Value Proposition Strategy APO018-6

The study will emphasize on the strategies adopted by Qatar Airways in the field of global aviation services. All the strategic decisions adopted by the Qatar airways will be precisely explained that has been responsible for extending its brand name, prestige and recognition in the international world. The corporate strategy that is followed by the Qatar airways responsible for its growth and expansion will be examined in detail in the analysis. Apart from the corporate strategy, the business strategy of the airlines will be taken into consideration. Besides that, the effective marketing strategy that is utilized for increasing its customer base and revenue in the aviation world will also be mentioned with proper justifications. Moreover, proper evaluation of all the proposed strategies will be given to justify the steady growth of Qatar Airways in the aviation industry. Furthermore, a brief summarization will be provided at the end of the report that will highlight the main points of the work followed by the key learnings that can be understood from the chosen strategies.

Corporate strategy

The main corporate strategy lies in the fact that Qatar Airways tends to create a good leadership funnel that will be the face of the organization. The major corporate strategy is to expand the services through hardcore professionalism and delivering the best flight services to the customers like never before.  The main corporate strategy that the leaders of the organizations tend to focus on lies in the distribution part. Following the distribution strategy, the corporate leaders of Qatar Airways have been instrumental in establishing their presence all across the globe almost nearing about 150 countries. Besides that, the airline provides other wide variety of services like Qatar Airways Holidays, Qatar Duty-Free and Qatar Aviation Services (Chiu, Liu and Tu, 2016).

As a part of Corporate strategy, the topmost leaders of the company focuses on increasing their visibility and global presence. As a result of that, Qatar Airways have used platforms like FC Barcelona to increase their stardom and fan base. Qatar Airways had been the sponsor of Barcelona followed by Asian Games at Doha in 2006. Apart from a referral strategy that forms the main part of their marketing strategy, through eCommerce applications, commercials and printed advertisements are implemented to gain the attention of the upper-middle class and middle-class people. Automation has been out more into use in the technicalities so that costs can be minimized in various sectors, the cost-cutting will help in the improvement of management functionality followed by proper observation on all the departments of the airlines (Wehner et al. 2018).

 As a means of corporate strategy, the employees of the Qatar airways are giving n high priority by the senior management. Employee satisfaction is the field where the management gives lots of attention to improve the services of the company (Chiambaretto and Wassmer, 2019). Holidays, recreation followed by interesting training and seminars are held in many places where they are being taken as participants. Adequate training methods provide the employees with a high sense of professionalism along with depth and clarity regarding their roles. Moreover, the salary structure is very good for the employees in the airways. The air hostess and the cabin crew officers along with other members exhibit their liberty and freedom of speaking when it comes to the conversation with then senior management.  The strategy is to build an active communication among the senior officials with that of the junior hierarchy staff and cabin members. The corporate strategy lies in the fact is to establish its worth and value in the services for the customers. Brand endorsements are sometimes created to increase the prestige of Qatar Airways (Reis and Silva, 2016). The recruitment process is very integrated as the senior managers in the aeronautical industry sit to judge and filter the best talents who can suit the vision of Qatar airways. The HR managers play a crucial role in creating a mutual bridge among the senior management team and the support staff who exist in the middle or at the bottom (Chaffey and Ellis-Chadwick, 2019). The importance is given on dedication of the employees to increase the integrity of the management.

Chosen business strategy and marketing strategy design

Qatar airways mainly target the Middle East for establishing it’s through its operations. As a means of business strategy, a Qatar airway implements the qualities of blue ocean strategy to revitalize its market base and increase its customer base (Dvorak and Razova, 2018). By the blue ocean business strategy, it is the main focus of the Qatar airways to provide its passengers with the best quality products and services at many affordable rates. Compared to other airlines, a Qatar airway exhibits the perks of a premium class airline when it comes to comfort, sophistication and luxury (Stewart 2019).  Even the economic class of the airlines are quite premium as compared to the other famous airlines like that of Indigo, Thai airways, Malindo Airways amongst others.  The main aim of the airline is to extend its services to every airport o the Middle East and Asian countries and provide luxury and comfort to the passengers.  To substantiate their blue ocean strategy of giving the best service to the passengers at a considerably cheaper rate, BPG or Best price Guarantee program has been launched online by them. With the help of it, passengers can be able to book their tickets at a much cheaper price and they can travel abroad within their financial capabilities. Moreover other facilities like free snacks and drinks re also provided by the flight that are of short distances. All these help in gaining the satisfaction of the passengers who travel in economy class.  The business class passengers are given much more premium facilities when it comes to treatment. Moreover, Qatar Airways has also launched a loyalty program under the name of ‘Privilege club’ since 2000. The main motto of this is to create a lower membership fee-structure for the entire passengers so they can experience better customer services throughout the flight journey (Endrizalova, Novak and Kameníková, 2017, September).

The marketing strategy of Qatar airways is solely focused on creating more and more customer base all over the world. To make more and more clients and passengers all over its region of services, the airways are focusing on referral strategy. With the help of referral strategy through applications like MakeMyTrip and Goibibo and trivago, one can refer a person for an initial couple of times and get cashback in their credit card purchases. Similar offers are provided for the benefit of the customers that will help in the creation of more and more loyal customer base. Moreover, special provision is allotted for elderly passengers regarding comfort and flooding.  The referral strategy helps in creating more and more customers and help in the expansion of the operations of the company. Qatar Airways does not spend much on advertising their brand and services through media. Instead of that marketing cost is utilized in the section of the development of the flight services, quality improvement and proper training modules for the air hostesses and the cabin crews followed by proper maintenance of cargo and flights (Saad 2017). These marketing strategies seem to be more effective and the quality of Qatar Airways is well maintained thereby creating immense satisfaction in the minds of the customers. The satisfied passengers in return will create creating more and more passengers for Qatar airlines.

Strategic evaluation with marketing choices

The strategy of leadership funnelling is important because it helps in creating new leaders who want to become the face of the company, represent its value and vision. Moreover, the leaders of the company are also enrolled worth the responsibility to create more and more brand awareness for Qatar airways to establish its presence globally. The strategy of tie-ups has been quite effective as the Barcelona deal proved a great success for the airlines. Partnering with Barcelona has not increased the brand value but also the business of the entire airline. The existences of top-notch leaders automatically help in providing a strong recruitment team so that they can select candidates who can match the right frequency of water airline through their qualities and potential.  Apart from brand endorsement and tie-ups, referral marketing is also an innovative business strategy for the Qatar airways. Referral marketing with the help of mobile applications like Makemytrip, Goibibo, Paytm helps in engaging more and more customers within a very short time. With the help of it, customer can easily purchase the flight tickets of Qatar airways with additional facilities like 5?shback, additional bonuses and points followed by interesting food deals within the flight. All these will help in creating a pool of loyal customer base that will be beneficial for the airways.

In terms of business strategy, Qatar airways refer to follow the blue ocean strategy to expand and evolve at a much faster rate. With the help of this strategy, the airline intends to give better customer services to all the passengers within a very affordable price segment. The main focus is to expand and capture new cities that will serve their business purpose. Moreover, the major focus is never to compromise when it comes to quality services. Qatar Airways are one of the flights that provide luxury treatment write similar to Etihad airways and Emirates airways but at considerably cheaper prices. Even at the economy class, passenger are provided with high-quality recliner seats that will give them extra comfort throughout their journey, the technology provided to each of the seats such as audio-visual experiences on the television followed y snacks and welcome drinks all indicate premium-class services. Lavish treatment is provided to the passengers in the business class and the first class. Both the business class and first class are highly premium and consist of all the modern aeronautical technologies that one can wish for to experience during the duration of the flight. Moreover, Qatar airways also provide extraordinary sound system sand wireless headphones to see movies in the flight. Thus with the help of blue ocean strategy, Qatar airways have almost 18 million customers worldwide. Furthermore, the customers are increasing day by day due to the quality of services provided to the passengers that are valued for money. 

Recommendations criteria

The main purpose of this report was to determine and explain the business strategies of Qatar airways for the consistent growth and development in its business. To construct the entire report, a brief background regarding the presence and international reputation of the Qatar airlines has been established in the introductory part.  Qatar airlines have worked very sincerely since the year 2000 to win the hearts of its passengers all over the world. The main purpose of Qatar Airways is to connect people all over the world with the help of single international airline. Its main base of operations, however, focuses on the countries of the Middle East.  The main airport through which Qatar airlines run its operations is from Doha international airport.  

The airline has been proving successful in its business for consistency and growth due to proper business corporate and marketing strategies.  The training program of the Qatar airways is carried out by successful corporate leaders who have at least 10 years of experience in the aviation industry.  The corporate strategy is designed in such a way that leadership is given huge importance so that tall the activities going on inside the airport can be well taken care of. Starting from management related works to ticketing ground staff handling and cargo, all the functions are taken proper care by the leaders with the help of immaculate planning so that execution is done with full precision. It is the role of corporate leaders to maintain the quality of products and services within a reasonable price (Mukhezakule and Tefera, 2019). The air tickets are produced at competitive pricing. By doing so it helps in attracting more and more passengers who cannot afford to buy tickets of Emirates and Etihad.

The success and vision of Qatar airways also depend on the adoption of the blue ocean strategy when it comes to the expansion of services and business. The main idea of its business is to provide the middle-class passengers who accept directly afford business class tickets with a high economy class section. The economy class of the airways is also premium when it comes to the seating arrangement, hospitality and pother technological functionalities. Passengers can get premium-quality services at much cheaper prices (Chiambaretto and Wassmer, 2019). With the help of blue ocean strategy, Qatar airways aim to penetrate new routes in such a way that it can extend all its support and services towards the customers at a much affordable and attractive price segment. The main vision is to witness the fact that even the middle-class passengers can afford to travel with luxury.  The marketing strategy is a hybrid of brand endorsements and direct referral marketing. As a means of brand endorsement, the leaders of the company aim to build the reputations and prestige of the Qatar airlines through tie-ups and global sponsorships.  After 2000, the tie-ups with FC Barcelona proved immensely successful in increasing the brand name and recognition of the airways on a global basis (Petcu 2017).

Apart from printed advertisements and brand endorsements with the help of celebrities, Qatar airways also focus on the policy of referral marketing with the help of android and Ios applications (Peeters et al. 2019). By doing so, the existing customers can automatically share with their circle of influence and aware more and more people regarding the products and services of Qatar airways. Apart from that, the corporate leaders have created a passenger section on their website where people can give their feedback regarding their journey that they have experience (Dvorak and Razova, 2018). Based on the feedback it becomes easier to modify their strategies to enhance customer satisfaction. The mobile applications serve as a great marketing tool for the Qatar airway. Digital marketing can be easily done to create more and more awareness and demand in the minds of the customers. Moreover, Qatar Airways has decided to increase its services to more number of airports to gain greater versatility on terns of conducting operations (Holloway, 2017).

 

Conclusion

After detailed analysis, it can be well understood that the integrated and well organized corporate strategy is the fundamental pillar of success for the Qatar airways. It is the decision-making skills of top-notch and experienced leaders of the aviation industry have propelled the growth of the airline. On the other hand, the competitive pricing strategy and the delivering of premium services to the passenger's ahs helped in the sustainable growth of Qatar airways. Apart from that, the maintenance of quality and professionalism when it comes to the formulation of business tactics and marketing has paved the success story of the airline over the past few years. Digital marketing, referral marketing along with tactical brand endorsements are also key reasons behind the overall success and recognition of Qatar airline despite having competitors like Etihad and Emirates.

References

Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.

Chiambaretto, P. and Wassmer, U., 2019. Resource utilization as an internal driver of alliance portfolio evolution: the Qatar airways case (1993–2010). Long Range Planning, 52(1), pp.51-71.

Chiambaretto, P. and Wassmer, U., 2019. Resource utilization as an internal driver of alliance portfolio evolution: the Qatar airways case (1993–2010). Long Range Planning, 52(1), pp.51-71.

Chiu, S.C., Liu, C.H. and Tu, J.H., 2016. The influence of tourists' expectations on purchase intention: Linking marketing strategy for low-cost airlines. Journal of Air Transport Management, 53, pp.226-234.

Dvorak, J. and Razova, I., 2018. Empirical validation of blue ocean strategy sustainability in an international environment. Foundations of Management, 10(1), pp.143-162.

Endrizalova, E., Novak, M. and Kameníková, I., 2017, September. Development and trends in airlines business models. In International Conference on Marketing Management, Trade, Financial and Social Aspects of Business.

Holloway, S., 2017. Airlines: Managing to make money. Routledge.

Mukhezakule, M. and Tefera, O., 2019. The Relationship between Corporate Strategy, Strategic Leadership and Sustainable Organisational Performance: Proposing a Conceptual Framework for the South African Aviation Industry. African Journal of Hospitality, Tourism and Leisure, 8(3), pp.1-19.

Peeters, P., Bouwer, J., Bongaerts, R. and Eijgelaar, E., 2019. Airlines and corporate responsibility: Issues and challenges. In Corporate Sustainability and Responsibility in Tourism (pp. 163-180). Springer, Cham.

Petcu, C.G., 2017. The Assessment of the Role of Qatar Airways (Doctoral dissertation, Qatar University (Qatar)).

Reis, V. and Silva, J., 2016. Assessing the air cargo business models of combination airlines. Journal of Air Transport Management, 57, pp.250-259.

Saad, S., 2017. Accessible Inflight Safety Information: The Case of Qatar Airways (Doctoral dissertation, Hamad Bin Khalifa University (Qatar)).

Stewart, D.W., 2019. Marketing Strategy and Financial Performance. In Financial Dimensions of Marketing Decisions (pp. 209-224). Palgrave Macmillan, Cham.

Wehner, C., López-Bonilla, J.M., López-Bonilla, L.M. and Santos, J.A.C., 2018. State of the art of pricing policy in air transportation: network carriers vs. low-cost airlines. Tourism and Management Studies, 14(3), pp.32-40.

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