External environment assessment of an aviation business
17 Appendix c: Emirates booking classes 19 Appendix C: Emirates BCG Matrix 20 Introduction In the 21st century, global interconnectivity has grown by volumes than has ever been imagined. While a multiplicity of factors have played to enable this, increased aviation activities are at the center of increased global interconnectivity. In the new Development, Asia, the new frontiers of the global economy has been the greatly impacted; the region now boasts of 30 “big” airlines with a global presence and many upcoming airlines. As air travel so becomes widely adopted in Asia, Emirates is the new guest in town. From Birmingham to Beijing, from New York to New Delhi, the pride of air travel is Emirates. Going forward, if the problem is not addressed, crew shortage is likely to become Emirates Achilles heel.
Fluctuating oil prices Moreover, an escalating oil price is another problem that Emirates has been faced with in the past recent days. In 2015 and 2016, oil prices have considerably been low. However, the Oil Producing and Exporting Countries (OPEC) revised their production in which they have reduced their global supplies. At the same time, the Ministry of Energy and Industry in the United Arab Emirates has announced the August oil prices with a V. Terrorists are people who have the potential to board a plane and can bring it down while aboard killing so many people. As a bad coincidence, Dubai in the United Arab Emirates is surrounded by Iraq and Syria that in the past recent years have proved themselves as the backyards of the Islamic States (IS) insurgents.
As a security measure, Emirates has adjourned trips to countries that have been purported to support terrorism. Iraqi’s and Syria’s flights were canceled either due to the threat of tourists or military operations in the fight against terror. Alongside the two mentioned above, Qatar is the latest in Emirate’s black books after the airline canceled trips to the country in 2017 (Sönmez and Sönmez, 111). There is a thriving commercial doing in Dubai that will keep visitors from other parts of the world all coming to Dubai and flying in the Emirates airline. Besides, the Dirham is stronger than the dollar and the fact that the United Arab Emirates is an economy that is dependent on the oil-rich economy means that Emirates will continue being in a stable economic situation.
However, air travel from and to other countries of the world will depend on the economic situations of those countries. Emirates is thus not immune from global economic shocks like the 2008-2009 economic downturn that greatly affected airlines during which passenger and cargo traffic fell. This makes profits fall vis-à-vis increasing operational expenses. The World Wide Web enables travelers to book their air tickets and pay for them early in time. This includes paying or applying online. Also, Emirates is an airline that rides on the latest airbuses (best class-technology). A better version for the airplanes means that they are faster and safer to travel around the globe; Emirates airbuses are the Boeing 787, B-384 or A-380 that are the latest models in the aviation industry.
Added to the advantages of safety and speed, they are also fuel efficient helping the company cut on their fuel spending. Latest in the list is Washington’s decision to restrict travelers from terrorist hotspot regions for which the Emirates is partisan to being a Muslim majority country. As such developments become more common, the airline may face it rough and has no choice but to always comply to avert the risks associated with the breach of the law. Current strategies Despite the above challenges and potential challenges posed by the external environment, Emirates has the potential of continuing her current growth and even do better due to her unique business strategies: Differentiation Emirates has so many competitors in and outside Asia.
However, she has been able to grow while she offered the same services as her peers and now the economic gap between Emirates and other airlines is quite discernible. One word speaks for it; product differentiation. Such a link is only created in an airline by having a well-trained cabin crew. Unlike many airlines who just acquire to employ workers, Emirates acquires to train and absorb at her Dubai based Emirates Aviation College (EAC). Here, a seven-day training is less focused on onboard entertainment but rather, safety and security of the passenger are what matter most; employees learn evacuation through drills, first aid, nutrition and grooming tips. For the good training that the employees get, no doubt as to why customer satisfaction with the Emirate’s staff stands at 90% (The Emirates Group, 35).
A well-trained workforce thus becomes one of Emirates competitive advantages. Even then, new innovations and research will reveal more strategies that can be adopted to overcome the challenges that Emirates faces. Works Cited Anne, H. “Amazing service, comfortable seats in Economy”: Review of Emirates. ATAG (2016). Facts & FIGURES - Air Transport Action Group (ATAG). Com. Hagmann, Carmen, Janjaap Semeijn, and David B. Vellenga. "Exploring the green image of airlines: Passenger perceptions and airline choice. " Journal of Air Transport Management 4. " Anatolia: Turizm Arastirmalari Dergisi 28. The Emirates Group. 2017-2018 Annual Report (2018). 35 [Accessed: https://cdn. ek. Sponsor’s football and other sports. Prominent clubs sponsored by Emirates include: Arsenal, Real Madrid and PSG. Figure 1: Emirates is the sponsor of Arsenal Football club Figure 2: Fly Emirates is the sponsor of Real Madrid Football club Figure 3: Fly Emirates is the sponsor of Paris Saint Germaine (PSG).
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