SWOT analysis for Qatar Airways
SWOT analysis is a tool used in strategic planning. It identifies the strengths, weaknesses, opportunities, and threats facing a firm. The SWOT analysis involves an environmental scan. There are two types of environments; the internal environment and the external environment. In relation to our case, the internal environment represents the airline company, Qatar Airways. On the other hand, the external environment represents the country/regions in which Qatar Airways wants to solidify its market presence such as Qatar and around the globe. Strengths and weaknesses are internal while opportunities and threats are external. Some of the strengths, weaknesses, opportunities, and threats that Qatar Airways is associated with are discussed in depth below:
Strengths of Qatar Airways
Qatar Airways practices value based theory by offering affordable tickets to its customers. This fact may help it become a competitive airline in the industry in Qatar and around the world by attracting and sustaining customers. It is imperative to note that majority of the airline firms in Qatar and around the globe such as British Airways offer expensive tickets.
Strength of Qatar Airways is a cost leader therefore establishing a market in Qatar airline industry by developing a good strategic plan will help firm in enjoying the large economies of scale. The fact is that it cuts the costs of production by having only three class of travel, charging all the meals and beverages, employing cheaper staff and reducing the luggage allowance.
Qatar Airways has a good reputation in the Qatar market and some the Asian market such as Singapore and UAE (United Arab Emirates). A good reputation is classified as strength for Qatar Airways because the firm has already built public image which is a catalyst for having volumes of sales for the company. When a firm a built public image, it des not incur a lot of advertising expenses trying to promote its products. Customers just stream to the firm. Qatar Airways is a company that has a strong capital base. This is strength for the company as the strong capital base cushions it against any the financial difficulties.
Weaknesses for Qatar Airways
The fact that the company offers only one class of travel may be a threat because other customer’s tastes and preferences may have not been taken into consideration.
Opportunities for Qatar Airways
Asia is a continent that is considered a strong economic giant in the world. Therefore, chances of the company attaining its goals and objectives in the continent are very high. In addition, countries in Asia are considered as manufacturing countries of most the goods. Businesspersons travel a lot to purchase products there. Therefore, the customer’s reliability is not a problem to the company.
It is an opportunity to the company to enter the other markets since the company will have a competitive advantage over other companies because of its products. There are no any other airline companies that offer cheaper airline tickets compared to Qatar Airways in Qatar. Currently, Asia is one of the most populated continents in the world. Therefore, there is availability of cheap labor. In this case, Qatar Airways can cut its costs by employing very cheap labor.
If the Qatar Airways succeeds in solidifying its presence in the Chinese market, it will be an opportunity for the company to consider other destinations in the world that it can penetrate and be a market leader in provision of services in the competitive industry. Most countries in Asia such as China allows foreigners to carry out business and invest there as part of its legal system.
This makes the legal system procedures short for Qatar Airways to establish in such markets. Qatar Airways will benefit from the technology available in the airline industry in Qatar. This is because Qatar is said to be one of the most technologically advanced countries. It will be an opportunity if the airline company, Qatar Airways achieves customer’s loyalty in the Asian markets.
It will be an opportunity for the company to make a market entry in all countries on planet earth as it will diversifies its operations. Diversification helps spread risk making it minimal. It is an opportunity for the airline to establish itself in mainland China. Mainland is a strategic point and this ensures that customer reliability is achievable. It can be an opportunity for Qatar Airlines to enter the world airline market as it can discover other types of businesses that can be beneficial to the company.
Threats for Qatar Airways
It is believed that cheap is expensive. Customers perception may be that the services being offered by the company are not quality and not up to there expectation. Therefore, it is a threat that the company may not be well accepted by customers. There may be other companies in the market offering a relatively expensive ticket but meet the customers expectations by offering different classes of travel.
It is uncertain whether the governments will allow the company to make a market entry, thus a threat. It would be a threat to Qatar Airways if it fails to achieve customer’s loyalty in the Asian airline market. For instance, Air China the world largest airline that is a value based airline may hinder Qatar Airways from achieving customer loyalty. This is because Air China has already won the confidence of most customers.
It will be a threat if the technology that Qatar Airways is using is not compatible with the one available in the world airline markets or it is outdated. Failure for Qatar Airways to attain a competitive advantage in the world markets may pose a threat. Airline market is an already flooded market therefore a new market entry may not be possible. Very strong strategies have to be used to achieve set goals thus calling for extra resources such as money, management, and materials. The industry forces may also pose a threat to Qatar Airways Company.