Emirates is owned by the United Arab Emirates government. It was founded in 1985. It is the largest airline in the Middle East. Its hub is located at the Dubai International Airport where it operates more than 3600 flights every week. It flies to more than 150 cities across 80 nations. The initial aircraft and crew training were provided by Pakistan International Airlines and a start-up fund was provided by the royal family. The airline currently has 259 aircraft in its fleet and flies to 161 destinations. The company headquarters are also located in Dubai in the UAE. The company has one of the most diverse aircraft fleets including the largest number of Airbus A380, the largest commercial aircraft in the world, and the Boeing 777. In 2018, the company generated revenue of $13.3 billion and has more than 69000 employees (Emirates, 2019).
Following are the four dimensions of the Ansoff Matrix for Emirates:
Market Penetration
Market penetration refers to the act of promoting existing products in existing markets. Emirates does this in various ways. The first strategy is to aggressively promote its services on various routes through different marketing channels. It also offers different discounts on holidays and other cultural events to gain a greater number of passengers. The company holds a large market share and continuously works to further increase this. The procurement of new airlines, renovation of existing, and the provision of improved facilities are various activities undertaken to attract customers. The passengers are also motivated to fly more with Emirates through various loyalty programs. The company has a strategic alliance with hotels and other resorts to facilitate customers during long stays at airports. The business and first-class of Emirates are also promoted by highlighting facilities to gain sales. All of these actions allow Emirates to dominate the markets it serves.
Market Development
When existing products are sold in new markets, the activity is termed as market development. Emirates develops its markets by geographically expanding to new flying destinations. These include destinations in new countries or new destinations in countries it is already serving. This is done by increasing destinations, the number of passengers carried, and the number of aircraft the company operates. The company can also develop its markets by targeting market segments which it does not currently serve. Emirates can also step into the low-cost carrier airline industry in various markets to compete with low-cost airlines and establish a new market. It can also target premium passengers that use the business class by flying exclusively business-class jets that offer greater facilities. Market development is a strategy that allows Emirates to expand its revenues and increase its sales.
Product Development
Organizations execute product development by launching new products in their existing markets. Emirates has various strategies to do this. The first strategy is to procure and utilize new aircraft. The Airbus A380 is one of the largest commercial aircraft in the world. When it was launched, Emirates made the largest procurement and advertised them when they joined its fleet. Many people flew Emirates just to experience the flight of an A380 (Rodrigo, 2012). Existing aircraft are also renovated and the services provided them are improved and enhanced to provide a greater experience for the passengers. This ensures that passengers continue to use Emirates and perceive it as a dynamic organization that works on product development. Another strategy that Emirates uses is to develop new associations with other hospitality companies, such as hotels, to provide an eventful experience during flights with multiple stops. Product development is an important strategy for Emirates to gain more sales.
Diversification
Diversification is the act of offering new products in new markets. This is a risky strategy that most companies refrain from adopting. Emirates can diversify in various ways. It can diversify vertically by establishing its spare parts manufacturing units, aircraft maintenance units, and other facilities it outsources to suppliers. This will allow Emirates to take hold of the entire supply chain of the company. Emirates can also horizontally diversify by establishing its hotels, resorts, a low-cost airline, cruise, and various other related diversification opportunities. Conglomerate diversification can also take place if Emirates steps into unrelated industries such as textiles, apparel, shoes, sports, broadcasting, and so on. These opportunities can help improve company reputation as well.
References
Emirates, 2019. Annual Report 2018. [Online] Available at: https://cdn.ek.aero/downloads/ek/pdfs/report/annual_report_2019.pdf [Accessed 07 Jan. 2020].
Rodrigo, 2012. Marketing Strategy Analysis for Emirates airline. [Online] Available at: https://writepass.com/journal/2012/11/emirates-airline/ [Accessed 07 Jan. 2020].