Emirates airline is based in Dubai, UAE. This is a subsidiary of “The Emirates Group,” and is owned by the government of Dubai. It operates more than 3600 flights in a week and is the largest airline in the Middle East (Emirates, 2017). It was found 31 years ago, in 1985; it is the 4th largest airline in the world in terms of the number of international passengers flown (Bangs, 2011). Two division exist of Emirates Airlines; the first Emirates SkyCargo is the air cargo division of the Airlines; Emirates Executive started in 2013, and is for private and corporate charters (Emirates, 2016). The Dubai government is the sole owner of Emirates Airline, but it does not interfere with the daily activities. Emirates continues to face immense competition from UAE-based airlines such as Etihad Airways owned by Abu Dhabi, less significant Air-Arabia by Sharjah, and the once leading Qatar Airways by Qatar.
Cash Cow
• The Cash Cow of Emirates is Economy flights; this is the foundation of the company.
Emirates Economy Class is the cash cow of Emirates Airline. It has always had a large market share, but there is no growth. Before Emirates Economy came into play, other airlines such as Qatar Airways had the most success in the industry. Today, many people use Emirates Airlines, particularly the Economy seats on the flight. Looking at the South Asian audience, Emirates Economy needs to milk its cow further; the performance in the middle east and the west is quite steady. Targeted at the Asian audience Emirates Economy’s market is still not mature. The sales are not constant, and this can be a huge setback for Emirates Airlines. Emirates has also refurbished the old cabins of the Economy airplanes. The 4:3 screens from the 1970s are no longer there, and the remarkable 16:9 screen is included with brand new seats for an overall pleasant experience for the flyer (Emirates, 2017). Emirates is focused on improving the Economy experience for its customers and has also advertised its cash cow. The Boeing 777 experiences in the last few years for economy travelers have been very positive (Emirates, 2017). The business and first class options have always been luxurious, but the experience Emirates has promised with Economy is wonderful.
Stars
• Star services of Emirates Airlines is Business and First Class; these are the leaders of the business.
In the BCG Matrix, two services can be placed: Emirates Business Class, and Emirates First Class. These two are the flagship services by Emirates and have a high market share in the already growing industry. We do see a very high potential in the two services. Recently, Emirates upgraded its flights and introduced the latest generation of business class seating. It has used the full potential of its services, and adequate investment in these two services will allow the market share to grow further. As the attraction and desire for traveling business and first class increases, it will lead to more growth opportunities for Emirates Airlines. The concern for the managerial department of Emirates is that these two services should continue to be a strong source of sales, as the changing number of sales can have a negative impact on the revenues. Extra services such as their complimentary chauffeur drive services to and from the airport are seamless addition to their services. Additions such as the onboard lounges and entertainment systems have been having a positive effect on their investments (Maceda, 2017). To maintain its star service Emirates should focus on maintaining its services globally, and ensure that the service and aircraft quality is constant for all customers in the Middle East, And South Asia.
Question Marks
• The Question Mark is Emirates Holidays, and the investment is high as compare to the revenue.
Emirates recently launched “Emirates Holidays.” The new service has a low market share, although the potential is quite high. Emirates has been putting efforts to increase the popularity and market share of “Emirates Holidays.” The official website added promotional discounts and lucky draws in 2014 and 2015, to create awareness (Emirates, 2016). The service has a very high potential to become a substantial source of income. The family packages, romantic retreats, and summer offers to Maldives, Mauritius, and Dubai is performing well. The obstacles Emirates Holidays is facing competition from the US aviation industry. For Emirates to dominate the tourism sector, it has to undergo more challenges. The air trips have been promoted more often than not in commercials. Only recently, Emirates’ new ad “The Golden Age,” was reminiscing of the lost luxury and glamor of flight (Bangs, 2011). The commercial also contrasted the modern crowded experiences of air travel with the legendary Pan AM Jet Clippers in the 60’s (Bangs, 2011). The argument Emirates laid forth was that Emirates would be the next golden age of travel. In this regard, Emirates Holidays has a long way to go to establish its name in the flight industry. The competition is tough, but there are no monopolists to compete. The sales of Emirates holidays have been below average, and with so many tourism service providers in the industry, Emirates has a very high potential. Their holiday services have not been able to gain revenues, or even maintain their position in the saturated market.
Conclusion
• Star Strategy: Emirates airlines should consider investing more in Business and first class to increase the profits and growth, and to maintain and increase the market profit and shares.
• Cash Cow Strategy: Emirates airlines can milk its “Economy services” further, and use the profits to create new services and expand its brand.
• Question Mark Strategy: Emirates Airlines should be investing heavily on Emirates Airlines, and avoid becoming a dog.
As a whole, Emirates has gone through various changes in the past 20 years. It is one of the best Airline in the Asian Pacific region. The company has avoided acquisitions and mergers, and this is why it believes that free market solutions are the best drivers. In the global arena, the company should also embrace online systems as a sound marketing tool. A BCG analysis is a helpful method for Emirates Airlines to make the right investments in the future.
Bibliography
Bangs, R., 2011. Who Is The New Pan Am?. [Online]
Available at: http://www.huffingtonpost.com/richard-bangs/who-is-the-new-pan-am_b_1144354.html
[Accessed 26 February 2017].
Emirates, 2016. Emirates Holidays. [Online]
Available at: https://www.emiratesholidays.com/ae_en/
[Accessed 26 February 2017].
Emirates, 2017. Economy Class. [Online]
Available at: https://www.emirates.com/english/flying/cabin_features/economy_class/economy_class.aspx
[Accessed 26 February 2017].
Maceda, C., 2017. Emirates’ new lounge in the sky. [Online]
Available at: http://gulfnews.com/business/aviation/watch-emirates-new-lounge-in-the-sky-1.1984539
[Accessed 26 February 2017].
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