Global Strategy A Global Strategy views the world as a single market taking business expansion into foreign operations that champions worldwide consistency, standardisation, and cost competitiveness. Global firms strive to convert global efficiency into price competitiveness via production, services and location economies. Value is created by designing, developing and marketing products and services for a world market as effectively and efficiently as possible. The core global strategic principles being: attracting customers market positioning conducting operations competing effectively creating value achieving goals
(Business Administration, Undated) When it comes to global strategy, most organisations make two assumptions: the central challenge is to strike the right balance between economies of scale and responsiveness to local conditions, the more emphasis companies place on scale economies in their worldwide operations, the more global their strategies will be.
Because MNEs differ in pursuing different strategies ranging from multi-domestic to global strategies, each subsidiary plays a specific role that fits into the overall corporate strategy. Therefore, it is likely that subsidiaries with a higher degree of strategic interdependence will share organisational knowledge more actively with peer subsidiaries. (Harvard Business Review, 2007) & (University of Alabama, 2005) Global Routes: Nearly 800 Emirates flights depart Dubai each week on their way to destinations on six continents. In fact, Emirates' flights account for nearly 40 per cent of all flight movements in and out of Dubai International Airport, and Emirates’ aim is to increase their market-share to 70 per cent by 2010 without compromising their reputation for quality. Creating value and achieving goals are important strategic principles in globalisation: Emirates Airlines are continually working to improve their services globally. Emirates recently achieved a new milestone as it touched down to the vibrant beats of the African drums at Cape Town – its 100th global destination in South Africa and also launched a new service to Brazil; a daily non-stop Dubai-Sao Paulo operation effective 1st July 2008 (Travel Daily News, 2008). Attracting customers is the major strategic global principle: Emirates are always in search of new ways for innovation. Emirates Airlines just opened its new futuristic lounge at Brisbane International Airport, unveiling the facility that offers a stunning 360 degree view and is the first airline lounge in Australia capable of boarding passengers directly to the aircraft, including the upper deck of the Airbus A380 (Travel Daily New, 2008). This is convenient to customers and is a big jump in quality offering superior value when compared with other airlines. Global Aviation Strategy: Thanks to the success of Emirates Airlines, over the past 15 years Dubai International Airport has developed into one of the largest hubs in world aviation. Emirates bases its strategy on the fact that its planes can reach any point on the globe nonstop from Dubai and can connect any two city pairs with just one stop in the Middle East (International Herald Tribune, 2007). "They have a geographic advantage that no one else has," Diogenis Papiomytis, a commercial-aviation consultant with Frost & Sullivan, told MarketWatch.com. "Within 8,000 miles, they can reach something like 80% of the world." A new airport, said to be the world's largest, is now under construction near Jebel Ali, a large complex consisting of a port, airport, residential areas, hotels and a free-trade zone about 19 kilometers, or 12 miles, from the city center (GulfNews.com, 2008) bringing new challenges and opportunities to Emirates Airlines. Emirates aim to redraw the world aviation map: Emirates have made various announcements regarding the future of its already state-of-the-art fleet which forms an integral part of its global strategy. With a huge pot of money to spend of about $82 billion, the airline has ordered 55 super-jumbo A380s to create the biggest fleet of these double-decker planes in the world thus adding more value to its customers. Its first-class seats feature flat beds with in-seat massage and personal mini-bars, while its in-flight entertainment includes 600 channels, e-mail connections and seat-to-seat telephones for in-flight chats etc… state of the art innovative technology. "What we are witnessing today is the rewriting of the world's aviation history and the beginning of a new era of global aviation." … "We've never seen anything like it before," said Robert Cullemore, a consultant at Aviation Economics, an aerospace advisory firm in London. "We've never seen growth at this rate” (International Herald Tribune, 2007). Considerations Today, global business is considered as the most important business-and-economic trend in the world. "The Middle East is taking over the aerospace industry and Dubai is at the heart of it," Doug McVitie, an aerospace consultant with Arran Aerospace, told MarketWatch.com recently. Emirates Airlines is reaping the benefits and in a huge way. Last year profits increased by 54% reaching $1.45 billion and sales jumped 32% as the airline carried more than 21 million passengers which is an increase of 21% from the year before (Money Morning, 2008). These results are encouraging for Emirates Airlines and are proof that they found the right balance between global integration and local responsiveness and have the right global ingredients to convert a unique strategy into superior value. | 
