Competitive Profile Matrix Emirates

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 presenting a significant competitive threat for Emirates Airline (Plunkett, 2011). CPM matrix for Emirates Airline is presented in the table below:
Factor

SkyTeam
StarAlliance
oneworld
Emirates Airlines
AirAsia

Weight
Rating
Weighted score
Rating
Weighted score
Rating
Weighted score
Rating
Weighted score
Rating
Weighted score strong management
0.15
3
0.45
4
0.6
3
0.45
3
0.45
2
0.3
organization of routes
0.20
3
0.6
4
0.8
3
0.6
3
0.6
3
0.6
availability of non-stop flights
0.05
3
0.15
3
0.15
3
0.15
3
0.15
1
0.05
qualified workforce
0.10
3
0.3
3
0.3
2
0.2
3
0.3
2
0.2
in-flight services and service promotions
0.05
3
0.15
3
0.15
3
0.15
3
0.15
2
0.1
price competitiveness
0.15
3
0.45
3
0.45
3
0.45
2
0.3
3
0.45
effective financial management
0.15
4
0.6
4
0.6
2
0.3
2
0.3
2
0.3
cost management
0.15
3
0.45
3
0.45
3
0.45
2
0.3
2
0.3
Score

3.15 3.5 2.75 2.55 2.3
It is possible to see that also the competitive performance of Emirates Airlines is above average (2.55) and private companies like AirAsia generally have lower competitive capacity (Graham, Papatheodourou & Forsyth, 2010), all three airline alliances have strong or even close to superior competitive profiles, which means that Emirates Airlines should aim to develop competitive

References: Emirates Group. 2012. Annual Reports. Theemiratesgroup.com. Available athttp://www.theemiratesgroup.com/english/facts-figures/annual-report.aspx, accessed May 10, 2012. General Books LLC. 2010. The Emirates Group. General Books LLC. Graham, A., Papatheodourou, A. & Forsyth, P. 2010. Aviation and Tourism: Implications for Leisure Travel. Ashgate Publishing, Ltd. Hephaestus Books. 2011. The Emirates Group. Hephaestus Books. O’Connell, J.F. & Williams, G. 2011. Air Transport in the 21st Century: Key Strategic Developments. Ashgate Publishing, Ltd. Penetration into new markets through creation of a separate airline alliance