Qatar Airways Company - Strategic Retail Plan
The customers (buyers) may pose a threat for making profits to the company as they have the ability to lower prices. This may lead to Qatar Airways getting low revenues and in return low profit margins. On the other hand, there might be airline companies (suppliers) in airline retail industry which have already dominated the airline industry in across the globe. These companies pose a threat to Qatar Airways as they have the ability to lead to volume revenues for Qatar government owned company.
Qatar Airways should finally put into consideration the level of competitive rivalry in the retail market, which is the frequency and intensity of reactions to actions undertaken by competitors. If the company or any other, that wants to make profits in the retail market, it must plan ways of enhancing its competitive advantage. There are several factors that may lead to intense rivalry include:
(1) A large number of competitors that are all about the same size, For instance, Qatar Airways competing with airlines such as British Airways, Air China, Virgin Atlantic and Fly Emirates.
(2) Slow growth, if the company experiences slow growth it might be difficult for the firm to put the right manpower in place or introduce new products in the market.
(3) High fixed costs and
(4) The lack of perceived differences between competing retailers.