Use of Internet Technologies in Qatar Airways - Case Study Example

An Analysis of the Current and Future use of Internet Technologies of "QATAR AIRWAYS Executive summary: This report analyses the current and future use of internet technologies in Qatar Airways. It has been prepared with a sincere effort to authentically present reliable facts relating to Qatar Airways. The role of internet in this Arabian organization has been analyzed. Qatar Airways is a fast developing airline organization in the world. “Qatar Airlines was honored in 2004 with a five-star ranking by Skytrax in its annual survey. The airline consistently ranks as the best airline in the Middle East.” (Knight 2010). The role of internet in the business of Qatar Airways is growing as they are gaining popularity. In the future also, this media is expected to play a vital role in its operation. The present business tactic adopted by them is the business to business model. E-business in Qatar Airways has improved gradually and has enhanced their marketing strategies, the marketing mix and also the investment opportunities. The suppliers’ power can also be further improved using the E-business. Besides, it will also help them to evolve better strategies to counter the threat from competitors as well as new entrants in the field. Oracle is the business suite adopted by Qatar Airways to improve its business. In this report the E-business background, the E-marketing analysis, business analysis, web design analysis has been done and also the marketing strategy has been provided. E-Business background: During the early years, business operations in Qatar Airways were done manually and there was no role for internet in its business. They have considered E-business as a very risky venture that was difficult and thus avoided its use in business. However, in the recent years they have changed their policy and adopted E-business strategies. Oracle business suite is the platform Qatar Airways adopted as a part of its expansion programme. Analysis of the Five forces using the internet Supplier power: Presently the supplier power is enhanced in Qatar Airways by the use of internet. In the future Internet will also make it possible for them to produces new and alternative suppliers using search engine technology. “The internet is also producing new and alternative suppliers of search engine technology.” (Doganis 2001, p.177). Threat of new entrants: Using the internet applications in its business Qatar Airways can through the web itself understand the business of its competitors and analyze which of the market players are likely to pos a threat to their operations. They have been doing this research in detecting their competitors. This internet application is of high utility both in the present and the future days to Qatar Airways. New entrants can be identified through the advertising. Internet has enhanced the advertising capabilities of Qatar Airways and, therefore, the advertising cost spent is far more effective through the internet. Threat of substitutes: Through the use of internet in its business the role of substitutes such as the intermediary travel agents can be minimized which can maximize the business and revenue of Qatar Airways. Presently, internet is being used in Qatar Airways for selling tickets through their website. By using the internet in its business Qatar Airways can further reduce the number of travel agents and other intermediaries who are better known as global travel distributors. By using the internet in its business Qatar Airways has been able to minimize the travel agents fees that it needed to pay when they bring in business. By the use of internet in its business, the employees of can themselves interact with customers and satisfy their demands without using intermediaries. This fees or expense saved can be used further development of business. Buyer power: Travel is the most important commodity which can be sold using online platform. Electronic ticketing has become possible in Qatar Airways presently which has been a major breakthrough in its business, which has taken them to new greater heights. Online sales have undergone a key growth in the past year in of Qatar Airways. Through the use of internet the customers can know when the ticket fares are high or low. Degree of rivalry: The rivalry can be better confronted using the internet because Qatar Airways can immediately understand through the web who its competitors are and what are the policies practiced by them. The degree of rivalry can be clearly known through the use of internet. The e-business suite that Qatar Airways uses is the Oracle platform, which enables them to conduct an aggressive expansion. E marketing Analysis: The business model adopted in Qatar Airways is the business to business model. Their development is mainly attributable to the implementation of E-business in its operation. The suite will centralize Qatar Airways financial and human resources operations and thus will help them in controlling the operations and subsidiaries’ operations. The oracle business suite has also helped Qatar Airways in improving their business. Further it can also help the business in staying up to date regarding the investments and the latest business trends that it needs to develop. Besides the marketing analysis done through internet helps them know the rate of advertising. The marketing analysis provides very authentic record of the exact number of sale of tickets that has taken place. E-business enhances the marketing mix of the Qatar Airways and helps in better understanding of the four elements of marketing mix. The facility for online purchase of tickets increases the number and speed of sales. The prices offered through internet provides the customer the fare of the tickets which is time saving. The contract customers can be priced accordingly through the internet records of how many times they had flown through the airline. The official partnerships with some leading web operators are useful in strengthening the place strategy of the QA. Advertisements can be further enhanced using the e-business suite and these advertisements act as an excellent sales promotion tools. Qatar Airways should use internet in its business and should further improve its internet applications because of its more advanced capabilities. “Internet allows then to improve business processes, conduct marketing research, provide customer service, and facilitate destination management and planning with less dependency on time and space.” (Bidgoli 2004, p.462). From the above, it transpires that Qatar Airways can actually double its profits by implementing E-business in its operation. Marketing strategy: Qatar Airways has come up with various marketing strategies to improve its business. The company website has made it easy for the passengers to know the details of flights and fares. The information is shared through the social sites like Face book and Twitter. Marketing through advertisements has made it more effective to attract the customers. “Qatar Airways has announced the launch of a global television marketing campaign on the BBC World channel which has an audience of 250m households worldwide. The new 12-month advertising campaign features four 60-second advertisements which focus on the airlines Five Star service, hospitality and brand quality.” (Qatar airways launches global marketing campaign on BBC world, 2004). Various programs like Doha Asian Games in 2006 made these airlines to get exposure to population from all over the world. The nation’s next attempt for the Football World Cup in 2022 is also well-supported by Qatar Airways, as it is the foremost traveling source across the country. “Qatar Airways will enhance the efficiency of revenue management best practice by incorporating PROS Real-Time Customer Management (RTCM). PROS RTCM improves the effectiveness of marketing strategies by analyzing passenger and market attributes and then targeting the right customer with the right price initiative at the right time.” (Qatar airways moves forward with PROS technology, 2007). They are providing good services to the first-class and business-class passengers and they are attracting the customers through premium hotels and the transportation services. Web design analysis: Qatar airways are an international aviation organization with fifty-fifty partnership between the government of Qatar and private investors. The rise of Qatar Airways from a domestic airline to that of a star international airline has been nothing less than awe inspiring. It has received several awards including the 2008 Skytrax Award and Qatar Airways is recognized as one of the world’s best three airlines. When applied as a business tool, web design should be carefully done and needs to contain the company’s main specifications as well as allow customers to purchase products or services online. The web design of QA is effective and supports online purchasing. Previously online prices were not available but now online prices are also available. Oracle business suite is the platform Qatar Airways uses. “Qatar Airways e-business transformation is complementing other projects such as the expansion of its fleet, the launch of new destinations, the rejuvenation of the present airport, and planning for the new $2 billion Doha International.” (Stensgaard 2003). The main page of the website itself is attractive, user friendly and has the options for quick booking in order to serve customers with emergent needs. “Qatar Airway’s e-business strategy is on course to increase the organisation’s profitability by reducing expenses, benefiting the bottom line at a critical time within Qatar Airway’s corporate evolution. The web access will enable the airways’ dispersed staff to access the system remotely as they travel to destinations throughout Europe, the Middle East, and Southeast Asia.” (Qatar airways commences oracle ERP project, 2002). The visual design of the website is very good and all specifications are provided. The site content can be further enhanced with information that is beneficial to customers. Business to business analysis: Qatar Airways, no doubt, is solidly placed on the path of development. Qatar Airways is trying to raise its business all over the world. It is the fastest growing airlines which control youngest fleets in the world with more than 20000 employees. Qatar Airways have been using the most innovative and updated technologies in its operation. “Qatar Airways is one of the largest expanding airlines in the Arab world. It services around 60 cities in Europe, the Middle East, Northern Africa and the Indian subcontinent.” (Qatar airways banks on Austrian technology made by frequentis, 2007, p.1). Qatar Airways has employed a lot of internet technologies in all spheres of its business processes. These airways have been targeted to provide outstanding quality service through the experienced staffs throughout the world. They offer a variety of services based on the internet technologies and they have developed their own software in providing the tickets, customer services, etc makes the customers to have a comfort journey. There are specific software and hardware team to attend issues related to the implemented technologies. An analysis of the use of internet will make it reasonable through the e-marketing and these newer proficiencies will generate superior improvements in the present as well as future. QA is keen to the quality and constant development. There has lot of training modules and vast sector for the business growth. They have the well-built base to study the business opportunities and recommending the various business paths and business successes. Their technology enables customers to use or work on the internet at more than 25000 feet. This makes the clients to connect to the world and can retrieve the information from the flight itself. QA is profitable in the gulf sector and the high end technology they use has enabled them to have in place a flawless communication system that facilitates excellent services in the airport and are good in co-coordinating the flight calendar. They are also able to help the aircraft crews to inform about weather, airport status, etc and also in the air traffic control and making cleat timings for the flights. The management is trying to use the most innovative technologies in this field which helps to make the journey safer and more comfortable. The business is gearing towards more developments by providing information, order taking, billing and payment, consultation, hospitality and safety. Sales and Customer Service: Customer service in the airline industry is very crucial for the success of their operations all around the world. The customers are pleased only when their expectations are fully met by the services offered by airline authorities. The customer relations management in the transportation industry is associated with the items or the people being moved. The sales department has many vital methods to improve the business through the products. They have to be get attracted by the customers through the various offers. It is important to make the customers aware about these facilities. These departments also have to set a proper communication to link with the customers. They have to help the customers by providing proper advices about the products and other services both at airport and on aircraft. “Establishing and strengthening long-term relationships with airlines customers is the key to success. Its the focus of a well-structured and coordinated process of customer relationship management. E-CRM involves far more than automating processes in sales, marketing, and service and then increasing the efficiency of these processes.” (Jiang 2003). The relevant departments in QA seem to have achieved all these. Several airlines like Qatar Airways are using the internet to apply the e-commerce functions and client relations administration tactics. “Todays era is a customer-dominated era, only to establish the "customer-centric" service concept, formulate a comprehensive and optimized customer service system, and through strict enforcement to ensure quality services in order to increase customer satisfaction, in order to win customers and win the market to ensure sustainable development of enterprises.” (Management of airline customers, 2008). Conclusions and recommendations: To sum up, the effective customer relationship management will build a long-term relationship between the customer and the company, product reliability and excellent transactions. The current and the future use of the internet technologies will make superior quality in the services of the Qatar Airways. The impact of the technology will benefit this airline industry and will help in enhancing profits. The current use of internet technology offers the complete details on the luggage counter service, traveler particulars, online register services, entry permit and identification necessities, journey-hotel room services, etc. The security, reliability and the scalability will bring the fresh energy to the Qatar Airways. The use of more customer friendly methods will help in building strong relation with the clients and thus helps in increasing the business. The innovative and a fresh marketing approach will lead the QA the topmost airlines in the world. Reference List Bidgoli, H., 2004. The internet encyclopedia, volume 3. [Online] John Wiley and Sons, p.462. Available at: http://books.google.co.in/books?id=wshm3f0hyI8C&pg=PA462&dq=role+of+internet+in+airline+business&hl=en&ei=1QPhTIWyFI-ycY3doJgM&sa=X&oi=book_result&ct=result&resnum=5&ved=0CEoQ6AEwBA#v=onepage&q=role%20of%20internet%20in%20airline%20business&f=false [Accessed 16 November 2010]. Doganis, R., 2001. The airline business in the twenty-first century. [Online] Routledge, p.177. Available at: http://books.google.co.in/books?id=_GT7FXsHIn8C&pg=PA177&dq=role+of+internet+in+airways+business&hl=en&ei=Rv_gTNe1HI-ycaLboJgM&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDsQ6AEwAQ#v=onepage&q=role%20of%20internet%20in%20airways%20business&f=false[Accessed 16 November 2010]. Jiang, M., 2003. Application of e-CRM to the airline industry. [Online] Available at: http://ausweb.scu.edu.au/aw03/papers/jiang/paper.html [Accessed 16 November 2010]. Knight, S., 2010. History of Qatar airways. [Online] Trevels.Com. Available at: http://www.travels.com/destinations/middle-east/history-qatar-airways/ [Accessed 16 November 2010]. Management of airline customers, 2008. [Online] Free Papers Download Center. Available at: http://eng.hi138.com/?i141834 [Accessed 16 November 2010]. Qatar airways banks on Austrian technology made by frequentis, 2007. [Online] Frequentis, p.1. Available at: http://www.frequentis.com/NR/rdonlyres/0CA7B7D7-5C86-4811-99D8-B9BBB1CF5BC4/0/qatar_airways_022007.pdf [Accessed 16 November 2010]. Qatar airways commences oracle ERP project, 2002. [Online] ITP.Net. Available at: http://www.itp.net/475347 [Accessed 16 November 2010]. Qatar airways launches global marketing campaign on BBC world, 2004. [Online] Bnet. Available at: http://findarticles.com/p/articles/mi_m0CWU/is_2004_Nov_10/ai_n6345181/ [Accessed 16 November 2010]. Qatar airways moves forward with PROS technology, 2007. [Online] All Business. Available at: http://www.allbusiness.com/company-activities-management/company-structures-ownership/5306954-1.html [Accessed 16 November 2010]. Stensgaard, AB., 2003. Qatar airways goes live on oracle e-business suite. [Online] AME Info.Com. Available at: http://www.ameinfo.com/32601.html [Accessed 16 November 2010]. Read More