2.

3Internal Analysis

This section will explore Emirates’ key resources in an effort to identify its SWOT andoutlines how the
business’s value chain is structured; what strategies it has pursued andhow competitive it is, compared
to competitors.

2.3.1Tangible resources

In light of latest technology and excellent service strategies, Emirates is in the forefrontof the industry,
owning the most modern fleet of 113 aircrafts, global markets of 100destinations in 62 countries, over
12,800 highly-skilled staff of more than 100nationalities and significant market share (see Appendix 4). It
is undeniable that theseresources are vital to Emirates’ success. Emirates has highly-developed
infrastructuresuch as home-base airport, exclusive terminal, supporting services. Further, thecompany’s
finance is highly stable. All of these contribute to competitive advantagesover competitors.

2.3.2Intangible values:Management’s competence

Staff’s skills and know-how together with strong dedication are crucial to success (Stanik et al, 2007).
These can be proved through how they survived and made profits after the9/11 event which was a crisis
in the industry while other airlines announced bankruptcyor losses. Emirates was cautious about not
creating over-capacity and appropriate launchof new products when and where demand and
profitability are high (Stanik et al, 2007).Emirates succeeded in expanding into NZ in 2003 when this new
destination saw 29international airlines offering services to the country. This know-how and
corecompetences can not be copied. Thus, Emirates owns a great value of its goodwill,established
throughout its life.

Current Strategies:

The Emirates Airline annual report in the year 2015; explains the major strategies of the company; which
are: 1.

Expansion through strategic alliances. 2.

Contributing by FDI in the countries in which the company is operating. 3.

Investing in purchasing large aircrafts and in expanding to new destinations. 4.

Building strong brand equity. 5.

Hiring professional multinational employees. 6.

Developing sustainable business through corporate social responsibility.

Rivalry among established companies:

Emirates competes with Air France-KLM and Lufthansa, the two largest carriers inEurope; with Cathay
Pacific in Asia Pacific region; and with United Airlines in theAmericas (Hoovers, 2008). These well-
established network carriers operate within thesame destinations such as NZ, UK, Hong Kong and
America. The competition isaggressive as the global industry is witnessing boosting growth of low-cost
airlines(Hofmann, 2007).

Bargaining power of buyers:

Competition between companies is intense. Emirates may face a threat now and in futurewhen
customers nowadays have an ability to make demands on their products, in term of lower prices, higher
service or product quality. Therefore, Emirates is unlikely to exhibithigh rates of turnover over time due
to price reducing, and investing more in productinnovation (Hill et al., 2007)