Analysis of Strategic Management and Its Impact in Aviation Industry With Special Reference To Oman Air, Sultanate of Oman
Analysis of Strategic Management and Its Impact in Aviation Industry With Special Reference To Oman Air, Sultanate of Oman
Analysis of Strategic Management and Its Impact in Aviation Industry With Special Reference To Oman Air, Sultanate of Oman
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Year: 2019
Balamurugan Muthuraman
Assistant Professor (AFS Department),
ISSN: 2321-4643 Oman College of Management & Technology, Oman
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in airports and it leads to 121 million tonnes of through online and the internet also facilitates
carbon dioxide emissions throughout the world in obtaining latest trends and updates related to
(Gross, 2011). changes in the air fare and packages (Anandh, 2010).
Oman air makes use of social media to keep the
PESTLE Analysis customers in contact and it also leads in building
PESTLEanalysis is used for environmental smooth relationships with the customers. Further the
scanning and is one of the key components in technologies assist the airlines to enunciate safety
strategic management (Jedrzej, 2015). It helps in measures and use the fuels efficiently.
understanding the environmental changes, business
position, market growth, resources and operations. Environmental Factors
Political factors At present customers has a high awareness in
In every sector political influence play major role protecting the environment (Stredwick, 2009). The
in shaping the business operations. In the case of airline industries contribute to 4% weather change
Oman air, any change in the political environment and it progressed to change up to 16% in upcoming
will directly affect the operations of the firm. The years. Thus customers today prefer eco-friendly
changes in the political environment will based upon airlines (Sadler, 2010). Oman air also operates with
the customers nature of travel habits (Moran, 2016). corporate social responsibility and it attracts large
Unstableness in the political environment cause number of customers.
chaos and confusion among the air travellers to make
travel to the Oman countries and it highly affect the Legal Factors
profitability of the organization (Gareth, 2010). To ensure safety and security in the airlines,
Oman government enact many rules and regulations.
Economic Factors It is essential to comply with the government rule
Instability in the economy leads to increasing and regulation by the airlines that travelled in to and
demand of low cost airlines (Kristin, 2013). The out the nation (Peter, 2009). To accompany with the
economic downturn in 2009 highly affects the standards the cost of the airline operations will be
airlines performance. Decrease in fuel prices increased. Obtaining operating licence in Oman is
increase the demand of low cost carrier in recent highly difficult and it becomes a great challenge to
years (David, 2012). At present most of the airline the airline industries.
industries suffered losses due to low price and at the
same time there is a huge opportunity to maximize SWOT Analysis
profits. Swot analysis assists the organization to adapt
with the changes and manage the weaknesses and
Social Factors threats prevailing in the external environment
Today people travel too many places during their (Reidenbach, 2011). Through the aid of opportunities
holidays and it becomes one of the emerging cultures the organization develops strategies for expansion
all over the world (Lamming, 2013). With the aid process.
of internet technologies growing income groups get
aware of new destinations and travel through low cost
airlines (Eric, 2012). At the same time it enhances
the affordability of the customers and it generates
new trends in the tourism sector (Kaufmann, 2012).
Technological Factors
Technology is strongly rooted in airline industry
(Milliken, 2014). Particularly, through the aid of
internet technologies the customers’ book air tickets Source: (Simon, 2010)
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also results in managing logistics, engineering and attention and it will ultimately be enhancing the
maintenance requirements. Oman air also plans to brand awareness. In the current scenario, Oman
extend their services in London market in daily basis air employed both market penetration and product
and it also facilitates in building strong brand image development strategies. Moreover it is essential
in London. to take concerns about the environment and act
with corporate social responsibility (Moran, 2016).
Further the incorporation of bio fuel aircrafts will
increase the number of customers towards Oman air
due to the increasing awareness of air pollution.
Business strategy
Competitive edge
Expansion strategy
Oman air highly invests in technologies, staff,
new destination, narrow body aircraft and wide body
aircraft. The company plans to expand their fleet
size to 50 by the end of 2018 and it also plans to
expand its fleet size to 80 at the end of 2020. In past
Source: (Eric, 2012) year Oman air opened new destinations to Jakarta,
Duqm, Sohar and manila and currently plans to
Customer Oriented Policies expand its operations in Dhaka, Goa and Singapore.
Oman air provides various benefits to the Omani Additionally the frequencies on new routes are also
customers and low income people. The fare is increased by Oman air.
applicable to travel to any destinations of Oman air
operations and the tickets can be booked through the Innovations
Oman air websites. Moreover Oman air provides Oman air also incorporate innovations and new
discount facilities to the people of Oman with special services in order to enrich the customers experience
needs and the tickets can be used for the purpose in Oman air. Recently Oman air introduces economy
of education programmes or medical assistance. It class seats and business class seats and also it offers
creates a positive impact among the customers of in-flight entertainment services which enhance the
Oman air. satisfaction level of customers.
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Oman air like medical facilities and educational Cost Leadership Strategy
facilities. The product development further enhances Oman air actively involved in expansion strategy
the operational efficiency, cost reduction and and it expected to raise its fleet size to 50 at the
recognition in the market. near future. Usually airplane industry requires high
investment to expand its operations thus Oman air
Novelty entered to international market through partnerships.
By introducing eye catchy products will increase With the aid of code share agreement Oman air can
the attention of the customers towards Oman air. able to expand their operations throughout the globe.
Oman air develops services to satisfy the need of Oman air strictly follows rules and regulations of
customers. Mainly the products are designed to suit the government to enter in and out of the country.
all segments of people in the country (Douglas, 2014). In a highly competitive environment it is essential
Particularly Oman air concentrate in developing to attract customers through innovative products and
low cost career and it will definitely retain the services.
customers and extend new customer base towards Oman air highly concentrates in lowering cost
Oman air. Updating the company information will to gain competitive advantage in the market. Oman
allow customers to obtain new information related air also cut down their cost for the Omani customers
to the new products and services offered by Oman who belong to low income group and it indicates that
air. Penetration in to new market will enhance the Oman air tries to cover all segment of people. This
customer base and brand awareness in other nations. strategy will facilitate in enhancing organizational
performance. Further the partnership and postulation
Consumer Segments of core share agreements enrich the organizational
Today customers are highly aware about functions of Oman air.
protecting the environment (Gardner, 2010). Thus
they extend support to the international carriers Recommendations
who obey laws and operate with corporate social Gaining Competitive Advantage
responsibility. Through the analysis it is revealed In recent years, there is a great reel in the oil
that the Oman air conduct its operations by obeying prices and it affects the performance of the airline
laws and regulations. Oman air also incorporates industries throughout the world. Oman industries
new technologies to ensure safety and security to have to take initiatives to employ green strategy
its customers. Customers also search organizations and launch effective programs to avoid the damages
that provide air fares economically. The air fare occurred through airline industry to environment.
system of Oman air encourages customers to acquire Setting up competitive prices will affect the brand
services from Oman air. The rates of profits are image of the company and it is essential to set up
also considerable increased in Oman air through fair pricing system in Oman oil. To gain competitive
the effective policies. Easy accessibility of online advantage in the market Oman air has to integrate
websites assists customers to book through online communication strategy to reach the customers
websites (David, 2012). Through the implementation efficiently. It is essential that Oman air have to target
of market penetration strategies Oman air will the customer segments after conducting in depth
increase the customers segments and in turn build a analysis. From the study it is revealed that the old age
strong brand value among the customers. customer group like to make travel through airlines
The above factors suggest that market penetration due to convenience and reduced time to reach the
strategy is one of the best strategies to cater quality destination. It is essential to target old groups with
service to the customers and it will benefit the attractive packages and it will lead to maximize the
organizations exclusively. market share of the organization.
Evaluation of identified business strategy
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Milliken. (2014). Strategic Management in 21st Stredwick. (2009). Business Environment: Managing
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Moran. (2016). Managing Cultural Differences: Publishing.
Global Leadership Strategies for Cross-cultural
Business Success (Fifth edition ed.). Routledge. Website References
Peter. (2009). Value-based Marketing: Marketing Oman Air (2019, February). Retrieved from https://
Strategies for Corporate Growth and Shareholder en.wikipedia.org/wiki/Oman_Air
Value (First edition ed.). John Wiley & Sons. Omanair.com URL: https://www.omanair.com/en/
Reidenbach. (2011). Competing For Customers And strategic-management
Winning With Value: Breakthrough Strategies Oman Air strikes gold for social responsibility
For Market Dominance (Fourth edition ed.). Strategic Management:The theory and practice
Pearson Education India. ofstrategyhttp://orbit.dtu.dk/files/5705108/
Sadler. (2010). Strategic Management (Second rapport1.11.pdf
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Simon. (2010). Strategic Thinking: A Step-by-step
Approach to Strategy and Leadership (First
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Author Details
Dr.Karthik Mohandoss, Quality Assurance Officer / Assistant Professor (AFS Department), Oman College of
Management & Technology, Masqaţ, Oman, Email ID: karthik.mohandoss@gmail.com
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