Business Environment Of Oman Air Essay

Introduction deck up compend is a beneficial cock that takes into account not l 1(prenominal) for our own bloodline but also our competitors events and received industry trends as well. It is a framework for any organization in strategic planning for the factors that affects business be it inwrought or external. This brain of business factors leave cooperate managers effectively to any changes in the factors and ease decision making. Factors drive out be based on economy and non-economic. By economic factors we guess the fiscal and monetary factors, whereas non-economic factors include socio cultural, educational, political and level-headed system. To identify the internal strengths systematically trick out analysis is an important tool for an organization.ObjectiveIn this paper we volition use mug up analysis to append the gross sales revenue for next five divisions. SWOT epitome is a useful method to understand the Strengths and Weaknesses and for detecting bot h the Opportunities broadcast to the business and the Threats the business will face.SWOT Analysis for businessSWOT is a very berthful tool in business as with a little thought it loafer help you discover prospects that you ar well-placed to exploit and by understanding the weaknesses of your business, you undersurface manage and remove threats that would differently catch you unexpectedly. By observing at our own business and our competitors utilise the SWOT framework, we will start a crafted strategy that will help us distinguish Oman Air from separate competitors, so that we stool manage successfully in the market. Strength and Weaknesses of an organization ar mostly internal whereas the opportunities and threats are often external factors. The internal factors are mostly the factors that can be controlled internally in a company. Factors the wish e-commerce, technology and business expansion.The organizations have to continuously upgrade and adapt to factors if it h as to sustain in the market. internally the company is considered as in conversion machine who takes in enter much(prenominal) as labor, money, equipment and material from the external factors and it converts those input into an output such as service, products and goods. The few factors that constitute the internal factors are Vision, missions and objectives, internal power relationship, management structure nature, company image and brand equity, and human resource.The external factors is a set of complex, rapidly changing and significant interacting institution and forces that personal effects the organizations ability to serve its customer. This factors conditions interact with strategic decisions and therefore it is important for organizations to understand its importance. SWOT analysis framework is both simple and effective tool for strategy development. Analysis of the strength and weakness of the organization and opportunities and threats in the factors is the first s tep in strategic management process.StrengthsDirect flights to Europe, outlying(prenominal) eastmost, Asia, Africa, Indian sub-continent and middle east.National force out priceNational carrier of OmanGovernment supportWeaknessesConnectivity to far Europe and United States which affects the sales revenue. vitamin Aly operational cost.ProductEmployee Education and growthOpportunitiesMany award win by the air lane helps in reveal marketing and increment sales High season and suffering season sales as per menage of get offOur business sector is expanding, with some future opportunities for success. Local governing body wants to encourage local businesses.Expansion PlansThreatsCompetitors sales strategiesConnectivity of FlightsEmerging demand for low-down cost Airlines.StrengthsOman air has direct flights to Europe, Middle east, Africa, Asia and Indian subcontinent which is one great strength of the company. The sales team uses this to trace tourist, medical tourist and corporeal customers. The revenue can increase if we increase the frequence of the fights to Indian subcontinent from 1 flight per day to 2 flights per day to reference to Cochin, Chennai, Mumbai and Delhi. Increasing frequency to flights to Europe will add on to more than revenue by increasing from 3 flights to 5 flights per week to Paris, Munich and by connecting the Munich flight via Milan. The give the axe price is other factor which straight affects the cost of per flight. The airline can avoid duplicate expenditure by using more evoke efficient aircrafts and by using one engine during taxi peculiarly at airports like Dubai where the rush hours are too busy and involves perennial taxi. The one engine taxi will help is reducing fuel consumption and will plant extra revenue.WeaknessesOman air been a small organization faces big money of competition from the neighboring countries. Oman air flies to yet 47 destinations out of which only 4 European destinations. Airli ne loses lot of business due to lack of connectivity to other European sectors like to Belgium, capital of The Netherlands and also to America. If Oman air increases its connectivity to US and more European sectors this will increase the sales by attracting more customers from other countries Muscat being the hub and consume more revenue in next five years. The cost of trading operations in Muscat is tall. The basic salary nonrecreational to locals is very high compare to other countries and airlines. Due to government involvement in the airline the compulsion to recruit locals is very strict. For modelling the basic salary paid to a check in staff in Oman air is 350 Omani rials with whereas Emirates pay 300. To mortify this cost company has to increase revenue from other sources as this is inevitable cost.OpportunitiesOman Air won the best business flesh seats award for last 3 years, best middle east airline in economy service award in 2014and many others. This achievement c an be used more and get more customers by advertising. Investment in marketing and advertisement now will bring more customer and increase in revenue in next coming years. Liaise with corporate and agent customers to frame inducing programs and agreement in order to ensure maximization of business fusion and build strong customer base Airline business is directly affected as per the seasons.During the high season like June and July the airline can close the lower crystalise fares and sell only the high class tickets. Because of demand in market the sales will be high. Whereas during low peak season the flights should be open for lower classes that will attract more customers and fill the fights and generate more revenue in persistent run. Constantly checking with corporate customers to promote all frequent flyer programs and put down them to add business to WY network. Keep our competitors in mind Oman air can plan for fare sales during off season to again progress the sales.T hreatsOman air being small airline with just 47 destination and 30 aircrafts faces lot of competition from other big airlines around like emirates, Qatar, Etihad, Jet airways etc. and also some low cost airlines like Fly Dubai. Oman Air have few destinations but this big giants in the market give competition to Oman air operations. Better connectivity of other competitors is one of the major factors that effects the load factor on Oman air. Customer privilege to fly on the same airline with a continuity for example if a customer wants to fly to Amsterdam he will elect taking Emirates or Qatar as they fly direct or via another airport. This results in losing many local passenger as well as international customers. Company can escape these losses by expanding accelerated and after proper survey of market to retain its customer.Increasing the connectivity will help in retaining the loyal customer and also to gain late customers which will help in increasing the revenue in thirster run. The route factors and the fares on those routes play another important role in the competitive market of aviation. During off peak seasons the competitors as well reduce their fares to get more business. They offer sale prices and other attractive offers to wee-wee the customer chose there airline. To avoid this Oman air will do better market study and come out with more attractive offers and incentives for travel agents to sale Oman air tickets and services.ConclusionThe above findings will therefore increase the revenue of Oman air by 10 percent every year for next five years after meeting all extra costs that the company has to incur. Success of Oman Air depends on the adaptability of the business factors, it is subjected to. The factors are link together and all factors processs policy making in the business. SWOT analysis is an effective tool in examining the business factors. Business should resolve to the factors changes and the managers approach toward those cha nges is very vital. With the understanding of this factors that will influence the business Oman Air can save lot of time and bring the difference by using SWOT Analysis.ReferencesDaniel, C.(2011). Business Factors. http//www.articlesnatcg.com/Article/Business-Factors/252704. Dreze, J. & Amartya, S (1996). Economic development and social opportunity, oxford University press. Menon, A. et al. (1999). Antecedents and Consequences of Marketing Strategy reservation. Journal of Marketing (American Marketing Association Quincy, Ronald. SWOT Analysis breeding capacity of your organization Rutgers School of Social Work. http//www.learnmarketing.netwww.omanair.com