Emirates Airline Marketing Plan

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Microenvironments Analysis

- Porter’s Five Forces (Vinh, 2009)

This will give a snapshot of the industry competition level (Thompson et al, 2007). (Vinh, 2009)

- Threat of new entrants:

A highly profitable market boosts increased level of competition (Hill, Jones, Galvin and Haidar, 2007). In this effort, new firms will enter to take some market shares away. The Asia Pacific region is an example of a dynamic market where inbound tourism enjoys increasing growth of 7.9% and outbound with 25% by 2010 (WTO, 2008). All airlines, operating in the region before the current financial crisis, were having high profits: Qantas’ profit after tax: $618 million in 2007 (Qantas report, 2007); Cathay Pacific of HK$7,023 million in 2007 (Cathay Pacific, 2007). Consequently, Emirates, together with other players, have thrived to exploit new regional markets for high profitability as demand is growing. (Vinh, 2009)

- Rivalry among established companies:

Emirates compete with Air France-KLM and Lufthansa, the two largest carriers in Europe; with Cathay Pacific in Asia Pacific region; and with United Airlines in the Americas (Hoovers, 2008). These well-established network carriers operate within the same destinations such as NZ, UK, Hong Kong and America. The competition is aggressive as the global industry is witnessing boosting growth of low-cost airlines (Hofmann, 2007). (Vinh, 2009)

- Bargaining power of buyers:

Competition between companies is intense. Emirates may face a threat now and in future when 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 exhibit high rates of turnover over time due to price reducing, and investing more in product innovation (Hill et al., 2007). (Vinh, 2009)

- Bargaining power of suppliers:

Boeing and Airbus are the two dominant aircraft producers for the world’s airlines. Orders by all airlines for the latest aircrafts are placed to either of them. As a large buyer, Emirates still has to face the threat of paying higher prices or even delivery delays.Moreover, Emirates depends so much on these suppliers as required products are differentiated while the suppliers have high expertise. (Vinh, 2009)

- Substitute products:

Most airlines offer products of similar features: low price, good quality and excellent service. In the region, for example, other direct substitute products to Emirates are Qantas, Cathay Pacific, and Singapore Airlines. Therefore, Emirates will experiencechallenges when most players become competitive enough to launch new productsglobally. An example is Virgin Blue, which launched V-Australia for Trans-Pacificservices in 2008 (Virgin Blue, n.d). Customers benefit from a wider choice for their products of cheaper price but higher quality. (Vinh, 2009)

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Macro environments Analysis

- Political Environment Factors:

The political environment refers to how the government policies like Current taxation policy, Future taxation policy the current and future political support, Grants, funding and initiatives, Trade bodies, Effect of wars or worsening relations with particular countries has effect on emirates operations. The political environment has little or no effect on emirates as the Government of the United Arab Emirates founded emirates Airlines. Emirates Airline plays a major role in helping Dubai government achieve its objective of promoting the city as a preferred tourist destination. (UK Essays, 2015)

Emirates Airline has been protected by the regulations and policies formulated by the Dubai government and other countries where they are operating. Since Dubai government is the sole owner of the industry the company has been able to adhere to the policies given by each government to make sure the company will be able to conduct business operations successfully and effectively. The company also formulates their own protection strategies against any governmental restrictions and limitations. (UK Essays, 2015)

Furthermore, any airline that has been created with government cash has an advantage over private sectors. Indeed oil money that is making this competitor so strong and the government of Dubai goes out of its way to make sure Emirates is successful. (Emirates annual report 2008) (UK Essays, 2015)

Emirates Airline has been very fortunate during the 2000s and beyond. The political scene in the region has been favorable because most countries in the Asian Pacific have been making agreements that facilitate better trade between countries especially in relation to the aviation sector. These agreements between themselves and other countries like the United States and the European continent have opened up Emirates to the world. (UK Essays, 2015)

- Economic Environment Factors:

Economic conditions affect how easy or how difficult it is to be successful and profitable at any time because they affect both capital availability and cost and demand. If demand is buyout and the cost of capital is low, it will be attractive for firms to invest and grow with expectations of being profitable. In opposite circumstances firms might find that profitability throughout the industry is low. The timing and relative success of particular strategies can be influences by economic conditions. When the economy, as a whole or certain sectors of the economy, are growing, demand may exist for a product or service which would not be in demand in more depressed circumstances. (UK Essays, 2015)

Emirates airline is one of the world's largest and competitive industry in terms of airline. Emirates airline is said to have a stable and successful economic stability. In spite of many dangers that they encounter in different parts of the world, the management of emirates airline sees to it that they would be able to surpass such struggles and strives to have a better economic condition. Unlike many other airlines, Emirates Airlines is one of the few airlines, which hardly felt the economic and aviation downturn of the last few years. This is due to the great marketing efforts to promote