Introduction
Emirates Airlines is one of the leading carriers in the industry although the company is facing diverse challenges associated with the changes modern society has been undergoing. The company established in 1985 first used a strategy similar to other airlines by connecting the central cities (New York, London, Shanghai, and so on) (Dess et al., 2020). However, its shift to another vision turned it into one of the leaders, as the carrier offers diverse options to travelers, connecting various cities. Modern people are keen travelers who explore this world and do business. This major peculiarity of modern society makes the potential growth of Emirate Airlines possible. This paper includes a brief analysis of Emirates Airlines with the use of Porter’s model (see Figure 1).
Main body
Competition in the airline industry is rather fierce, especially these days when the demand for flights has reduced significantly due to the restrictions and recession apparent on the global scale. The primary competitors of the organization in question are Cathay Pacific and Qatar that offer 232 and 146 destinations respectively (Dess et al., 2020). These two companies also have a considerable fleet (Cathay Pacific (174) and Qatar (146)) although Emirates Airlines have a larger fleet (265) (Dess et al., 2020). Clearly, Emirates Airlines have to compete with companies that have the necessary resources and well-established brands with diverse products to offer.
The power of suppliers is rather high as only two major aircraft are utilized, Boeing and Airbus. These manufacturers provide maintenance services, so they have certain power as the carrier needs their aircraft fleet for long-distance flights. The rest of the products provided by the company under analysis include both luxury and mass-market items and services. Emirates Airlines has a wide range of partners and suppliers that can be reached within a short period and can be located in any part of the world. Therefore, this force is not as pressing as the one mentioned above or the power of customers. The industry is rather vulnerable to the fluctuations of demand, which became apparent in 2019 when numerous restrictions led to a dramatic decrease in the number of passengers. Many carriers went bankrupts while others had to cut costs.
The power of substitute is not an influential force as there is no alternative to long-distance flights at the moment. Other types of transport do not offer the same level of convenience and comfort as flights remain the fastest way to travel. The potential of new entrants can be a factor to consider as low-cost airlines can be a certain threat. It is noteworthy that the cost of entry is rather high, especially when it comes to the niche Emirates Airlines occupies. The company focuses on luxury and high-quality, comfortable travel experiences, which require substantial investment. Therefore, new entrants are unlikely to pose any threat to the company in question.
Conclusion
In conclusion, it is necessary to state that, based on the analysis of factors affecting Emirates Airlines, the company can compete effectively in the market and retain its leading position in the niche it holds. The power of suppliers and customers can be seen as the most influential factor to consider. The company should also develop strategies to compete effectively with its major competitors in the market. The company’s focus on a network of directions and quality of provided services can remain central to its operations. It is also necessary to consider new ways to optimize costs as the flow of passengers may fluctuate in the future as well.
Reference
Dess, G., McNamara, G., Eisner, A., Lee, S., & Sauerwald, S. H. (2020). Strategic management: Text and cases (10th ed.). McGraw-Hill Education.