International Marketing Strategy for Airlines

This assignment delves into the complexities of developing an effective international marketing strategy specifically tailored for airlines. It examines the impact of cultural differences on consumer behavior in various markets, explores relevant global business trends, and analyzes successful case studies of airline expansion. The task requires students to apply theoretical frameworks to practical scenarios and propose actionable recommendations for a hypothetical airline aiming to penetrate new international markets.

Running head: INTERNATIONAL BUSINESS STRATEGY
International Business Strategy
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Operations Management at Qatar Airways......................................................................................2
Managing Demand and Capacity.....................................................................................................4
Below are the statistics shows that Qatar Airways is using Lead strategy, dominating market and
taking over new height in the Airlines business..............................................................................5
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Executive Summary
The mission statement of Qatar airways “Excellence in everything QA does” .Now they are well
aware of the market, the strong competitors and the changing technological state of development
which is changing the customers demand, satisfaction and needs, to be all time winner in the
market they should keep expansion to the regions where they are not covered, reduces flights
which has lower income and passenger booking rates, keep focus on acquiring new well
developed luxury aircrafts and in long run expanding and leasing new terminals and airports. To
help manage the lead strategy of capacity and demand, Qatar Airways providing Unique
offerings, personalized customer services, forward thinking, staying modern and leader in
innovation and technology, at same time maintains.High standards of quality service in Arabic
custom, expanding to new regions and attracting new customers. Qatar Airways now emphasizes
on plans to have flights inland Chinese cities where demand for flights is high. Qatar Airways is
known for their niche and second tier markets strategies, international market expansions to new
regions and acquisitions.

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Introduction
Qatar Airways is state Qatar National airlines 50% owned by the government of State of
Qatar, established in 1993. It’s well known fast growing and expanding five star airlines in the
world having won three times 5 star awards in five years since establishment. We will discuss
one of the most crucial parts of the Qatar Airways which is its Operations. Managing capacity
and demand is a very crucial operational aspect in airlines is a tough task to do due to
unpredictability of its nature. If capacity and demand are not properly managed, it can have
significant cost for Qatar Airways. Qatar Airways is using Leading strategy for its operations to
manage capacity and demand. Due to a very effective management team Qatar Airways is
expanding and getting better in increasing rate, dominating many markets and reaching heights
of their business and competing very successfully in the market against giant airliners such as
Emirates, KLM, Etched, British Airlines and others (Ang’wech, 2012).
Operations Management at Qatar Airways
The Organizational structure of Qatar Airways is divided into External and Internal Divisions.
External Division is responsible for Independent Subsidiaries and In-flight and on ground
services. It manages following departments:
 Qatar Aircraft are Catering Company which gives catering services
 Qatar Airways Cargo are those which gives Cargo services
 Qatar has a Duty Free departures which has arrivals at VIP lounge
 Qatar aviation services and the passengers have air craft which have a cargo handling
 Qatar executive having the jet subsidiary

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The focus is on Operational Center, this center has many executive managers, responsible for
two main sub-divisions:
 Globally Air Fleet development and regional expansion
 The next sub-division is for HR, Finance and Commercial operations.
Like any business Qatar Airways uses its operations management to help run its business
practices smoothly, efficiently and effectively. Providing services, managing inventory, day to day
operations etc., all fall under the operations management of Qatar airways and how they conduct their
business (Armstrong et al ,2015).
As an airline Qatar airways seem to run their operations management similarly to other top
airlines around the world. The main aim of operations management for Qatar airways is to ensure that
things are running on time, safety and convenience of clients, and maintaining order within the operations
they carry out. Qatar airways carry out a lot of services, this means that the customers see their business
practices, practices such as security, catering, booking etc, are all seen by customers, so maintain a good
image is important for the reputation of the company; this cannot be sustained without good operations
management (Vogel, 2016).
There are many consequences that Qatar airways can suffer from bad operations management.
Things such as lack of resources to maintain a safe flight, lack of personnel to satisfy customer needs,
lack of organization within the company, lack of natural resources to fuel the vehicles, bad supply
management and more. All these issues negatively affect the way Qatar airways will operate, thus leading
them to drop their standards, gain a bad reputation, decrease profits and affect their overall image
globally. It’s well known fast growing and expanding five star airlines in the world having won
three times 5 star awards in five years since establishment. We will discuss one of the most
crucial parts of the Qatar Airways which is its Operations.

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Qatar airways always tried to maintain a good image, they are proud in their world
ranking; they always show off and talk about how they are a 5-star airline. All this will not be
possible without good operations management. As it is the core of every successful business.
Recommendation:
It is very tough to recommend anything to Qatar airways as they are one of the top
airlines, they are very well run they operate around the world, they won every award possible
and they keep getting better and better.
Our recommendation would be to keep doing what they are currently doing because it is
working very well. Thing such innovative advertisements, highly educated crew, the excellent
lounges all over the world, lack of time delay, use of technology etc. are all things that make life
easy for customers and workers within Qatar airways.
Managing Demand and Capacity
Airliners business is very strong and competitive, to enter this business the most
favorable as well the riskiest strategy is lead strategy, as a young company Qatar Airways had to
use lead strategy to manage its capacity and demand. Managing capacity and demand is a very
crucial operational aspect in airlines is a tough task to do due to unpredictability of its nature
(Benn, Dunphy, and Griffiths, 2014). If capacity and demand are not properly managed, it can
have significant cost for Qatar Airways
This is the most advantageous approach when there is intense competition, because if the
demand increase and was not satisfied immediately, you will lose a lot of your customers to the
competitors (Berthon et al ,2012).

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Below are the statistics shows that Qatar Airways is using Lead strategy,
dominating market and taking over new height in the Airlines business.
The Qatar Airways wore the new grey and the combination of burgundy uniform which
was launched on Airbus A300. In 1999 Qatar Airways got first Airbus A320. Qatar Airways was
the first Airlines resume flights to Iraq after the war. In 2005 they started new Doha Airport
(Currently known as Hamada International Airport). In 2005 in Paris Air show they announced
an order for 60 Airbus 350XWB Aircrafts. In 2006 Qatar Airways reached a milestone of 50
aircraft fleet. In Dubai Air show they announced order for 60 Boeing 787 Dream liners and 32
Boeing 777s. Qatar airways always tried to maintain a good image, they are proud in their world
ranking; they always show off and talk about how they are a 5-star airline. All this will not be possible
without good operations management. As it is the core of every successful business ( Blowfield and
Murray, 2014).
The First Boeing 777-300 ER arrived in late 2007. In 2009 again they ordered for 20
Airbus A320 and 4 Airbus A321s. The first Boeing 777 was delivered in the same year. In 2010
they were evaluated at third best Airlines in the world by Syntax. Another mega order was made
at Dubai Air Show in 2011 ordering 10 Airbus A380s with option for further three extra
aircrafts. In 2011 they reached another milestone of 100 Aircrafts. Qatar Airways Reaching 100
destinations in their global route map. In 2011, won airliner of the year award of Skirted where
more than 180 million travelers voted. Followed by Best Premium Service Airport award in
2012. For 6 consecutive years Qatar Airways is awarded as best Airlines in the Middle East. For
years Qatar Airways is growing in increasing speed and expanding worldwide. In 2013 Qatar
Airways become official sponsor of FC Barcelona Official Prime Shirts for 36 million USD.

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They also launched their European Customer service in 2013 in Warsaw Poland (Chadee, Roxas
and Rogmans, 2015).
At Farnborough Air Show, in 2014 Qatar Airways order for 100 Boeing 777x Aircrafts,
taking the Qatar airways orders to 330 aircrafts worth 70 billion dollars. Hamada International
Airport inaugurated in 2014 worth 15.5 billion dollars for commercial operations, having annual
capacity of 30 million passengers. In 2015 the number of aircraft reached to 170 while flying to
more than 170 destinations globally (Czinkota and Ronkainen, 2013).
Lastly, Qatar Airways made and order of 100 more aircrafts worth 18.6 billion dollars,
for 60 Boeings 737 as well 40 Boeing 777 and 787 Dream liner twin-aisle aircrafts in 2016
. Qatar Airways is hugely increasing its luxury aircrafts and world class
passenger’s services. The long-run strategy is to stay more competitive and innovative in its
carriers and service, currently Qatar Airways is providing e-booking, e-check-in, and E-boarding
passes which allows passengers to book a ticket and chose his seat according to the category of
his ticket (Business Class, First Class, or Economy).
Beside that to encourage passengers, they have launched reward program called Q-miles
while passenger can accumulate Q-miles by traveling with Qatar Airways or shopping at its
business associated companies. Such well managed operation category which considers every
aspect of customer satisfactions, innovations, increasing number of the fleets more than any
other airlines will keep them stronger in the market. To ensure better management Qatar airways
has Code share agreements with various airlines. Code share is an aviation business agreement
where the airlines share the same connecting flight (Clark, 2017).

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All these issues negatively affect the way Qatar airways will operate, thus leading them
to drop their standards, gain a bad reputation, decrease profits and affect their overall image
globally (De Mooij, 2013). It’s well known fast growing and expanding five star airlines in the
world having won three times 5 star awards in five years since establishment (Schuler et al
2017).
For long-run strategy Qatar Airways focuses on Qatar Airways takes part in extensive
international expansion, and they now planning to expand into China, and its flights to 70 flights
a week into China and India which can also help them to increase and maintain the current
increasing demand for Qatar Airways inside Chinese and Indian business cities (Gates, 2016).
Qatar Airways now emphasizes on plans to have flights inland Chinese cities where demand for
flights is high. Qatar Airways is known for their niche and second tier markets strategies,
international market expansions to new regions and acquisitions (Kapferer and Bastien, 2012. ).
Another important factor of successfully managing its lead strategy is by creating short
term demand in Qatar Airways is through hiring high class professional staff, as a biggest and
best business class in the Middle East Qatar Airways is using Interactive Audio, and five-star
cuisine to ensure increased customer satisfaction and keep generating demand. , they have
launched reward program called Q-miles while passenger can accumulate Q-miles by traveling
with Qatar Airways or shopping at its business associated companies.
Conclusion
Managing capacity and demand is a very crucial operational aspect in airlines is a tough
task to do due to unpredictability of its nature. If capacity and demand are not properly managed,

9INTERNATIONAL BUSINESS STRATEGY
it can have significant cost for Qatar Airways. Qatar Airways is using Leading strategy for its
operations to manage capacity and demand. For long-run strategy Qatar Airways focuses on
Qatar Airways takes part in extensive international expansion, and they now planning to expand
into China, and its flights to 70 flights a week into China and India which can also help them to
increase and maintain the current increasing demand for Qatar Airways inside Chinese and
Indian business cities. The First Boeing 777-300 ER arrived in late 2007. In 2009 again they
ordered for 20 Airbus A320 and 4 Airbus A321s. The first Boeing 777 was delivered in the same
year. In 2010 they were evaluated at 3rd best Airlines in the world by Skytrax. Another mega
order was made at Dubai Air Show in 2011 ordering 10 Airbus A380s with option for further
three extra aircrafts. In 2011 they reached another milestone of 100 Aircrafts. Reaching 100
destinations in their global route map. In 2011, won airliner of the year award of Skirted where
more than 180 million travelers voted. Followed by Best Premium Service Airport award in
2012. Our recommendation would be to keep doing what they are currently doing because it is working
very well. Thing such innovative advertisements, highly educated crew, the excellent lounges all over the
world, lack of time delay, use of technology etc. are all things that make life easy for customers and
workers within Qatar airways.

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References

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Ang’wech, M.A., 2012. Competitive Strategies adopted by Coca-Cola Kenya. Unpublished
research project, School of business, University of Nairobi.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Benn, S., Dunphy, D., and Griffiths, A. (2014). Organizational change for corporate
sustainability. Routledge.
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
horizons, 55(3), pp.261-271
Blowfield, M., and Murray, A. (2014). Corporate responsibility. Oxford University Press.
Chadee, D., Roxas, B. and Rogmans, T., 2015. Australia-GCC FTA: International Business
Prospects and Limitations. In Prospects and Challenges of Free Trade Agreements: Unlocking
Business Opportunities in Gulf Cooperation Council (GCC) Markets (pp. 93-121). Palgrave
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Clark, P., 2017. Buying the big jets: fleet planning for airlines. Taylor & Francis.
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications
Gates, B., 2016. 6 Strategic options—business and functional levels. The Strategic Planning

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Process: Understanding Strategy in Global Markets, p.205.
Hertog, S., 2016. A quest for significance: Gulf oil monarchies' international'soft
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Kapferer, J.N. and Bastien, V., 2012. The luxury strategy: break the rules of marketing to build
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Kaplanidou, K.K., Al Emadi, A., Sagas, M., Diop, A. and Fritz, G., 2016. Business legacy
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Ochieng, A.P., 2015. External Environmental Factors Influencing Financial Performance of
Kenya Airways. Unpublished MBA project.
Schuler, D., Rasche, A., Etzion, D., and Newton, L. (2017). Guest Editors’ Introduction:
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Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume
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about emerging market multinationals?. Global Strategy Journal, 2(1), pp.41-47.

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Vogel, E.F., 2016. 11 A framework of global strategic planning. The Strategic Planning
Process: Understanding Strategy in Global Markets, p.361.

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