BUSINESS STRATEGY ANALYSIS

Business Strategy Analysis- Qatar Airways



Contents

Overview of Qatar Airways2

Current Scenario2

Application of Porter's Five Forces Model on Qatar Airways3

Threat of New Competition4

Threat of Substitute Products or Services4

Bargaining Power of Customers5

Bargaining Power of Suppliers6

Intensity of Competitive Rivalry6

Qatar Airline External Environment Analysis7

Political7

Economical8

Social9

Technological10

Legal11

Environment12

Implications of Business Strategy for Qatar Airways13

Opportunity & Threat Planning for Qatar Airways14

Opportunities14

Threat Planning14

References15

Business Strategy Analysis- Qatar Airways

Overview of Qatar Airways

Qatar Airways is comparatively a new airline operating out of the Gulf State of Qatar. With the riches available the airline's disposal, the commercial carrier is heading toward developing itself in to a global brand. Qatar Airways has been aggressive in its strategy in the quest to attain organizational goals. This has been done by concentrating on increasing the market share and creating awareness among consumers. The company has resorted to advertising through television, print, internet and radio to gain brand awareness. The image of Qatar Airways is that of a progressive, young and a five-star airline that renders a unique and excellent flying experience. The airline looks to promote Arabian brand of on-flight hospitality while remaining receptive to various cultures. This strategy of being considerate in terms of culture serves the airline well given then diverse ethnic background of its employees and flight attendants. The organization at the time its inception faced the typical challenges that every new brand encounters. The initial perception of the airline was the same as that of the country. Citing this reference to the country, the employees working at Qatar Airways regard themselves as ambassadors of the country and its culture, while at the same time promoting the airline's high quality services (Al Baker, 2005, pp. 1).

Current Scenario

As the Global Airline Industry Program described, the aviation industry in its very nature is competitive, fickle and deregulated. The fragile industry environment has caused a change in the strategies employed by the airlines and their operational prices in both national and international aviation industries. One of the biggest challenges for players in the industry is to be able to generate profit while being sustainable. It is pursued by organizations with the help of various management tools and developing congenial relations within the industry.

Application of Porter's Five Forces Model on Qatar Airways

Michael Porter presented a theoretical framework for conducting industry analysis and developing business strategy in 1979. Porter's five forces tend to utilize the industrial dynamics and economics for a decent determination of the competitive intensity for the company/industry (Coyne & Balakrishnan, 1996, pp. 18).

Source: “The Five Competitive Forces that Shape Strategy” Michael E. Porter (2008)

Now, we would attempt to apply the five forces suggested by Porter on the business strategy of Qatar Airways:

Threat of New Competition

The Airline industry is a major industry in contemporary world. It is believed to be one of the most difficult to get into as well; due to high economic costs. The threat of competition (fellow competitors and new entrants) is always relevant to the Airline industry. Qatar Airways is a major airline and is known ...