STRATEGIC MANAGEMENT PRESENTATION:

EMIRATES CASE STUDY

-APOORVA N PAI – 19020841002

-ARJUN KUMAR – 19020841004
-NIKHIL KANDWAL -19020841022
WHY EMIRATES?

 From its humble origins of 2 aircrafts and 10 million in

seed capital to the third largest airline by capacity and
largest by number of passengers .
 What is really impressive is that in a volatile sector
they were able to record an operating profitability for 25
consecutive years.
WHY DUBAI?
 Offered twenty four hour connectivity and at the same
time minimal air traffic, thereby reducing delays.
 Lack of any adverse flying weather conditions such as
rains and snow, which ensured minimal delays if any.
 one- third of the planet’s population lives within four
hour flight and over two-thirds live within eight-hour
flight.
THE EMIRATES MODEL: HUB AND SPOKE
 Dubai being a small population would not be able to
support the ambitious project of Emirates entirely
through internal demand.
 This proved excellent when seen in conjunction with the
location advantage as it made emirates the airlines of
choice not just for the people of Dubai but for the entire
region.
 Establishing Dubai not just as a gateway to the Arabian
peninsula but as a gateway to the world.
 There was heavy investing into making Dubai first a
major transport hub like Amsterdam’s Schiphol and
London’s Heathrow.
 Dubai was made into a tourist destination to capitalize
on the heavy flow of people into the city.
 Emirates realized very early, partly due to necessity of
finding new markets, that the south east Asia held very
high growth potential along side India and China, the
two most populous countries of the world.
 These markets were far off for European players and
were densely populated and even if the European
players wanted to enter into these markets they had no
choice but to use Dubai as an entry point.
BUILDING THE NETWORK:
 Competitive advantage in form of government support,
building new terminals and facilities to accommodate
the growing needs of the airlines.
 While the other hubs were battling crowding and
opposition to expansion, emirates was free to expand
 This proved helpful when Emirates wanted to expand
from east west corridor to north south corridor to
accommodate Africa into the network.
 The second competitive advantage - first mover advantage in
south east asia, India and China.
 Leveraged its location to gain first entry into underserved
markets
 Enabled emirates to stay in the markets particularly largely
neglected markets and profit from the growth in the market.
 Emirates capitalized on newly emerging traffic flows from
Africa very early setting up a corridor to facilitate their
movement through Dubai.
 The directing more and more of traffic into Dubai helped
Emirates gain exceptional operational efficiency.
 Used location advantage to push out traditional European
carriers out of heavy traffic routes such as London to Dubai.
SAFETY AND COST CONTROL SYSTEM:
Flex Tracks
 Flex Tracks helped to reduce over 3800 tons of fuel
and more than 12,000 tons of CO2.
 Emirates worked with IATA to pilot iFlex(African
Government): to shorten airline flight paths between
Dubai and Sao Paulo, Rio de Janerio and provide
fastest possible routes
 Emirates Sky Cargo: Freight and logistics operations
for Emirates and contributed to 15% of its revenue,
making Dubai 6th largest cargo airport.
PRODUCT:
 Emirates’ focussed on a premium service experience in an
industry which was decreasing service amenities and
increasing discomfort to improve bottom lines.
 It provided an experience to all its customers.
 It has received various awards – World’s Travel Award for
best first-class service (3 times in 10 years, Best overall
Airline (2013).
 Developed “PARADISE” a CRM tool aimed at passengers –
personalized experience.
MARKETING:
 3-fold marketing strategy
1. Tourism: Lured tourists by partnering with local
tourism organizations to promote the city of Dubai.
2. Sports Sponsorship: Increased global customer base
by sponsoring sports teams
 1999 Cricket World cup; US Open; European soccer
clubs
3. Advertisements focussing on luxury: Premium in-
flight experience.
 THE PEOPLE:
 Emirates’ workforce was constituted by 55,000 employees,
including 3,500 pilots and 17,800 flight attendants from over
148 countries and speaking over 50 languages.
 Pilots and crew members were non-unionized.
 All employees underwent a 7 week training program.
 Labour costs per employee were lower than other airlines and
no pensions were provided, but employee benefits included
tax-free incomes, free residential housing, healthcare plans
and end-of-service benefits.
 30% of each crew member’s time was devoted to their home
route, 70% on other routes.
 CHALLENGES:
1. GLOBAL LEGACY CARRIERS:
 European carriers like British Airways, Air France and
Lufthansa – dominant in their home markets.
 Susceptible to competition from low-cost carriers and
airline deregulation.
 Operated with high labor costs and low margins.
 Accused Emirates for unfair politics.
 Air France, Lufthansa and Air Canada claimed that
government policies such as subsidized fuel, no income
tax, and strategic synergies – helped in the success of
Emirates (Anti-Competitive policies)
2. RISE OF THE GULF CARRIERS:
 EMIRATES- THE LONE RANGER?
 3 major distinct alliances emerged – Star Alliance,
SkyTeam Alliance and Oneworld Alliance – together
comprising 84% of global aviation traffic.
 Qatar Airways and Turkish Airlines joined the alliance –
only Emirates refrained from it.
 Emirates believed that alliance systems was a way of
war-fare – and this was against what they believed in –
which was providing customer centric service.
 They relied on bilateral codeshares with two key
codeshare partners – Qantas (55 Australian destinations)
and JetBlue.
AGEING AIR FLEET:
 The operating cost of aircrafts increases over time (
due to lesser efficiency and higher maintenance cost )

DISAGREEMENTS WITH CANADA:

 Access to Canadian market was restricted to 3 flights

a week because of protectionism.
 THANK YOU!
AND
FLY EMIRATES