Q.1 How has Emirates been able to builda strong brand in the competitive airline industry worldwide?Accordingto Global TravelMarketing Forum in Dubai Emirates airline’s brand value flies to $3.2 billion. Emiratesairlines is one of the largest airline company the world.
Emirates operate morethan 3000 flights in a week from Dubai. In 2014, it served 142 destinations in80 countries from its hub in Dubai. The airline also served 60 destinations in42 countries across Europe, Middle East, Africa, Asia, and Australia. Tokeep up with the aggressive competition, Emirates emphasized product,equipment, and excellent service, and promoted a quality image. Emirates is known for its commitmentto the highest standards of quality in every aspect of their business,providing premium service be it in first, business or economy class. This performancehas been driven by growth in passenger revenues and important steps made in thelong term impact.The airline continues to improve its customer brand experiencethrough investment in quality product and service concepts to providepassengers with a world class onboard experience.
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Emirates’ focus on brandbuilding and sponsorship activities together with its efforts to reposition theairline towards becoming more of an aspirational ‘lifestyle brand’ are apparentand Emirates retains its strong brandrating, despite stiff competition from other international airlines. At $3.7billion, Emirates is both the most valuable airline brandand the most valuable Gulf brand for the 5th consecutive year.
The airlinecontinues to a role model for brands from its sector, its region and throughoutthe world. And it is the first time to see a Middle Eastern brand leading aglobal league, a superb achievement as well as an inspiration for other MiddleEast brands in other sectors.Q.2 What are some of the apparentweaknesses with the company’s strategic direction? How can the airline addressthem? Someof the weaknesses of the company’s strategic directions are listed below: · They overlook the faults in their marketingstrategies.· They are overconfident about their positionin the aviation industry.· Emirates are not a part of any alliances.
· They do not look into the pros and cons oftheir competitors, For example: Etihad Airways and other airways havealso signed the open skies policy and are ready to compete with Emirates at avery competitive price with the same quantity of service. · They completely ignore their competitors likeGulf Air Company, GSC, Air France, British Airways and Qatar Airways group.· Target only the top class of customers. Airlines can address those problems byfollowing strategy. · They can improve in flight service to an evenbetter level.· They can extend new routes.
· They can reduce in cost.· Product development private groups.· They can involve in the competition and makestrategy as per the market demand.
· Work for middle and low class customer also. Q.3. With the decline of fuel pricesglobally, airline companies continue to reap the benefits. What impact willthis have on Emirates business strategy in the future?Withthe decline of fuel price globally, airline companies can earn the benefits. Toreduce price fluctuation risk on projected operating costs, many airlines hedgea proportion of their future fuel needs to 24 months in advance by buying jetor crude oil contracts from banks or on an oil future market. When the oilprice is falling, opportunity to earn profit will increase.
It is cheaper to hedge forwards and get protection if prices go up but ifyou pay a premium for options you also retain the potential to benefit from lower oil prices more immediately