Question 1Vision, Direction, Support; LEADERSHIP: The Emirates Airlines success has been the continuity of its management team, many of whom have been with the airline since its start of the company. There is a consistency in leadership goals.

Small Wings- Big Dream: From the very beginning management designed a strategy (ideological/deliberate Strategy) of differentiation unlike its competitors (regional, local). Emirates’ focus was to build a premium brand rather than just running an airline.

Customer Service at Core: In an industry characterized by decreased service amenities and increased discomfort to improve bottom lines, part of Emirates’ appeal to many passengers was its emphasis on a premium service experience. Differentiating itself through service not only enabled Emirates to build passenger loyalty and reap subsequent value, it also allowed the airline to avoid direct competition with low-cost competitors based on price.

As Emirates was successful in creating a premium brand that resonates with its target customers, thus creating competitive advantage and willingness to pay.

Location and Government: Dubai benefited from relatively good weather; aside from occasional fog and the general heat, airport operations remained relatively free of the rain and snow, thus ensuring smooth operations. Relative distance from other hubs also made Dubai favourable as flights could be connected anytime.

3-type Fleet:Youngest fleet, equipped with latest airplanes Enhancing customer experience and low fuel cost) Optimized its pilot deployment. Effectively served its long-haul routes.

Other Factors: Gripped the shift from transatlantic bases to multipolar model. First-mover advantage in markets with fixed demand for international travel (locking up the market). Tapped BRICS countries.

Question 3:

Currently emirates is following “differentiation strategy”. It has pioneered in providing all

high-end services and amenities. No doubt differentiation strategy and tapping in to new

markets or emerging markets have paid-off Emirates’ where other players in industry are

facing losses. However, if differentiation strategy in terms of services (that had never been

provided before) is measured on the criteria of VRIO, it shows that competitive advantage

created by Emirates’ is not sustainable specifically in long-run. Services like walk-up bar,

shower-spas and other amenities are certainly valuable to Emirates’ and they are also

organized/aligned with organizational philosophy and strategy, however these services are

easily imitable (as mentioned in case, competitors have already copied them) and therefore

are not rare, thus leading to competitive convergence. In addition,

Barriers to entry

Bargaining power of suppliers:

Bargaining of customers

Threat of substitute

Threat of new entrants

Tim Clark has done very well and gave his best to the company. But as he is close to

retirement he, well company cannot find any successor to him, which shows that strategy of

the organization has not been communicated and new person might come up with another

strategy and do not support the current strategy or may be the new person faces

understanding issues.

Considering government support as an edge to Emirates, it is valuable and non-i

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Small wings, Big dream – Capitalization of the Initial Fund: In contrast to other major Airline

operators such as Air France and British Airways, who have often received huge bailout

packages or debt reliefs from the government; The Dubai government had given the airline a

total of just $18 million, including the start-up money.

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The leadership in the organisation were able to capitalize on this initial funding by the Dubai

Royal Family and flew out of Dubai with just two aircrafts, leased Boeing 737 and an Airbus

300 B4 from the Pakistan International Airlines. The first flights connected to the

neighbouring cities of Karachi, Pakistan and Mumbai, India, and they soon started an

operations to the capital of India, New Delhi.

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The Positioning1: The location is a strategic one – A well-oiled hub centred in a major

catchment area. Emirates enjoy the low price of fuel and also the low cost labour in this

region, which is more than just convenient for an Airline operator. Emirates moves

passengers west-east, east-west, north-south and vice-versa and many of them only touch

Dubai in transit.

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