Emirates Five Forces Analysis

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Emirates Airline, the Dubai-based airline provides top-class service and in-flight experiences to its customers. Their commitment to its customers has been a key differentiator in the Air line industry, allowing it to garner a significant amount of market share.
In year 1985, Emirates flew its first route out of Dubai with two aircrafts-a leased Boeing 737 an Airbus 300 B4. By mid 1980’s Gulf air cut back its services to Dubai, Emirates Air line was conceived in 1985 with a backing from Dubai’s royal family. Government of Dubai has been provided capital of USD 10 million to develop a regional focus to connect underserved markets.
With the advent of the Gulf war, business increased for Emirates as the war kept other airlines out of the area.
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An in-depth analysis of Emirates and its industry has been completed in subsequent sections in order to devise strategic recommendations for Emirates to best address its weaknesses, leverage its strengths and capitalize on market trends.
To better understanding the dynamics of the airline industry where Emirates is a part, a Porter’s Five Forces analysis performed. It reflects how Emirates strategies are sustainable at present day business. SWOT analysis on Emirates Hub-and-spoke concept evaluates strength and weaknesses of the concept.
Finally this report evaluates what are the reasons behind on Emirate’s success and how Government of Dubai supports them and Emirates strategy and
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The size of this industry is relative smaller in comparison to under industries. Hence the buyers and in our case, prospective passengers have little power to influence the market. Emirates cater to a segment that is not very price sensitive. Its premium offerings and price allows it to retain a segment of loyal business travelers. Without mass switching to another airline, buyers have little power at their perusal.
 Force 5: Supplier Power
One of the external powers that Emirates continually deals with is the supplier environment. Supplies are in the form of service expertise and most critically – Jet Fuel. With Saudi Arabia’s decision to regulate fuel costs by limiting the supply of oil, the supplier power in this case is prominent. Rising fuel costs have led to decrease in the revenue of the airline and it also reflects in the marginal increase in the price of their fares every few
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