airlines has strengths like new technology, such as
e-ticketing and self check-in services. An evident weakness is the elevated
prices of Emirates due to its huge investments in ordering aircrafts.
Although it has opportunities like investments in Abu Dhabi airport there
are many threats are concerning it, such as increase of oil prices, low cost
airlines and the spread of killer diseases.
4- MARKETING PLAN
Over the last few years, Emirates Airlines is one of the air carrier, which
barely felt the economic and airline down turn. Emirates Airlines is one of
the airlines, which hardly felt the economic and aviation down-turn of the
last few years. Emirates airlines market segment is divided into three major
categories of customers
4.A.1 - UAE's Tourism and Business segment Customers
UAE world's 5th largest Crude Oil exporter and Dubai world's fastest
growing city has created huge demand of skilled and unskilled workforce to
feed its booming economy and emerging labor market, the highly paid
labor market is a major attraction for the various work force around the
world. The overall expatriate population of the country equals 80% of its
total population; the national emirate population is 20% of the total
population. United Arab Emirates has got large amount diverse populations
in the Middle East. As per the 2006 censes the total population of UAE is
4.2 million consisting of the national emirate(20%) , other Arab and Iranian
(23%) , South Asian (50%) and other (8%) constituting Westerners and east
Asians. The diversity of this population enables emirates to plan their route
all around the world; emirates have reached mutual agreement with almost
all the national authorities around the world to operate in. Dubai operates
in an "open sky" policy, which allows any carrier to compete with Emirates
airlines.
4. A.3 - Transit passengers
Dubai is the operational hub for Emirates airlines, the best positioned
connection point between Europe and Asia/Australia has supported the
growth of emirates airlines. Emirates airlines has been using this
"connection point" in favor of promoting their business especially transit
passengers, the well established and marketed wide range network enables
Emirates Airlines to prosper in this particular segment. Emirates airlines
presently operates 87 cities in 59 nations around the world (still growing).
Additionally to accommodate the growth in the sector Dubai airport
authorities are invested $4.1 billion in the expansion of Dubai Airport, The
"Fly Emirates "caption is well known to the world and attracting customers
from around the world.
4. B - Intended Strategies
Enabling passengers to make voice and data call over aircraft’s telecom
system
Similar service, “On Air” is being developed by Airbus SAS and air transport
IT service provider SITA. Early of this year British carrier BMi and TAP-Air
signed on to offer OnAir’s voice and text messaging services for European
flights.
Deploying current services into new markets where company seeks to sell
its products into new areas. Possible way to achieve this strategy by
launching existing services into new geographical area or new market
segments.
Since Dubai is a hub for all international business travelers this is high time
to introduce new product to cater top level business executives. Imagine
the CEO of multi-national company makes lengthy overseas journey to
attend a board meeting that could have a major impact on the company
financials. Of course, company wants CEO to be top of his game, rested,
refreshed, relaxed and ready.
The cost of CEO’s air travel is doesn’t seem so expensive after all.
That’s why Emirate Airlines introduce high quality first class private lounges
to attract business travelers. This premium class private suite would be fully
outfitted with personal storage, coat cabinet, desk and individual mini bar.
Long seat reclines to become fully horizontal couch and the 21” wide
screen entertainment over 500 channels. Exceptional level of personal
services including a la-carte gourmet cousins and wide-ranging wines
provided by specially trained multi-lingual cabin crews are the other value
addition for this product.
4. B.4 - Diversification: (Low-cost carrier)
After the success stories of European low cost carriers, Middle East
operators also started eyeing to explore new marketing concepts of "Frills-
free" fly. The global low cost carrier sector is growing at more than three
times the average industry global rate, with just under 50 million seats on
342,000 LCC services offered worldwide in January 2007, up 17% and 15%
year-on-year, respectively.
Low cost carriers are airlines that offer lower fares than traditional network
airlines by eliminating certain complementary passenger amenities
generally offered by traditional airlines. The key opportunity for low cost
carrier lies in passenger fare elasticity, low air transport penetration rates
and substation of traditional modes of low-cost transport such as trains and
buses.
Air Arabia dominates exclusively to this low cost carrier service in UAE,
Emirates Airlines must decide how to respond this threat posed to the large
expatriate market in UAE. Among the options considered there is scope to
introduce low-cost subsidiary of Emirates Airlines.
Emirates Airlines be supposed to diversify slightly from current marketing
objectives to acquire low cost air travel market share and to retain its
customer base of UAE expatriate market. This can be done launching new
subsidiary to cater budget airline market. Key routes should be according
to the high demand and large number of expatriate's home country like
Egypt, India and Pakistan.
Under the arm of Emirate Airlines, new budget airline subsidiary has to
introduce to new Al-Makthoum Inter-national Airport being constructed in
Jebel Ali, located on Dubai border. This will provide residents of Dubai and
Northern emirates enhanced travel option to neighboring destinations.
Emirates Airlines is placing lease order of for 200 aircraft and to be
operational by 2009. The carrier is expected to use Airbus A320 or a Boeing
737 on lease basis for the first few years prior to acquiring ownership
status.
Similar practices already succeeded the case of Kuwait airways and they
implements the strategy of modifying marketing mix by beginning a low-
cost carrier called "Al-Jazeera" in order to enhance its passenger base and
loyalty and boost in sales.
5 – EVALUATION
It’s a new product of Emirates Airlines and can be measured the success of
the product launch. Quantitative measurement of this product would be
number of booking or occupancy. If it fails to respond, corrective plan is to
reduce the price of ticket but again this is not price sensitive product and
cannot be achieved by price reduction.
Budget Airlines
Success criteria would be capturing new customer base for the airline .Since
its separate operating entity we can gauge financial results of operating
profit would be good measure to evaluate the success of budget airline
subsidiary.
Implementation Tasks
Technical Study
Feasibility Study
Time Scale
Cost Factors
Implementation Tasks
Feasibility Study
Time Scale
Four new routes are added every quarter starting from January 2009
Cost Factors
Implementation Tasks
Technical Study
Feasibility Study
Responsible
Time Scale
New service launch would be 1st January 2009
Cost Factors
Strategy # 4 (Diversification)
Implementation Tasks
Market Study
Feasibility Study
Responsible
President
Time Scale
Mid of 2009
Cost Factors
Traveling around the world will always remain as a special interest in the
hearts of the people. Hence they are and will be in search for the best for
themselves. This will increase the need for better safety as well. Hence it
becomes the responsibility for the airline company to deliver their best in
terms of services & security to their customers.
Emirates airlines have always been on top of the airlines list in the UAE. We
know UAE is a country with different ethnic groups, and Emirates is the
only airline in the country which suits these various cultures. But today as
the number of the airline company is increasing there is immense pressure
on Emirates airlines to keep up their fame and glory.
A strong strategy has been studied and adopted to put words into action.
Therefore Emirates with its unique qualities, untiring services and
promising strategy will be able to improve in delivering the best efforts in a
country like UAE having a mixture of different cultures hence keep their
motto fly high!
8 – ANNEXURE