Strategies help to
explain the things that managers and organisations do. These actions or
activities are designed and carried out in order o fulfil certain designated
purposes, some of them short in nature, others longer term’ (Thompson, 2001)
Th? proc?ss of strat?gic manag?m?nt analys?s various
initiativ?s that are carri?d out by th? members of a company’s manag?m?nt on
b?half of their shareholders, involving r?sourc?s pr?s?nt within th? external
environments. This proc?ss compris?s of making a sp?cification of th? mission,
vision and obj?ctiv?s of th? organization. Th? d?v?lopm?nt of plans and
polici?s that ar? focus?d on achi?v? th?s? obj?ctiv?s which there would then be
an allocation of r?sourc?s in ord?r to implement th? polici?s and plans (Rajiv Nag et al, 2007).
Th? first st?p in th? strat?gic manag?m?nt proc?ss compris?s
of strat?gy formulation. It contribut?s to th? proc?ss of strat?gic manag?m?nt
through h?lp with th? d?v?lopm?nt of a vision and mission stat?m?nt, making an
id?ntification of ?xt?rnal opportunities and thr?ats, determining th? int?rnal
str?ngths and weaknesses of th? company, ?stablishing of long t?rm obj?ctiv?,
producing of alt?rnativ? strat?gi?s as w?ll as th? s?l?cting of particular
strat?gi?s to adh?r? to (Rajiv Nag et al, 2007).
Th? n?xt st?p compris?s strat?gy impl?m?ntation and this is
th? action stag? of strat?gic manag?m?nt. Th? contributions to th? proc?ss of
strat?gic manag?m?nt is that it h?lps to ?stablishing annual obj?ctiv?s, it
cr?at?s a v?ry ?ffici?nt organizational structur?, it h?lps with th? d?vising
of polici?s, it also s?rv?s to motivat? ?mploy??s and facilitat?s th? proc?ss
of allocating r?sourc?s (Rajiv Nag et al, 2007).
Th? third st?p in th? proc?ss of strat?gic manag?m?nt would
b? strat?gy ?valuation. Th? contribution of this st?p includ?s th? fact that it
h?lps in making a r?vi?w of ?xt?rnal and int?rnal factors which mak? th?
foundation of th? curr?nt strat?gi?s, it h?lps with th? m?asur?m?nt of
p?rformanc? and also wh?n it com?s to taking corrective actions (Rajiv Nag et al, 2007).
Th? proc?ss of carrying out r?s?arch on th? busin?ss
?nvironm?nt in which an organization op?rat?s and of th? organization in ord?r
to formulat? strat?gy, is the Strategic Analysis. Th? first compon?nt of
strat?gic analysis is to d?fin? a probl?m or goal which would require th?
analysis. It is h?r? that busin?ss l?ad?rs would s??k to analys? th? ?ntir? company
and to plac? focus on a sp?cific d?partm?nt that would b? aff?ct?d by th?
probl?ms and that would bring about th? most f?asibl? solutions (Rajiv Nag et al, 2007).
Th? n?xt compon?nt is th? coll?ction of information r?quir?d
to ?valuat? str?ngths and w?akn?ss?s of th? company in r?lation to th? probl?m.
Th? third st?p involv?s making a d?finition of th? pot?ntial opportuniti?s and
thr?ats which might b? within th? scop? of th? probl?m which is to b? solv?d.
It is h?r? that th?r? will b? an id?ntification of opportuniti?s and thr?ats to
?fforts of a firm that would b? pr?s?nt within th? firm and th? comp?titiv?
?nvironm?nt. Th? n?xt st?p compris?s of making a r?vi?w of th? r?sults of
analysis in ord?r to d?t?rmin? how b?st to utiliz? th? str?ngths in ord?r to
addr?ss w?akn?ss?s, and to optimiz? opportuniti?s and to count?r p?rc?iv?d
thr?ats (Gerry Johnson et al, 2008).
3 History of Qatar Airways
Traditional traffic flow between the East and West was
conventionally concentrated at European hubs, at airports the likes of London
Heathrow, Frankfurt, Amsterdam and Paris Charles de Gaulle. This has changed
juristically with the rapid growth of the aviation business in the Middle East after
substantial investments as it is regarded as an important asset for the
development of the Gulf region. Gulf based airlines such as Qatar Airways,
Emirates and Etihad have transformed their home bases into international air
transport hubs. With the rise in success of these airline, it puts the European
carriers and their corresponding hubs under threat (John F O’Connell et al, 2016).
Qatar Airways is
the fastest growing airline in the world. It serves more than 150 destinations
in all six continents and is one of the youngest global airlines to do so. ‘2016 to date has seen another year of notable expansion for the leading
airline’ (Airways, 2017). It
provides an ‘unrivalled level of service’ from its home hub and five-star
airline, Hamad International Airport in Doha, the State of Qatar, offering its
consumers travel on a fleet on the latest generation aircraft (Airways, 2017).
Th? airlin? first launch?d its first low cost carri?r in 1994,
and has sinc? b??n r?-launch?d with an ?xpansiv? strat?gy of b?ing th? int?rnational
flag carri?r for Qatar und?r th? instructions of Th? ?mir, his highn?ss Sh?ikh
Hamad Bin Khalifa Al Thani. Th?ir growth is s?en to be increasing globally and
its expansion doubled every year (Airways, 2017). Before 2014, 50% of the airline was
owned by its Chief Executive Officer (CEO) Akbar Al Baker as well as
stakeholders, and the other 50% by the government of Qatar. However, this changed
in 2014 when The Qatar Investment Authority, the nation’s sovereign wealth
fund, bought the stakes, making it fully state owned (Dron, 2014).
4 Strategic Analysis
4.1 Strategic Vision
positioning is the approach to business strategy that argues; ‘An
organisation’s success in strategy rests upon how it positions itself in
respect to its environment’ (Evans, 2015)
Micha?l Port?r has argu?d that a firm’s str?ngths ultimat?ly
fall into on? of two h?adings: cost advantag? and diff?rentiation. By applying
these strengths in either a broad or narrow scope, three generic strategies
result: cost leadership, differentiation and focus (Porter, 1998).
Qatar airways have taken these strategies into consideration
and placed themselves in the ‘differentiation strategy’ and ‘focus strategy
(differentiation)’ side of the chart above to make their product and service
unique and to aim to be the best in the market, rather than focusing on being cost
effective towards their consumers. As long as their service is of best standards,
their customers would pay for it. As it is own?d by th? Qatari gov?rnm?nt, it ?njoys
many b?n?fits such as low tax?s, low?r r?ntal charg?s and h?lpful financial and
‘Blue Ocean Strategy
presents a systematic approach to making the competition irrelevant and
outlines principles and tools any organisation can use to create and capture
their own blue oceans’ (W. Chan Kim et al, 2005)
Qatar Airways plac? th?ms?lv?s in th? ‘Blu? Oc?an Strat?gy’.
Th?ir focus?d strat?gy works partly b?caus? th? d?liv?ry scal? of s?rvic? can
only b? match?d by a f?w which giv?s th? airlin? a good cli?nt shar?. Th?ir products
ar? app?aling and th?y continu? ?xc??ding th? av?rag? fly?r’s ?xp?ctations.
Th? vision stat?m?nt of Qatar Airways is to b?com? a world
class carri?r and cargo s?rvic? provid?r with global r?ach. In ord?r to uphold
th? stat?m?nt, th? organization focus?s on 3 factors quality of th? product, r?liability
of th? product, and world-class n?twork r?ach with 209 aircraft incr?asingly s?rving
ov?r 6 contin?nts and 150 d?stinations.
“W? striv? for ?xc?ll?nc? in ?v?rything w? do” (Airways, 2017). Along th? y?ars, th?
airlin? has stay?d loyal to its mission stat?m?nt and has ?nsur?d high
standards, stat? of th? art s?curity and s?rv? th?ir pass?ng?rs with a fiv?-star
?xc?ll?nc? that has com? to b? associat?d with Qatar Airways. Th?ir staff ar? w?ll-train?d,
polit? and culturally awar?.
Mr. Akbar Al Bak?r, appoint?d C?O in 1996, has b??n instrum?ntal
in turning Qatar Airways into an award-winning carri?r and th? b?st in th?
world. Und?r Al Bak?r’s st?wardship, Qatar Airways has matur?d into a l?ading
forc? in r?gional and global aviation, ?arning many admir?rs around th? world
for its ?xc?ll?nt standards of s?rvic?. Th?ir goals w?r? and still ar? to b? th?
b?st in ?v?ry v?ntur? it und?rtak?s in th? imm?diat? and long-t?rm futur?; to m??t
its custom?rs’ ?xp?ctations profitably, contribut? to th? succ?ss of Qatar and
to mak? th? city th? n?w global aviation hub for th? 21st c?ntury.
Qatar Airways go?s b?yond th? curr?nt industry b?st practic?s
for fu?l and ?nvironm?ntal manag?m?nt and is making a s?rious ?ffort to ?nsur?
a sustainabl? futur? for th? airlin?, staff and its n?ighbourhoods. To provid?
outstanding in-flight s?rvic? and sup?rior on board products, as w?ll as custom?r
4.2 Strategic Position
To this dat?, th? airlin? has r?markably achi?v?d th? Airlin?
of th? Y?ar annual award by Skytrax World Airlin? Awards s?v?ral tim?s; 2011,
2012, 2015 and 2017. As w?ll as th? B?st Busin?ss Class in Th? World Award for
2013, 2014, 2016 and 2017 (Airways, 2017). In Octob?r 2011, Qatar Airways attain?d
anoth?r k?y mil?ston? by taking d?liv?ry of its 100th aircraft. During th?
Dubai Air Show in Nov?mb?r 2011, Qatar Airways plac?d ord?rs (firm and options)
for 90 aircraft, comprising 80 of Airbus’ n?w A320 N?os, an additional ?ight
A380 sup?r jumbos and two Bo?ing 777 fr?ight?rs (Airways, 2017).
From Qatar Airways’ hub in Doha, th? country’s
capital, th? airlin? has d?v?lop?d a global
n?twork of ov?r 150 d?stinations, cov?ring ?urop?, Middl?
?ast, Africa, South Asia, Asia Pacific, North
Am?rica and South Am?rica with a mod?rn fl??t of ov?r 200 pass?ng?r and cargo aircraft.
From only four aircraft in 1997, th? airlin? gr?w to a fl??t siz? of 28
aircraft by th? ?nd of 2003 and a mil?ston? 50 by Octob?r 2006. Today th?
airlin? op?rat?s 209 aircraft to 150 d?stinations worldwid?. By 2015, th? fl??t
siz? will ris? to mor? than 170 aircraft cov?ring a global n?twork of d?stinations
that will also incr?as? to ov?r 170. Qatar Airways has on? of th?
industry’s young?st fl??ts with an av?rag? aircraft ag? und?r four y?ars old (Airways, 2017). The airline uses the
‘physical brand’ strategy buy acquiring the latest aircraft which makes them
stand out against competitors and attracts custom.
4.2.1 SWOT Analysis
A SWOT (strengths,
weaknesses, opportunities and threats) analysis constitutes an essential part
of the planning process and can be used for developing and evaluating possible
strategic changes (Thompson, 2001)
role of the SWOT analysis would be to make an identification of internal and
external factors that would be relevant in order to achieve the organisation’s
objectives (Rajiv Nag et al, 2007). The opportunities
that matter is those that can be capitalised on as they fit the organisation’s
values and resources (Thompson, 2001).