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Emirates Airlines introduction
Economic factors airline industry essay
Emirates airlines case study
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Recommended: Emirates Airlines introduction
Executive Summary Emirates Airline, one of the globes leading airliners situated in Dubai, a city within the Middle East region has shown throughout its years of operations how the company has grown and become successful in the aviation industry. Much of this success is to its competitive strategy which has been pivotal to the company’s ability to compete against top airliners such as Air France and Lufthansa. Cost and Differentiation has been the main driving force for their competitive strategy which has enabled them to become efficient, capture market share and possess a large customer loyalty base due to their low costs in production and unique award winning services. To get an in-depth look on how Emirates have been successful and how their strategic presence in the market have made them one of the strongest airlines, a SWOT analysis has been carried out to find out the company’s internal capabilities when it comes to their strength, weakness, opportunities and threats. This analysis gives a clear insight to how the company have been faring and what could affect them in the future. It is also important to know the competitiveness of the market emirates are in and how strong are their strategic position in it. Porters 5 forces has helped show the significance of the threat posed from substitutes and new entrants, how bargaining power of buyers and suppliers affect the airline and how intense is the competition within the industry. PESTLE analysis is provided in order to conclude an external analysis when directing a strategic analysis and provides an overview of different macro environmental factors that Emirates takes into consideration. It is a powerful tool to understand the business position and their direction for oper... ... middle of paper ... ...well as trendy stores and malls such as Emax, Lamcy etc. that attract more people.'[AirMiles, 2014] Lastly, Emirates is currently the most valued brand in air travel, nevertheless it is mostly a step behind its competitors. In terms of brand positioning it is placed as a challenger instead of a market leader. With respect to flying to different destinations, providing comfort and entertainment in flights as well as ordering fleets of new aircrafts, Emirates has always followed its competitors be it Turkish Airlines, Qantas or Singapore Airlines. Overall, Emirates has many advantages with regard to geographical location, funds from the government and natural, human and capital resources at its disposal. They also have a strong marketing campaign and use aggressive advertising which should be aimed at becoming the best and the market leader in the airline industry.
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
This is the historic background of an American Airline company called the Southwest Airlines Co. based in Dallas which still exists and operates with great success between 57 cities in 26 states of the US, by over 300 airplanes , providing primarily short-haul, high frequency, point to point, low fare service . Through this essay we will see an analysis of the company’s advantages and disadvantages through a SWOT Analysis. We will try to localize the problems of the company at the time and in the case of a future expansion, and we will try to give a number of alternative solutions and chose one of them. The Southwest Airlines is a company that has done its first movements in the airline world in 1971 after many efforts for its opening through legal battles with competitors that did not believe that there was any particular reason why the another airline company should exist among all the others already existing. The different things that the new airline company provided were many and very interesting. The idea started from two friends Rolling King, and investment advisor, and Herb Kelleher, his lawyer, who met in order to discuss the idea of Rolling King for a low-fare, no- frills airline to fly between three major cities in Texas. The outcome of this discussion was in reality the decision of the two men to go for something that they believed would work, even though they were not positive about that. After all the legal battles between the two men and the airline companies of Texas at the time who believed it was not necessary for another airline company to enter the market, battles that prevented the operation of the company for three whole years, Southwest Airlines Co. had become a reality. Other legal battles followed in the future that justified the Southwest Airlines but left the company broke, while during the first year of its operations made losses and the earnings for the next half a year were balancing with costs. Gladly the recovery came soon and by 1978 Southwest Airlines was one of the most profitable in the country. Later on, Southwest Airlines Co. managed to provide airline transportation in eight more cities in Texas and dominated the Texas market, with low prices and frequent departures. Today the Southwest Airlines Co. is a very big domestic airline company, the fourth in the US. We will now have a small analysis of the company’s environme...
Southwest Airlines: A Case Analysis. ORGANIZATIONAL ANALYSIS It is evident that the greatest strength Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.
Those make the customers easy and comfortable to buy and do any transaction with them. Just only need to search toward their website. According from Smith, P (2015), he said Qantas Airways Limited was improve their technology to maximize its ticket prices by calculating the most it can charge toward their customer for a plane ticket and also improve in technology power at the airline for them to cloud computing infrastructure by accelerated it. When Qantas Airways Limited always improves their technology, it can be easy to lead the industry because that can be imaged for them by having a rare technology that not easy to imitate by other competitors. Usually, most competitors try making better in any position and try to become leader in the airline industry such as the technology used by
Before we discuss government intervention and its affect on an industry’s competition we must first seek to understand the five forces framework. The theory, discussed in 1979 by Micheal Porter seeks to evaluate the attractiveness of an industry. Throughout this essay I will explore the theory and then relate government action and its well-documented affects on the airline industry.
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
Virgin Airlines is part of the Virgin Group brand. Virgin airlines has multiple different branches such as Virgin Atlantic, Virgin Australia, and Virgin Soma. Virgin is known for being a luxury flight provider at an affordable price. Throughout the paper we will be discussing Virgin Airlines history, mission statement, compensation, security, and human resources.
In the American market, AA has a market share of than 13 percent. Although this figure has been on the decline, it is large enough to make any airline to recognize AA. On their party, passengers know that AA is a big brand name that has been there for a long time. Any passenger looking for an airline that has vast flying experience may need to look no further, but American. Discount carriers like Alaska, Southwest and others may have eroded AA’s market share, but the remaining fraction is still very substantial.
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
Gary C. Kelly is the chairman and executive officer of Southwest Airlines. He joined the company in 1986 as controller. In 1989, Kelly was promoted to Chief Financial Officer and VP of Finance. In 2001, he became the Executive VP. Kelly spent 3 years on this position until he was promoted to CEO and vice chairman in 2004. He received a BBA in accounting from The University of Texas at Austin and a is a Certified Public Accountant.
By using this structured analysis, firms can more easily evaluate the attractiveness of an industry and gain a complete overview of all relevant competitive factors that have to be considered in the process of establishment. It helps to better understand the present market structure and to evaluate as a consequence of that external threats and opportunities. Unfortunately, the analysis established by Porter is not a guarantee for success and above that, it is often accused for limitations, lack of considerations and inoperative outcomes. The non-observance of a collaborative economic behaviour and of governmental influence, the inflexibility of the model and furthermore lack of application to rapidly changing market conditions are major limitations that have to be considered.
Pestle analysis is the tool to analyze the external environment of the business. It takes the different factors according to which the opportunities and threats can be analyzed and the actions plan can be made.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
The Singapore Airlines needs to keep its superiority and stay on top of the competition in the international market, despite the bad times associated with a global economy or strategies implemented by main competitors.
This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99).