Emirates airline industry analysis and competitive forces

Industry Analysis (airline)

Emirates Airline Company is an airline based at the Dubai International Airport in Dubai. It is a subsidiary of the Emirates group, which is a public international conglomerate that has its base in Dubai. Emirates airlines came into existence in the mid 1980s owing to the fact that the Gulf Air cut back its services to Dubai (Wakeling, 2011)

It is among the largest airlines in the Middle East that operates with a large number of flights. It operates about four of the world's longest non-stop flights that are commercial from Dubai to Los Angels, Dallas, Houston, and San Francisco. It is wholly under the ownership of the government of Dubai directly under Investment Corporation of Dubai. It has built a strong brand name for itself as a leader in the aviation industry. This is particularly due to the fact that its services are excellent, it has grown rapidly over the years and it is consistent in terms of the profits realized.

The Airline Industry

The Airline Industry is among the most competitive and growing industries worldwide, reason being it leads to economic growth, international investment, world trade and tourism. This industry is categorized as among the fastest expanding sectors in the world. The industry is affected by political factors, trade and economic growth. An example of political factors effect on the industry is terrorism attacks that make people avoid visiting countries that have been attacked.oli price can be an economic factor since the rise in global prices have rendered the industry un profitable.

The five forces that impact the airline industry are;

Bargaining power of suppliers

Suppliers have an effect on the industry through their ability to raise prices or reduce the quality of goods or services they provide. There are very few airline suppliers globally these are Airbus and Boeing this means that the suppliers have a high power since they are limited and hence control the market since the demand for their manufactured products is high (Rahman,2010.)

Bargaining power of Buyers

The industry is affected by the buyers through their ability to bargain for more services that are of high quality. The buyers' power in this industry is high since the airline industry serves many passengers. The costs of switching airlines are low and the passengers have a large option base.

Threat of a substitute service or product

This threat can be viewed on a regional and international point. This threat in the regional airlines is high since passengers may opt to drive their cars, or even board trains as a means of travel within the region. On an international level the threat is low since most people use airplanes are a faster and comfortable means of travel (Rahman,2010.)

Rivalry from existing firms

This is very high in the airline industry as there are a variety of airline companies that provide the same services to passengers (Rahman, 2010) Some of the airlines are very creative in their advertising strategies and they easily outdo others through this.

The airline industry is thus a very important industry globally. There from the analysis we see that there are many factors that affect it and all these have to be keenly monitored to ensure its success.