Emirates Airlines Low Cost Strategy

Q IV. Differentiation/Low Cost Leadership/Focus

Emirates Airlines is an airline that focuses on satisfying their customers and providing the best services on board and off board. The cost advantage and the differentiation advantage are mutually executed in order to advance ahead of competing companies. Therefore, allowing Emirates to have a narrow or broad segment target because it is using both the differentiation and low cost strategy and not focusing on one of them.

Using the Low cost strategy, Emirates is a company in the United Arab Emirates, Dubai. Where the company does not have to pay taxes, this is an important point because all other airline companies pay tax and therefore it gives emirates an automatic cost saving advantage. Moreover,

Emirates has offered various luxurious and glamorous services to its customers such as Beds and showers in the first class, offering free meals and goodie packages to passengers in the economic sections. This may be costly for other airlines, but emirates do this in order to gain a differentiation advantage over competition. Moreover, it has built strong brand awareness by sponsoring sports and games; caring about their employees and stakeholders, the environment and the communities they serve. Furthermore, emirates is highly supported by the Dubai government, not just financially but branding too. This can be seen from slogans they have used before such as “Fly Emirates & Meet Dubai”. This helps their branding and helps them execute their differentiation

They believe in satisfying all customers’ needs through their high standard services because they believe in quality over quantity. One of the strategies used was market penetration, as Dubai boomed as place of trade and commerce, the population increased yearly and people from all continents were flying in and out of Dubai. The city is located almost in the centre point of the world connecting the Western world and the Eastern world; this works to emirates’ advantage because they can easily tap into both new markets. With that being said, Emirates placed in world record orders of planes. E.g., The Airbus 380, the world’s largest passenger aircraft, this is the point when they are applying the market expansion growth strategy by offering current products and in a new market. This attracts the imagination of so many customers everywhere. Furthermore, these airplanes could carry more loads for those businessmen who are heavily trading in and out of Dubai.

Moreover, as Dubai boomed Business-wise, it also boomed as a luxurious and sight seeing city with some of the best in infrastructure, fine dinning, nightlife and world class boutiques that a lot of people wanted to come visit. The city helped attract businessmen, entrepreneurs, adventurers and pleasure seekers. Emirates took advantage of these opportunities as they came because it had gained overwhelming market demand and this brings in the market development growth strategy,