Emirates is mainly an airlines organization which is based in Dubai, United Arab Emirates. This is the subsidiary of The Emirates Group and is totally owned by the government of Dubai. Emirates is considered to be one of the leading airlines organization in the Middle East and it hold the fourth position in the whole world. Emirates operates more than 3600 flights in one week from the major hub of the airlines company which is in Dubai. Emirates was established in the year 1985 with the help of the royal family of Dubai along with Pakistan International Airlines. Emirates has been successful in operating the longest flight from Dubai to Auckland (Emirates.com 2017).
Background information of Emirates
The head of the organization was Ahmed Bin Saeed Al Maktoum who is the current chairman of Emirates. Emirates had started experiencing huge growth from the year 1993 and they continued expanding their operations as well. At present Emirates is considered to be one of the largest airlines companies in the world and it owns a fleet of greater than 265 aircraft and they also fly to more than 155 destinations in the world. More than 1500 flights of the Emirates fly from Dubai in every week and they expanding their network in a continuous basis (Emirates.com 2017).
Identification and evaluation of strategic vision, mission and aims of Emirates
The vision of the organization is to become a leader in innovation related to aviation, protection of the environment and also to become the best airline company in the world. The company has been aiming towards building a global network for the coverage of many destinations with the help of strict compliance to the safety in the flights, reliability, responsibility, service, product quality as well as competitiveness (Hill, Jones and Schilling 2014).
The mission of the organization is related to the growth as one of the most coveted service all over the world. To deliver product quality of the highest standards and to improve the pressure of the clients. To continue their trend of growth in the industry and make investments in new technologies. Decrease the number of major crashes or accidents and increasing the safety of the customers. The organization has been trying to work in an economically efficient manner by using bio-fuel and also using techniques that are updated in nature. The company also aims to invest more in the recruitment of competitive staff to provide best of services to the customers (Morschett, Schramm-Klein and Zentes 2015).
The main values related to the organization are as follows,
- The satisfaction of customers is one of the major values that is followed by the employees of Emirates. The needs and the desires of the customers are analysed thoroughly by the management or the employees of the organization and this makes Emirates a customer focussed organization.
- The leadership of the organization plays a major role in the management and success of the organization. The leaders of the organization are democratic in nature and their leadership mainly comprises of the skills as well as abilities to influence and motivate the activities as well as the thoughts of the subordinates or other people. The leaders of the organization have a social influence and it encourages the staff so that they can achieve the common goal (David and David 2015).
- The organization considers the emotional ties as well as bonds of the consumers is an important issue in the choice of the consumers. The emotions and the character of Emirates is represented with the help of the staff including the air hostesses of the organization. The staff and the air hostesses act as mediators between the customers and the company.
- The reliability related components of the organization also play a major role in the values that are laid. The timely performance, decreased loss related to luggage, delivery of the bags within time, modern fleets of airline, least number of crashes or accidents form a major part of the values of Emirates. This helps the organization in providing the safest flights to the customers (Frynas and Mellahi 2015).
- Engagement of the community in the business activities also plays a major role in the increase of the awareness related to the brand of Emirates. The presence of the company in the social media, campaigns related to donations and charity, sponsorships, celebrity endorsements and partnerships. The endorsement of the brand of Emirates acts as the major tool in the presence of Emirates in the market (Carraher 2015).
- The social responsibility of the organization and responsibility related to corporate citizenship plays an integral part in the values. The organization takes responsibility related to investment in the protection of the environment.
- The strategy related to innovation of Emirates integrates the needs and desires of the organization and the in-flight services are clubbed together with the modern flights. The company innovates and then implements new ideas that can help in making the services and products that are offered to the customers (Vogel and G?ttel 2013).
- The employees of Emirates are the most important possession of the organization. The organization tries to attract more and more consumers by investing in the professionalism of the employees or the staff.
Critical analysis of the strategic challenges faced by Emirates
Emirates airlines has proved to be game-changer in the airlines industry. However, in the recent times that strategies of the organization have been facing many problems. The growth of the company was now based on the changes in the strategy internally as well as externally. The organization has become much more receptive towards partnerships in the recent times so that they can expand their operations The partnership of Emirates with Qantas airlines and the agreement of Qantas to operate from the Dubai hub of Emirates and also sharing the revenues has helped in the expansion of the companies (Sakas, Vlachos and Nasiopoulos 2014). The impact related to the deal with Qantas airlines was intensified by the deal that was made by Emirates with the American Airlines. The decision was made by Emirates regarding the fact that they would opt for partnerships where it was required and value can be extracted as well.
The strategy as well as profitability of the organization is affected by the changes in the prices of fuel which can affect the profit margins. The increase in the prices of fuel will also lead to an increase in the prices of the flight tickets. This increase can further lead to a decrease in the number of customers as well. The issues that can be faced by the organization related to the threat of the new companies in the market is quite low as the huge amount investment required can act as a barrier for new companies (Wheelen et al. 2015). The regulatory procedures of the industry are also quite complex in nature which can act as barriers to the entry of new organizations. The major problems that are faced by Emirates is the limited number of suppliers in market which can lead to the changes in operating costs of the organizations.
The organization is now facing high levels of rivalry in the market related to the various competitors that are now operating in the airlines industry. The promotional offers provided by the consumers and the low prices can lead to a decrease in the profitability of Emirates (Guerras-Mart?n, Madhok and Montoro-S?nchez 2014). The major competitors of Emirates in the airlines industry are, Singapore Airlines Group, Qatar Airways and Etihad Airways. The lack of international alliances of Emirates can act as a major weakness related to the operations of the company. The market and customer base of the organization is also quite low and this leads to a low base of consumers for the organization.
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