Qatar Airways Management of International competition Term Paper

Qatar Airways Management of International competition - Term Paper Example At the end of the paper, few of the growth strategies have been recommended to Qatar Airways in order to deal with the problem of rising international competition. Hence, the discussion in this paper is expected to provide with a detailed study of the problem of competition that Qatar Airways is facing in the present scenario. The potential risk of competition is the greatest problem that is faced by the managers of both the new businesses and the existing ones (Ethics Resource Center, 2012). Likewise, Qatar Airways is also facing maximum risks of competition in the international airlines market. In the present day, all the international airline companies are providing their passengers with quality services and several facilities during the air journey. Qatar Airways have been rapidly facing the problem of competition on the global context along with the increase of the number of airlines entering into the market. It is however comparatively a newly set up company, which could expand its business services within a fraction of time being formally restructured and re-established in the year 1997. Historical Review of Qatar Airways Qatar Airways Company was formed as a single leased domestic aircraft in November, 1993. But in January, 1994 it started its operations using Boeing 767-200ER from the Kuwait Airways. In the earlier days of its formation, it was totally owned and managed by the members of Royal Family of Qatar and was running as a no frill carrier. In the year 1997, the restructuring of the Airway was carried on and a new panel of management team was placed for the operations of the business. At present, Qatar Airways is partly owned by the government of Qatar and the private investors in the national market (The Qatar Source, 2011). Arguably, it has been with the virtues of its business level and corporate level strategies that within a fraction of time it was able to expand its services in almost all the continents of the world and become one of the m ost preferable airlines services providers in the world. The initial intention to establish Qatar Airways was to serve its Qatar based guests from the Indian subcontinents by providing attractive discounts in the journey in competition with the similar western companies. Later, with the rise in demand for the air journey between the routes, it decided to discard the idea of operating within the nation and implement a newer business model of being a global carrier in the airlines industry (Qatarhandball, 2013). Qatar Airways had a raise of 30% customers after its expansion of business as a global carrier across the world. This airline usually provides with international services from Doha International Airport. Recently, in the year 2012, it was observed that Qatar Airways possesses fleet of Boeing and Airbus since four years. Along with the provision of international services, Qatar Airways is also planning for providing the valuable customers with luxury lounge and a 5 star hotel f acility in the airport where the airways is operating (Destination Travel, 2012). Description and analysis of the problem of international competition by the managers The airlines industry usually operates in the oligopolistic market where the risk of competition always exists between the different companies. As a matter of fact, modern companies struggle hard to exist in such market and maintain their significant