Globalization has resulted in expanding the economies and organizational reach widely. Geographical boundaries of the countries do not restrict business operations of the market. International business expansion is one of the crucial requirement of businesses to deal with current rate of market competition (Jenster and Cheng, 2008). Global marketing is the process whereby the organizational marketing strategies are adjusted to the global level by adapting conditions in other countries. Companies are developing effective strategies to enhance global marketing measures as this helps the business in developing highly influential measures on the sales and market share (Fu, 2011). Current study will analyze the business operations of Emirates (airlines) to evaluate global strategies of company and its impact on organizational growth as well. The report will analyze various marketing measures adopted by Emirates and its impact on organizational sales and profitability.
Emirates Airlines is Dubai based airline company which is efficiently operating in the global market. The business operations of the company has grown and developed effectively to enhance the growth and development within global economy. It is the largest airline company operating in Middle East in terms of revenue, fleet size and passengers capacity. The organization is the fourth largest unit in the global market (Wang, and et. al., 2010).
The organization is efficiently operating business within the market as it has adhered the challenges and has enhanced business growth within the economy. The present fleet size of the company is 245 and it is covering more than 160 destinations around the world. It has employed more than 56700 employees within the organization thus has enhanced the growth prospects of the business. The company is expanding its business operations significantly and has developed the growth measures within the market.
1.1 The global environment
Business environment that companies are operating in are facing wide market challenges due to rising competition. price wars, weak market demands etc are major challenges faced by the organizations. Apart form this Emirates has claimed to be a premium cost carrier within the economy. This demand effective impact on the cost factors of the organization. To maintain the leadership in the market is one of the most significant factors for the business (Cavaliere and et. al., 2009).
Aviation industry is facing wide challenges within the economy in the present ear. Emirates is facing wide market challenges due to rising competition. price wars, weak market demands etc are major challenges faced by the organizations. Apart form this Emirates has claimed to be a low cost carrier within the economy. This demand effective impact on the cost factors of the organization (Lüdeke-Freund and et.al., 2012). To maintain the leadership in the market is one of the most significant factors for the business.
Emirates is well known brand name in the global market which has created wide impact on overall growth and development of the economies. The company has created wide impact on growth and development factors within various regions. The company has developed in scale and stature as a globally influential company in travel and tourism sector. The micro analysis of the company helps in analyzing strengths of the organization.
The micro factors analysis of Emirates has been done as follows:
Men: The company has effectively developed an effective and well developed workforce of more that 56500 employees around the world. This represents that the organization has created a team of talented and skilled employees. Manpower helps the business in enhancing growth measures.
Material: The cost material for the company are cost of oil, cost of labor, ingredients for food services etc. These factors helps the organization in developing an effective impact on overall growth of the business (Williams, 2012). The effective use of material and services creates wide impact on quality services thus enhances the brand image of the company within the market.
Machinery: Emirates operates in the aviation industry. The technology is the integral part of the business operations of the company. The machinery in terms of airplanes and airbuses used by the organization is quality ascertained and well developed to fight out the tough market competition.
Money: This factor of the business estimates the financial position of the company within the competitive market. Emirates has developed an effective market position within the global market which has helped the business in creating wide impact on its brand image thus helps the business in expanding business operations (Wittmer, Bieger and Müller, 2011).
Method: This segment of the company includes the process of operations that the business use in order to develop high impact on the growth and development measures. Emirates has developed the process of effective online booking, multiple language options, quality service measures etc. which has helped the business in enhancing market growth.
The above micro analysis of Emirates helps the company in developing an in depth understanding of the internal business operations of the company which helps the organization in analyzing what are the major strengths and weakness of the business. The macro factors analysis helps in evaluating the opportunities and threats that the company faces within the market. PEST analysis of Emirates helps in analyzing the same:
Political factors: These factors involve government policies and regulation within the country. Emirates closely examine the government policies and regulatory framework of the company in order to attain the organizational objectives. The sensitivity of industry and vast business operations demands close examination of government policies (Li-Hua, 2007).
Economic factors: These are the factors which involves economic policies, growth rate, inflation rate etc within a country. Emirates has to closely examine and evaluate these factors in order to enhance the growth prospects for the organization. These factors helps the company in analyzing the cost and demand factors for the region.
Social factors: The social factors helps the businesses in analyzing the trends and demands existing within the organization. It helps the business in analyzing what consumers needs and develop same in order to enhance organizational growth (Tsang, 2007). Emirates has developed effective brand image which has helped the company in enhancing consumer perception in favor of the organization.
Technological factors: This is one of the most crucial and significant prospect of business. The organization focuses on wide technological advancement has helped the company in developing an effective brand image within the market.
1.2 Total global marketing efforts
Analyzing the internal and external business environment it has clear that the company has developed a well developed business position within the market. However the industry norms and policies are critical and has to be changed as per the needs of the country (Hill, 2006). The business operations of Emirates are designed and promoted differently in different countries. The marketing mix of Emirates UK and Dubai provides a clear analysis of the same.
Marketing mix of Emirates Dubai
Product: Emirates is the leading airline company of Middle east. Consumers demand premium services and exclusive features from the organization. The company has developed effective measures of meeting the needs and demands of consumer. This government owned business units has received effective government support to develop its business operation for the organizational growth (Johansson, 2000). The company has adopted the costomised services for the consumers in order to develop high growth prospects within the market.
Place: The company operates in more that 61 countries around the world however the Dubai has developed high business for the organization. The well developed infrastructure regarding airports has helped the business in enhancing business growth while managing the cost of operation.
Price: The pricing strategy that the company has adopted in the UK market is premium pricing as the services of the company are well developed and advanced. Moreover Emirates is the market leader within the Asian market and effective government support has helped the business in developing the business operations highly. Moreover the prices of the company are developed strategically in order to gain high market growth within the market.
Promotion: The company has developed well developed measures of promotion and growth within the competitive market. Various market campaigns like “Hello Tomorrow” is developed by the company in order to develop high level of promotional measures within the company (Siribaddana, 2013). Moreover effective promotional measures through well developed advertisement has helped the business in enhancing promotional measures for the company.
Marketing mix of Emirates UK
Product: The company has developed effective measures of business growth within the Uk market which has helped it in developing high growth measures. The effective brand image and unique consumers services has helped Emirates in enhancing market demand in the UK market. The consumers has wide options within the market however services such as Economy flying, consumers demanded services, Customized options, quality of food and supportive staff has helped the company in developing highly effective brand image. Moreover options in flying regarding first class option, business class option and economy class option has helped the business in enhancing growth measures.
Place: The affiliation with different airports has helped Emirates in enhancing the demand by developing high flight development options. Moreover the well developed online infrastructure of the company in UK has helped in developing high demand as it facilitates consumer convenience (Gazzar, 2014). Apart from this the easy availability of tickets and effective seat planning has helped the company in rising market demand.
Price: Emirates has developed competitive pricing for UK market due to high market competition. This has helped the company in gaining effective market share within the economy helping the company in enhancing growth measures for the business unit. Emirates provides premium class services to the consumers thus has created highly modified measures of economy class flying and business class flying in order to grab sales from different segment as well (Lüdeke-Freund and et.al., 201). Thus the company has efficiently adopted premium class pricing for Premium travelers while competitive pricing measures serves the purpose of rest of the crowd.
Promotion: Aggressive promotion and effective marketing campaigns within the competitive market of UK has helped Emirates in developing well developed brand image in the UK market. Moreover improved in-flight services and new routes development has helped the business in creating an edge within the market thus enhancing market growth through brand development. Advertisements and online promotions are yet another effective measures for organizational growth.
1.3 Competitiveness and sustainability
It can be evaluated that business is required to maintain competitiveness and sustainability so that best advantage can be gained in order to attain desired outcomes. However, firm is required to analyze potential challenges so that competitive edge can be gained within firm. Thus, such changes in the management helps in overcoming the potential benefits and risks. However, such competitiveness and sustainability advantage helps firm to develop global brand image in the market and thus continue firm to operate and expand in international market (Athaide and Klink, 2012). However, there are many forms of competitive advantage which cannot be sustained indefinitely in order to develop competitive edge of firm in market. For instance, it is essential for firm to possess a sustainable competitive advantage when its value creating process and position have not been able to be duplicated by other rival firms.
Porters five forces for Dubai Emirates
Bargaining of buyers- It is moderate as consumers are the main source of revenue within industry therefore, it is essential for Emirates to determine the needs of individual buyers and thus satisfy their needs. However, customers will always try to optimize their buying position through gaining all the information available to them in order to receive optimal price for the product which suits the requirements of clients (Cannon and Yaprak, 2014).
Bargaining power of suppliers- In Dubai Emirates the bargaining power of suppliers is low as business has varied options so that they can shift them from one supplier to another. For instance, in Dubai fuel is present at low prices and thus Emirates has option to shift from one supplier to another (Schuster and Harris, 2014).
Threat of substitute products- It is moderate as business provides high quality services to clients and thus they do not shift from Emirates to another company. However, it is the brand image of firm in market so that business gains larger market share.
Threat of potential entrants- It is low as it requires huge investment to enter into the market. However, new businesses faces serious challenges to enter into the market so that consumers can be attracted (Doole, 2008).
Intensity of rivals- It is moderate as Emirates is a premium brand and thus does not face serious consequences in the market. However, being a premium airline industry business does not face high rivalry. For instance, Qatar Airlines is present which serves clients in Dubai and thus provides moderate rivalry as both the firms are premium firms.
Porters five forces for UK Emirates
- Bargaining of buyers- It is high as there are varied companies present that can be chosen by clients for traveling. Therefore, it is essential for Emirates to undertake effective pricing decisions that attracts consumers to travel from their airlines (Wilken and Sinclair, 2011).
- Bargaining power of suppliers- It is also high as there are not many suppliers available and thus business faces issues to arrange for the required products and services.
- Threat of substitute products- It is high because people of UK are becoming environmental friendly thus it is a serious concern for Emirates to undertake the best environmental practices so that it should not affect the environment (Ogunrin and Inegbenebor, 2015).
- Threat of potential entrants- It is low as it requires huge investment for firms to enter into aviation industry as there are varied regulations and taxes that are levied on firms. Hence, it is tough for firms to operate in the market.
- Intensity of rivals- It is high as Emirates makes the competition for market share. Further, there are varied factors that determine the level of attractiveness that involves degree of rivalry among players, level of investment needed in order to become a viable competitor (Lee and Carter, 2011).
The global marketing environment of the company has developed an effective impact on the growth and development of the organization. The business environment of the company has an effective impact on the organizational growth. The Emirates group has developed an effective measures of working within the competitive market. Business environment of he company helps in determining the competitiveness and growth measures of the organization. On the basis of above report it can be effectively analyzed that Emirates airlines has developed effective marketing strategies as per the market demand. This has helped the business in developing strong brand image in this competitive market.
Emirates has developed wide growth prospects within the competitive market. The effective market services and well developed planning measures has helped the business in creating sustainable growth in the economy. In order to create competitive edge within the market the company should adopt cost controlling measures for the business. Apart form this Emirates must develop the promotional measures f the company in order to fight out vast market competition. The innovative and creative services that the company offers has helped the business in creating high growth measures. Apart from this expanding budgeted airline expansion will helps the company in enhancing its growth prospects within the economy by enhancing wide market demand.
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