Emirates And Star Alliance

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Emirates started its initial routes with just two aircrafts on 25th October 1985. Their goal has always been quality, not quantity and after many years of developing itself in the regional level with small steps Emirates emerged into an internationally successful travel and tourism solely known for the standards of high quality in all the fields of their business.
Emirates is wholly owned by the Dubai Government but it has increased in scale with the help of its dedication and competition. After the initial investment, Dubai Government treated Emirates as a business entity which was wholly independent and they are thriving due to that reason. With recording the annual profit in every year from its third year in operation, Emirates is continually
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Emirates considered joining the Star Alliance in the year 2000, but then dropped the idea. Emirates was also offered to join the other international alliances, but it refused to do so. The reason being - UAE is geographically small but it has a very big influence on the GCC countries politically because Dubai is the commercial hub of the GCC. Hence, Emirates has an advantage concentrates on forming its own alliances, which it considers much more beneficial for itself. Emirates serves emerging markets such as the Middle East, Africa and West Asia which have low internet penetration rates and low credit card usage. Their vision is to build and maintain the market leadership that looks beyond the well worn path. (O’Connell,…show more content…
It is really difficult for a new airline company to enter the industry. The airline industry really needs an high investment amount to enter the industry and start up a new airline. Therefore there is a very low threat of new entrants.
Bargaining power of the suppliers: The main suppliers for the airline industry are Boeing and Airbus. Therefore, they have a huge control over the price making. Emirates is known for their specialized fleet of its Boeings and the Airbus. Hence there is less choice for Emirates, so there is a lot of control over the price within the hands of the suppliers.
Bargaining power of the buyers: The customers have a lot of options nowadays and this can affect the airlines both ways. There are many other airlines to choose from. Emirates tries to keep its customers with them as much as they can which lead to Emirates introducing the Air Miles system and many other rewards as
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