CASE STUDY:

THE EMIRATES GROUP, 2014

Lecturer:

Dr. Tey Lian Seng

Group Members: -Group 2
NAME

MATRIC NUMBER

Md. Hafizur Rahman

CEB100705

Azrul Bin Azmi

CEA120010

Mohamad Faiz Fahmi Bin Che Hamzah

CEA120046

Woo Hwei Yee

CEB120065

Yap Woon Yee

CEB120073
Tutorial: Wednesday 8.00 am 9.00

Introduction

Strengths, Weaknesses, Opportunities And Threats (SWOT)

Analysis

Porters Five-Forces Model

Financial Performance

Strategies and Objectives

Competitors and Theirs Strategies

Recommendations

Conclusion

Content

Introduction

Strengths, Weaknesses, Opportunities And Threats (SWOT)

Analysis

Porters Five-Forces Model

Financial Performance

Strategies and Objectives

Competitors and Theirs Strategies

Recommendations

Conclusion

Content

Dubai, United
Arab Emirates (UAE)
Based in

Started in

1959

as

DNATA

INTRODUCTION

Emirates

Consist of
(the
airlines) and Dubai National Air
Transport Association

Government
of Dubai
Owned by

-Aviation Specialist

Company

Largest airlines
middle east

(Dnata)

in

Sheikh Ahmed bin Saeed Al Maktoum

Chairman and CEO

Ali Mubarak
Al Soori

INTRODUCTION

Executive
Vice-president
Facilities and
Project
Management

Thierry
Antinori
Executive
Vicepresident
Passenger
Sales
Worldwide

Adel Ahmad
Al redha

Sir Maurice
Flanagan

Executive
Vicepresident
Engineering
and
Operations

Executive
Vice
Chairman

Abdulaziz Al
Ali

Nigel
Hopkins

Ismail Ali
Albanna

Executive
Vicepresident
Human
Resources

Executive
Vicepresident
Services
Department

Executive
Vicepresident
Dnata

Tim Clark

Gary Chapman

President
Emirates
Airlines

President Group
Services and Dnata

Strengths
Worlds largest
operator of both
the Airbus 380 and Boeing 777

largest
airline in

SWOT Analysis

The

Middle East
Has a strong
workforce of over
67,000
employees

Fully support by
Dubai
government

Well known for

providing
excellent service
for high-end
passengers in
first class

Weaknesses

SWOT Analysis

Relying heavily on
International Moving
Traffic

Does
Does not
not cater
cater to
to middle
middle class
class
and
and budget
budget travelers
travelers

High competition
because limited market
share growth

Problems with cost

effectiveness

Internal Factor Evaluation(IFE) Matrix

Key Internal Factors

Weight

Rating

Weighted
score

SWOT Analysis

Strengths

The largest airline in Middle East

0.09

0.36

Worlds largest operator of both the Airbus 380 and Boeing 777

0.06

0.24

Include Dnata company that specialize in aviation ground-handling

services

0.05

0.15

Well known for providing excellent service for high-end passengers

in first class

0.06

0.18

Well-diversified company with respect to regions served

0.08

0.32

Fully support by Dubai government

0.10

0.4

Has a strong workforce of over 67,000 employees

0.06

0.18

Fly more than 130 destinations covering 70 countries in 6

continents

0.05

0.15

Weight

Rating

Weighted
Score

Weaknesses

SWOT Analysis

Relying heavily on International Moving Traffic

0.07

0.07

10 High competition because limited market share growth

0.09

0.09

11 Does not cater to middle class and budget travellers

0.06

0.12

12 Difficulties of keeping up with innovation

0.05

0.1

13 Difficult to differentiate from close competitor

0.08

0.08

14 Problems with cost effectiveness

0.05

0.1

15 Employee dissatisfaction

0.05

0.1

TOTAL

Strong Internal Position

2.64

Opportunities
Acquisition of weak performance or small airlines companies

SWOT Analysis

The Americas market grew at the highest rate

Dubai is one of the fastest-growing countries

Entered into a partnership

Demand for low price flights growing rapidly

Increasing fuel price

SWOT Analysis

The legal and political environment

Global recession and economic crisis

External Factor Evaluation (EFE) Matrix

Key External Factors

Weight

Rating

Weighte
d score

SWOT Analysis

Opportunites

Dubai is one of the fastest-growing countries

0.09

0.27

The Americas market grew at the highest rate

0.06

0.24

East Asia and Australasia regions had the largest overall

AED growth

0.06

0.24

Entered into a partnership

0.07

0.21

Acquiring new destinations

0.05

0.1

Emerging of UAE as a key flight interchange hub

0.08

0.16

Acquisition of weak performance or small airlines

companies

0.06

0.06

Service advancement

0.08

0.24

Weight

Rating

Weighted
Score

SWOT Analysis

Threats

Demand for low price flights growing rapidly

0.09

0.09

1
0

Increasing fuel price

0.10

0.2

1
1

The legal and political environment

0.05

0.1

1
2

Global recession and economic crisis

0.05

0.1

1
3

Competitors aggressive strategies

0.06

0.18

1
4

Limited access to China destinations

0.04

0.08

1
5

New partnership of Qatar airways with Oneworld

0.06

0.12

Existing strategies does notTOTAL

respond1well

2.39

Porters Five-forces Model

Potential Development
of
Substitute Products

Bargaining Power of
Suppliers

Rivalry Among Competing

Firms

Potential Entry of New

Competition

Bargaining Power of
Consumers

AMONG
COMPETITORS

BETWEEN YEARS

Financial Performance

Financial Performance

Liquidity Analysis
Activity Analysis
Debt Analysis
Profitability Analysis
Market Value Analysis

Financial Performance Between Years

Ratio
1

Financial Performance

2011

2012

2013

Remark

Current Ratio

1.027

0.978

1.100

medium

Quick Ratio

0.967

0.920

1.050

Good

Fixed Assets Turnover

1.225

1.185

1.189

medium

Total Assets Turnover

0.813

0.798

0.751

bad

Debt to Assets

0.680

0.722

0.757

bad

Debt to Equity

2.127

2.591

3.116

bad

Return on Equity

0.263

0.075

0.105

medium

Return on Sales

0.103

0.026

0.034

medium

Liquidity Analysis

Activity Analysis

Debt Analysis

Profitability Analysis

Ratio
1

Financial Performance

Emirates

Singapore
Airlines

British
Airways

Delta

fly
Dubai

Middle east
airlines

Remark

Current Ratio

1.100

1.352

0.630

0.682

n/a

n/a

medium

Quick Ratio

1.050

1.302

0.606

0.632

n/a

n/a

medium

Fixed Assets Turnover

1.189

1.134

1.270

0.887

n/a

n/a

medium

Total Assets Turnover

0.751

0.673

0.958

0.723

n/a

n/a

medium

Debt to Assets

0.757

0.045

0.794

0.777

n/a

n/a

medium

Debt to Equity

3.116

0.075

4.198

3.488

n/a

n/a

medium

Return on Equity

0.105

0.033

1.068

0.207

n/a

n/a

medium

Return on Sales

0.034

0.029

0.025

0.279

n/a

n/a

medium

Liquidity Analysis

Activity Analysis

Debt Analysis

Profitability Analysis

Market Value Analysis

VIDEO PROMO

Strategies and Objectives

Strategies

Premium
pricing

Product
development

Offer higher price compare to other airline

competitors
Pay more for luxurious, excellent, and higher
service quality

Google Now cards

Enables customers to see and monitor their upcoming
flight, providing flight times and departure terminal.
Check weather conditions, currency, local landmarks,
accommodations, and attractions.

Strategies and Objectives

Partnership

Market
development

Partnership with Quantas

Helps to attract more Australian customers.
Allow Quantas Airbus 380 customers to depart from
Concourse A at Dubai Airport.
Work together to better coordinate price, sales, and
schedu;es.

fly to over 130 destinations in more than 70 countries

around the world, and their network is expanding constantly.
Over 1,200 Emirates flights depart Dubai each week on their
way to destinations on six continents.
Emirates expand its market by added new flights every
month to various places around the world.

Objectives

Strategies and Objectives

To become
one of the top
lifestyle
brands in the
world.

To retain and
improve
frequent
business
class
travelers
market share.

to provide a
safe, secure,
and luxurious
flying
experience to
and from the
United Arab
Emirates

Promote
Dubai
Tourism
International
Gate to
across
continent

Singapore Airlines Group

Competitors and Theirs Strategies

Differentiation

Singapore Girl - dressed in

the distinctive "Sarong Kebaya"
as a uniform since 1972 and
remains a prominent element
of its marketing.

Through service excellence and

innovation

Offer stand-alone bed, not a

converted seat.

experience the pleasure of

sleeping on a distinctively
designed of standalone bed.

Flydubai

Low-cost strategy
Competitors and Theirs Strategies

flydubai is a discount airline provider.

flydubai was recognised as being the worlds most

innovative and influential low cost carrier by aviation
analysts Centre for Asia Pacific Aviation (CAPA).

Middle East Airlines

Merger
In 1963, MEA merged with Air Liban .
After merger with Air Liban, MEA added new European,
Middle Eastern and West African destinations to its
worldwide network.
In 2012, MEA joined Skyteam to expand global reach
and offer more destinations.

British Airways
Competitors and Theirs Strategies

Strategic Alliance

An arrangement between two companies that have

decided to share resources to undertake a specific,
mutually beneficial project.
Alliances with several airlines such as Comair of South
Africa and Sun Air of Scandinavia.

Diversification
British Airways offers different classes of seats.
It include economy class, premium-economy class,
business class and first class.

Competitors and Theirs Strategies

Delta

Diversification
Offers different classes of seats: business elite, first class, economy comfort, and
economy class.

Market development
The airlines diversified network coverage with hubs located in major airports of
Amsterdam, Atlanta, Cincinnati, Detroit, Minneapolis, New York, LaGuardia, Paris,
Salt Lake City, Seattle, and Tokyo.

Joint venture
In 2011, Delta received approval from the U.S. Department of Transportation to
establish a new joint venture with Virgin Australia.

Partnership
To deliver better services for the communities
they operate by working together.

Recommendations

Product Development

STRATEGIES AND
OBJECTIVES

Market Penetration
To increase market share.

To increase sales by improving

their products or services.

Strategic Alliances
To increase the number of passengers
by cooperate with competitors.

How could the

recommend?

firm

best

implement

what

More alliance with other aviation companies

Aggressive promotional activities

Recommendations

Offer Membership cards

Cooperation among competitors to make win situation

Acquisition
Cut excessive cost

you

Recommendations

What implementation problems do you envision?

More alliance or Cooperation among competitors may be
under threat to reveal business secretes.

Recommendations

Aggressive promotional activities

depends on business financial
conditions.

Need to cut excessive cost very carefully

especially for, exclusive service providing
companies.
Occupied companies are may not be successful.

Increase of aviation security costs and insurance which increase

the operational costs of airlines.

Recommendations

New entrants and the raise of low cost airlines.

The e-ticking system can be abuse by the hackers or it might be

crashed by viruses, this will damage the company database and
will cost a lot of money.

Recommendations

Threat of a Substitute
Products

In the Europe they are using trains

to travel from country to another
for example, its easy to travel by
train from the UK to France by
Eurostar train in just 1 hour 40
minutes (London to France)

The airline industry might face losses of

around $ 3 billion if the oil prices did not
reduce. (IATA)

How could the firm avoid or

solve those problems?
Avoid risky routes and destinations

Recommendations

By implementing Strong e-ticketing system and websites

Maintain the present service standard

Should contract with few alliance by maintain highly
business secrete
Increase inflight security service

Recommendations
G

Emirates, your ultimate flying partner

CONCLUSION

Conclusion

Emirates is known around the globe as a world-class airline with world-class products
and services. The airline ranks among the top ten carriers worldwide in terms of
passenger kilometers, and has become the largest airline in the Middle East in terms of
revenue, fleet size, and passengers carried as of 2014, the airline is the fourth-largest
airline in the world in terms of international passengers carried and third largest in terms
of scheduled passenger kilometers flown. The airline is also the third-largest in terms of
scheduled freight tone- kilometers flown.

Emirates has built up a strong brand name as a leader in the aviation industry,
particularly in terms of service excellence, and its very rapid growth, coupled with
consistent profitability. Emirates has won numerous awards too.

It is such a airline which everyone's dream to fly with.

So keep flying with Emirates.

David, F.R. & David, F.R.(2015), Strategic Management Concepts and Cases, 15th Edition, New
Jersey: Prentice-Hall International
Singapore Airlines Group. (2013). Annual Report and Account Year ended 31 December 2103.
Retrieved
from:
http://
www.singaporeair.com/pdf/Investor-Relations/Annual-Report/annualreport1213.pdf
British Airways. (2013). Annual Report and Account Year ended 31 December 2103. Retrieved from:
file:///C:/Users/AZRUL%20AZMI/Downloads/BA%20Annual%20Report%202013%20(2).pdf

References

Delta Airlines. (2013). Annual Report and Account Year ended 31 December 2103. Retrieved from:
http://
ir.delta.com/files/doc_downloads/Annual%20mtg/DAL%2012.31.2013%2010K_v001_p656x9.p
df
Singaporeair.com,. (2015). Welcome to Singapore Airlines | Official Website. Retrieved from: http://
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