Management: Qatar Airways - Assignment Example

? Management: A Report on Qatar Airways Presented Management: Qatar Airways Qatar Airways is a leading airline in the global market that has been dominated by other airline giants such as British Airways, making the business a highly competitive venture. Despite the competitiveness in the air transport in the global market today, Qatar Airways succeeded in penetrating the market, and offering a competitive approach that has ensured leadership in the market today. Oxford Business Group (2008, 142) explains that Qatar Airways in 2007 celebrated its 10th anniversary since its launching, and has recorded the most remarkable growth leading globally. For example, in 2006/2007 Qatar Airways according to the Oxford Business Group carried about 8 million passengers worldwide a sharp increase from its earlier record of 6.4 million passengers the previous year. This portrays a fast growing airline with massive potential to capture the market today, not only regionally but in the global market. Progress in Qatar airways The company in the last ten years since its launching has gained much ground compared to any airline globally. In an interview with the CEO, Qatar Airways Mr Baker, he explained that the airline managed to dominate its regional market mostly aided by the 2006 Asian games that made the world focus be turned to Qatar. As visitors from all over the world visited Qatar, this opened the region to the world, and as eh CEO explains, the Airways and the country at large benefited much in the regional level as the games opened this part of the continent to the world (Oxford Business Group 2008, 142). The General Secretary for Development and Planning, GSDP (2008, 2) explains that the massive and rapid growth in the region aided much in improving the airline in the region, as more investments trickled to the United Arab emirates since the early 90s. The international expansion of Qatar has been drastic and dramatic. The progress of the company has involved massive campaigns and acquiring ne destination in the global market. The expansion to the international market was more strategic compared to the expansion programs. Pennington (2010, 40) argues that the CEO of Qatar Airways explained that while other companies were rushing pack planes due to high competition in the market, the company was launching 7 new destinations in the international market. The most dramatic expansion and progress in the international market was the launching of the airway destination to Washington in June 26, 2007. This marked the first gulf airline to land in US and as the airplane landed on Newark Liberty International airport, it marked the venturing in into a lucrative market that has thousands of travelers form different continents (Oxford Business Group 2008, 144). The oxford Business report further explains that the massive advertisement campaigns that have been carried out by the company are part of the overall strategy to expand to the international market. Currently Qatar Airways continue to dominate and capture new markets in Europe and other regions to expand its operations. Cultural, Political and legal environment According to GSDP (2008, 1) there is a tension in Qatar between the new aspects of life and the old traditions that natives were used to culturally. Modern work patterns in Qatar crash with the traditions relationships based on trust and personal ties. This is more elaborate as the country becomes more open to globalization and more international business enters the country. Although there is a challenge of social patterns as GSDP (2008, 1) argues, there has been a positive embracing of the globalization where the country is more receptive to international investors and this makes Qatar Airways a choice of many in the regional Asian market. The political class is seriously committed to improvement the business opportunities and conditions in Qatar. Due to globalization Qatar Airways has been able to expand to foreign markets such as in the US, Africa, Europe and the Asian market effectively. With a positive political climate as Oxford Business Group (2008, 144) explains. Globalization seeks to provide a harmonious approach through which businesses have to have a common approach in a boundless market. Qatar Airline by expanding to the globalised market has a positive political environment that seeks to establish a borderless market in the international market. This explains the opening of Qatar to the entire world in response to globalization forces (GSDP 2008, 3). The legal process in the market for Qatar Airways is much influenced by globalization forces. The making of borderless market in globalization ensures that countries harmonize business laws in the market to accord to other globalised markets. This means that as Qatar Airways expand to other countries, there would be moire harmonized legal systems concerning global business operations, which will continuously facilitate operations. This is further explained by GSDP (2008, 3) that explains review of some business related laws that would attract more investors from the international market. Organization strategies Qatar Airways has elaborate strategies for international market entry. A report by International Security & Counter Terrorism Center (2011) elaborates that Qatar Airways has elaborate plans to expand to all routes in the global market, with 7 routes having been commissioned in 2011 in Nordic routes, Zagreb and Helsinki. The company seeks to operate more than 120 Airways in 120 countries by the end of 2013. In structuring its global operations, the company has undertaken to form partnerships with other companies especially in Europe and other regions. An example is Qantas Airline; an Australian company that had been underperforming under strong competitive forces in the market, and had been experiencing massive losses. The company signed an agreement with Qatar Airways to undertake all operations in Qantas (Cook, 2011). The lower operation cost in Qatar Airways offers it an advantage to acquire smaller companies in Asia and Europe in its global restructuring on strategies that increases its operations in the market. This restructuring and expansion programs have enabled the company to have strong grounds in other foreign markets. To maintain competitiveness in the market Qatar airline has sought to enhance value creation in service delivery to attract customers. The company according to Oxford Business group (2008, 143) has acquired the best fleet of airplanes with many of the fleet being new planes that meet modern technologies. The company to achieve comparativeness offers value adding services such as digital satellite TVs on A330 and A340 planes that show a range of European and Arab channels (Oxford Business group 2008, 143). This is in addition to executive suites and classes available in their fleets that add much more value compared to competitors. Offering of personalized services to customers has been recognized as an aspect that has ensured competitiveness of the company in the market today. These make the company to remain competitive and lead in the market despite the highly challenging environment in airline operations. Qatar Airways has made a drastic success in the market since 1997. The company has drastically expanded to all the major destinations in the world today that include Washington, Heathrow, the Nordic routes and other leading routes in the Asian market. The company expansion rate of 7 or more routes in a year is an exponential growth and success case compared to other competitors in the market. Company has also been acquiring many airplanes from Airbus and Boeing on large amounts that have led to signing of agreements between the airline and Boeing concerning delivery of new planes in readiness of further expansion in 2012. These facts prove the level of success and competitiveness that the company has achieved in the market, with more than 10 million passengers expected to travel though Qatar airways in 2011, from the 8 million mark in 2007/2006. This explains that Qatar Airways has achieved milestones that many carriers have never achieved and has maintained a market edge despite the difficult operation conditions in the market today. List of references Cook, T., 2011. Australia: Qantas imposes arbitration to enforce restructuring. World Socialist Web Site http://wsws.org/articles/2011/nov2011/qant-n23.shtml [29th Nov. 2011] General Secretary for Development and Planning, 2008. Qatar National Vision 2030. Doha: Qatar center for research and design International Security & Counter Terrorism Reference Center. 2011. Qatar Airways Announces Seven New Routes For 2012. Available Through Academic Research Premier. Oxford Business Group, 2008. The report: Emerging Qatar 2007. London: Oxford Busienss Group Pinnington, A., 2010. Strategic comparative and organization perspectives in IHRM http://www.sagepub.com/upm-data/36579_02_Harzing_Ch_01.pdf [29th Nov. 2011] Read More