TABLE OF CONTENTS

1.0 INTRODUCTION
1.1 COMPANY BACKGROUND 1
1.2 MISSION STATEMENT 1
1.3 VISION STATEMENT 1
2.0 EXTERNAL ASSESMENT
2.1 OPPORTUNITIES 2
2.2 THREATS 2
2.3 EXTERNAL FACTOR EVALUATION (EFE) 2
3.0 INTERNAL ASSESMENT
3.1 STRENGTHS 3
3.2 WEAKNESSES 3
3.3 INTERNAL FACTOR EVALUATION (IFE) 3
4.0 SWOT ANALYSIS 4
5.0 COMPETITIVE PROFILE MATRIX (CPM) 5
6.0 SPACE MATRIX 6
7.0 GRAND STRATEGY MATRIX 7
8.0 QUANTITTAVE STRATEGIC PLANNING MATRIX (QSPM) 8
9.0 RECOMMENDED STRATEGIES 8
10.0 CONCLUSION 9
1.0 INTRODUCTION

1.1 COMPANY BACKGROUND

Emirates Group is based in Dubai, United Arab Emirates (UAE) and it includes of Emirates
Airline and also Dubai National Air Transport Association, commonly known as Dnata, an
Emirati company that specializing in aviation ground handling services. Emirates Airline is the
fastest growing and largest airline in the Middle East. The airline flies to more than 130
destinations in 70 countries on six continents and offers direct flights from Dubai to
Washington DC, San Francisco, Los Angeles and Seattle. Emirates Airline thrives under the
‘wide open skies’ policy which has brought more than 100 foreign airlines. More than 1,200
Emirates flights depart from Dubai each week and that makes for about 40% of all air traffic
out of Dubai International Airport.

Besides that, Emirates Airline also was ranked one of the best among top ten best airlines in
the world. The airline carries approximately 40 million passengers and 2.0 million tons of cargo
annually, using a fleet of more than 170 aircrafts. By using large planes such as Airbus 380 and
Boeing 777, Emirates Airline is renowned for its luxurious in-flight services for its high-end
passengers in the first class as well as in the business and economy class. The airline has been
placed on par with Singapore Air based on the overall business model of top service at a
premium price and markets served.

Emirates Group is wholly owned by the government of Dubai and is operating under the
Investment Corporation of Dubai. Its annual revenues are more than 73.1 billion Dirham and
have more than 67,000 employees.

1.2 MISSION STATEMENT

Emirates Group’s mission is “to become one of the top lifestyle brands in the world”

1.3 VISION STATEMENT

To be known as the leading airline globally in providing the highest quality, service, and
convenience for every passengers.

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2.0 EXTERNAL ASSESSMENT

2.1 OPPORTUNITIES

1. Building global hub and spoke system.

2. Opportunity to enter new markets.
3. Leverage Emirates Airline’s infrastructure business.
4. Develop more advanced airline and aviation services.

2.2 THREATS

1. Competitive forces from other airlines such as Singapore Airlines Group, British
Airways, Delta, Middle East Airlines, flydubai and such.
2. Economic forces.
3. Political, governmental and legal forces.
4. Volatility of fuel prices. The increase of fuel prices can increase the operational costs.

2.3 EXTERNAL FACTOR EVALUATION (EFE)

Key External Factors Weight Rating Weighted
Score
OPPORTUNITIES
1. Building global hub and 0.10 2 0.20
spoke system.
2. Opportunity to enter new 0.15 3 0.45
markets.
3. Leverage Emirates Airline’s 0.10 2 0.20
infrastructure business.
4. Develop more advanced 0.10 2 0.20
airline and aviation business.
THREATS
1. Competitive forces. 0.20 3 0.60
2. Economic forces. 0.10 3 0.30
3. Political, governmental and 0.10 2 0.20
legal forces.
4. Volatility of fuel prices. 0.15 4 0.60

TOTAL 1 2.75

4 - Superior response, 3 - Above average response, 2 – Average response, 1 – Poor response

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3.0 INTERNAL ASSESSMENT

3.1 STRENGTHS

1. The world’s largest fastest growing and more profitable airline.

2. Owned by the government of Dubai.
3. Provide excellent and high quality services for first class passengers as well as for
business and economy class passengers.
4. Strategic location.
5. One of the largest airline in the world.

3.2 WEAKNESSES

1. High prices compared to competitors.

2. Rising fuel prices hurt overall profits.
3. Overly ambitious and unsustainable future growth plan.

3.3 INTERNAL FACTOR EVALUATION (IFE)

Key Internal Factors Weight Rating Weighted
Score
STRENGTHS
1. The world’s largest and 0.14 4 0.56
fastest growing and more
profitable airline.
2. Owned by the government of 0.12 3 0.36
Dubai.
3. Provide excellent and high 0.15 4 0.60
quality services for passengers
in every classes.
4. Strategic location. 0.12 3 0.36
5. One of the largest airline in 0.13 4 0.52
the world.
WEAKNESSES
1. High prices compared to 0.13 1 0.13
competitors.
2. Rising fuel prices hurt 0.12 1 0.12
overall profits.
3. Overly ambitious and 0.09 2 0.18
unsustainable future growth
plan.

TOTAL 1 2.83

4 – Major strength, 3 – Minor strength, 2 – Minor weakness, 1 – Major weakness

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4.0 SWOT ANALYSIS
STRENGTHS WEAKNESSES
1. The world’s largest fastest growing 1. High prices compared to competitors.
and more profitable airline. 2. Rising fuel prices hurt overall profits.
2. Owned by the government of Dubai. 3. Overly ambitious and unsustainable
3. Provide excellent and high quality future growth plan.
services for first class passengers as
well as for business and economy
class passengers.
4. Strategic location.
5. One of the largest airline in the world.

OPPORTUNITIES THREATS
1. Building global hub and spoke 1. Competitive forces from other
system. airlines such as Singapore Airlines
2. Opportunity to enter new markets. Group, British Airways, Delta,
3. Leverage Emirates Airline’s Middle East Airlines, flydubai and
infrastructure business. such.
4. Develop more advanced airline and 2. Economic forces.
aviation services. 3. Political, governmental and legal
forces.
4. Volatility of fuel prices. The increase
of fuel prices can increase the
operational costs.

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5.0 COMPETIVE PROFILE MATRIX (CPM)
CRITICAL WEIGHT EMIRATES SINGAPORE BRITISH FLYDUBAI
SALES FACTOR AIRLINES AIRWAYS
GROUP
RATING SCORE RATING SCORE RATING SCORE RATING SCORE

Advertising 0.10 3 0.30 3 0.30 2 0.20 2 0.20

Price 0.10 3 0.30 2 0.20 2 0.20 1 0.10
competitiveness
Customer loyalty 0.10 3 0.30 3 0.30 2 0.20 2 0.20
Global 0.20 4 0.80 3 0.60 3 0.60 1 0.20
expansion
Product quality 0.10 4 0.40 3 0.30 3 0.30 2 0.20
Financial 0.15 3 0.45 2 0.30 2 0.30 1 0.15
position
Market share 0.05 2 0.10 2 0.10 1 0.05 1 0.05
Management 0.05 3 0.15 3 0.15 2 0.10 2 0.10
Branding 0.15 4 0.60 3 0.45 2 0.30 2 0.30
TOTAL 1 3.40 2.70 2.25 1.50

The Competitive Profile Matrix (CPM) identifies a company’s major competitors and its
particular strengths and weaknesses in relation the company’s strategic position. In CPM, the
ratings as well as the scores for competitors are compared and this comparative analysis will
provide important internal strategic formulation.

Based on the CPM above, Emirates is doing well compared to its competitors, Singapore
Airlines Group, British Airways and also flydubai.

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6.0 SPACE MATRIX
INTERNAL STRATEGIC POSITION EXTERNAL STRATEGIC POSITION
Financial Position (FP) Stability Position (SP)

 Governmental aid (6)  Rising oil prices (-5)

 Financial stability (3)  Competitive pressure (-6)
 Company worth (5)  Demand variability (-4)
 Passenger revenue (6)  Barriers to enter market (-3)
 Total revenue (5)  Government regulations (-3)

Average score : 5 Average score : -4.2

Competitive Position (CP) Industry Position (IP)

 Customer loyalty (-1)  Financial stability (4)

 Product quality (-2)  Ease to enter market (2)
 Number of flights (-3)  Growth potential (5)
 Service quality (-3)  Profit potential (4)
 Technological know-how (-3)  Transportation alternative (5)

Average score : -2.4 Average score : 4

Figure 1 SPACE Matrix

Since Emirates is placed in the Aggressive quadrant, the company can aggressively grow its
business raising stakes for its competitors due to its strong competitive position and rapid
growth in the market.

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7.0 GRAND STRATEGY MATRIX

Rapid Market Growth

Quadrant II Quadrant I

EMIRATES

Weak Strong
Competitive Competitive
Position Position

Quadrant III Quadrant IV

Slow Market Growth

Figure 2 Grand Strategy Matrix

Grand Strategy Matrix is a formulating tool used by the company to formulate strategies. It has
four quadrants and each quadrant contains different set of strategies. This matrix has two
dimensions, the competitive position and also market growth.

Since Emirates is positioned in this quadrant, the company is likely to have a strong strategic
position. The company concentrates on its established competitive advantage, which is offering
high quality services for every passengers and at the same time focusing on the existing market
by adopting sets of product development, market development as well market penetration.

Besides that, to minimize any risks, Emirates goes for related diversification strategy to
minimize the risk associated with the product line. The company also can take risks
aggressively when necessary.

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8.0 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)
Key Factors Weight Strategy 1 Strategy 2
Add more routes Strategic
alliances
OPPORTUNITIES AS TAS AS TAS
1. Building global hub and spoke 0.10 3 0.30 2 0.20
system.
2. Opportunity to enter new markets. 0.15 3 0.45 4 0.60
3. Leverage Emirates Airline’s 0.10 3 0.30 3 0.30
infrastructure business.
4. Develop more advanced airline and 0.10 0 0 0 0
aviation services.
THREATS
1. Competitive forces. 0.20 2 0.40 2 0.40
2. Economic forces. 0.10 2 0.20 1 0.10
3. Political, government and legal forces 0.10 2 0.20 2 0.20
4. Volatility of fuel prices. 0.15 0 0 0 0
. TOTAL 1
STRENGTHS
1. The world’s largest and fastest 0.14 3 0.42 2 0.28
growing and more profitable airline.
2. Owned by the government of Dubai. 0.12 0 0 0 0
3. Provide excellent and high quality 0.15 0 0 0 0
services for passengers in every classes.
4. Strategic location. 0.12 4 0.48 2 0.24
5. One of the largest airline in the world. 0.13 3 0.39 0 0
WEAKNESSES
1. High prices compared to competitors. 0.13 0 0 1 0.13
2. Rising fuel prices hurt overall profits. 0.12 2 0.24 0 0
3. Overly ambitious and unsustainable 0.09 0 0 0 0
future growth plan.
TOTAL 1 3.38 2.45

4 – Highly attractive, 3 – Reasonably attractive, 2 – Somewhat attractive, 1 – Not attractive

9.0 RECOMMENDED STRATEGIES
Based on the Quantitative Strategic Planning Matrix (QSPM), there are two alternative
strategies that can be considered by Emirates, either adding more routes or form a strategic
alliances with other companies. After computing the Total Average Score (TAS) for both
strategies, it can be seen that the first strategy which is to add more routes has a higher score
(3.38), compared to second strategy (2.45).
By doing so, this highly can increase the number of sales of Emirates and the company will
make more profit indirectly. At the same time, it gives more preferences to the passengers to
reach their favoured destinations. For example, the company can add more routes to Latin
America region. As a result, this will benefit both American and Latin America segments and
at the same time increasing Emirate’s market shares and sales.

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10.0 CONCLUSION
In conclusion, Emirates Group makes a comprehensive analysis and review of its internal and
external factors as well as its competitors. As we already know, Emirates Group is a well-
known and established company in an airline industry. To stay in a good position in the
industry, the company should consider of developing new strategies that can help the company
to perform better than its competitors such as Singapore Airlines Group, British Airways, Delta
and few more. Besides that, with a clearly stated mission and vision statement, helps Emirates
Group to conduct a proper action to achieve its missions and objectives.

Based on the Quantitative Strategic Planning Matrix (QSPM), there are two alternative
strategies that can be considered by the company. As a result, the company should expanse its
destinations by adding more new and unique routes and destinations to spread its current
market in the airline industry. By doing so, this will help the company to gain more profits and
increasing its’ revenues and sales by attracting more passengers to fly with Emirates.

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