Toothpaste in Latin America

Toothpaste in Latin America

Joshua M. Cherok

Embry-Riddle Aeronautical University

Toothpaste in Latin America

Emirates Airlines is a “Dubai based airline that has been providing commercial passenger service since 1985” (Culp, n.d.). Emirates Airlines operate one of the fastest growing commercial fleets in the country. The airline’s current fleet contains the Boeing 777, Airbus A380, A340, and A330. These aircraft are equipped with the latest technology, including in-seat telephones, and screens that allow passengers to email and send text messages. Emirates Airlines offers service to cities on six different continents. This includes nonstop service from Dubai to New York, Los Angeles, and San Francisco.

When evaluating competition facing Emirates, it is a very interesting scenario. There are several barriers that discourage new entrants in the market. These include patents, rights, and simply the fact that Emirates Airlines is a national carrier that enjoys benefits from the government. It is tough for competitors to match the brand value that Emirates has. Due to the longevity in the market, the brand value is unmatched. There are about 37 airlines that fly to and from Dubai. Competition is likely as the Middle East has shown strong growth in the last decade.

Emirates customers hold a great bargaining leverage. Customers have options for luxury or budget when purchasing a ticket. Emirates Airlines has the advantage when it comes to the cost of the tickets. Depending on the route, they are able to keep pricing at a cost that is favorable to them. Emirates Airlines does not compete as well price wise with competition. The way they make up for this is by offering their world class service, menu choices, private terminals, and some of the world’s longest non-stop flights.

Supplier bargaining power is a bit different than most US airlines. Supplier switching costs are very high. Something I found most intriguing was that United Arab Emirates does not allow employee unions. This offers a huge savings for the airline and prevents costs associated with negotiations.

In my opinion, I believe that being a national airline certainly helps an airline. Often times, we see financial benefits included for national airlines. From tax breaks, fuel savings, or even rules requiring individuals to utilize the national airline. Lastly, I believe there are benefits for national carriers for operating to other countries. This could potentially help countries with trade propositions. Overall, I believe there are more benefits financially for being a national airline.

References

Culp, B. (n.d.). Information About Emirates Airline. Retrieved April 10, 2016, from http://traveltips.usatoday.com/information-emirates-airline-21521.html

“Our Company.” (2016). Emirates. Retrieved from http://www.emirates.com/english/about/