Emirates Case Study - Globalisation (MN159) PDF

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Dr. Richa Chugh...

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MN159 Global Business & Marketing Emirates Case Study for Tutorial 2 Questions 1. Explain how Emirates pursues internationalism. 2. Discuss the 3 key drivers of globalisation that have aided the success of Emirates! 3. What are some of the negative consequences for Dubai and Emirates from globalisation?

Question 1 Internationalism is the act of doing business abroad. This means that activities in the value chain are being internationalised. Emirates pursued internationalism by:

- Sourcing/procurement: Purchasing new aircraft from international aircraft manufacturers such as Boeing and Airbus.

- Sales/Operations in different markets/consistent expansion: Emirates began providing a non-stop service to SIX continents from ONE hub - 100 destinations in 60 countries!

- Marketing: Emirates had been sponsoring international events such as Cricket, FIFA, Rugby, etc.!

- Human Resource Management: The airline has employees from 100 different nationalities! - Emirates value chain has global elements! Question 2 3 Key Drivers that aided in the success of Emirates

1. Reduction in trade barriers/background • Emirates grew their flight network to over 100 destinations in 60 countries over the world viewing the world as their market • Emirates have an Open Skies Policy, which has helped other airlines operate in Dubai. This has also allowed Dubai to fly to over 100 destinations • Dubai was an optimal location for Emirates which attributed to the company becoming a 'global and profitable airline”! • They successfully compete with rival transit hubs such as Singapore, Bangkok, Kuala Lumpar and Seoul. !

2. Advancements in Technology • Innovative introductions - the installation of 'in-flight personal video systems for passengers, telecommunications in all three classes, and an in-flight fax facility'! • Refurbished DXB Intl. Airport - brand new terminal exclusive for Emirates usage (2008). Also the expansion of the facilities in DXB and their Open Skies Policy! • Purchased better aircrafts carrying 500 passengers to lower passenger-per-mile costs!

3. Market Liberalisation • Emirates continued flying during both Kuwait wars (1990 & 1991) and still retained 90% of its services, although every other airline flying in the region had grounded/reduced flights, which in turn, suffered a loss... Emirates continued to make profits during these times! • Emirates helped grow the demand for services as people would fly to and from emerging economies and between continents = Europe - Asia - Africa! Question 3 Negative consequences from globalisation for Dubai and Emirates Firm level consequences such as:! • Global Competition: Qatar, Ethihad, etc.! • Dubai vs London vs Paris CDG vs Singapore! • Contagion effect of any financial/economic/political crisis! Societal consequences such as:! • Environmental costs: Increasing levels of Green House gasses, more specifically, this could affect the Middle East at a more concerning rate.!...