The Strategies applied by Emirates airlines
This report talks about Emirates Airlines. The first part of the report concentrates on the sales and profit trends, the market share and provides in depth knowledge about company’s market environment and its competition . It then explains the various marketing strategies and the company’s marketing mix. Finally this report talks about the company’s current position with the help of various matrixes.
The journey of Emirates started in March 1985 when The Dubai government provided it with two aircrafts and a capital of 10 million $. It started due to cut backs in destinations from Gulf Air and has evolved as one of the best service providers worldwide. Their very first air route was from Dubai to Karachi followed by Delhi and Bombay. Within its first year of operations emirates flew 26000 passengers and carried 10000 tons of freight. Since then Emirates has seen only profits except for the second year of operations when it made a loss. The most important factor contributing to its success was the Gulf war which kept all the other aircrafts outside the gulf area. Every year its revenues increased by 360 million Dirhams reaching about 42477 million dirhams in the 2008-2009. Emirates now flies to over 100 destinations in 60 countries and operates 700 flights a week.
THE MARKETING ENVIRONMENT
Emirates is mainly involved in the aviation industry, however it also has many other subsidiary businesses. The emirates group owns two main corporations, namely Emirates and Dnata. Dnata is one of the leading travel organizations in the Middle East and is responsible for handling cargo ramp and technical services at the Dubai international airport.
Emirates and Dnata incorporate the following divisions in terms of destinations and leisure management. Emirates has Emirates holidays , Arabian adventures , Congress Solutions International , Emirates Tours , Wolgan Valley Resort and spa , Timeless spa and Dubai desert conservation reserve. It has also diversified into Emirates Sky Cargo which is currently the most profitable, Skywards, Emirates official stores and Em quest, Emirates Aviation College and Emirates Engineering. Dnata on the other hand handles Dnata Ground Handling,Marhaba, Dnata Cargo(the most profitable), Dnata Travel Services, Mercator, Transguard and Dnata World.
Emirates is successful mainly because it operates through protectionism. Since its establishment it has been protected by the government’s regulations and policies. The Dubai government being the sole owner of the industry makes it feasible for the company to adhere to the policies given by each government thus ensuring the successful and effective running of the company’s business. Furthermore the company also has formulated its own strategies against any government restriction and limitations.
Emirates being one of the world’s largest and competitive company, is economically stable. Regardless of all the dangers that the company encounters in different parts of the world, the management of Emirates sees to it that they are able to overcome all hurdle thus achieving a better economic condition.
Emirates is affected by the situation prevailing in the society in which they operate. The increase in the number of expatriates in Dubai leads to an increase in the profit margin as they use the airline to travel back home. Emirates also tries to ensure that the society is given equal chances of taking advantage of the services provided by them
IT developments have affected Emirates in a major way. The company uses different IT/IS system and makes use of the internet to communicate with their customers and staff. Besides this, Emirates also uses facilities like self and online check in for passengers to improve their services and operations.
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