1.

Introduction

This Report will be focusing on the Strategic Position of Qatar Airways

Environment Capability

Strategic position-
Qatar Airways
Culture
Purpose

(Richard, L 2006, p.76)

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2. Qatar Airways Market Share and Growth
Qatar Airways launched its first low cost carrier in the year 1994, and has been re-
launched with an expansive strategy of international carrier under the instructions of
The Emir, his highness Sheikh Hamad Bin Khalifa Al Thani,
The growth of Qatar Airways is seen to be increasing globally and its expansion
doubled every year. At the Later stage of development,
50% of the share of private share is owned by Chief Executive Officer (CEO)
Akbar Al Baker ad well as stakeholders
50% is owned by the government, which has turned the Qatar Airways into
most prominent airline accepting the award of most top class airlines.
Mr Akbar Al Bakers management strategy of Qatar Airways has made Qatar
Airways to stand out to have best strategic competence.
Owns 70% of market share successfully. Contributing 520Billion USD
towards the economy through tourism receipts.

3. The Turbulence
Since the launch of Qatar Airways in 1994, the airlines have started to flourish rapidly
in decade.

The technological advancement and the economic impact had a greater

influence on the organization.
Fluctuating prices in basic resources and pay scale of the income group had a
major impact in the change of the airline specification to attract the target
audience to survive in the economic shift.
According to Degree of turbulence factor coined by (Loizos, H 2003, p.73), it
is measured as Qatar Airways has a complexity by which the organization will
be affected based on the change in macro environment

4. Strategic Environment Analysis Qatar Airways

The Macro Environment
4.1 Political Factor
The government norms and other political issues have affected Qatar airways with its
evolving success for the past few years. The airlines had a deal conflict with European

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airlines for which European airlines used winging tactics as the airline was feared for
its fleets manufacturing and safety regulators. According to CEO, Akbar Al Baker, the
two factors that affected the alliance would be.
Indirect Taxes announced by the European Airlines
Political barricade to deny the taxation procedures

4.2 Economic Factor

In the current economic crisis, part of the factors that could influence Qatar Airways
would be
GDP
Increase in the international trade
Globalization,
GDP rate in the Middle East by current statistics pointed as 3.6% and rise in the
passenger traffic constituted 5.5%. Thus, the sate owned airlines would overcome the
fluctuation in price policies of the resources.

4.3 Social factor

It is very crucial for any industry to look after the social factor which indeed makes
sure that both community and the business is not been affected. Considering this
issue, Qatar airways has shown a positive response to the community by reducing the
treat to environment by controlling the air-traffic that minimizes the carbon emissions.

4.4 Technological Factor

The strategic partnership of Qatar Airways with Qtel brings out a long-term
technological relationship that helps in developing the aviations groundwork to
technological level. The technological advancement in the business has a positive
effect in the areas of routing and the Internet booking. This technological alliance
helps in better and smooth operations and the improvement for the airline operations.
Advancement of Global distribution system also plays vital part in contributing the
service to Qatar Airways as the revenue generating feeds.

5. Five Forces analysis- Qatar Airways

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 (Gerry, J.,Kevan, S. and Richard,
W 2009, p.31)
Sectorial Analysis
5.1 Bargaining Power of suppliers
Airline industrys bargaining power of suppliers is dominated by Boeing, Airbus, AJ
Walter and Rolls -Royce. The bargaining power of suppliers has always been on the
positive power over the Qatar airways. However, the derby based Rolls-Royce also
plays a major role in terms of supplying raw materials to the Qatar airways, where as
it supplies a exclusive ranged aircrafts and also holds the brand image which adheres
to supply Qatar Airways and being a single supplier transaction that holds them to
have a higher bargaining power.

5.2 Bargaining Power of Buyers

The bargaining power of the buyers in the aviation industry remains unchanged, as
there are price fluctuations between the airlines leaving a wide opportunity for the

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buyers. However, Qatar airways have unique product differentiation that makes the
consumers to choose Qatar Airways as an option from The Emirates being a close
competitor as they provide similar product but different service techniques. This
induces buyers to have less power over Qatar Airways.

5.3 Intensity of Rivalry among Competitors

Qatar Airways being a base airline from the Middle East has two close competitors
Etihad and The Emirates. The customer expectation and change in mindset prevails as
the product differs from the best to normal category. Increase in number of traffic,
new forms of alliances across boundaries and Qatar Airways should also provide both
safety and security to compete with the rivalries located in the similar location.
Similar product of the firm creates a strong threshold to the rivalries in airline
industry.

6. Competitor analysis

6.1 Strategic competitor - The Emirates Airlines (David, H 1998,

p.239)
Qatar Airways is one of the fastest growing airlines in the
world, which is equally owned by the government of Qatar and private stakeholders.
The key competitor of Qatar Airways is The Emirates, which is fully owned by

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government and it is 24 years Old Corporation, which has a huge networking hub.
Even though Qatar Airways is a fast growing airline, it still lacks behind Emirates in
terms of networking and connectivity.
AIRLINES FLIGHTS DESTINATION COMPETITIVE
OWNED COVERED ADVANTAGE
Entering new
destinations which
120 destinations in Emirates does not
Qatar Airways 120
70 countries focus on with 50
million passenger
count in year 2012
Focus on current
routes and
developing aircraft
129 destinations in
The Emirates 162 features with a
72 countries
passenger count of
35 million in the
year 2012

Qatar Airways has become major competitor for Emirates due to its rapid growth and
expansion globally. Qatar Airways has placed its strategic hands into numerous
emerging countries in order to create its new network in niche market segment with
and upcoming route, which Emirates has blindfolded.

7. Customer analysis
Qatar Airways has its own target market that has the brand loyalty towards the
national carrier. However, Qatar Airways focus mainly on targeting the business class
and elite class customers who are willing to pay the sum of money for the service
rendered by the organization. They focus on attracting the nouveau riche target
audience, baby boomers, yuppies as well as frequent economic travellers .By this
selective and focused market segmentation Qatar Airways has a strong hold on its
position in the brand uniqueness and sustainable business in the competitive
environment.

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8. Product Life cycle
Qatar Airways being a well-flourished Airline and it is sustained in the maturity stage
with no declination seen in near future due to its innovation and sustained market
penetration strategy. Qatar Airways focus on delivering its elite services to their
focused target audience and retain them by not only meeting their demands and
expectation but also by exceeding the expectation and providing them more than the
audience demand by their change in product line as well as aesthetics. As there are
minimum close competitors who provide similar product specification, however Qatar
Airways would continue to flourish in new future by their focused strategy.

(Gerry, J.,Kevan, S. and Richard,

W 2009, p.40)
9. Key factor of success
The key factors that drive the organization to be successful in the market by
constantly retaining the pride are their strategic capabilities in acquiring new ventures,
the social responsibility and drive towards preventing the depletion of resources. As
well as the well-organized corporate governance structure that are people oriented and
matrix hierarchy.

10. Strategic links

Qatar Airways works closely with their alliances and links in order to be the leading
airline in the global market. Currently it holds the alliances with Rolls-Royce for the
supply and manufacturing of their fleet engines and Qtel a technology company, who
works closely with Qatar Airways for the marketing and sales profit contribution

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through selling tickets and monitoring sales. Being a state owned national carrier it
has a strong government link, which provides subsidies, financial resources as well as
the land with low taxes and rental charges. These strong links has made Qatar
Airways the leading brand by focusing more towards the internal and external people
meeting their demands continuously due to the low operating costs and maintenance
cost.

11. Qatar Airways Resources

( Kevan, W 2009, p.37)

11.1 Tangible and Intangible
In a competitive airline sector, it is crucial for airlines to gain competitive advantage
over their rivals. Qatar Airways being a national carrier they are fervent to a certain
amount of sheerness in terms of dealings and operations. This holds down the
competitive advantages of Qatar Airways over their rivals. However, being a smart
player in the business climate the organization can imitate strategic orders and
approaches using its resources effectively.
11.1.1Financial resources

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Global economic recession saw the airline industry profits drop significantly,
however, in 2010 the strongest expansion was seen in developing economies
and Middle eastern airlines experienced the largest growth overall as stated in
IATA annual report, 2011. As Qatar Airways is 50 % government owned and
50% owned by private shareholders, the government funds the airline and even
though they do not disclose financial figures to the public, Qatar Airways CEO
Akbar Al Baker has been quoted as follows.
The group made a net profit 7.5 billion USD for the year until March 2012
70% of Market Expansion contributing to the economy

11.1.2 Physical Resources

Over the decades Qatar airways has expanded its business globally by opening
their headquarters and office establishments in the geographic locations where
the resource capabilities and accessibilities are high. The main headquarters of
Qatar airways is located in Doha, connecting over 100 destinations worldwide
using Hub and spoke links. More over having and premium classed terminal
based at the Doha terminal ease their operations and day-to-day activities
smoothly and efficiently.

11.1.3 Human resource

The human resource management of Qatar Airways are predominant in the
airline industry, every staff that are recruited are trained and taught the culture
and values of the organization. The Skytrax awarded organization has provided
the best inflight services by the personnel and makes sure that the service is
standardized globally. Experienced staffs and matrix hierarchy culture has kept
the organization on the top of its substitute classes, promisingly providing the
best human skills and customer service skills to their customer whilst carrying
the companies pride with a full fledge training.

11.1.4 Technological Resources

Qatar airways have acquired both Airbus and Boeing aircrafts, which are world
leaders in their respective industry and a firm leader of safety and technology
providing world class fleets and machineries. On the other hand Rolls- Royce
the leading engine equipment brands have contributed Qatar Airways to stand

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 out in the market for the consumer safety and management procedures. Qatar
Airways has been awarded the best flight service and the innovative approach
awards for the safety and security, inflight technological experience, ease of
access to the bookings and reservations facilities audited and surveyed by the
(Skytrax Airline Global Industry Audit, 2011-2012).

11.1.5 Brand Visibility

Qatar Airways has a greater brand visibility in the global market because of its
innovative approach of product, superior customer service skills both inflight
and ground operation with a excellent service equality approach, technological
feed over the brand for sales and marketing using user friendly interface and
sustained survey process which helps them to collect live feed backs from the
consumers and reforming their product to serve their people better than the
sectorial competitors.

11.1.6 VRIN Measurement

The robust corporate culture and complexity towards the hierarchical structure it
makes the competitors to imitate the product and Qatar Airways has a rarity
factor of strong government influence and their resources, clear patent rights
over the fleets and design as well as in flight aesthetics, having the base at the
Doha terminal is a strong advantage which leaves the competitors ambiguous to
compete with the Qatar Airways action plans.

12. Capabilities
Being a State owned carrier Qatar Airways has its own unique resource capabilities
that contributes in their business expansion geographically and expansion in their fleet
counts to connect the world efficiently.
12.1 The land
Qatar Airways headquarters occupies the biggest resource capability that implies the
push on competitors to have minimal accessibility to the land and space leaving them
to attract only minimal number of target audience.
12.2 The Financial
50% stake holder and 50% state owned carrier has a huge back up which leaves them

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to dominate the market effectively with lower cost over rent and place as well as the
maintenance cost.
12.3 Brand Image
Qatar Airways consumer market is wider than their competitors. The cost leadership
with broad audience makes it be the product leader in the prevailing competitive
sector.

13. Purpose and Culture-Qatar Airways

13.1 Mission
The mission statement of Qatar Airways quotes Excellence in everything that we
do. In order to accomplish the goals of the mission statement, the airlines ensures the
high end safety and security norms as well as focusing on rendering 5 star services
with well trained staffs who are also trained towards organization culture awareness.

13.2 Vision
The vision statement of Qatar Airways is To become a world class carrier and cargo
service provider with global reach. In order to uphold the statement the organization
focuses on 3 factors quality of the product, reliability of the product, and world-class
network reach with 122 aircrafts increasingly serving over 6 continents and 120
destinations.

13.3 Objectives
The key objective is to magnify the brand awareness globally whilst increasing the
knowledge of airline products through their safety, security, customer service,
comfort and convenience by providing luxury service to the customer. Innovation and
creativity are the key factors to accomplish the objectives of their organization.
13.4 Strategic purpose
Qatar Airways stands firm on the purpose to deliver excellence in
everything they do. That means the organization focuses on the
needs and constantly exceeds expectation of the clients flying with
them and allied with them to serve better. They consider the hopes

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and dreams of the people and fly with the hopes and dreams of
satisfying the people flying with them.

13.5 Corporate governance

Emir
Chairman

Akbar Al
Baker
CEO

Ali Al Rais
Senior
Manager

Rinesh
Abdullah Joan
Gohar Ramakiss batten
General on General General
manager manager manager

( Kevan, W 2009,
p.45)

As state owned carrier the funding are directed through the

government and the Emir of the UAE, the management process
starts by the CEO and other private stake holders as the decision
authority in marketing, financial, sales, procurement and operations
delegated to the relevant general managers and their subordinates.
Which forms a strong matrix approach in the governance.

13.6 Organization culture

The company values the people inside and outside the organization,
they believe that they are linked through corporate benefits and
building relationships internally grows a strong external links, which
gains a positive reputation in the market.

13.7 Stakeholder expectation

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 (Garry, T. and Michael O, K
2000, p.70)

Investors have greater interest towards the organization because

they focus on capital gains and long-term involvement.
Shareholders have significant interest on the company as they look
for the profit and trading in the future. Government has a greater
interest on the organization as it supplies the resources and controls
the corporate capital of Qatar Airways. Community and suppliers
have medium to low interest, as they do not affect the companys
actions directly as they focus mainly on cheap prices and long-term
brand loyalty.

13.8 Corporate Social Responsibility

Qatar Airways focuses on enlightened self-interest of the
stakeholder and the internal people. The organization focuses on
educating the people in the organization and the stakeholders to
care and protect the environment. The organization also encourages
business partners and community through improving their business

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activities by using the resources carefully without depleting the
ecosystem using a 5 pillar corporate social responsibility.

14. Conclusion & Future Positioning

The ravishing market penetration and robust strategy has kept Qatar Airways in the
top order amidst the big players. It is see that they excel in satisfying the consumers
and the people they are adhered too. Qatar Airways strong hierarchical structure has
developed the company intact and powerful from the base inside out in the market.
Qatar airways have planned to establish more global fleets with the Arabic touch, the
organization has also planned to sustain as a leader in the technology and product
standards which would help to position itself top amidst leading airline brands.
Acquire more strategic partnership and alliances to develop the product to attract and
serve the Qatari as well as global target audience.
What we do we do best and the best we stand in the market
CEO(Akbar Al Baker)

15. Reference

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David, H. 1998. Strategic Management from the theory to implementation. 4th ed.
Massachusetts: Butterworth-Heinemann

Gerry, J., Kevan, S. and Richard, W. 2009. Fundamentals Of Strategy. 3rd ed.
England : Pearson Education Limited

Kevan, W. 2009. Strategic Management. 1st ed. New York: DK Publishing Special
Markets

Loizos, H. 2003. Strategy and Organization. 1st ed. United Kingdom: Cambridge
University Press

Richard, L. 2006. Corporate Strategy. 4th ed. England: Pearson Education Limited

Garry, T. and Michael O, K. 2000. New Directions in Corporate Strategy. 1st ed.
Australia: Allen and Unwin

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