Market Analysis Emirates Anilines
Market Analysis Emirates Airlines
TABLE OF CONTENTS
1 PART I 4
1.1 Macro-environment Analysis 4
1.1.1 PESTLE Analysis 4
1.2 Micro-environment Analysis 9
1.2.1 Five Forces Analysis 9
1.3 Internal environment Analysis 12
1.3.1 SWOT Analysis 12
2 PART II 16
2.1 Market Segmentation 16
2.1.1 Demographic Segmentation 16
2.1.2 Psychographic Segmentation 16
2.1.3 Behavioral Segmentation 17
2.1.4 Geographic Segmentation 17
2.2 Targeting 18
2.3 Market Positioning 18
2.3.1 Perceptual Map 19
2.3.2 4Cs of Positioning 22
3 PART III 24
3.1 Strategies for Growth and 24
3.1.1 BCG Matrix 24
3.2 Marketing Objectives 28
4 PART IV 30
4.1 The Marketing Mix 30
4.1.1 Product 30
4.1.2 Price 31
4.1.3 Place 31
4.1.4 Promotion 32
4.1.5 People 33
4.1.6 Process 34
4.1.7 Physical Evidence 34
5 PART V 36
5.1 Budget 36
5.2 Implementation 36
5.3 Control 38
5.3.1 Critical Success Factors 38
5.3.2 Key Performance Indicators 39
6 References 42
ii
Running Head: MARKET ANALYSIS EMIRATES ANILINES
PART I
Macro-environment Analysis
PESTLE Analysis
The PESTLE framework shows that there are political, economic, social, technological, legal, and environmental factors to consider in the macro-environment.
The political factors in the case of Emirates are not particularly daunting since Emirates Airlines is essentially a state-run enterprise. Dubai is not going to issue any political obstacles to Emirates Airlines' success because that would go against its interests in leadership and for the success of the state. The separation between state and business does not exist in Dubai as far as Emirates is concerned. When it comes to monarchies, much of the modern world has rejected them, though the West used to be ruled by monarchs. Today, monarchs thrive in the Middle East, particularly in the United Arab Emirates (UAE), where a monarchical system of government has enabled the UAE to bring stability and leadership. The pros of a monarchical system are that there are stability and consistency of vision and leadership. A monarch rules for life and the vision presented by the monarch can be implemented over a lifetime instead of rushed through in the brief span of a few years, as is the case in democratic countries where elected leaders have term limits. The monarch can proceed more slowly and cautiously and adopt a long-term vision. In contrast, in democratic countries, the vision is more short-term and reactive rather than proactive simply because the nature of the political system does not allow for long-term visions to be implemented slowly as that vision could change from one administration to the next. Monarchies are more stable in this respect.
With more stability, there is also the opportunity to engage in reform and root out corruption. However, if the monarch himself is corrupt or appoints corrupt officials throughout his court, corruption can undermine the advantages of the system. This can lead to civil unrest, especially if the governed feel that the monarch looks more after his self than after the needs of the people. If the people revolt, the monarch may be toppled, and he and his family removed from power through violent forcea threat that other countries may look to aggravate if they see in it some advantage for themselves. Thus, monarchies must be very careful not to lose the love and loyalty of the people. For Emirates Airlines, the rulers of the UAE are transparent in their rule, and their reputation is good with neighboring countries and on the world stage. Thus, there is little risk for Emirates Airlines at the political level.
The economic issues that Emirates faces are the same as every other nation and industry today. The COVID 19 pandemic has disrupted economies all over the world, and it is still unclear at what point these economies will get back to normal. The novel coronavirus spreading the COVID 19 disease first appeared in Wuhan, China in 2019…
Market Analysis Emirates Anilines
Market Analysis Emirates Airlines
TABLE OF CONTENTS
1 PART I 4
1.1 Macro-environment Analysis 4
1.1.1 PESTLE Analysis 4
1.2 Micro-environment Analysis 9
1.2.1 Five Forces Analysis 9
1.3 Internal environment Analysis 12
1.3.1 SWOT Analysis 12
2 PART II 16
2.1 Market Segmentation 16
2.1.1 Demographic Segmentation 16
2.1.2 Psychographic Segmentation 16
2.1.3 Behavioral Segmentation 17
2.1.4 Geographic Segmentation 17
2.2 Targeting 18
2.3 Market Positioning 18
2.3.1 Perceptual Map 19
2.3.2 4Cs of Positioning 22
3 PART III 24
3.1 Strategies for Growth and 24
3.1.1 BCG Matrix 24
3.2 Marketing Objectives 28
4 PART IV 30
4.1 The Marketing Mix 30
4.1.1 Product 30
4.1.2 Price 31
4.1.3 Place 31
4.1.4 Promotion 32
4.1.5 People 33
4.1.6 Process 34
4.1.7 Physical Evidence 34
5 PART V 36
5.1 Budget 36
5.2 Implementation 36
5.3 Control 38
5.3.1 Critical Success Factors 38
5.3.2 Key Performance Indicators 39
6 References 42
ii
Running Head: MARKET ANALYSIS EMIRATES ANILINES
PART I
Macro-environment Analysis
PESTLE Analysis
The PESTLE framework shows that there are political, economic, social, technological, legal, and environmental factors to consider in the macro-environment.
Political Factors
The political factors in the case of Emirates are not particularly daunting since Emirates Airlines is essentially a state-run enterprise. Dubai is not going to issue any political obstacles to Emirates Airlines' success because that would go against its interests in leadership and for the success of the state. The separation between state and business does not exist in Dubai as far as Emirates is concerned. When it comes to monarchies, much of the modern world has rejected them, though the West used to be ruled by monarchs. Today, monarchs thrive in the Middle East, particularly in the United Arab Emirates (UAE), where a monarchical system of government has enabled the UAE to bring stability and leadership. The pros of a monarchical system are that there are stability and consistency of vision and leadership. A monarch rules for life and the vision presented by the monarch can be implemented over a lifetime instead…
Market Analysis Emirates Anilines
Market Analysis Emirates Airlines
TABLE OF CONTENTS
1 PART I 4
1.1 Macro-environment Analysis 4
1.1.1 PESTLE Analysis 4
1.2 Micro-environment Analysis 9
1.2.1 Five Forces Analysis 9
1.3 Internal environment Analysis 12
1.3.1 SWOT Analysis 12
2 PART II 16
2.1 Market Segmentation 16
2.1.1 Demographic Segmentation 16
2.1.2 Psychographic Segmentation 16
2.1.3 Behavioral Segmentation 17
2.1.4 Geographic Segmentation 17
2.2 Targeting 18
2.3 Market Positioning 18
2.3.1 Perceptual Map 19
2.3.2 4Cs of Positioning 22
3 PART III 24
3.1 Strategies for Growth and 24
3.1.1 BCG Matrix 24
3.2 Marketing Objectives 28
4 PART IV 30
4.1 The Marketing Mix 30
4.1.1 Product 30
4.1.2 Price 31
4.1.3 Place 31
4.1.4 Promotion 32
4.1.5 People 33
4.1.6 Process 34
4.1.7 Physical Evidence 34
5 PART V 36
5.1 Budget 36
5.2 Implementation 36
5.3 Control 38
5.3.1 Critical Success Factors 38
5.3.2 Key Performance Indicators 39
6 References 42
ii
Running Head: MARKET ANALYSIS EMIRATES ANILINES
PART I
Macro-environment Analysis
PESTLE Analysis
The PESTLE framework shows that there are political, economic, social, technological, legal, and environmental factors to consider in the macro-environment.
Political Factors
The political factors in the case of Emirates are not particularly daunting since Emirates Airlines is essentially a state-run enterprise. Dubai is not going to issue any political obstacles to Emirates Airlines' success because that would go against its interests in leadership and for the success of the state. The separation between state and business does not exist in Dubai as far as Emirates is concerned. When it comes to monarchies, much of the modern world has rejected them, though the West used to be ruled by monarchs. Today, monarchs thrive in the Middle East, particularly in the United Arab Emirates (UAE), where a monarchical system of government has enabled the UAE to bring stability and leadership. The pros of a monarchical system are that there are stability and consistency of vision and leadership. A monarch rules for life and the vision presented by the monarch can be implemented over a lifetime instead of rushed through in the brief span of a few years, as is the case in democratic countries where elected leaders have term limits. The monarch can proceed more slowly and cautiously and adopt a long-term vision. In contrast, in democratic countries, the vision is more short-term and reactive rather than proactive simply because the nature of the political system does not allow for long-term visions to be implemented slowly as that vision could change from one administration to the next. Monarchies are more stable in this respect.
With more stability, there is also the opportunity to engage in reform and root out corruption. However, if the monarch himself is corrupt or appoints corrupt officials throughout his court, corruption can undermine the advantages of the system. This can lead to civil unrest, especially if the governed feel that the monarch looks more after his self than after the needs of the people. If the people revolt, the monarch may be toppled, and he and his family removed from power through violent forcea threat that other countries may look to aggravate if they see in it some advantage for themselves. Thus, monarchies must be very careful not to lose the love and loyalty of the people. For Emirates Airlines, the rulers of the UAE are transparent in their rule, and their reputation is good with neighboring countries and on the world stage. Thus, there is little risk for Emirates Airlines at the political level.
Economic Factors
The economic issues that Emirates faces are the same as every other nation and industry today. The COVID 19 pandemic has disrupted economies all over the world, and it is still unclear at what point these economies will get back to normal. The novel coronavirus spreading the COVID 19 disease first appeared in Wuhan, China, in 2019 and quickly spread around the world. The infectious disease is a new form.......wns from the East to the West. Another mysterious characteristic is that one can be a coronavirus carrier and yet be completely asymptomatic (Chen et al., 2020). Those who do exhibit signs of infection tend to have flu-like symptoms, especially if the person is already suffering from prior health issues. Symptoms can range from fever to cough to breathing difficulties, muscle pain, headache, confusion, loss of energy, sore throat, chest pain, and even nausea (Chen et al., 2020). Pneumonia can quickly develop in patients if not treated right away.
However, because cases of the virus are still being studied, there is no clear-cut analysis of what symptoms are readily linked with COVID 19. Some who present experience chest pain and palpitations. Others have shortness of breath. Still, others show no signs of infection or symptoms at all and would not even be clinically diagnosed as having COVID 19. For that reason, though, they are still being counted as infected persons by most media outlets (National Academies of Sciences, Engineering, and Medicine, 2015). The most common signs are fever, cough, and fatigue, and it is as of yet unclear the rate of the population, which carries the virus without ever showing symptoms at all. With so much uncertainty, some people are wary of traveling, and that has been devastating to the airline industry. The critical development in the coming months will be whether people are more or less willing to fly now that coronavirus has arrived. If they continue to stay away, the market for Emirates Airlines could suffer majorly
Sociocultural Factors
The social issues that impact Emirates Airlines include fallout from COVID 19 as well since it has disrupted life in just about every way. Prevention of the spread of COVID 19 is still being debated, and there are presently two camps with regards to prevention. The first camp includes those who view the virus as a credible threat. The second camp includes those who view it as an issue, blown out of proportion, by the politicians and media. The first camp believes that total lockdown, the social distancing of 6 feet, and the shutdown of all non-essential businesses, along with the wearing of face masks when doing business at essential places of business will help to prevent the spread. There are, however, problems with this camp's arguments. The first being that the virus has likely already made the rounds within the community. This is because people were permitted to fly, in and out of China for over a month, after the first case emerged in Wuhan. That means this highly contagious virus that spreads like wildfire had an entire month to spread around the world before anyone lifted a finger anywhere to implement preventive measures. In short, the virus has likely already been contracted by everyone, at least in theory.
Another problem with the argument of the first camp is that the wearing of face masks will do little to stop the virus-spread. If it can be spread airborne because the virus itself is so small: it would be like a 6 ft tall man walking through a 60 ft high doorthe virus could penetrate the pores of the mask with ease. Thus, the mask is more a social placebo than anything and provides no medical or scientific security if the virus is as contagious and infectious as people have been led to believe.
Social distancing is also unlikely to have any positive preventive effect on the mitigation of the spread of the virus as the virus can live on surfaces for weeks (Oliver, 2020). The prevention strategies are having a fundamentally disastrous impact on the national and global economies, however, and it could be a case of the "cure" being worse than the disease if the quarantine measures are not lifted soon for states.
Managing the pandemic has not been an easy job by any measure, and few people have escaped criticism. China has been criticized for mismanaging the outbreak when it failed to communicate the local events to the world. The World Health Organization (WHO) has been critically questioned for not addressing the disease-severity and for delaying a pandemic in the making. President Trump has been criticized for being slow to close the U.S. borders and for failing to cut all flights to China, Italy, and other parts of the world. And yet on the opposite end of the spectrum are those who believe the whole virus pandemic story is largely incredible and fantastic, and they see it as nothing more than a highly mismanaged case of the flu.
For one thing, the skeptics look at the death rate of those who have been put on ventilators. They then claim that the virus is not what is killing people but rather the mismanagement of patients' health by health care providers. Moreover, the ventilator is being viewed as a big problem because four out of five people placed on a ventilator end up dying from a bacterial infection (Kekatos, 2020). Are their better ways to manage the spread of the disease? Because this is a novel coronavirus and fear is spreading as quickly as the virus itself, it ought to not be surprising to observe so much confusion with regards to what the world is facing. So whether a person is dying from COVID 19 or from health complications that arise owing to the treatment-type, they are receiving from health care workers, or some other issue is still unknown.
Technological Factors
Technological issues that Emirates faces are few, as it has the most up to date state of the art technology in its large fleet, and that appeals to business class fliers. The Boeing Max disasters have not affected Emirates, and it is still in a good place technologically speaking, as there have not been any major advancements in the industry to negatively impact the Airline's positioning.
Legal Factors
Legal issues that the Airline may face are essentially non-existent as there is such a strong connection between the monarchy and the business.
Environmental Factors
Environmental issues are also a non-factor, as the Middle East is essentially all on the same page in terms of the environment. The flyin of planes is not viewed as negatively in the region as in other more progressive states.
Micro-environment Analysis
Five Forces Analysis
Porter's five forces analysis is an instrument that enables a firm to comprehend the various competitive forces that put pressure on a business. These forces comprise of threats of new entrants, bargaining power of buyers, the threat of substitute products, bargaining power of suppliers, and competitor rivalry (Cheverton, 2005).
Rivalry among Existing Competitors
Emirates conducts its business operations within the airline industry, where there is an intense level of competition amongst organizations. The key rivals battling Emirates for market share comprise of Etihad, Qatar Airlines, and Jazeer Airlines. Although Emirates is one of the key players in the industry with numerous years of experience and competence, the company continues to face severe competition from these other brands. The competitive organizations hold a particular market share and, at the same time, spend a great deal of time and resources on marketing and advertising. Emirates faces severe competition not just on the pricing front but also regarding product variety, ingenuity, consumer necessity, and also promotional offers.
The structural diversity and capacity of all players in the industry are high. All of these rivaling airlines have several fleets that operate in global markets offering various packages that are appealing to consumers. Moreover, the airline market is saturated with options. Whether a consumer is in pursuit of First Class, Business Class, or Economy services, several airlines are offering such services. Also, in recent times, there are low-cost airlines such as Easy Jet, Southwest Airlines, AirAsia, and Jetstar Airways. Bearing this in mind, all of these companies have to work hard to sustain their market share and generate greater profits. Therefore, the market rivalry is intense.
Bargaining Power of Buyers and Customers
The bargaining power of buyers and customers is high. For starters, the market is saturated with airline provider options from multiple carriers, and buyers can easily leverage this plethora of options to their advantage. The buyers hold a high bargaining power due to the intense rivalry that is prevalent in the market. The consumers can effortlessly switch from one brand to another without facing plenty of inconveniences. For that reason, there are low switching costs in the industry. Also, seve
References
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Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: Planning, optimizing, and integrating online marketing. 5th ed., London and New York: Routledge Taylor & Francis Group.
Cheverton, P. (2005). Key marketing skills: strategies, tools, and techniques for marketing success. New York: Kogan Page Publishers.
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Emirates. (2020). About us: Inflight advertising. Retrieved from: https://www.emirates.com/english/about-us/inflight-advertising/ Ferrell, O. C., & Hartline, M. (2012). Marketing strategy, text, and cases. New York: Nelson Education.
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Emirates I have chosen several sources to provide me with information for my study of Emirates, the Dubai-based airline. The first source that I will discuss is Hoover's. This source is a business research firm, and it provides to its customer profiles on different companies. Hoover's provides a fairly comprehensive overview. Given that Emirates is not a publicly-traded company, finding accurate information about the company requires the use of a source
Emirates Airlines'. The topic tends to draw attention towards the information about the inception, growth and development of the Middle Eastern airline as one of the most successful airline in the world. Emirates Airlines is the largest airlines based in the Middle East in terms of revenue and passengers carried since 2007. It is based at the Dubai International Airport, Dubai and is owned by the government of Dubai
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" (Knorr and Eisenkopf, 2004) the fifth and final strength identified for Emirates Airline in the work of Knorr and Eisenkopf (2004) is stated to be the Emirates "...award-winning service in all classes, which is matched or exceeded only by very few other carriers such as Singapore Airlines. Sixth, clever marketing - for example, Emirates, not Lufthansa - was named official carrier of the 2006 FIFA World Cup hosted by
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