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The global tourism industry has been affected severely by the Sudden breakout of the Coronavirus pandemic. Especially after the strict restriction on the free movement of the people across nations, it has become a challenging situation for certain industries to maintain its consistency in performance and sustainable scalability. Most importantly the aviation industry has become vulnerable to the threats of low tourism, less customer and more expenses on certain safety measures for the companies(Maneenop and Kotcharin, 2020). Even after the global lockdown has ended yet the travellers are sceptical about moving through any transport, especially international travellers have significantly decreased their journeys. The customers are less likely to travel due to the safety issues which has affected the usual business operations of aviation industries.
Emirates is also facing certain issues during the pandemic situation which have impacted the business productivity and profitability extensively. In order to deal with the situational demand, the company has adopted some of the major strategies concerning the safety and security of the customers which is can bring their operational success into the right track(Serrano and Kazda, 2020). This report will analyse the impact of the present situation on the company activities and evaluate the strategies which have been taken by the company to mitigate the potential risks and adjust to the current circumstances.
2. Macro and Microenvironmental analysis
2.1 SWOT
Strength
Weakness
· Emirates has a robust background and is adequately supported by the Dubai Govt.
· The airline has a strong customer preference. Especially during h pandemic situation, the company has introduced some of the major services which have strengthened the brand to attract more people.
· It has an efficient employee force of more than 50,000 people.
· The airline operates in over 70 nations in 6 continents.
· Focused advertising strategy through TVC, print and other online platforms.
· The airline company depends entirely on the international onward moving traffic. But the customer amount has sufficiently weakened by the hit of Covid-19.
· The company has been facing challenges to maintain the standards of its services as the expenses are rising constantly due to the excessive fund investment on the safety measures.
Opportunity
Threat
· The new fleet of the company can be effectively utilized for the growth of the company preference and also to enhance the customer trust and confidence o the company.
· Emirates can hold more business by starting collaborative ventures with international players.
· Emirates has huge threats from the rising competition of the middle east market which can extensively affect the business operations of the company and hinder the usual operational advantages of the company.
· The recent outbreak of Covid-19 has also impacted the business sufficiency immensely which has increased the treat for Emirates.
· Fuel cost is another significant factor that can affect the margins of the company.
· The Govt, policies and strategies are constantly evolving because of the pandemic. This can affect the operations of the company.
The international airlines are always exposed to global political developments and get significantly affected by global political dimensions (Nižeti?, 2020). Increasing global concerns of security and the rising terror attract threats are disrupting the business of Emirates massively. Emirates also operates in multiple emerging nations which Include some of the Muslim nations (Sun, Wandelt and Zhang, 2020). Some of the nations are not open for international travel due to security concerns. This has a severe impact on the business of Emirates.
Economical
Being an international airline, Emirates deals with international currencies (Nižeti?, 2020). Thus,thesudden changes in exchange rates and the development in the international macroeconomy can impact the business of Emirates significantly.
Social
The rising population across the globe has been creating certain opportunities for the airline industry (Sun, Wandelt and Zhang, 2020). Especially the craving for travelling among the millennials is constantly growing which is a good sign for Emirates as well as the other airline companies. But after Covid-19 breakout, it has been difficult for the company to regain its customer strength.
Technological
The customers are now well aware of the technologies and demand for new digital services for convenient travel (Nižeti?, 2020). Therefore, it has become important for airline companies to incorporate new technologies to generate more customer preference. IT technologies have shaped Emirates in a huge way.The organization utilizes numerous IT/IS systems and allows the use of the internet to connect with its clients and employees(Serrano and Kazda, 2020).The company has incorporated temperature checking equipment, biometrics, digital menu services etc. to upgrade the safety measures for the customers during the pandemic situation.
Legal
The legal barriers are also considered as serious challenges as many policies on international movements have been into practice (Alanezi and Al-Zahrani, 2020). For Emirates, it was difficult to deny the accusation made by the US carriers as they blamed Emirate for unfair market competition. Emirates has been accused of conducting unfair business practices by the American carriers.
Environmental
Environmental factors are also associated with the airline operations hurricanes, storms, snowfall etc. can hinder the airline activities. Also, the airline industry is responsible for the overall 12% of the carbon emission in the transport industry (Sun, Wandelt and Zhang, 2020).After the pandemic, it has become important to make sure the disposal of hygiene products are maintained well to restrict the spread of the virus in the air.
3. Evaluation of the Marketing objectives and marketing strategy
3.1 Marketing Objectives
Being one of the leading aviation company Emirates has a strong international business with a good customer base across the 70 nations where the company has been operating. Although the company has a strong competitive stand in the international market yet the sudden hit of the Covid-19 has impacted the company operations and revenue collection significantly (Alanezi and Al-Zahrani, 2020). Currently, the company's main objective is to attract customers to increase their revenue growth. Providing the customers with utmost safety and ensuring the proper measures for a safe journey.
3.2 STP analysis
Segmentation
Emirates segments its market in two dimensions. One is profitable and another is unprofitable, the business class customers are the key source of their profitability. They are willing to pay for the luxurious services (Barbot, Costa and Sochirca, 2008). The economic class travellersare more concerned about their expenses. The brand loyal customers re those who have been travelling with this company for several years and are less likely to switch airline company.
Targeting
Emirates addresses the requirements of the high ranked executive class between the age group of 30-60. It caters to the people who prefer luxury and convenience while travelling. Emirates address the demands and serves all the nationalities without any boundaries.
Positioning
Emirates offers benefit-oriented services and serves unique services to the customers. Emirate's positioning strategy is universal and innovative which focuses on offering value worthy services to their customers.
4. Market Analysis
4.1 7p analysis
Price
Emirates utilizes a premium pricing strategy as it delivers luxurious services. Which differentiate them from, the competitors (Sun, Wandelt and Zhang, 2020). They also focus on the quality of the services and thus keep a high pricing approach to maintain the standard of those services. But during the Covid-19 pandemic, the company has considered the concerns associated with the affordability of common people and provides offers to build customer trust.
Product
Emirates operates a fleet of 120 wide-body aeroplanes and connects to 108 locations across six nations in 60 countries (Barbot, Costa and Sochirca, 2008).Each year, Emirates significantly increases its aircraft.Emirates has received 12 A380s this year and has set an order for another 78 A380s.Eight Boeing 777 cargo aircraft were ordered by Emirates previous to this. Emirates has also launched its services which allows the customers to use their tickets anytime within the 24 months from the booking original date.
Place
As it holds a very important role in terms of its location and oil reserves, Dubai functions as the central Emirates hub.Emirates has 11 travel shops in the UAE and 122 travel stores globally aimed at offering excellent facilities, in addition to having its airport terminal in Dubai.
Promotion
The emirates use a mix of both classical and complementary marketing techniques.Some instances include ads in newspapers, magazines, tv and posters including a website in 9 different languages.The purpose is to reach clients of all ethnicities (Nižeti?, 2020).However, the primary method in which Emirates markets itself is to raise brand recognition by organizing numerous events. During the pandemic, the company has concentrated more on digital promotion of the safety measures and processes to assure the customer's better experience.
People
Emirates holds a huge employee base and is concerned about employee safety and efficiency. he authority has increased its safety measures for the employees and also implemented work from a home policy where possible. They have also provided the options for the employees to take paid or non-paid leaves to adjust the flying capacity.
Process
The Emirates authority is well aware of the fact that the situational crisis after Covid-19 will affect the growth and profit of the company. Safety has been one of the most important factors among the travellers and the authority has taken some of the drastic measures to mitigate the issue as much as possible by providing appropriate services (Serrano and Kazda, 2020). The employees are well equipped and trained to grip the customers. The operations are designed according to the requirements of the customers.
Physical evidence
Emirates recognizes the importance of physical evidence. Thus, they concentrate on the excellence of the services (Nižeti?, 2020). The Emirates authority understands the consumer expectations and tries to offer the required services with proper quality to satisfy customer preferences. Considering the current situation of the world the Emirates is providing free PCR test for UK residents, free hotel stays sanitation kit etc. They have introduced technology to assure proper and safe journey of the customers. The customers are checked before flight boarding through temperature check, they are also provided with an individual hygiene kit, biometric check-in is also available at airports to avoid physical contact etc.
5. Recommendation
The airline should strategize its sanitization processes more specifically and should have a proper budget plan for the measures of medical procedures and other clinical services.
Emirates should spread the safety approaches taken by them to ensure that every traveller gets to know the safety level and feel confident about their next flight.
6. Conclusion
The fundamentalconcern of the current situation is the consistency of the Covid-19 pandemic which has been affecting the usual business procedures of the aviation industry hugely. It has become a matter of severe concern as the tourism industry has been affected majorly reflecting on the low revenue collection of the aviation sector. The Emirates is one of the leading aviation companies which has also been affected by this massive hit of Covid-19. The company has taken every possible measure to secure the lives of the travellersand to attract them back into Dubai for tourism. The report has attempted to clarify their approaches and current practices to assure safety to the customers while maintaining the revenue growth of the company.
References
Alanezi, F. and Al-Zahrani, R., 2020, January. Strategic Management of Emirates Airlines. In Proceedings of the 2020 2nd Asia Pacific Information Technology Conference (pp. 172-177).
Barbot, C., Costa, Á. and Sochirca, E., 2008. Airlines performance in the new market context: A comparative productivity and efficiency analysis. Journal of Air Transport Management, 14(5), pp.270-274.
Maneenop, S. and Kotcharin, S., 2020. The impacts of COVID-19 on the global airline industry: An event study approach. Journal of air transport management, 89, p.101920.
Nižeti?, S., 2020. Impact of coronavirus (COVID?19) pandemic on air transport mobility, energy, and environment: A case study. International Journal of Energy Research, 44(13), pp.10953-10961.
Serrano, F. and Kazda, A., 2020. The future of airport post COVID-19. Journal of Air Transport Management, 89, p.101900.
Sun, X., Wandelt, S. and Zhang, A., 2020. How did COVID-19 impact air transportation? A first peek through the lens of complex networks. Journal of Air Transport Management, 89, p.101928.
