Emirates Airlines SWOT Analysis 2022 ❤️

Emirates Airlines SWOT Analysis

SWOT analysis from Emirates examines the brand’s strengths, weaknesses, opportunities, and threats by its strengths and weaknesses, as well as opportunities and threats. 

With Emirates SWOT Analysis, the strengths and weaknesses are internal factors, while opportunities and threats are external elements. 

SWOT Analysis is a tried and tested management tool that allows brands such as Emirates to evaluate their performance and business in comparison to their competition. 

emirates airlines swot analysis

Emirates is among the most renowned names in the airline sector. The table below summarizes its Emirates SWOT (Strengths and weaknesses, Opportunities and Threats) as well as the top Emirates competitors and details the market it is targeting segmentation, positioning, and unique selling proposition.

Quick Stats On Asda

Name Emirates Airlines
Industry Aviation/Airline
Founded 1985
Headquarters Garhoud, Dubai, UAE
CEO Ahmed bin Saeed Al Maktoum
Profit -20279AED million
Revenue 30,230AED million
Competitors Singapore Airlines, Cathay Pacific Airways, Qatar Airways, Etihad, and Turkish Airlines.

Introduction

Emirates Airlines, founded in 1985, over the intervening years has grown to become one of the biggest commercial airlines and continues to expand. 

One of the main reasons for this huge success is believed to be due to the utilization of the hub-and-spoke system. The company utilized this strategy to maximize the benefits of its geographical area. 

But, in the current competitive market for airlines, Emirates Airlines faces several issues, due to a variety of reasons, including the number of competing companies as well as issues that arise from expansion. 

To gain a complete understanding of the current state of the business This paper will do a SWOT analysis for the hub-and-spoke model, and describe its effectiveness and factors that need to be improved.

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Strengths In The SWOT Analysis Of Emirates

  • Strong backing Strong Support Emirates is supported by the strong backing from The Dubai Government. This is an enormous advantage to the airline for its growth in business. It is the Dubai Government is the only owner of the airline. However, it doesn’t interfere in its operations, nor will it ever contribute any money to it.
  • A strong hub located in Dubai Dubai Emirates has an excellent hub in Dubai which allows an access point to Emirates airlines throughout Asia as well as Europe. This is an enormous advantage since its network connectivity is huge.
  • Excellent Customer Support Good Customer Service Emirates offers excellent customer service, and because of it, they receives received a huge response from customers. The customers are, in reality, satisfied with the service, and they are their favorite airline customers.
  • Large Workforce The company Emirates has a large staff of about 50,000. This will allow the airline to run more smoothly.
  • Excellent Reach Good Reach Emirates airlines have a fantastic reach that spans around 70 countries across six continents.
  • Great advertising Excellent Advertising Emirates is a great advertising company as well as a brand for its airline. It’s done via advertisements in print, online as well as TV.
  • Outstanding Service Excellent Service Emirates airlines has a shining reputation for its customer service, in-flight entertainment, lounges with exclusive amenities, and more.
  • Dimension – Emirates airline has the great advantage of having a huge size aircraft. This is a major advantage since it can hold the maximum number of passengers.
  • The main focus is on the broad market – Emirates’ decision to concentrate on the diversified market is a major strength of the airline. This could increase their exposure in a larger way and in the end, it can generate more revenues.
  • Strong Brand Equity Strong Brand Equity Emirates has impressive brand equity which allows them to stand out in the market.
  • Branding – In 1990 Emirates began its initial commercials. The commercials featured the slogan “Be kind to yourself and the Fly Emirates.
  • Sponsorship of HTML0 Emirates has sponsored a variety of events that have helped strengthen the brand. The year 2011 was the year that Emirates sponsored events like the Emirates Air Line Cable Car across the River Thames situated in East London. It also sponsored numerous sports like football, cricket, and rugby, among other sports.

Weaknesses In The SWOT Analysis Of Emirates

  • Reliance on International Traffic – Emirates airlines rely heavily on international Onward Moving Traffic.
  • Intense competition The result is that there appears to be a lot of competition, and very limited shares of the market increase for this airline. It appears to be the high cost of keeping the benchmark standard.
  • US Market – Emirates is proving difficult to get into its place in the US market. This is a problem as the US market can generate more money for the company.
  • caters to high-end travelers HTML0 caters to high-end travelers Emirates Airlines doesn’t seem to be catering to budget and middle-class travelers. This is in fact yet another flaw because the customers it is aiming to clients become less.
  • Accidents and incidents There were instances where Emirates flights have encountered incidents. In the year 2004, One of the Emirates flights flying in the direction of Johannesburg to Dubai suffered serious damage during takeoff and was unable to take off before the runway had ended. There were other incidents of accidents.

Opportunities In The SWOT Analysis Of Emirates

  • An increase in the number of fleets will increase. Emirates can launch new fleets, and it can help improve the customer’s confidence. This also allows Emirates to offer better services to customers.
  • With an increase in the amount of International Destinations – Emirates could expand its international reach. This can provide Emirates to expand their chances and help them become more well-known among customers.
  • Joint Ventures – The presence of joint ventures as well as partnerships with numerous international companies can provide an opportunity for airlines. This can help them boost their revenues.

Threats In The SWOT Analysis Of Emirates

  • Growing competition The airline industry is growing within the Middle East market and Emirates has to contend with fierce competition in this business. This poses a significant risk to Emirates because Emirates as a whole caters to the elite traveler, giving an opportunity to reduce their visibility.
  • Cost of fuel increases If there is an increase in the cost of fuel is a negative impact on the margins of airlines. Thus, the fluctuation in fuel prices is also a risk for Emirates.
  • Policy and Regulations Modifications to laws and policies of the government can affect the airline industry as well.

Limitations Of SWOT Analysis For Emirates Airlines

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely as a tool for strategic planning However, the analysis has some limitations.

  • Certain aspects or capabilities of an organization can be both strengths and weak points at the same. This is among the most important limitations that SWOT analysis has. For instance, changing environmental regulations can be an opportunity and a threat to the company. However, as well as an opportunity in the sense that it allows the company to compete on the same level or even gain an advantage over competitors when it can develop its products quicker than competitors.
  • SWOT is not a method of determining how to gain competitive advantages It is not a strategy to gain competitive advantage, therefore it should not be a complete solution.
  • The matrix serves as an idea to begin an analysis of how the proposed strategies can be implemented. It offered an evaluation window, but it did not provide a plan of implementation that is based on the strategic competitiveness of Emirates Airlines
  • It is a static analysis and analysis of the current conditions with only a few potential modifications. When circumstances, capabilities as well as threats, and strategies alter, the dynamic of the competitive landscape will not be apparent in one matrix.
  • SWOT analysis could make a firm overemphasize the importance of a single external or internal element in formulating strategies. There are interrelations among the most important external and internal elements that SWOT doesn’t reveal, which could be crucial in determining strategies.

Weighted SWOT Analysis Of Emirates Airlines

Due to the previously stated shortcomings of the SWOT analysis/ matrix, the corporate management determined to give an appropriate amount of weightage to every internal strength and weakness of the company. 

Companies also evaluate the probability of happenings in the near future and what the effect can be on the performance of the company.

This technique is known as a weighted SWOT analysis. It’s superior to basic SWOT analysis as using a weighted SWOT analysis Emirates Airlines managers can focus on the most important elements and ignore the less crucial ones. 

It also eliminates the problem of the long list, which is when organizations make lengthy lists but do not address any of the elements that are considered to be crucial.

Recommendations

Despite the successes that have been achieved by Emirates Airline, some strategic steps that the management may implement to improve the business of the business; the market is competitive, accordingly, it is essential that the company adopt strategies to increase the strength of its business within the United Arabs Emirates and the global market. 

Many scholars believe the idea that Emirates Airlines hangs in the equilibrium of low-cost airlines and traditional airline companies It is the perfect time for the company to establish the business plan that it will follow to aid in diversifying its business.

The most powerful weapon a company can use is the ongoing improvement of its customer service. They must provide high-quality services that will provide a pleasant experience for consumers. 

If the customer receives a high-quality service The company will profit from loyalty, the satisfaction of customers as well as employee satisfaction, and growth in profits. 

To enhance its services the business must embark on studies of consumers, training, and the use of information technology in order to analyze the behavior of consumers and trends.

References

Dubai Government. ,2006. Dubai Strategic Plan 2015. Highlights, Dubai. Web.

Emirates Airline Company Corporate Website., 2011.Emirates. Web.

Hitt, M., Hoskisson, R., and Ireland, K.,2003. Strategic Management: Competitiveness and Globalization. South Western: Thomson Learning.

Horth, D., and Alwyn, T.,2005. The next low-cost threat. What does Emirates mean for Europe?, UBS Investment Research QSeries. Web.

Knorr, A., 2010. How Sustainable is Emirates’ Business Model? Web.

Ogilvy, D., 2005. The Hub of the World. Business Heros. 1(1), pp. 36-40.

Raab, G., 2008. Customer relationship management: a global perspective. London: Gower Publishing, Ltd.

FAQ of Emirates Airlines

What are the weaknesses of Emirates Airlines?

Weaknesses. dependence upon International Traffic – The Emirates airline relies heavily on international Onward Moving Traffic. It appears to be a lot of competition and only a small increase in market share in the case of Emirates Airlines. There is an expense to keep the benchmark standard.

What are the strengths of Emirates Airlines?

It is home to more than 269 aircraft and has flights to six continents, with a constant goal of expanding further (Informa Markets 2021). The huge range of operations is definitely an advantage that the carrier has.

What can Emirates improve on?

Emirates Airlines has been using diverse strategies like upgraded entertainment systems in the aircraft, increased comfortable travel for passengers, and the provision of food to make customers more interested in the services it provides.

What makes Emirates different from other airlines?

Emirates Airlines has been using diverse strategies like upgraded entertainment systems in the aircraft, increased comfortable travel for passengers, and the provision of food to make customers more interested in the services it provides.

Why is Emirates Airlines so successful?

Emirates is determined to build the trust of its passengers as well as attract new customers through continuously investing in new services, products and technologies. The airline last year invested $22 million in the installation and manage in-flight connectivity solutions throughout its fleet. It is now 70% Wi-Fi connected.

Why do people love Emirates Airlines?

You can basically explore the world through Emirates. 2. Space – Emirates is one of the companies that provide greater comfort for passengers in economy class. The legroom on all flights is 86 centimeters, which is 12 centimeters greater than other airlines.

Conclusion 

As the SWOT analysis of Emirates Airlines‘ hub-and-spoke model was completed, it’s appropriate to summarise the findings of the study and draw an answer. 

It was clearly demonstrated that the primary advantages of the business are its geographical location as its hub and the huge network of spokes around the globe. 

The flaws to Emirates Airlines’ model are its high operating expenses and protectionist policy and anti-competition. 

The company does have the potential for even greater growth by entering the fifth freedom market. The dangers that lie to Emirates Airlines are determined by its weak points. 

In conclusion, it can be noted it is Emirates Airlines has a relatively solid position in the market, however, it needs to take advantage of available opportunities to improve.

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