Qatar Airways Analysis
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INTRODUCTION
The objective of this assignment is to analyse the current situation of Qatar Airways, as well as to determine possible future strategic options through the application of theoretical frameworks such as value chain analysis, resource edit, stakeholder analysis and Ansoff matrix.
BACKGROUND
Since its re-launch in 1997, Qatar Airways has attained staggering growth in fleet size and passengers number. From four aircraft in 1997, the group grew to a fleet size of 42 in September 2005 and by 2015, the fleet size will almost triple to 110 aircraft. From its hub in Doha, Qatar Airways has developed a global network of destination thanks to its code-share partners and alliances with other companies. Qatar Airways strengths might be identified in its good financial position that means, thanks to petrodollars, an easy access to working capital. Its management is solid and prepared to futures challenges, such as its crews and its modern fleet. Opportunities might be identified in Qatar Airways potential of growth either in Middle East area than in global area, thanks to development of new routes and focusing its strategy on top quality carrier, focused heavily on customer service. With these good intentions, Qatar Airways can win the intense competition between Arabian carriers, such as Emirates, Etihad and Gulf Air and fill up its weaknesses that are: lack brand awareness and prejudices on Arabian Airlines, essentially due to Islamic terrorism and political instability of adjacent states.
RESOURCE AUDIT ANALYSIS
The resource audit identifies and evaluates the resources available to Qatar Airways, in order to support its strategic aims and objectives. In this analysis is essential to identify companys resources and competences, finding the link between each other, aiming to add value to the organisation.
Threshold Resources
(See Appendix 1)
Unique resources
Physical: In this group might be identified catering facility, such as fine food and galley presence on board of top Qatar Airways aircraft. In addition the presence of warehouse and, especially for Qatar Airways, to manage an airport. In fact according to Craven (2006) “Qatar Airways will manage new airport, to help shape Doha as a key regional and global aviation hub”
Human: Qatar Airways staffs are an international group of people aiming to excellence as well as customer satisfaction.
Financial: Qatar government controls Qatar Airways. Thanks to oilfields, the government funding Qatar Airways activity.
Brand: Qatar Airways is a top quality carrier. An advertising campaign aimed to pretentious customers is the key to develop this unique resource. Sponsorship agreement might be useful. In fact, according to Marketing 2006, thanks to cricket sponsorship “The airline will receive exclusive in-stadia signage and marketing rights as well as tickets and hospitality. Ramachandran, Qatar Airways regional manager for South and West Europe, said many of its target audience were cricket fans”.
Other Intangibles: The brand knowledge and reliability is very important.
Threshold Competences
(See Appendix 2)
Core Competences
Physical: Here there are different points of strength for Qatar airways. A modern fleet is important, as well as more fuel-efficient aircraft. In fact, according to Done (2007) “Qatar Airways will become the crucial launch customer for the new family of Airbus long-haul, wide-body jets, the A350XWB”. Also on board entertainment is important, according to Airfinance(2007) “Qatar Airways has closed an innovative $140 million loan to help it finance pre-delivery payments for in-flight entertainment systems, seats and other interior equipment not included as part of its Airbus orders”. These plans are very important because they create customer value, making a good impact on customer perceptions as well as they making competitor differentiation.
Human: To create value are required: top and friendly customer service, as well as pilots and crews with experience
Financial: Not every air carrier has the same accessibility to finance as Qatar Airways, in fact, according to Trade Finance(2003) “New aircraft will be delivered to Qatar Airways between September 2004 and April 2008 with financing arranged by ABN Amro and Qatar National Bank ”
Brand: To be specialized in excellence is an important way to create value. Customers who fly with Qatar Airway expect the best service in every aspect such as cut the queues, on-time schedules and comfortable waiting room in the main companys destinations.
Other Intangibles: Airline industry is subject to particular regulations and laws such as noise pollution and engine emission. Nowadays environmental credentials are core competences that making value. Qatar Airways management know that, in fact, according to Press Release (November 2007) they signed a joint agreement with Qatar petroleum, Shell, Airbus, Rolls Royce and Qatar Science and Technology to investigate fuel-related benefits of using synthetic jet fuels to power aviation turbine engines. The focus of the research is to evaluate potential improvements in local air quality, fuel economy and overall reduction in CO2 and other emissions. “The Working Together Agreement would see Qatar Airways become the first airline in the world to operate flights using gas-to-liquids kerosene fuel”
VALUE CHAIN ANALYSIS
Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. The value chain model is a useful analysis for defining a firms core competencies and the activities in which it can achieve a competitive advantage thanks to: cost advantage, by better understanding costs and reducing them out of the value-adding activities or thanks to differentiation, by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors. The activities of a business could be divided in two groups: Primary activities and Support activities.
Primary