Started in 1985 by the Dubai Government, is today the 4th largest airline in the world.

Beginning with 60 destinations, Emirates has grown to 142 destinations in less than 30 years.

Emphasis on Product, Equipment and Excellent Service gave it a quality image like none of its competitors.

With more than 500 International Awards over the years, there is no stopping for this group.

But the Emirates Group is a lot more than just Emirates Airlines.

The Emirates Group has spread its wings into every aspect of travel and tourism to become a leading global corporation in its field.

Spanning a portfolio of more than 50 brands and employing over 65,000 people, the Emirates Group is one of its kind in the Travel and Tourism Business

Corporate Positioning

Emirates is looked upon as a Global Company based out of the Middle East, and not as an Arab Airline operating internationally.

This has made Emirates a serious threat for its competitors who are struggling to compete with it due to its significant cost advantages, and accuse the airline of cashing in on UAE subsidies and exemptions.

• Emirates needs to consider the competitive pricing offered by competitors like Etihad Airways for premium services and accordingly align its marketing strategies.

• Free access to Dubai Airport by other airlines using open skies policy.

• To be able to have long term advantages, the company should become a shareholder in the Airbus or Boeing companies.

Question 1How has Emirates been able to build a strong brand in the competitive airline industry?

AnswerI feel Emirates has been able to build a strong brand in the competitive airline industry because of its core competencies.The airline is launched by the Dubai Government who are endowed with unlimited oil wealth. This made funding and investment easy. Also, fuel costs, one of the major airline expenses were substantially low for Emirates due to the availability of oil in the country.Also, the company has invested largely on maintaining the youngest air fleet and the highest number of the A380 jumbo jets. These things, along with Emirates’ emphasis on Product, Equipment and Excellent Service gave it a quality image like none of its competitors.

Further, its image of being a Global Company based out of the Middle East, and not as an Arab Airline operating internationally gives it a big advantage over competitors.

Business diversification into everything encompassing travel & tourism, cost advantages and subsidies and exemptions by the UAE Government are also factors that have helped Emirates build a strong brand in this competitive industry.

Question 2What are some of the apparent weaknesses with the company’s strategic direction? How can the airline address them?

AnswerThe weaknesses in the company’s strategic direction are – 1. Over emphasis on premium customers.2. Its image of being beyond the means of the economy-passengers.3. Overlooking flaws in marketing strategy.4. Disregard to growing competition.

The airline can address these concerns by –5. Catering to the economy-passengers by introducing budget packages for these

travelers.6. Developing customer loyalty by offering more tangible benefits, to ensure customer

return and retention.7. Leverage its global positioning and geographical reach to become leaders across the

different segments.8. Understand and appreciate the threats offered by competitors and align its strategy

around keeping this growing competition at bay.

Question 3With the decline of fuel prices globally, airline companies continue to reap the benefits. What impact will this have on Emirates’ business strategy on the future?

AnswerThe impact on Emirates’ business strategy is as follows –1. The low oil price helped reduce operating costs by 8 per cent, with fuel now 25 per

cent of operating costs, compared to 35 per cent in 2014-15.2. Profits jumped 56 per cent to reach Dh7.1bn ($1.9bn,) a new annual record, as the

fast-growing carrier saw its fuel bill decline by 31 per cent on lower crude prices.3. Reduced fuel prices can lead to increased revenues for airline companies. This puts

the profit margin of Emirates at risk since its major cost advantage is reduced fuel costs, which will now be shared by other airlines too.

Summary1. Started in 1985 by the Dubai Government, Emirates Airlines is the 4th largest

airline in the world today.

2. Emphasis on Product, Equipment and Service standards gave it a quality image like none other.

3. Recipient of over 500 international awards till date, Emirates is a world leader in the airline industry.

4. Diversification into other industries in the Travel & Tourism sector have helped increase the Emirates Group’s revenues and customer offerings.

5. Its Corporate Positioning and Core Competences against competitors give it a significant cost advantage and have helped it remain profitable for the 28th consecutive year this year.

6. Although it has so many benefits, it faces challenges from growing competition and need for updating its marketing strategies.

7. Emirates if addresses these challenges, there is nothing that can stop it from retaining the market leader position.

A PRESENTATION BY ANIRUDDHA PODDAR.

CREATED DURING A MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM LUCKNOW.