Emirates Airlines- Connecting the Unconnected Harvard Case Solution & Analysis

Emirates Airlines- Connecting the Unconnected Case Study Solution

Introduction:

This case study is mainly dealing with a premium class airline Emirates which is famous for providing better quality service to its customers. Dubai’s Government solely own the shares of Emirates which provides an opportunity for the company to grow at a steady rate and expands globally through its strategies. The company has been dealing in 23 routes and is operating with around 150 new planes which create the international complexity for the company due to heavy competition in the industry and different routes selection such as Africa, Middle East, America Europe and Asia.

The Emirates Airlines is the third largest airline which is leading the global airlines market. It has the highest number of international passengers with aninvestment of around $117 billion and growth capacity of around 18.4% expected. The Industry is such that it contains a heavy competition faced by the Airline companies and the customers demand better facilities at relatively lower prices with minimum time spent.

So, the customers demand a convenient way to resolve their issues by booking the tickets online and getting best possible services during their journey. They need entertainment facilities which are aunique feature provided by the Emirates Airlines. This is the unique selling point of the company to make its customers loyal and the proper training of its crew has made its workforce diverse and skilled to service its customers with the best possible service.

The companytries to position its product in the mind of customers by focusing on its brand name. The company has made two segmentations on the basis of class such as budget class and luxury class. The company charges a price which has ahuge difference between both the classes. So, the premium price charged for its luxury class creates more revenues than its budget class due to the high price than its competitors and the customers switch to the cheaper airlines for short distance travels in economy class with low facilities for cost reduction.

Problem Statement:

How can Emirates overcome its 45% expenditure and the fluctuations in jet fuel prices along with maintaining its liquidity or cash flow position for expansion in purchasing new aircraft? How can the company retain its market share and attract the customers who switch to the other airlines for cheaper prices?

Analysis

PESTEL:

Political:

PESTEL Analysis starts with analyzing the political conditions of the country where the company is operating. The Emirates Airlines has the major hub in Dubai and it is owned by them which provides them an incentive and support from the government and it is easier for them to follow the regulations of the government. The bilateral agreements have been signed by Emirates to facilitate the trade between countries such as Asian Pacific agreements and with other European countries.The company has threats of terrorism, wars, and deregulation which can affect the company adversely.

Economical:

Economic analysis is done to evaluate the economic trends and conditions of the country as well as the industry. Tourism is overemphasized in Dubai which helps the company to attract more customers and enhance its business. There is no any threat of currency fluctuations between Dirham and US dollars as they have fixed the exchange rates for the currencies. Moreover, the consistent fluctuation in the prices of fuel has deteriorated the company’s profits. However, the company’s major expenses are related to the Jet fuel at around 40%.

Social:

It is necessary for the company to perform the social analysis which indicates the increasing world population has led to enhance the educated people and tourists. It has been analyzed that the company is able to maintain a well-diversified environment by operating in different countries and regions. This helps thecompany in dealing with diversified cultural backgrounds, languages, social norms and traditions by providing the airline services to Asian and European countries etc. This helps the company in adopting and adjusting with the culture and lifestyle of other regions and countries.

Technological:

The change in technological trends needs to be considered by the company. Innovation in technology has reduced air travel for the business people as they try to communicate via teleconferencing. This leads to the reduced sales for the company, which can be compensated by the company through the improved and better aircraft facilities. Moreover, the technological advancement has made it convenient for the customers to book the tickets online and making payment through their credit or debit cards. This leads to the more enhanced in-flight services and communication mediums for entertainment.

Emirates Airlines- Connecting the Unconnected Harvard Case Solution & Analysis

 

 

Environmental:

The nature of the business is such that it should be made environmental friendly as fuel has the drawbacks. The company needs to focus on those aircraft which consume fewer fuel emissions. An environmental friendly aircraft of the company is Airbus 380. Moreover, the threats for the Airline industry are natural disasters.

Legal:

The legal environment of the company is on a brighter side as there are the bilateral agreements formed between the countries and successful implementation of the Air transport is carried on to fulfill those agreements. The major authority in carrying this kind of agreements is Department of international government affairs.  This department helps in providing the single point of contact between national and international aviation through maintaining Dubai’s Aero-political rights.Moreover, thelegal system of the Dubai is custom free and there is no any tax on personal wages which is beneficial for the company to succeed in its business.......................

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