Question

Q3. Critically discuss Emirates Business –Level strategies. What are the challenges Emirates might face to continue delivering its promise and stay ahead of competitors? (20marks- 300 words)

Answer 1

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Emirate Airline need to focus on the strategy which is mentioned below in order to continue delivering promise and stay ahead in competition:

Strategy - Their strategy or focus should be on Quality (value for money), use of innovativeness and technology, Internationalization as well as strategic alliances.

Structure of Organization - Should develop or create the Hierarchical organization structure.

System to develop for - Engagement with all the shareholders while making or taking decisions with shareholders, suppliers and customers.

Communication to be developed- Participatory leadership and the vertical communication.

Policy of Staff retention - highly motivated through diversity and incentives, trained staff.

Skill development - Through providing training and development, skilled workforce.

Create or developing values - Corporate Social and Ethical Responsibility.

Challenges:-

Emirates has been trying to set itself apart from other carriers by enhancing the customer experience, it is facing new challenges. Emirates faces its biggest challenge from its other U.A.E. based rival, Etihad, which announced an improvement to the first-class suite that Emirates pioneered 12 years ago.

(i) Bargaining powers of Buyers:-

The buyers have not any significant exert over the prices charged for the airfare. They have some influence on the price as choosing some other airline, which is charging low airfare price. So, the buyers of Emirates have low bargaining power.

(ii) Competitive Rivalry:-

The airline has high degree of competitive rivalry, putting pressure on the company for developing the strategy to maintain the financial supermacy. So, making the quality as a vital component of differentiation for Emirates.

(iii) Threats of new entrants:-

Airline industry has high entry barriers because it involves huge start up cost and in addition to that , it needs government approval and also complete the standards of aviation association. They also need to adhere to EPA standards which involve quality standards of aircraft. So, it could be analysed that the Emirates face low threat of new entrants.