Q.1 league, a superb achievement as well as an

Q.1 How has Emirates been able to build
a strong brand in the competitive airline industry worldwide?

According
to Global Travel
Marketing Forum in Dubai Emirates airline’s brand value flies to $3.2 billion. Emirates
airlines is one of the largest airline company the world. Emirates operate more
than 3000 flights in a week from Dubai. In 2014, it served 142 destinations in
80 countries from its hub in Dubai. The airline also served 60 destinations in
42 countries across Europe, Middle East, Africa, Asia, and Australia.

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To
keep up with the aggressive competition, Emirates emphasized product,
equipment, and excellent service, and promoted a quality image. Emirates is known for its commitment
to the highest standards of quality in every aspect of their business,
providing premium service be it in first, business or economy class. This performance
has been driven by growth in passenger revenues and important steps made in the
long term impact.

The airline continues to improve its customer brand experience
through investment in quality product and service concepts to provide
passengers with a world class onboard experience. Emirates’ focus on brand
building and sponsorship activities together with its efforts to reposition the
airline towards becoming more of an aspirational ‘lifestyle brand’ are apparent
and Emirates retains its strong  brand
rating, despite stiff competition from other international airlines. 

At $3.7billion, Emirates is both the most valuable airline brand
and the most valuable Gulf brand for the 5th consecutive year. The airline
continues to a role model for brands from its sector, its region and throughout
the world. And it is the first time to see a Middle Eastern brand leading a
global league, a superb achievement as well as an inspiration for other Middle
East brands in other sectors.

Q.2 What are some of the apparent
weaknesses with the company’s strategic direction? How can the airline address
them?

 

Some
of the weaknesses of the company’s strategic directions are listed below:

 

·       
They overlook the faults in their marketing
strategies.

·       
They are overconfident about their position
in the aviation industry.

·       
Emirates are not a part of any alliances.

·       
They do not look into the pros and cons of
their competitors, For example: Etihad Airways and other airways have
also signed the open skies policy and are ready to compete with Emirates at a
very competitive price with the same quantity of service.

·       
They completely ignore their competitors like
Gulf Air Company, GSC, Air France, British Airways and Qatar Airways group.

·       
Target only the top class of customers.

 

Airlines can address those problems by
following strategy.

 

·       
They can improve in flight service to an even
better level.

·       
They can extend new routes.

·       
They can reduce in cost.

·       
Product development private groups.

·       
They can involve in the competition and make
strategy as per the market demand.

·       
Work for middle and low class customer also.

 

Q.3. With the decline of fuel prices
globally, airline companies continue to reap the benefits. What impact will
this have on Emirates business strategy in the future?

With
the decline of fuel price globally, airline companies can earn the benefits. To
reduce price fluctuation risk on projected operating costs, many airlines hedge
a proportion of their future fuel needs to 24 months in advance by buying jet
or crude oil contracts from banks or on an oil future market. When the oil
price is falling, opportunity to earn profit will increase. It is cheaper to hedge forwards and get protection if prices go up but if
you pay a premium for options you also retain the potential to benefit from lower oil prices more immediately