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1 has Emirates been able to build a strong brand in the competitive airlines industry worldwide?Emirates is one of the largest airlines in the middle east which is operating over 3,300 flights per week from its center at Dubai International Airport, to more than 148 cities in 78 countries across six...

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1.How has Emirates been able to build a strong brand in the competitive airlines industry worldwide?

Emirates is one of the largest airlines in the middle east which is operating over 3,300 flights per week from its center at Dubai International Airport, to more than 148 cities in 78 countries across six continents. It is also the seventh largest airline in the world in terms of revenue and it is AED 83 billion and the largest airline in the middle east in terms of revenue, fleet size, and passengers carried. Its passenger number also increased from 44.5 million to 49.2 million over the same period, Passenger seat factor increased by 0.2% to 79.6%. They able to build a strong brand by lean business resource, getting support from the Dubai government, high employee satisfaction, high customer loyalty, being innovative with time is the prime factors to build itself as a brand in airline industry. It has invested in the program called “Tailored Arrivals” which allows the air traffic control to uplink to air craft new route by determining the speed and flight profile from the air onto runway, which helps the crew to accept and fly a continuous descent profile, and helping in saving fuel and emissions. Wide area of business activity also a reason to be able to build a strong brand in the competitive airlines industry worldwide.

2.What are some of the apparent weaknesses with the company's strategic direction? How can the airlines address them? Emirates has strongly built their brand in airlines industry and strategically positioning themselves but they are lack in taking into considerations of their competitors in determining their future directions. Here is some deficient of the company’s directions   

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Overlooking to the fault of marketing strategies, and over confident about their position in aviation industry. Absence of international alliance as they are not art of any alliance. Ignoring the competition: they totally ignore their competitors like Gulf Air Company GSC, Air France, Lufthansa AG, British Airways, and Qatar Airways Group. They do not look into the pros and cons of their competitors. for example- Etihad airways and many other airways have also signed the open skies policy and are ready to compete with emirates at a very competitive price with the same quality of service. They only target the elite class people as their customer which is also a threat for them in future, as because if people get same service at a low price, they will go for that.

Solutions to above addressed issues:      

Improving inflight service meanwhile taking cognizance of completion offerings. The routes need to be extended. They need to develop their products like developing private suits. Incorporating in budget airlines. By repositioning and aggressively evolving novel strategies as per the target market response. They can roll out packages for non-premium class travelers.

Though Emirates has a strong brand position but if they want to keep it for the long run, they need to do some changes in mentioning above in their strategic direction.

3. With the decline of fuel prices globally, airline companies continue to reap the benefits. What impact will this have on Emirates’ business strategy in the future? Decline in fuel price globally shall affect Emirates business strategy in the following way 

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Company will now attract cost conscious customers through declining of fuel price. To reduce price-fluctuation risk on projected operating costs, many airlines hedge a proportion of their future fuel needs six to 24 months in advance by buying jet fuel or crude oil contracts from banks or on an oil futures market. When the oil price is falling, options would be in favor of emirates as it is cheaper to hedge forwards and get protection if prices go up, but if one pays a premium for options, they also retain the potential to benefit from lower oil prices more immediately. Risked slower growth in the coming years as heavy investments in new planes and premium-class services begin to erode profit margins....