Dubai Aviation Industry Case Study

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Dubai is successful in the aircraft industry because of its clear goals and brilliant implementation. It is proved that the tourism industry has a great stimulation for aviation. In 2013, there were around 10 million non-UAE visitors came to Dubai, they totally spent about $13 billion (Oxford Economics, 2014). The success of Dubai due to investment of government and individual on superior quality’s aviation and equipment to support the flow of tourist. Furthermore, Dubai has outstanding connectivity like over 10 million passengers could connect Dubai to 25 cities; this situation pushes the development of an export marker. Not only the connectivity for passengers but also for goods’ transportation. Hence, the foreign company could invest them …show more content…
Now Dubai already has the world’s third-busiest international airport, with the growth of the movement of people. The government will invest more in infrastructure. The United Arab Emirates realizes the benefits from aviation industry; it becomes a crucial source of finance to this country so they will consider more about development of the aviation industry.
The structure of industry:
The aviation industry belongs to service sector in terms of transportation, but this industry also includes manufacture some parts, so in this aspect it belongs to the secondary industry. Competition in aviation industry becomes more and more fierce, so in the competitive environment, Porter’s Five Force helps explain the five factors how to influence this industry’s strategy. Now I will use Porter’s Five Force to analyze its market structure.
(1) Industry Rivalry: Airline industry has plenty of competitors. Most of the companies tend to international routes. The United Arab Emirates’ companies as well, so the differentiation is not obvious, and this differentiation involves products and services. Airline industries of The United Arab Emirates ‘core competitor in Europe are Air France and British Airways (Yaqoub,
…show more content…
Strengths: The United Arab Emirates’ aviation industry has excellent position in global market, many companies especially Emirates Airlines already becomes one of the top brands in the world (Safi, 2011), this achievement also attributable to government, The United Arab Emirates’ government give huge support in this aspect. External environment is variable, but the aircraft industry would make a change to adapt external environment. And the service is this industry’s competitive advantage; they will do their best to meet costumers’ need and upgrade service timely.
Weakness: The strategy is not fit for any countries. Aviation industry has fierce competition; the middle class and some students are inclined to company which cheap airfares like India’s company or Malaysia’s company, so The United Arab Emirates’ aviation industry does not any advantage for selling ticket to this group of people because of its high ticket

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