Marketing
Evaluation of Emirates Group
Executive
Summary
The Emirates Group
is a well-established company in the tourism and aviation business providing
quality services to link the global markets. This report assesses the marketing
strategies of the Emirates Group via the completion of effective external and
internal analyses. In the analysis of strategic position, the paper utilizes
the Porter’s Five Forces to determine the organization’s competitive forces and
the STP to determine the organization’s internal forces. Some of the main
strategic fit forces include Actors’ forces; Key competitor forces; Customer
forces; and Sustainability forces. Tactical recommendations also include
intensification of the digital marketing strategies, development of the
sustainability activities, and the improvement of the customer retention
activities.
Table of Contents
Chapter Two: Company
Background
Chapter Three: External
Analysis
Chapter Four: Internal
Analysis
Chapter Five: Future
Development and Conclusion
Chapter
One: Introduction
Tourism marketing
entails the professional use of marketing concepts aimed at actualizing the
travel industry needs of tourists by selling destinations, products, and
experiences (Hinson et al., 2024). This concept is very important in the
aviation industry, which has increased on service differentiation and customer
retention. The purpose of this report is to carry out an evaluation of the
marketing strategies that the Emirates Group through external and internal
analysis. The report is structured as follows: Chapter two describes the
company overview; chapter three analyses the industry using Porter five force
model; chapter four uses the strategic target planning (STP) to analyse
internal environment; chapter five gives recommendations for future development.
Chapter
Two: Company Background
The Emirates
Group, established in 1985, is headquartered in Dubai, UAE, and operates one of
the world’s largest and most successful airlines, Emirates Group Airlines,
alongside various travel related services. The company serves over 150
destinations across six continents, with a fleet of modern aircraft and a
workforce exceeding 100,000 employees (Emirates Group, 2023).
As a key player in
the tourism industry, Emirates Group has significantly contributed to global
connectivity and tourism growth. Its premium offerings, including luxury cabin
services, state-of-the-art inflight entertainment, and exclusive lounges, distinguish
it from competitors (Doganis, 2019). Additionally, the company’s ability to
cater to both leisure and business travelers ensures its relevance in a
competitive market. Emirates Group’ strategic positioning in Dubai, a global
hub for tourism and trade, further reinforces its role as a market leader in
the aviation and tourism sectors.
Chapter
Three: External Analysis
Porter’s Five
Forces framework provides a comprehensive approach to analyse the competitive
dynamics faced by the Emirates Group in the aviation and tourism industries.
3.1
Competition
The aviation and
tourism industries are characterized by intense competition, driven by a high
number of global players and limited differentiation opportunities. Emirates
Group competes with major airlines such as Qatar Airways, British Airways, and
Singapore Airlines, all of which offer premium services and extensive networks.
Competitive intensity is heightened by price wars, frequent service
innovations, and customer loyalty programs like frequent flyer schemes
(Doganis, 2019). Additionally, the rise of low-cost carriers (LCCs) such as
Ryanair and AirAsia increase pressure on pricing strategies and market share.
3.2
Suppliers
Aircraft
manufacturers like Airbus and Boeing wield significant power in the aviation
industry due to limited supplier options. Emirates Group’ reliance on a modern
fleet of Airbus A380s and Boeing 777s results in high fixed costs and limited
negotiation power. Fuel suppliers also play a critical role, with fluctuating
oil prices directly impacting operational costs. These suppliers’ influence on
cost structure makes fuel price volatility a major challenge, requiring
airlines to adopt hedging strategies to mitigate risks (Belobaba et al., 2015).
3.3
Buyers
Customers in the
aviation industry hold moderate to high bargaining power. Pricing sensitivity
is a key factor, particularly in economy class travel, where customers compare
fares across multiple airlines. Service expectations such as comfort, inflight
entertainment, and connectivity further amplify buyer influence, particularly
among premium class passengers. Loyalty programs like Emirates Group Skywards
reduce customer bargaining power by incentivizing repeat business and creating
long term relationships (Hinson et al., 2024).
3.4
Barriers to Entry
The aviation
industry has substantial barriers to entry, including high capital requirements
for fleet acquisition, operational infrastructure, and regulatory compliance.
Economies of scale provide established players like Emirates Group with a cost
advantage, making it difficult for new entrants to compete effectively.
Additionally, government regulations concerning safety, international routes,
and environmental standards add complexity to market entry (Doganis, 2019).
3.5
Substitutes
Alternative modes
of transportation, such as highspeed trains, pose a moderate threat in regions
with well developed rail networks, including Europe and Asia. Low-cost carriers
offer a substitute for premium airlines by targeting price sensitive travelers.
Factors like brand loyalty, comfort, and travel duration influence customer
decisions to choose Emirates Group over substitutes (Belobaba et al., 2015).
Chapter
Four: Internal Analysis
The Emirates Group
utilizes the STP framework—Segmentation, Targeting, and Positioning—to meet
diverse customer needs while maintaining its status as a premium airline.
4.1
Segmentation
Emirates Group
effectively segments its market across four dimensions. Geographically, it
focuses on international hubs such as Dubai, leveraging its strategic location
to connect travelers across continents. This makes Emirates Group a preferred
choice for long-haul and transit passengers (Doganis, 2019). Demographically,
the airline caters to business travelers seeking efficiency and leisure
travelers prioritizing comfort and luxury. Psychographic segmentation targets
luxury seekers who value premium services such as first-class suites, fine
dining, and personalized customer experiences. Behaviourally, Emirates Group
appeals to frequent flyers through its Skywards loyalty program, offering
tier-based benefits to reward repeat customers (Hinson et al., 2024).
4.2
Targeting
Emirates Group
employs a differentiated marketing strategy, tailoring its offerings to meet
the specific needs of its diverse customer segments. For high income travelers,
Emirates Group provides luxury services, including private first-class cabins
and onboard lounges. Middleclass travelers are targeted with competitive
pricing in economy class and the promise of superior service compared to
low-cost carriers. Business travelers benefit from seamless transit experiences
and cutting-edge connectivity. This approach enables Emirates Group to capture
a broad market while maintaining its premium brand image (Belobaba et al.,
2015).
4.3
Positioning
Emirates Group
positions itself as a premium airline known for innovation, luxury, and
superior customer service. It emphasizes a worldclass travel experience
supported by its modern fleet, industry leading inflight entertainment, and
exceptional hospitality. A perceptual map comparing Emirates Group with
competitors such as Qatar Airways, Singapore Airlines, Lufthansa, and Turkish
Airlines illustrates its positioning. While Qatar Airways and Singapore
Airlines compete closely in luxury and service quality, Lufthansa and Turkish
Airlines target broader markets with more affordable options. Emirates Group
stands out by combining premium services with strategic connectivity through
its Dubai hub, reinforcing its competitive edge (Doganis, 2019).
Besides, this
analysis demonstrates that Emirates Group has been good at satisfying customer
needs through segmentation, differentiation, and positioning well that propels
it to leadership in the competitive aviation industry (Tavor, Gonen and
Spiegel, 2023).
Chapter
Five: Future Development and Conclusion
When examining the
Emirates Group Group’s marketing audit, several threats that may affect its
growth, as well as competitiveness in the future, are revealed. The main issue
is the intensification of competition in the market from both strong players
like Qatar Airways and others based on attractive price offers to price
conscious customers. Furthermore, market trends concerning organisational
growth embody things like new customer expectations like increased
internet-based and individualisation which pose as a threat and serves as a
threat to the group as it puts pressure on Emirates Group to constantly enhance
its service delivery solutions. In another alternative, sustainability demands
are a major concern given escalating pressures for environmentally friendly
production from customers and the regulating authorities in the aviation
industry which requires huge capital expenditures in sustainable technologies
(Doganis, 2019).
In response to
these challenges Emirates Group needs to urgently embrace digital
transformation to improve its customer relations and efficiency. For instance,
by implementing AI driven analytics, such variables as the capacity took
Somehow, adopting AI driven analytics could bring a creative approach to
shareability and facilitate customers’ engagement (Jankovic and Curovic, 2023).
Offering new tier benefits and new members’ partners globally would enhance its
Skywards customer loyalty program and boost the customers’ lifetime value
(Belobaba et al., 2015). In addition, Emirates Group needs to embrace
sustainable solutions like purchasing of efficient airlines, researching on
blended fuels and supporting carbon neutral initiatives. Such actions are not
only in response to the increasing sustainability demands, but also correspond
with worldwide environmental standards, thereby guaranteeing sustainable
business.
Emirates Group can
maintain the leading position in the cut-throat aviation environment only if
the mentioned challenges are dealt with pre-emptively.
References
Barnhart, C., Belobaba, P. and Odoni, A. (2015) The
global airline industry. https://doi.org/10.2514/4.867026.
Doganis, R. (2019). The Airline Business. 3rd ed. Available
at: https://doi.org/10.4324/9780203991916.
Emirates Group (2023). Annual Report 2023. (online).
Available at: www.emiratesgroup.com
(Accessed 27 December 2024).
Hinson, R.E. et al. (2024) 'Marketing for hospitality
and tourism,' in Productivity Press eBooks, pp. 15–23. https://doi.org/10.4324/9781032688497-2.
Jankovic, S.D. and Curovic, D.M. (2023) 'Strategic
Integration of Artificial Intelligence for Sustainable Businesses: Implications
for data management and human user engagement in the Digital Era,'
Sustainability, 15(21), p. 15208. https://doi.org/10.3390/su152115208.
Tavor, T., Gonen, L.D. and Spiegel, U. (2023) 'Customer
segmentation as a revenue generator for profit purposes,' Mathematics, 11(21),
p. 4425. https://doi.org/10.3390/math11214425.
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