Situation Analysis report Product-Line extension to China

A BRIEF OVERVIEW Emirates airlines was founded in 1985 on a 10 million dollar lease from the government of Dubai. Starting off in 1985 with the amount of $ 10million dollars( emriatesgroup , 2010 ) , It has become one of the world s largest airlines with profit of $964 million in 2009.
It was created as part of the overall strategy to transform Dubais economy by attracting passengers from all across the world to travel to Dubai. Currently Emirates flies its fleet of 138 aircraft to over 100 destination in 60 countries around the world( Emirates,2010). Its has more planes placed on order than the number of planes it has in its fleet now.

Emirates will have 300 planes by 2020 ( afp, 2010 ) which is going to make it amongst the world s largest airlines in few years time.

SERVICES OFFERED BY EMIRATES TO ITS CUSTOMERS

High value , customer focused , international air travel services An award winning cargo division A destination management and leisure division offering rewards

to its skyward members (Emirates, 2010) In flight Entertainment System A sophisticated booking I.T. system for booking and purchases of tickets

Brand Marketing Strategy

Emirates Airlines believes in spending 4-5% of its profits on advertising and communication with it customers. Sponsoring major global events such as FIFA football world cup's of 2010 and 2014 , International cricket council elite panel umpires is part of its strategy to reach the global market (EmiratesGroup,2010) Emirates has now expanded its operations to six continents of the world. It is now in alignment with is business model to depict itself as the only airline in the world to offer non-stop service to all six continents from one hub (Dubai) . Recent expansion Emirates airlines and its focus on Dubai has made it change its business slogan to
Fly Emirates. Keep Discovering and Fly Emirates. To over Six Continents (Advertising,2010)

PROPOSED EXPANSION OF EMIRATES PRODUCT LINE TO CHINESE MARKET

ENTERY INTO HIGHLY LUCRATIVE CHINESE MARKET WITHOUT COMPROMISING ITS BRAND NAME

BENEFITS OF PROPOSED EXPANSION OF EMIRATES PRODUCT-LINE BY INTRODUCING A TRAVEL ROUTE TO CHINA

World s fastest growing economy of $ 4.3 trillion GDP in 2008 (

WorldBank,2010)

Chinese airlines carried 21.8 million passengers in June 2010 which

was 23.2 % increase more than the last year ( Bloomberg, 2010 ) ever more eager to travel by air and do trade internationally , sits between western market s and China

The Growth of Chinese economy has created a middle class which is Geographically Dubai , which is a hub of Emirates airlines operations

S.W.O.T. ANALYSIS OF CHINESE AIRLINES INDUSTRY

STRENGTHS Strong economic growth - $4.3 trillion GDP Strong middle class expected to grow to 700 million by 2020 ( GNA,2010 ) Strong performance of airlines industry in Chinese market High Export oriented market WEAKNESSES economic uncertainty Political situation Under valued Chinese Currency OPPERTUNITIES Airline Industry growth Low cost of operations as compared to west Low labor cost Export carrying opportunities for Emirates Cargo division Middle class willing to travel overseas esp. to mid east , Europe and North America THREATS Corruption Chinese culture of Guanxi (personal connections) and Mianzi (difficult to criticise) Regional Low cost airlines

References
Advertising( 2010 ) Emirates Advertising [Online][Accessed on 19th July 2010] url:http://www.emirates.com/english/about/advertising/advertising.aspx Emirates ( 2010 ) The Emirates Story [Online][Accessed on 12th July 2010] url:http://www.emirates.com/english/about/the_emirates_story.aspx EmiratesGroup (2010 ) Annual Report[Online][Acccessed on 15th July 2010] url:http://www.theemiratesgroup.com/english/facts-figures/annual report.aspx Bloomberg ( 2010 ) Citigroup's Ma July 21 Interview on Chinese Airline Stock [Online][Accessed on 12th july 2010] url: http://www.bloomberg.com/video/61637720/ GNA ( 2010 ) China's middle class to reach 700 mln by 2020: report[Online][Accessed on 11the July 2010] url:http://www.businessghana.com/portal/news/index.php?op=getNews&news_cat_id= &id=131938