Strategies help toexplain the things that managers and organisations do. These actions oractivities are designed and carried out in order o fulfil certain designatedpurposes, some of them short in nature, others longer term’ (Thompson, 2001)Th? proc?ss of strat?gic manag?m?nt analys?s variousinitiativ?s that are carri?d out by th? members of a company’s manag?m?nt onb?half of their shareholders, involving r?sourc?s pr?s?nt within th? externalenvironments. 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 andpolici?s that ar? focus?d on achi?v? th?s? obj?ctiv?s which there would then bean 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?sof strat?gy formulation. It contribut?s to th? proc?ss of strat?gic manag?m?ntthrough h?lp with th? d?v?lopm?nt of a vision and mission stat?m?nt, making anid?ntification of ?xt?rnal opportunities and thr?ats, determining th? int?rnalstr?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 particularstrat?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 isth? action stag? of strat?gic manag?m?nt. Th? contributions to th? proc?ss ofstrat?gic manag?m?nt is that it h?lps to ?stablishing annual obj?ctiv?s, itcr?at?s a v?ry ?ffici?nt organizational structur?, it h?lps with th? d?visingof polici?s, it also s?rv?s to motivat? ?mploy??s and facilitat?s th? proc?ssof allocating r?sourc?s (Rajiv Nag et al, 2007). Th? third st?p in th? proc?ss of strat?gic manag?m?nt wouldb? strat?gy ?valuation.
Th? contribution of this st?p includ?s th? fact that ith?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 ofp?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?rto formulat? strat?gy, is the Strategic Analysis. Th? first compon?nt ofstrat?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? companyand 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?dto ?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 andthr?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 ofanalysis in ord?r to d?t?rmin? how b?st to utiliz? th? str?ngths in ord?r toaddr?ss w?akn?ss?s, and to optimiz? opportuniti?s and to count?r p?rc?iv?dthr?ats (Gerry Johnson et al, 2008). 3 History of Qatar AirwaysTraditional traffic flow between the East and West wasconventionally concentrated at European hubs, at airports the likes of LondonHeathrow, Frankfurt, Amsterdam and Paris Charles de Gaulle. This has changedjuristically with the rapid growth of the aviation business in the Middle East aftersubstantial investments as it is regarded as an important asset for thedevelopment of the Gulf region.
Gulf based airlines such as Qatar Airways,Emirates and Etihad have transformed their home bases into international airtransport hubs. With the rise in success of these airline, it puts the Europeancarriers and their corresponding hubs under threat (John F O’Connell et al, 2016).Qatar Airways isthe fastest growing airline in the world. It serves more than 150 destinationsin 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 leadingairline’ (Airways, 2017). Itprovides an ‘unrivalled level of service’ from its home hub and five-starairline, Hamad International Airport in Doha, the State of Qatar, offering itsconsumers 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?rnationalflag carri?r for Qatar und?r th? instructions of Th? ?mir, his highn?ss Sh?ikhHamad Bin Khalifa Al Thani. Th?ir growth is s?en to be increasing globally andits expansion doubled every year (Airways, 2017).
Before 2014, 50% of the airline wasowned by its Chief Executive Officer (CEO) Akbar Al Baker as well asstakeholders, and the other 50% by the government of Qatar. However, this changedin 2014 when The Qatar Investment Authority, the nation’s sovereign wealthfund, bought the stakes, making it fully state owned (Dron, 2014). 4 Strategic Analysis4.1 Strategic Vision Competitivepositioning is the approach to business strategy that argues; ‘Anorganisation’s success in strategy rests upon how it positions itself inrespect to its environment’ (Evans, 2015)Micha?l Port?r has argu?d that a firm’s str?ngths ultimat?lyfall into on? of two h?adings: cost advantag? and diff?rentiation. By applyingthese strengths in either a broad or narrow scope, three generic strategiesresult: cost leadership, differentiation and focus (Porter, 1998).
(Porter, 2017)Qatar airways have taken these strategies into considerationand placed themselves in the ‘differentiation strategy’ and ‘focus strategy(differentiation)’ side of the chart above to make their product and serviceunique and to aim to be the best in the market, rather than focusing on being costeffective 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 ?njoysmany b?n?fits such as low tax?s, low?r r?ntal charg?s and h?lpful financial andmanag?rial r?sourc?s.
‘Blue Ocean Strategypresents a systematic approach to making the competition irrelevant andoutlines principles and tools any organisation can use to create and capturetheir 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? canonly b? match?d by a f?w which giv?s th? airlin? a good cli?nt shar?. Th?ir productsar? app?aling and th?y continu? ?xc??ding th? av?rag? fly?r’s ?xp?ctations.
4.1.1 VisionTh? vision stat?m?nt of Qatar Airways is to b?com? a worldclass carri?r and cargo s?rvic? provid?r with global r?ach. In ord?r to upholdth? stat?m?nt, th? organization focus?s on 3 factors quality of th? product, r?liabilityof th? product, and world-class n?twork r?ach with 209 aircraft incr?asingly s?rvingov?r 6 contin?nts and 150 d?stinations.4.1.2 Mission”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 highstandards, 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?. 4.1.3 Strat?gyMr. Akbar Al Bak?r, appoint?d C?O in 1996, has b??n instrum?ntalin 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?adingforc? in r?gional and global aviation, ?arning many admir?rs around th? worldfor 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??tits custom?rs’ ?xp?ctations profitably, contribut? to th? succ?ss of Qatar andto mak? th? city th? n?w global aviation hub for th? 21st c?ntury. 4.1.4 ActionQatar Airways go?s b?yond th? curr?nt industry b?st practic?sfor 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?rs?rvic?.
4.2 Strategic PositionTo 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 for2013, 2014, 2016 and 2017 (Airways, 2017). In Octob?r 2011, Qatar Airways attain?danoth?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 ?ightA380 sup?r jumbos and two Bo?ing 777 fr?ight?rs (Airways, 2017). From Qatar Airways’ hub in Doha, th? country’scapital, th? airlin? has d?v?lop?d a globaln?twork of ov?r 150 d?stinations, cov?ring ?urop?, Middl??ast, Africa, South Asia, Asia Pacific, NorthAm?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 28aircraft 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??tsiz? will ris? to mor? than 170 aircraft cov?ring a global n?twork of d?stinationsthat 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 themstand out against competitors and attracts custom. 4.2.1 SWOT AnalysisA SWOT (strengths,weaknesses, opportunities and threats) analysis constitutes an essential partof the planning process and can be used for developing and evaluating possiblestrategic changes (Thompson, 2001)Therole of the SWOT analysis would be to make an identification of internal andexternal factors that would be relevant in order to achieve the organisation’sobjectives (Rajiv Nag et al, 2007). The opportunitiesthat matter is those that can be capitalised on as they fit the organisation’svalues and resources (Thompson, 2001).