EmiratesAirline Case Study
EmiratesAirline Case Study
NineComponents of Successful Mission Statements
EmiratesAirline has a mission statement that drives the company forward.Mission statements often may vary in content, format, specificity,and length. Strategic management academicians and practitionersmanagement considers effectively well written mission statementbasing it on nine features or better known as components of missionstatement. Since a mission statement is always the public part andthe most visible of the process of strategic management, it isimportant to incorporate all these vital components. Therefore,Emirates Airline also has the nine components which correspond withthe questions. They include:
Customers: Who are company’s customers? (2) Products and services: What are the company’s main products and services? (3) Markets: Where does the airline compete? (4) Technology: What is the company’s basic technology? (5) Concern for growth, profitability, and survival: What is the company’s commitment towards social and economic objectives? (6) Philosophy: What are the company’s basic beliefs, aspirations, core values, and philosophy? (7) Self-concept: What are the company’s main strengths and competitive positives? (8) Concern for image in public: What is the company’s image? (9) Concern for the employees: What is the company’s orientation or attitudes towards its employees?
EmiratesAirline SWOT Analysis
Strengths:First, Emirates Airline resisted the temptation to engage inacquisitions and mergers with other companies. The thoughts behindthis is that by doing so, they will limit their flexibility, and theability to make decisions faster without having to wait for the otherparty’s agreement. The company also allowed free competition sincecompetition could trigger increase in the overall standards of thecompany, for good performance s and acknowledgement. The company isalso at the forefront in not only from competition and financialsurvival but also focusing on offering its company’s what theywant for example, the quality of food and reduction in the number ofcancellations.
Weaknesses:With the company’s diversification, not all its activities havebeen successful, and this could be considered as some of thecompany’s weaknesses. First, the company is accused by the airlinesanalysts since it focused a lot on its high end diversification andacquisitions despite of the awareness of the risks involved.Secondly, the case study reveals the operation profits to be based onpayment of low wages to the overall workforce for such duties ascleaners, caterers, and baggage handlers. It poses its weakness sincemost of them are recruited from China while they are non-unionized.This could result to the migrants facing immediate deportation if atall the workers show resentment to the company’s wage structure.
Opportunities:The Emirates Airline experiences a great opportunity for growth dueto its location. On the other hand, China is possibly the fastestgrowing economy hub in the region and it is possibly in across theworld. With that, Emirates Airline growth stands with the opportunityand a great demand for air-freight movements and air travel. Thisopportunity could be exploited to its advantage if it is aggressivelymarketed thus fulfilling the demand and networking of its routes.
Threats:Most Airlines stand greater possibility of threats from otherairlines. While they may experience diminishing numbers of thepassengers on their normal routes, the numbers on the United ArabEmirates become visible and add up. This could mean that EmirateAirline passengers could be priced away by reducing the ticketprices. Secondly, the airline industry is often volatile and isalways subject to cynical trade variations. Currently, the EmiratesAirline seems to shoulder the threats in the current recessionhitting the globe, at the same time not cutting back on its ambitiousexpansion strategies that are underway.
Externaland Internal Factor Analysis
Externalfactors reveal Emirates Airline to be in the maturity stages but witha slow rate of growth. Such external factors influencing growthinclude the main one: Competition level. From these, there existthree forces that influence the airline’s growth. They include:bargaining power of both the airline and the customer, and secondly,intensity of rivalry. Other external factors are economy, politicalinfluence, technological and social effect by either decreasing orincreasing the traffic. Internal factors on the other hands are thestrengths, opportunities, threats, and opportunities. The EmiratesAirline should be in a position to overcome its weaknesses, takeadvantage of opportunities, avoid threats, and improve on thestrengths.
EmiratesAirline SWOT Strategies
Thecompany’s cornerstone is quality control. This is purposed tocreate and maintain the airline’s state of the art design to keepsits customers happy. The company also aims at constructing extensiveairline sand aviation training. It not only offer training to younginexperienced employees but also offer training interestedindividuals within the airline industry. Third, the company hascreated successfully a hotel, resort, and tourism pavilion. Thestrategy was carried out by first acquiring a number of spas andresorts by giving first priority to comfort and quality control. Theairline also ensured that it has direct routes compared to otherairlines. Finally, Emirates Airline strives to make their passengerswin awards, innovative entertainment system during flights, andwell-dressed cabin crew.
EmiratesAirline Mission and Vision Statement
MissionStatement: Dedication to offering high-quality customer service aimedat delivering a sense of warmth individual pride, friendliness, andcompany spirit. Emirates mission defines they customer service to betheir first priority. The Airlines differentiates their service tonot only by their pride and reputation but also by priority it placeson its values and happy workforce. It declares to guaranteecommitment in delivering quality product and service to theircustomers while it strongly insists on placing its customers on thedriver’s seat.
VisionStatement: Based on the case study, it is evident that the EmiratesAirline vision statement is to maintain and build leadership in themarket, which looks beyond conventionalism track. Its leadershipstrives to take calculated risks and decisions to innovative ideas.Emirates Airline’s businesses often maintain business highstandards and ethics. The Airline takes pride in fulfillment of itsobligations towards the environment and society. The reputation andbrand name is built over a long period of stable policies,consistency, and excellent results.
Strengthand Opportunity, Threat and Weakness, Opportunity and Threat
Tobegin with, Emirates Airline is situated in a location which serveshas as its strength. More so, its strength can also be turned into anopportunity. For instance, since it is advantaged with the constantincrease in passenger demand, this strength can be an opportunity byensuring that the Airline offers the best customer service in theregion. This could be by ensuring there is a well-connected pointacross Asia, Africa, and Europe. Again, the location of the Emiratesairline can also serve as a threat since it is vulnerable to attacks.The airline is in the midst of regional conflict, Ebola outbreak, anduncertainties on the economic outlook. Such threats aim at curtailingthe airline operations even though it has been profiting on thelocation of the airlines. Thirdly, the airline’s weaknesses can beturned into opportunities and threats depending on how the weaknessesare handled. To begin with, the airline weaknesses involve thecompany’s continuous acquisition and high-end diversification ofits operations. Through acquisition, the company stands a big chanceof profiting from its acquisition of other airlines since theinvestment is spread widely and the profit margins are bound toincrease. Secondly, the same weakness can turn into threats since bydiversifying and acquiring other airline operations, the airline riska possible threat since low profits that could be experience will beturned into payment of low-wages of the overall workforce due to theannual budget not included into the overall wage plan.
Fig.1 SWOT analysis matrix
Salesand Revenues Analysis
EmiratesAirline remains the successful airline in the region, and during itsgrowth, it has over a lot of challenges. Even with the competitionand economic challenges, the airline has since survived the adverseenvironment due to its management style and resource strength. Fromits sales and revenues, the airline made approximated net profit of3.3 billion Dirhams annually while its competitors continue to wallowin losses. However, its revenues and profits have failed to reach itsunprecedented height due to fluctuation in fuel prices and economicdiversification. With 3.3 billion Dirham from the 1.73 the previousyear, it is evident that the airline revenue increases by 13% and theprofits by 43%.