Competitive Profile Matrix Emirates

2382 WordsDec 11, 201410 Pages
Competitive Profile Matrix (CPM) Author: admin Wednesday, 24 Sep 2014 Step 4. Competitive Profile Matrix (CPM) In order to construct a competitive profile matrix, it is necessary to determine critical success factors in airline industry. These are: strong management, organization of routes, availability of non-stop flights, qualified workforce, in-flight services and service promotions, price competitiveness, effective financial management, cost management. Main competitors of Emirates Airline can be divided into two groups: private airline companies and airline alliances. Key airline alliances posing strong competition to Emirates Airline are SkyTeam, Star Alliance and oneworld (Plunkett, 2011). AirAsia is a private company also…show more content…
Step 7. Internal Factor Evaluation Matrix Factor Weight Rating Weighted score Strengths: Extensive route coverage 0.10 3 0.3 Large airline fleet 0.05 4 0.2 Market diversification 0.10 4 0.4 Cargo shipping 0.05 3 0.15 Global brand recognition 0.10 3 0.3 Continual renewal and improvement 0.05 4 0.2 Strong corporate culture 0.10 4 0.4 Weaknesses: Medium investment effectiveness 0.10 2 0.2 High-end risky acquisitions 0.10 2 0.2 Focus on luxury travels 0.05 1 0.05 Lack of internal alignment 0.05 1 0.05 Issues with labor policies and labor quality 0.05 2 0.1 Issues with cost effectiveness 0.10 2 0.2 Total weighted score 1.00 2.75 The results of IFE matrix indicate that although Emirates Airline is performing slightly above average, its position is vulnerable due to issues with cost effectiveness, risky acquisitions and the lack of internal alignment between departments. Thus, recent strategies of the company should address these issues and eliminate them, or mitigate the effects. Step 8. A. SWOT matrix (strengths, weaknesses, opportunities and threats) Strengths: Extensive route coverage Large airline fleet Market diversification Cargo shipping Global brand recognition Continual renewal and improvement Strong corporate culture Weaknesses: Medium investment effectiveness High-end risky acquisitions Focus on luxury travels Lack of internal alignment Issues with labor policies and labor quality Issues with cost
Open Document