Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
d Strategi
c
Management
Professo
Adria
Freire
r
no
2015
1st Trimeste
r 1420
/
a
n a Silv 152114036
Sar Hoga
Introduction
In this report we will cover the
following topics:
What are strategic markets and
which are the key indicators of an
attractive market;
Emirates
Airlines
Emirates is an airline based in Dubai,
UAE, and its foundation in 1984 was
related to a crisis in Dubai when Gulf Air
refused to increase flights from and
to
Dubai
unless the government
protected the carrier for its long-haul
services.
Soon Emirates started growing and
doubling its size every three years.
In
2014,
the airlines company is
considered the largest airline in the
Middle East, operating nearly
3400 flights per week to more than
142 cities in 78 countries across all
continents.
Industry Attractiveness
A market is considered strategic when it can strongly influence, in a positive way, the
ability of a
company to achieve its goals.
In 2005, Emirates had the goal of becoming a global hub-and-spoke system with
passengers
travelling between cities with a stop at Dubai. Therefore, as we will show below, this
city is
considered a strategic market not only for Emirates but also to other airline companies.
3.
Howev
er, for
the
ones
below
the
diag
onal
,
the
com
pan
y
sho
uld
con
side
r
sell
or
Build
Selectively
Invest to Build
Expand or
Harvest
Selectivity/
Manage for
earnings
Divest
Manage for
Earnings
Po
sit
io
n
Protect
liquidate it.
In the case of airlines industry,
we
can apply this framework
by
analyzing country
attractiveness
and
aring
to the
comp
it
competitiv strengt of the
e
h
business.
Bui
ld
Selecti
vely
Protect
Position
and refocus
Country
Attractiveness
Market
Factors
Operatio
nal
Risk Factors
Market Value
Market Growth
Rate
Pricing Trends
Opportunity
to
diferentiate
Factors
Minimum Local
Wage
Operating
Costs
Legal
Requirements
Exchange Risk
Political Risk
Industry Risk
Other
Hub-and-Spoke
Strategy
Why Dubai?
Advantages
Disadvantages
- Encourage
- Congestion
the
and
rapid growth
delay
at
in
hub
the
airports;
airline
- Airport
business;
dependency;
- Efficient use
- Discontinuous
of
use
transportation
of
resources;
airport
The success is Dubais location its
Europes
most easterly hub and Asias most
westerly hub
According to IATA, the UAE is the
most connected country in the world,
in no small part due to Dubais
thriving aviation sector.
Market Factors:
Decision
making
is
typically
collaborative and decisions
can be
taken quickly;
Open sky policy;
Strategic investments in topflight
aviation infrastructure;
Geocentric location.
Operational Factors:
Tax-free environment;
Economical
cost
structure
of
airports;
Competitive wages.
Risk factors:
Dependency on airlines
industry;
Negative image of MiddleEast.
Paul Grifiths
CEO Dubai Airports
Strategic
Alliance
Bibliography
Internet
Enduring Ideas: The GEMcKinsey nine-box matrix:
http://www.mckinsey.com/insights/strategy/enduring_ideas_the_ge_and_mckinsey
_nine-box_matrix
Summary of GE Matrix:
http://www.valuebasedmanagement.net/methods_ge_mckinsey.html
Qantas-Emirates alliance to begin April 2013: http://www.ausbt.com.au/qantasemirates-alliance-to- begin-april-2013
Emirates, Qantas Friends For Life?: http://gulfbusiness.com/2013/11/emiratesqantas-friends-for- life/#.VCWZNfldWCo
How Dubai Became One Of The Most Important Aviation Hubs In The World:
http://www.forbes.com/sites/natalierobehmed/2014/06/04/how-dubai-becameone-of-the-most- important-aviation-hubs-in-the-world/
Brazil, Russia, India, China (BRIC): Emerging aviation markets performing
well in 2010: http://centreforaviation.com/analysis/brazil-russia-india-chinabric-emerging-aviation-markets- performing-well-in-2010-26497
Reports
Emirates Annual Report 2013/2014
Connecting the world today & tomorrow, Strategic Plan 2020, Dubai Airports
Appendix 1
Market Attractiveness
Build Selectively
Specialize
around
limited strengths
Seek ways to
overcome
weaknesses
Withdraw if
indications
of sustainable
growth
are lacking
Expand or
Harvest
Dives
t
Invest to Build
Challenge
for
leadership
Build
selectively on
strengths
Reinforce
vulnerable
areas
Selectivity/Man
age for
earnings
Protect
existing program
Concentrate
investments
in segments
where proftability
is good & risks
are relatively low
Manage for
Earnings
Protect position
in
most
profitable
segments
Upgrade
product
line
Minimize
investment
Protect Position
Invest to grow at
max rate
possible
Concentrate
on
maintaining strength
Build Selectively
Invest
in
most
attractive
segments
Build up ability to
counter
competition
Emphasize proftability
by
increased
productivity
Protect Position
and refocus
Manage for
current earnings
Concentrate
on attractive
segments
Defend strengths
Appendix 2
Opening of Terminal 3
Appendix 3