Segment

1) Airline
Strength
- Emirates provide excellent service in economy and business class
- Emirates provide self-entertainment system in all seats
- Emirates provide customer with early and rapid check in
Weakness
- High prices comparing with other airlines.
- Does not offer full size beds in cabins for higher end customers
Opportunity
- Middle class is growing all over the world.
- Airlines can be used for cargo
- Dubai is one of the fastest-growing countries in the world because there is no tax on
the personal wages in Dubai
Threat
- Singapore Air markets they are the only airlines to offer a standalone bed, not a
converted seat
- Big competitors also offered same package and quality with emirates

2) In-flight catering
Strength
- Have world’s best chef
- First class customer have exquisite free food and drink options
- High quality standard compare to their competitor
Weakness
- High price
- Focus too much on first class and business class. Does not cater to the middle class
and budget traveler.
Opportunity
- Middle class is growing all over the world.
- backed financially by Dubai government.
Threat
- competitor offer lower price
 - demand for low price increase
- during Ramadhan, muslims avoid eating and drinking during daylight
3) All other segments
Strength
- Emirates increased total passenger volume by 15.9 percent
- Provide training with simulation
- The largest airlines in the middle east
Weakness
- No women among the company’s top management team
- High price compare with other competitor
Opportunity
- Penetrate new growth market and leveraging market
- Backed financially by Dubai government
- Dubai international airport expected to be the world’s busiest in 2016
Threat
- Legal and political compounds in the centuries that may affect the business negatively
- The company incapability to keep up with innovations
EFE Matrix
AIRLINE
Opportunity Weight Ratin Weighted score
g
Middle class is growing all over the world. 0.15 1 0.15
Airlines can be used for cargo 0.23 4 0.92
Dubai is one of the fastest-growing countries in the 0.24 4 0.96
world because there is no tax on the personal wages
in Dubai
Threat
Singapore Air markets they are the only airlines to 0.29 3 0.87
offer a standalone bed, not a converted seat
Big competitors also offered same package and 0.09 3 0.27
quality with emirates
Total EFE score 1.00 3.17

IN-FLIGHT CATERING
Opportunity Weight Ratin Weighted score
g
Middle class is growing all over the world. 0.24 2 0.48
Backed financially by Dubai government. 0.13 3 0.39
Threat
Competitor offer lower price. 0.28 2 0.56
Demand for low price increase. 0.26 1 0.26
During Ramadhan, muslims avoid eating and 0.09 3 0.27
drinking during daylight.
Total EFE Score 1.00 1.96

ALL OTHER SEGMENTS

Opportunity Weight Ratin Weighted score
g
Penetrate new growth market and leveraging market 0.21 3 0.63
Backed financially by Dubai government 0.13 3 0.39
Dubai international airport expected to be the 0.24 4 0.96
world’s busiest in 2016
Threat
Legal and political compounds in the centuries that 0.19 1 0.19
may affect the business negatively
Entry of discount airlines such as Ryanair 0.23 1 0.23
Total EFE Score 1.00 2.40
IFE MATRIX
AIRLINE
Strengths Weight Ratin Weighted score
g
Emirates provide excellent service in economy and 0.27 4 1.08
business class
Emirates provide self-entertainment system in all 0.25 3 0.75
seats
Emirates provide customer with early and rapid 0.18 4 0.72
check in
Weakness
High prices comparing with other airlines. 0.23 2 0.46
Does not offer full size beds in cabins for higher 0.07 1 0.07
end customers
Total IFE score 1.00 3.08

IN-FLIGHT CATERING
Strength Weight Rating Weighted score
Have world’s best chef 0.24 4 0.92
First class customer have exquisite free food and 0.08 3 0.24
drink options
High quality standard compared to their competitor 0.26 4 1.04
Weakness
High price comparing to other airlines 0.23 1 0.24
Focus too much on first class and business class. 0.19 1 0.19
Does not cater to the middle class and budget
traveler.
Total IFE score 1.00 2.63

ALL OTHER SEGMENTS

Strength Weight Ratin Weighted score
g
Emirates increased total passenger volume by 15.9 0.22 3 0.66
percent
Provide training with simulation 0.18 4 0.72
The largest airlines in the middle east 0.26 4 1.04
Weakness
No women among the company’s top management 0.11 1 0.11
team
High price compared with others competitor 0.23 1 0.23
Total IFE Score 1.00 2.76
 IE MATRIX

Revenue Profit
Segment % revenue % profit IFE EFE
(AED m) (AED m)
Airline 68,895 96% 1,951 81% 3.08 3.17
In-flight
483 1% 244 10% 2.63 1.96
catering
All other
1,781 3% 213 9% 2.76 2.40
segments
Total 71,159 100% 2,408 100%

IFE Weighted Score

4.0 3.0 2.0 1.0

3.0

EFE Weighted Score

i ii iii

2.0

iv all other segments

v vi
Airline

0.
09

1.0

0.81
vii in-flight catering
viii ix
0
.
1
 Segment IE Matrix Strategy Explanation
s
Airline Grow & Build Backward, forward, horizontal The strategy used by this
Market penetration company Is strong to defeat
Market development their competitor and meet
Product development their opportunity.
In-flight Hold & Market penetration The strategy used by this
catering Maintain Product development company is strong to defeat
their competitor but may
not meet their opportunity.
All other Hold & Market penetration The strategy used by this
segments Maintain Product development company is strong to defeat
their competitor but may
not meet their opportunity.

Conclusion
In conclusion, the airline segment was able to sustain for a long period as this segment did
not have a problem to beat their competitor and take advantage of their opportunity. In-flight
catering shows the least profit than other segments, as this segment finds it difficult to
counter those threats. Hold and maintain is the best way emirates can do as they still have
their targeted customer. But, this segment can go for “Grow and Build” if they implement
market penetration strategy which is by focusing on middle class. For other segments, it is
combined as revenue from all those segments did not even reach 1%, and it is better to hold
and maintain all of the segments. This segment did not have problems with internal factors,
but had difficulties with threats that they had to face. By implementing product development
strategy, this segments can improve their performance.
 Cost leader strategy Partnering/corporations
with best value with competitors

Strengths Weight AS TS AS TS

1. The largest airline in the Middle East. 0.09 3 0.27 3 0.27

2. Provide excellent service in economy and business class. 0.05 4 0.20 - -

3. World’s largest operator of Airbus A380 and Boeing 777 provides extra space
0.06 3 0.18 2 0.12
and luxury for wealthy and business passengers.

4. Annual revenues of more than 73.1 billion Dirham (the UAE currency). 0.04 - - - -

5. The percent of geographical revenue growth from 2009 at 45% to 2012 at 77%
0.05 - - - -
for UAE.

6. Emirates increased total passenger volume by 15.9 percent in fiscal year 2013. 0.04 3 0.12 - -

7. Emirates is well known for providing excellent service for high-end passengers
in first class, but it also provides excellent service in business class and economy 0.04 4 0.16 - -
class.

8. Emirates has more than 67,000 employees. 0.03 - - 2 0.06

9. Emirates reported a profit for the 25th consecutive year in fiscal year 2013 with
0.07 - - - -
revenues up 17.4 percent from the previous year.

10 Emirates could continuously renew and improve their service with strong
0.04 3 0.12 3 0.12
. support of the Dubai government.
 Cost leader strategy Partnering/corporations
with best value with competitors

Weakness Weight AS TS AS TS

1. Focus too much on first class and business class. Does not cater to the middle
0.08 3 0.24 - -
class and budget traveller.

2. SkyTeam, Star Alliance, and Oneworld are the largest alliances in the world.
But Emirates do not make any global international airline alliances as they
0.07 - - 3 0.21
planned to grow their business without seeking permission from alliance
partners.

3. If their culture and religion is not followed the rules, it will cause a failure and
not be highly successful at integrating and merging firms that have different 0.04 - - - -
work cultures.

4. During the Muslim Festival Ramadan, working hours in offices become shorter
0.05 - - - -
by two hours.

5. No women are among the company’s top management team. 0.03 - - - -

6. Not all of diversification and approach have been successful. 0.03 - - 2 0.06

7. The company’s incapability to keep up with innovations. 0.05 - - - -

8. No or few flight operations to underdevelopment countries like Pakistan. 0.03 - - 2 0.06

9. Does not offer full size beds in the cabin for higher ends customers. 0.04 4 0.16 - -

10 Higher prices compared with other airlines.

0.07 2 0.14 - -
.
 Cost leader strategy Partnering/corporations
with best value with competitors

Opportunities     Weight AS TS AS TS

1. Developing more advanced aviation services and technologies which provide

0.09 2 0.18 - -
Google Now cards for customer book via online.

2. Living standard in Dubai is great. 0.08 3 0.24 - -

3. Emirates and Quantas formally entered into a partnership, allowing Quantas

Airbus 380 customers to depart from Concourse A at Dubai Airport. In
0.05 - - 4 0.20
exchange, Quantas moved their hub to European flights from Singapore to
Dubai.

4. Dubai is one of the fastest-growing countries in the world because there is no tax
0.10 4 0.4 - -
on the personal wages in Dubai.

5. The climate in Dubai is great. 0.05 4 0.2 - -

6. The government of Dubai treats Emirates as a wholly independent business

0.05 - - 2 0.10
entity on its own and attributes this to the firm’s success.

7. Dubai has the largest population in the UAE (2,104,895) and the second-largest
0.06 - - - -
land territory by area (4,114 km2) after Abu Dhabi.

8. Dubai, one of the two emirates to have veto power over critical matters of
0.03 - - - -
national importance in the UAE legislature.

9. The city of Dubai is located on the emirate’s northern coastline and is often
misperceived as a country or city-state and, in some cases, the UAE has been 0.04 - - - -
described as Dubai.

10 The Dirham is pegged to the U.S. dollar, so currency fluctuations are not
0.04 3 0.12 - -
. significant.
 Cost leader strategy Partnering/corporations
with best value with competitors

Threats Weight AS TS AS TS

1. Rising fuel prices hurt overall profits because fuel accounts for more than 40%
0.04 1 0.04 - -
of all costs for Emirates.

2. Ironically for Emirates, the flydubai discount airline may pose the largest threat
0.05 4 0.20 3 0.15
to the firm because demand for low price flights is growing rapidly globally.

3. More than 100 different airlines provide service to Dubai International Airport,
0.03 2 0.06 - -
which is projected to become the world’s busiest airport by 2016.

4. Factors impacting the airline industry include global unrest, volatility of fuel
prices, mergers and acquisitions, strategic alliances, video conferencing, and 0.04 - - - -
entry of discount airlines such as Ryanair.

5. British Airways had revenues of $14.8 billion in 2011.  The company offers
economy class, premium-economy class, business class, and first class. 0.02 3 0.06 3 0.06

6. The Arab Spring and the instability in Africa also hurt Emirates’ profits. 0.02 - - - -

7. Singapore Air’s customers in first, business, and economy classes also enjoy
0.03 3 0.09 4 0.12
amenities that exceed most all competing airlines.

8. Flying with Emirates is high dollar, and competitors see great potential to take
0.08 4 0.32 - -
market share from Emirates with lower prices.

9. Women are not allowed to reach the upper management positions in the Middle
0.07 - - - -
East.

10 Legal and political compounds in the countries that may affect the business
0.03 - - - -
. negatively.

Total 1.00 3.50 1.53