Emirates Airline: SWOT Analysis of Its Strengths, Weaknesses, Opportunities, and Threats - Essay Sample

Introduction

The Emirates airline is a government-owned carrier airline and a subsidiary of The Emirates Group. Emirates airline is the largest airline in the Middle East flying across six continents, with over 161 destinations in 85 countries ("Emirates about us," 2020). Since its establishment, Emirates has taken opportunities to grow into one of the world-renowned airlines. However, like any other corporation, Emirates airline has some threats and limitations as displayed by the SWOT analysis, which create obstacles to achieving their objectives.

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Opportunities

Changes in the taxation policies present the opportunity to raise profits due to a favorable market. An increase in the share market will minimize the operation cost due to the low spending rates in the business (Phadermrod et al., 2019). The state government formulates policies that are supportive to businesses hence increasing their annual revenue which will boost the country's economy. In 2018-2019, the Emirates airline invested 3.9 billion dollars into new equipment, modern technology, and company acquisition as compared to 2.5 billion dollars from the previous year ("Emirates airlines," 2020). New taxation policies will lower the expenses, thus increasing the sales revenue and net profit.

Technology advancement has resulted in the emergence of new sales channels from online sources. Online channels provide airline companies with a better understanding of consumers' needs hence offer them better services. Emirates airlines carried 56.8 million passengers in 2018-2019 ("Emirates airlines," 2020). The airline offers online customer care services and online ticket sales through third-party agents which is convenient to use. Modern technology allows the expansion of online channels to accommodate the high number of customers and attract new ones.

Emirates airline is a renowned brand located in Dubai, a centre for regional and international trade and one of the leading tourist destination in the world ("Emirates about us," 2020). In recent year, branding has been a significant element in the marketing sector when attracting new customers (Phadermrod et al., 2019). The airline has also developed partnership programs with top sporting clubs such as Real Madrid, Arsenal, AC Milan, and Paris Saint Germain ("Emirates about us," 2020). The football clubs have increased the recognition of the Emirates brand across the world. Sporting events present opportunities for advertising, therefore, more partnership programs will improve their brand and attract new consumers.

Threats

The emergence of disease pandemics such as the Coronavirus (COVID-19) poses a threat to businesses including, airline services. Pandemics restrict the movement of people to contain the spread of the disease hence crippling the transport industry (Phadermrod et al., 2019). Currently, Emirates has cancelled all international flights across the world, which was their highest source of revenue ("Emirates airlines," 2020). The airline has also incurred further maintenance expenses for their inactive fleet of airplanes and payment of employees. A pandemic may occur at any given time, and even medical experts cannot estimate the period it may last thus posing a threat to businesses due to decreased revenue.

Competitors using trendy technology and promotion offers may lure customers away from Emirates airline. Emirates is an established brand and is quite expensive to ordinary people, therefore, competitor airlines with similar services but slightly lower prices have a chance to attract more customers ("Emirates swot," 2017). The lowered fees from competitors will also lead to a general loss of market shares because of decreased revenues. Recently, they have been a rise in airline companies with better services and packages such as Fly Dubai.

An increase in the input cost and expenses threatens the annual revenue of Emirates airline. The government changing taxation policies may bring additional taxes which will increase the tax payments ("Emirates swot," 2017). A rise in fuel cost will also affect Emirates as it will significantly increase their annual expenses ("Emirates swot," 2017). Furthermore, due to the increased number of competitors, suppliers have the bargaining power and control over the pricing of equipment and fuel.

References

Emirates about us. (2020, February 25). Emirates. Retrieved 25 March, 2020, from, https://www.emirates.com/us/english/about-us/

Emirates airlines swot analysis matrix [step by step] weighted swot. (2020, January 18). Fern Fort University. Retrieved 25 March, 2020, from, http://fernfortuniversity.com/term-papers/swot/1433/1139-emirates-airlines.php

Emirates swot analysis. (2017, May 24). Eforemirates. Retrieved 25 March, 2020, from, https://eforemirates.wordpress.com/2017/05/24/swot-analysis/

Phadermrod, B., Crowder, R., & Wills, G. (2019) Importance performance analysis based swot analysis. International Journal of Information Management, 44. 194-203. https://doi.org/10.1016/j.ijinfomgt.2016.03.009.