3) Competitors of Emirates

Who?

Being in the airline industry, the list of competitors to Emirates are endless. However, there are a small handful of airlines and have very similar offerings of goods and services when compared to Emirates, hence becoming Emirates' main competitors.

Qatar Airways

One of the strongest competitors of Emirates is Qatar Airways. Ranked as world number 2 in 2016, Qatar offers a very similar set of goods and services as Emirates. Both airlines target the luxury airline market, offering the best flying experiences and in-flight amenities. In addition, similar to Emirates Executive, Qatar also has dedicated private jets for business personals.  Launched in 2009, Qatar Executive provides fast and efficient services that focuses on the needs of its VIP travellers who require special arrangements such as executive airport gateway and hotel reservations. As both airlines promote a very similar assembly of products and services, therefore making them competitors.

FedEx Express

Another competitor of Emirates Airways would be FedEx Express. As mentioned earlier, Emirates SkyCargo contributes to 14 percent of Emirates’ total transport revenue, meaning that the cargo business is also very crucial to them. FedEx Express being the world’s ranked number 1 airline cargo operator, competes closely with Emirates SkyCargo in the air cargo transportation business.

SWOT Analysis

Strength - Luxury Branding

Emirates Airlines is the definition of luxury, best in class. From the comfortable seats to top quality food being paired together with expensive wines, Emirates does it the best with internationally renowned chefs. Also, the in-flight entertainment system, I.C.E (Information, Communication, Entertainment) is without a doubt one of the best in the world. I.C.E has been awarded the award of ‘World’s Best In-flight Entertainment’ by Skytrax for numerous years since the system was first introduced in 2003. Emirates is recognized internationally by its many extravagant amenities, though sometimes excessive, such as the spa shower. Emirates as a brand has positioned itself as being the number 1 luxury airline in the world, and has done it successfully.

In-flight Bar

Spacious First Class seat that can be reclined into a bed

Weakness - Not Part of Any Alliance

Currently, Emirates Airlines is not part of any airline alliance. This brings forward a weakness as most of its competitors are members of alliances. By joining an airline alliance, Emirates would be able to reap the benefits such as being able to expand and reach to a greater customer scope internationally, without a huge expansion or full merger with another airline. In addition, other benefits of joining an alliance include shared knowledge and practices with other airline to further improve service quality, and making use of the increased network size to further market itself to boost the brand of Emirates globally. Not being part of an alliance does prove to be a weakness to Emirates when linked to the fact that they striving to further expand themselves to more markets around the world.

Members of Star Alliance, world's biggest airline alliance

Opportunity - World Expo 2020

World Expo 2020 that will be held in Dubai opens a huge opportunity for Emirates Airlines. It is reported that up to 25 million visitors is expected, and 71 percent of which are visitors from outside of Dubai. This creates a huge pool of travelers for Emirates to tap upon. In addition, it has been projected that the expo would create 147,000 job opportunities in the tourism sector. Emirates can also make use of this opportunity to hire more staff for their expanding fleet. World Expo presents itself as a grand opportunity for Emirates to exploit commercially in many areas, and hence should not be missed.

Rendering of World Expo 2020 site in Dubai

Threat - Low Cost Carriers

Nearly half the air journeys flown in the U.S and Western Europe are on low-cost airlines, creating a direct threat to legacy carriers such as Emirates Airlines. The fact that Emirates deliver world class in-flight amenities and services, there is no way they can charge customers a budget price for it. Hence, with the rise of low-cost carriers, Emirates are losing more and more of their market share due to being unable to compete on the price level. In addition, more low-cost airlines are now targeting business travelers by introducing incentives such as loyalty programs, putting more pressure on legacy airlines. One strategy that many legacy airlines have since adopted is to launch their own low-cost subsidiaries to compete directly. As Emirates do not have a lower cost counterpart, low-cost carriers are becoming an apparent threat.

Southwest Airlines - World's Largest Low Cost Carrier

References:

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Qatar Executive. (n.d.). Retrieved May 23, 2017, from http://qatarexec.com.qa/

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Qatar Airways Logo. (n.d.). Retrieved from https://upload.wikimedia.org/wikipedia/commons/c/c2/Qatar_Airways_Logo.png

Emirates In Flight Bar. (n.d.). Retrieved from http://i.dailymail.co.uk/i/pix/2014/10/08/1412758390647_wps_2_A_stewardess_poses_inside.jpg

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Star Alliance Members. (n.d.). Retrieved from http://www.adventuresinwanderland.net/wp-content/uploads/2017/03/Photo-of-Star-Alliance-Airlines.jpg

FedEx Logo. (n.d.). Retrieved from http://www.pngpix.com/wp-content/uploads/2016/07/PNGPIX-COM-FedEx-Logo-PNG-Transparent.png

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