Porter’s Five Forces Analysis of Emirates Airline 

Emirates Airline is a flag carrier UAE’s (United Arab Emirates) aviation company. Ahmad Bin Saeed Al Maktoum founded the aviation company in 1985. Today, we’ll discuss Porter’s five forces analysis of Emirates Airline; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Suppliers of Emirates Airline

• Boeing
• Airbus
• Dinning hotels and restaurants
• Technology companies
• Catering service providing hotels
• Aircraft maintenance companies
• Fuel suppliers

Divisions of Emirates Airline

• Emirates Executives
• SkyCargo Emirates

Competitors of Emirates Airline

• Air China
• United Airlines
• Qantas
• Malaysian Airlines
• Qatar Airways
• Virgin Atlantic
• Air India
• Etihad Airways
• British Airways

Porter’s five forces analysis of Emirates Airline would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Emirates Airline Porter’s five forces analysis of aviation industry and airline business as follows;

Porter’s Five Forces Analysis of Emirates Airline

Let’s discuss Porter’s five forces analysis of Emirates Airline as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in Emirates Airline

The bargaining of suppliers is high in the aviation industry and airline business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Emirates Airline Porter’s five forces analysis of the aviation industry and airline business are as follows;

I-Limited Suppliers

Airbus and Boeing are the two main aircraft manufacturers and suppliers in the aviation industry. The limited number of suppliers and they’re working on a strict schedule of high demand. They have a strict pricing structure, and the buyers have to comply with it. These factors amplify the bargaining power of suppliers.

II-High Demand

Since there are two major suppliers in aviation they have a high demand for the production of aircraft. They both collaborate with each other to share knowledge and technical expertise, and it results in the form of better and more advanced aircraft. However, it further increases their bargaining powers; companies like Emirates Airline have no other choice but to follow their pricing structure and demand schedule.

Bargaining Power of Buyers in Emirates Airline

The bargaining of Buyers is lower in the aviation industry and airline business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the Emirates Airline Porter’s five forces analysis of aviation industry and airline business are as follows;

I-Premium Quality Service

Emirates Airline has established a market reputation for providing the top quality premium luxury experience to the customers. With the premium services and the traveling experience that the aviation brand offers, no other airline brand offers the same service at this price. However, it decreases the bargaining the bargaining power of customers.

II-Dynamic Pricing

Emirates Airline follows the dynamic pricing strategy and it helps the company to keep changing its prices relevant to the demand of customers. Customers are willing to pay for the premium quality traveling experience.

Threat of New Entrants in Emirates Airline

The threat of new entrants is Moderate in aviation industry and airline business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the Emirates Airline Porter’s five forces analysis of Emirates Airline are as follows;

I-Heavy Costs

While launching the new airline, the aviation company has to bear the heavy expenses. They are in the form of cabin crew, maintenance of aircraft, pilots, airport fees, and workers; various other fixed and running expenses. Collectively, all of these expenses are the barriers that stop new entrants from entering the aviation business.

II-Marketing & Branding

Along with heavy initial investment, Emirates Airline invests a significant amount of capital resources in marketing, branding, and sponsorships. The new airline should have to invest a significant amount of capital resources on marketing to attract the attention of new customers; or give them discounts.

Threat of Substitutes to Emirates Airline

The threat of substitute products and brands is lower in aviation industry and airline business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in Emirates Airline Porter’s five forces analysis of aviation industry and airline business are as follows;

I-Unique Advantages

Emirates Airline is one of the few airlines that offer long-distance international flights with premium luxury experience to customers in the Middle East. Customers won’t choose the cheaper airlines that are accustomed to the luxury traveling experience of the brand. During the economic recession phase, customers and travelers would prefer economy class or cheaper flight alternatives.

Competitive Rivalry in Emirates Airline

The competitive rivalry among Airlines is very high in the aviation industry and airline business as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in Emirates Airline Porter’s five forces analysis of aviation industry and airline business are as follows;

I-Competition

The aviation industry has become highly competitive in recent years because there are multiple airlines operating their business and offering the same service. Qatar Airways, Etihad Airways, and others are the top competitors of Emirates Airline. However, the company needs to invest a significant amount of capital resources in new features, loyalty programs, and promotional offers to attract the attention of new customers and retain the existing ones.

Conclusion: Emirates Airline Porter’s Five Forces Analysis |5 Forces Analysis of Emirates Airline

After an in-depth study of Porter’s five forces analysis of Emirates Airline; we have realized that Emirates Airline is the world’s leading Middle Eastern aviation brand. If you are learning about the Emirates Airline five forces analysis of aviation industry and airline business; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.