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Pages:
6 pages/≈1650 words
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15 Sources
Level:
Harvard
Subject:
Business & Marketing
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Term Paper
Language:
English (U.S.)
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Topic:

Emirates Airlines Macro Environmental Analysis: PESTEL (Term Paper Sample)

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Emirates Airlines Macro Environmental Analysis: PESTEL

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EMIRATES AIRLINES
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Emirates Airline
Emirates Airline, which operates in the airline industry, was established in the mid 1980s by the leaders of the Emirate of Dubai. It operates in 7 geographical markets including Europe, South-Asia, Africa, Middle East/Gulf region, Latin America, Asia-Pacific, and North America. It flies to over 133 destinations in 70 nations in these geographic markets. At the moment, the airline possesses a fleet of over 169 airplanes, and has another about 220 airplanes on order worth over $83 billion (Campbell & Kamel 2017, p. 34). The products/services offered by the airline are first class flights, business class flights, economy class flights, and sky cargo which is the company’s cargo/freight division (Squalli 2014, p. 139). The firm also offers airport services, self-service kiosks, and the recently introduced service called Emirates Holiday, which is essentially a new way of inspiring holiday. The market segments for Emirates Airlines include the premium passenger segment. The mission of a firm is to become among the leading lifestyle brands globally. According to its vision statement, Emirates Airlines seeks to make civil aviation, sustainable, leading and safe. Its value or goal is to reach the top by shining and standing out in what it does. The airline company effectively follows the differentiation strategy as it strives to innovate and remain ahead of its competitors. Emirates Airline is one-hundred percent owned by the Dubai government and therefore this government is the main stakeholder (Melly 2013, p. 18). Even so, other stakeholders include customers, suppliers, top management/senior executives, and employees. This paper provides a full strategic appraisal of Emirates Airlines. The appraisal covers an external and internal analysis, description of the current business and corporate strategy of the firm, the challenges and issues it faces, as well as the selection of strategic options.
Part I: External Analysis
Macro-Environmental Analysis: PESTEL
Political Factors
One tool commonly used for carrying out analysis of a company’s external environment is the PESTEL analysis, in which the legal, environmental, technological, social, economic, and political factors are examined (Dockalikova & Klozikova 2014, p. 418). Regarding political factors, the United Arab Emirates has signed agreements with various nations, including those in the Asia Pacific region, North America, and Europe. These agreements strengthen the trade exchange and political association between nations, including the improvement of the aviation sector. It is of note that these agreements have allowed the firm to broaden its network. Additionally, the company is fully supported by the Dubai Government by offering infrastructure developments aimed at increasing the growth of the city and the airline company itself (Sanati 2013, p. 3). In Dubai International Airport, the company has exclusive Terminal Three. It also pays low charges and fees at this airport. Other political factors that affect the operations of Emirates Airlines include the easy to issue work permits and visit visas for foreign employees to fulfil the labor requirements of the Government of Dubai; the no taxation policy; as well as same opportunities provided by the Open Skies policy to all airline companies (O’Connell 2014, p. 338). Nonetheless, the political instability within the Middle East region currently may decrease the company’s growth. Equally important, the airline company has to follow all the regulations and rules of the Government of Dubai and of the countries in which it operates.

Economic Factors
Emirates Airline is a major aviation firm and this allows it to maintain growth a...

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