Analysis of Qatar Airways Strategic Management Essay

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Qatar Airways: Strategic Management

Qatar government owns Qatar Airways, which is one of the world's 5-star airlines operating on both international and domestic destinations. The airline provides amongst the most reliable and best comfort to passengers in the industry. The services offered by the airline are excellent both on ground and in air. The airline target groups are corporate, middle and upper middle classes. With the its latest expansion efforts, Qatar Airways has been re-iterating the airline's commitment to a wide range of growth opportunities by adding service to different points across the globe.

Qatar Airways is Qatar's national carrier and one of the industry's huge success stories. Operations started in 1994 as a tiny regional carrier operating in a few of routes. In 1997, the airline was re-launched under the directive of His Highness The Father Emir, Sheikh Hamad bin Khalifa Al Thani, who defined a vision for turning Qatar Airways into one of the leading international airlines with high standards of service. Since then, Qatar Airways has been one of the strongest growing airlines in the world characterised by unprecedented growth averaging double digit every year. The airline developed under His Excellency Mr. Akbar Al Baker, the Group Chief Executive appointed in 1997, has proved instrumental in changing Qatar Airways to be an award winning airline and among the best in aviation industry. Mr. Al Baker's leadership saw Qatar Airways mature as a leader in both global and regional aviation, earning the airline many admirers worldwide because of its high excellence in service (THE QATAR AIRWAYS STORY, 2016).

PEST analysis

1. Political Factor

Government norms as well as other political matters influenced Qatar airways' evolution as a success story. The national carrier had to deal with conflict from European airlines that used winging tactics because there were fears about the safety of Qatar Airways' fleet. Two factors facilitated alliances:

• Indirect Taxes reported by the European Airlines

• Political barrier to inhibit the taxation procedures (QATAR report, n.d)

2. Economic Factor

During the economic crisis, some factors that were likely to affect Qatar Airways were:

• GDP

• Rise in the international trade

• Globalization,

GDP rate within the Middle East using the current statistics was shown to surpass 3.6% and passenger traffic increased by 5.5%. Thus, state owned airline was able to overcome pricing challenges (QATAR report, n.d).

3. Social factor

It is essential to look into the social factors which ensures that both the business and community are not adversely affected. Qatar airways, in considering this issue, has indicated positive response toward the community through reducing its carbon footprint in the environment since it controls air-traffic which minimizes carbon emissions (QATAR report, n.d).

4. Technological Factor

Qatar Airways strategic partnership with "Qtel" indicates a long-term technological connection that has been useful in crafting the aviation's base for technological advances. Technological development in the airline positively affects areas such as routing and Internet booking. The technological alliance assists in bettering operations and improving the airline's operations. Moreover, development in Global distribution system plays an essential role in contributing service to Qatar Airways (QATAR report, n.d).

Case Analysis 1

"Qatar airways" is the subject for this paper. Following are some important pointers about Qatar Airways:

The company is owned by the State of Qatar and bears its flag.

The Headquarters of Qatar Airways is their name-bearing tower in Doha.

The airways network is based on the "hub-and-spoke model." The base in Doha manages and connects over 100 international destinations, utilizing a fleet of over 100 aircrafts.

Qatar Airways operates across Africa, Central Asia, Europe, Far East, South Asia, Middle East, North America, South America and Oceania.

The Skytrax World Airline Awards named Qatar Airways the best in the Year 2011.

Qatar Airways started out as a small, regional carrier in 1994. Initially the airline serviced very few routes.

It became the crown jewel after the airline was relaunched by the Qatari Emir "Hamad bin Khalifa Al-Thani." His vision of turning Qatar Airways into a leading brand with quality standards and service excellence have since borne fruit. (QATAR report, n.d).

Apart from being the national carrier of Qatar, it is also one of the top airlines in the Middle East.

"Qatar airways" is one of the four elite airlines that have been given five star statuses.

Emirates and Qatar airways are quite similar in their origin stories. "Qatar airways" was born on November 22, 1993 but starting its operations on 20 Jan 1994. Looking at the way emirates succeeded, Qatar too joined the ranks of world class flight system and earned similar success.

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Mission Statement

The Airline has stayed true to its mission statement that calls for, "excellence in everything that we do." Along the years the airline has ensured, high standards, state of the art security and serve their passengers with a five-star excellence that has come to be associated with Qatar Airways. Their staff is well-trained, polite and culturally aware. (QATAR report, n.d).

Vision

according to their vision statement Qatar Airways' aim is, "to become a world class carrier and cargo service provider with global reach" their forward thinking and their growth scale has not faltered. To maintain a steady growth towards this goal, the airline focuses on three key points,

Quality of the product.

Reliability of their product.

World-class network reach.

These aims are not unrealistic, considering how their 122 aircrafts are progressively serving over 120 destinations across all the continents (QATAR report, n.d).

Aims and Objectives

The airline's main focus is to increase their brand awareness on a global scale. They have tried to create awareness of airline safety, products, services and convenience, highlighting the benefits of choosing air travel with their company. Luxury is the keystone of the airline, using creativity and innovation to reach their objectives (QATAR report, n.d).

Strategic Goal

Since everything related to Qatar Airways speaks of "excellence" the organization is always a step ahead of their customers' needs, exceeding passenger expectations when it comes to service and client satisfaction (QATAR report, n.d).

Strategic Administration

The reason behind the success of Qatar Airways and their steady rise lies in the following points

Acquisition of new ventures

Experimentation

Social and environmental awareness

Strong strategic capabilities

A well oriented and streamline corporate governance

People oriented organization

Resilient hierarchical structure

High level priority towards customer satisfaction

Product and service standards are not only maintained but improved locally as well as internationally.

Qatar Airways continues to grow its strategic partners and strike new alliances to help them flourish.

A well-founded reputation is the pride of the company (QATAR report, n.d).

The growth rate of the airline is borderline utopic, their revenues and expansion doubles annually. At this stage, the airline can be assessed as follows,

Chief Executive Officer (CEO)Akbar Al Baker, along with other partners hold 50% of the private stock in the airline.

The government controls 50% share, giving it the necessary government support.

Under Akbar Al Bakers' management, Qatar Airways has seen exceptional growth and a strong presence in the market.

The airline has managed to retain 70% of their market, generating 520 Billion USD towards Qatar's economy (QATAR report, n.d).

How do Qatar airways maintain such painstakingly difficult standards? The airline works in close collaboration with the following partners and alliances that gives them the edge to succeed in the market,

Rolls- Royce-supplies and manufactures fleet engines for Qatar Airways.

Q-tel -- A high-tech company that provides the necessary routes for sales and marketing. They also work closely with the airline in the management of tickets and promotions.

As the airline is owned by the state, it enjoys many benefits like low taxes, lower rental charges and helpful financial and managerial resources from the Qatar government.

Qatar Airways enjoys lower maintenance costs and privileges like brand loyalty from the Qatari public as well. As a national carrier Qatar Airways has its own niche market.

Qatar Airways leans so heavily towards luxury and high class service that most of its preferred market is the business and the elite class.

The airline attracts the nouveau rich, baby boomers and yuppies as these customers can pay the higher costs airline demands in return for their excellent services. However, there are frequent economic travellers of the airline as well.

Qatar Airways has engaged in market segmentation strategically to their benefit; the airline remains expensive and yet just enough within each of the economy-class traveller to be affordable.

In a competitive environment, the airline has a sustainable and progressive approach to sustain their market share locally and globally. This "sustained market penetration strategy" has assured the airline a very secure future.

Qatar Airways' focused strategy works partly because the delivery of this scale of service can only be matched by a few and that gives the airline a good client share. Their aesthetics are appealing and they continue exceeding the average flyer's expectations (QATAR report, n.d).

Qatar Airways Assets

Tangible and Intangible

The flying clientele is demanding and the competition is only increasing in the airline sector.….....

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