Strategic Management of Qatar Executive

This report analyzes the internal and external environment of Qatar Executive, a subsidiary of Qatar Airways, using tools such as SWOT analysis and Porter's Five Forces Framework. It discusses the strengths, weaknesses, opportunities, and threats of the organization and provides recommendations for cost leadership and diversification strategies.

Strategic Management

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Introduction
Strategic Management is the process of analysing, monitoring and evaluating the
environment of the organisation. It is necessary for the organisation to analyse the
environment in order to achieve the objective. The company can analyse the environment by
using the different tools such as SWOT, PESTLE, Porters Five Forces Framework and many
others. In this report, Qatar executive has been taken into consideration to analyse the internal
and external environment of the organisation.
At the beginning of the report, the environment will be analysed in order to identify
the internal and external factors that directly affect the business. The method and strategies
will recommended at the end of the report in order to attain the objective.
Overview of the organisation
Qatar is a jet company and the subsidiary company of Qatar Airways. It is established
in Doha in the year of 2009. It offers the services of aircraft maintenance, full range of fixed
based operation and management at the international Airport of Doha. It expands the business
by entering the FBO and maintenance services of Business Jets which is coming to Doha. It
is responsible for the services of Qatar Airways Charter request. It is appointed by
Bombardier for its Authorized Service Facility for Challenger and Global aircraft in the
Middle East (Aircraft Charter, 2019).
Market Analysis
SWOT Analysis
It is strategic tool which is used to determine the strength, weaknesses, opportunity and threat
of the organisation (Mind Tools, 2019).

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Strength
 It has been seen that the company has the strong parent company in support. The
company can easily grow in the market with the faster rate as it has the strong back
for management.
 The company has the clear target segment of Qatar Executive that always been those
people who travel in luxury class and can easily afford the services. The clear goal
and target is a success path for the organisation.
 The maintenance operation of the organisation attains the high growth in the market
due to increasing the high demand. The participation in the multiple services is also
strength for the organisation that helps to achieve the success in the industry such as
Black hours, live legs, aircraft, crew, maintenance, and insurance.
Weaknesses
 Cost Management is the weaknesses of the company because it mainly focuses on the
primary or business class. It is difficult to manage the cost because it has to provide
the expensive services to consumer as well the prices of fuel are also fluctuated
(Phadermrod, Crowder, & Wills, 2019).
 It is observed that the organisation has high strong back that is why; there are many
companies who beat the organisation in the terms of low cost.
 Qatar Airways is the international airways and it supports the Qatar Executive that is
why; it has to follow the international rules and regulation. It is difficult for the
organisation to follow the rules and regulation of different countries.
Opportunity

QATAR EXECUTIVE 3
 With the growing technology, the demand of consumers is increases for air travel than
road or rail. It has been seen that the company have strong connectivity with Qatar
Airways that is why; it has the opportunity to expand the business of maintenance and
services at the international level.
 Implementation of high technology helps to enhance the offering services.
Threat
 The company has high competition in the market due to its strong back of parent
companies such as Emirates and Etihad Airlines.
 Political and terrorism affects the demand of travellers due to which the threat of
losing the customers.
 Government of Qatar dispute with the GCC members affect the Qatar Airways.
Porters Five Forces Framework
It is a strategic technique which is used to understand the environment of the industry that can
affect the profitability of the organisation.
The threat of New Entrants
The organisation have high degree of threat of new entrants because of high capital
requirement. It has been seen that the cost of buying the aircraft on leasing, safety and
security measure, customer services is high. The risk of unpredictable future is high in the
operation of maintenance. It is difficult for the company to enter the market with the high
capital and take the huge risk. It is observed that the existing companies have high brand
value and image in the market due to which the new entrants faces the difficult to compete
the exiting companies.
Bargaining power of consumers

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It has been seen that the bargaining power of consumers is high as the industry have
high competition between the limited companies. It targets the individuals, businesses,
corporations and government are the consumers of the organisation. The companies offer the
different services with the low prices as compare to each other in order to beat the
competitors. High competition provides the lot of options to consumers to hold a good
number of powers over the airline companies (Adi, 2015).
Bargaining power of Suppliers
Bargaining power of suppliers is high just because of limited number of suppliers in
the industry such as Boeing and Airbus. The organisation totally relies on the supplier that is
why; the growth of organisation affected due to increasing and decreasing the prices of raw
material (Qatar Airways, 2019).
The threat of competitors
The threat of competitors is also high just because of limited companies in the
industry. The existing companies have highly competed to each other by providing the low
prices to consumer as compare to each other. Although, it has modern fleet, seamless last
minute bookings, and Unparalleled travel services that attract the consumers towards the
services (Owler, 2019).
The threat of substitute
The threat of substitute is high just because of other sources of travelling such as train,
and buses. The consumer prefers trains as compare to airplane due to low cost services that is
why the threat of substitute is high for the company.

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Recommendation
From the above analysis, it is recommended that the organisation has to adopt the strategies
with the aim of reducing the issues and earns the profitability.
Cost leadership strategies
It has been evaluated that there are limited number of companies who highly compete
with company in the terms of price. The company have to manage its cost by focusing in the
low cost services in order to beat the competitors. The company gain the competitive
advantage by attracting the customer towards the services by offering low prices (Bell, Dyck,
& Neubert, 2017).
Diversification Strategy
As discussed above, the industry has limited companies that compete with each other.
It has been recommended that the organisation has to implement the diversification strategy
in the organisation to provide the innovative services to consumers. However, it is observed
that the organisation provide the multiple services but it has to take the advantage of
supporting company and expand the business at the international level (Salavou, 2015).
Conclusion
At the end of the report, it has been concluded that the organisation face the issue of
political parties as it is operating at the international level. It also faces the high competition
in the market due to high brand image of competitors in the industry. It has been
recommended that the organisation has to implement the cost leadership strategy and
diversification strategy in order to gain the competitive advantage and grab the high market
share. At the end, it can be said that the company can attain its objective in the near future by
adopting these strategies and strong back of Qatar Airways.

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References
Adi, B. (2015). An evaluation of the Nigerian telecommunication industry competitiveness:
application of porter’s five forces model. World, 5(3), 15-36.
Aircraft Charter. (2019). Aircraft charter. Retrieved from:
http://qatarexec.com.qa/Services/AircraftCharter
Bell, G. G., Dyck, B., & Neubert, M. J. (2017). Ethical Leadership, Virtue Theory, And
Generic Strategies. Radical Thoughts on Ethical Leadership, 113.
Mind Tools. (2019). SWOT Analysis. Retrieved from:
https://www.mindtools.com/pages/article/newTMC_05.htm
Owler. (2019). Qatar Airways's Competitors, Revenue, Number of Employees, Funding and
Acquisitions. Retrieved from: https://www.owler.com/company/qatarairways
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis
based SWOT analysis. International Journal of Information Management, 44, 194-
203.
Qatar Airways. (2019). Supplier Code of Conduct. Retrieved from:
https://www.qatarairways.com/en-in/legal/supplier-code-of-conduct.html
Salavou, H. E. (2015). Competitive strategies and their shift to the future. European Business
Review, 27(1), 80-99.