Emirates Strategic Analysis Essay

2240 Words Apr 4th, 2008 9 Pages
Is Emirates Airlines going to become the #1 long-haul carrier in Asia Pacific region?

Introduction
The purpose of this report is to analyze the possibility of Emirates becoming then the #1 long-haul carrier in Asia Pacific region. First the attractiveness of the industry will be looked at. Then the present and the future of the industry will be justified through the analysis of the external environment. Next company’s resources and capabilities will be examined and potential sustainable competitive advantage will be identified. Finally, appropriate conclusions will be drawn.
Analysis
Company profile
"Life must be wonderfully simple when the airline, government and airport interests are all controlled and run by the same people."
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Therefore Emirates loyalty card policy may make the difference in future when the competition will get stronger and ‘points saving’ starting from now may tie the customers to the company as it will ensure them a better deal.

The supplier power
Aircraft manufactures
Boeing and Airbus are the only manufacturers of long-haul aircrafts. These two companies are the main competitors on the aircraft production market. Thus all their efforts are aimed at increasing own market share by getting more purchase orders then the opponent. Interestingly, both producers see the future of aeronautics differently. Airbus's vision of the future is bigger planes for more traffic so that carriers will be using bigger hubs. On the contrary Boeing assumes that the future instead lies in midsized long-distance aircraft such as its fuel-efficient 787 Dreamliner. The company thinks that passengers would rather fly nonstop between destinations than rely on the hub-and-spoke model. Such striking difference in strategic views determines high competition between Boeing and Airbus, which can lead to lowering prices. Airbus is reportedly selling its new aircraft A380 with discounts of 35% to 40% (Fortune, 2005). In November Airbus announced that it would build its own version of the plane for 2010, the A350, by modifying an existing jet, which will be in direct competition with Boeing’s 787. Emirates is supplied by both manufactures to meet different needs of the target

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