Business Environment Of Oman Air Essay

Introduction wad depth psychology is a beneficial putz that takes into account not exclusively for our own traffic but also our competitors events and on-line(prenominal) industry trends as well. It is a framework for any organization in strategic planning for the factors that affects business be it inner(a) or orthogonal. This apprehension of business factors al funky uphold managers effectively to any changes in the factors and urge decision making. Factors plenty be based on economy and non-economic. By economic factors we render the fiscal and m itary factors, whereas non-economic factors include socio cultural, educational, political and level-headed system. To identify the internal strengths systematically dweeb analysis is an important tool for an organization.ObjectiveIn this paper we exit use tog out analysis to attach the gross sales revenue for next five yrs. SWOT analysis is a useful method to understand the Strengths and Weaknesses and for detecting b oth the Opportunities clear to the business and the Threats the business will face.SWOT Analysis for businessSWOT is a very roleful tool in business as with a little thought it stack help you discover prospects that you argon well-placed to exploit and by understanding the weaknesses of your business, you rout out manage and remove threats that would differently catch you unexpectedly. By observing at our own business and our competitors using the SWOT framework, we will start a crafted strategy that will help us distinguish Oman Air from other competitors, so that we foot contend successfully in the market. Strength and Weaknesses of an organization be 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 care e-commerce, technology and business expansion.The organizations have to continuously upgrade and adapt to factors if it has to sustain i n the market. internally the company is considered as in conversion machine whotakes in comment such 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 effectuate 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 sizable tool for strategy development. Analysis of the strength and weakness of the organization and opportunities and threats in the factors is the first step in strategic management process.S trengthsDirect flights to Europe, outlying(prenominal) eastward, Asia, Africa, Indian sub-continent and middle east.National enkindle priceNational immune carrier of OmanGovernment supportWeaknessesConnectivity to far Europe and United States which affects the sales revenue. juicy operational cost.ProductEmployee Education and growthOpportunitiesMany award win by the airline helps in discontinue marketing and append sales High season and number 1 season sales as per score of give outOur business sector is expanding, with umteen future opportunities for success. Local judicature wants to encourage local businesses.Expansion PlansThreatsCompetitors sales strategiesConnectivity of FlightsEmerging demand for low cost Airlines.StrengthsOman air has direct flights to Europe, Middle east, Africa, Asia and Indian subcontinent which is one greatest strength of the company. The sales team uses this to attract tourist, medical tourist and collective customers. The revenue can in crease if we increase the relative frequency of the fights to Indian subcontinent from 1 flight per day to 2 flights per day to ending to Cochin, Chennai, Mumbai and Delhi. Increasing frequency to flights to Europe will add on to more revenue by increasing from 3 flights to 5 flights per week to Paris, Munich and by connecting the Munich flight via Milan. The send away price is other factor which instantly affects the cost of per flight. The airline can avoid particular expenditure by using more dismiss efficient aircrafts and by using one engine during taxi in particular at airports worry Dubai where the rush hours are too busy and involves seven-day taxi. The one engine taxi will help is reducing fuel consumption and will remove extra revenue.WeaknessesOman air been a small-scale organization faces draw play of competition from the neighboring countries. Oman air flies to besides 47 destinations out of which only 4 European destinations. Airline loses lot of busines s 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 pull in more revenue in next five years. The cost of operations in Muscat is noble. The basic salary salaried 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 slip the basic salary paid to a check in staff in Oman air is 350 Omani rials with whereas Emirates pay 300. To dress this cost company has to increase revenue from other sources as this is inevitable cost.OpportunitiesOman Air won the best business screen seats award for last 3 years, best middle east airline in economy service award in 2014and many others. This achievement can be used more and get more customers by ad vertising. 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 fillip programs and agreement in order to ensure maximization of business federation 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 class 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 large run. Constantly checking with corporate customers to promote all frequent flyer programs and enrol them to add business to WY network. Keep our competitors in mind Oman air can plan for fare sales during off season to again cost increase the sales.ThreatsOman air being small airline with just 47 des tination 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 favor to fly on the same airline with a continuity for example if a customer wants to fly to Amsterdam he will take 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 faster and after proper survey of market to retain its customer.Increasing the connectivity will help in retaining the loyal customer and also to gain hot customers which will help in increasing the revenue in longstanding run. The route factors and the fares on those routes play another important role in the competitive market of aviation. During offpeak seasons the competitors as well reduce their fares to get more business. They offer sale prices and other attractive offers to make 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 determines policy making in the business. SWOT analysis is an effective tool in examining the business factors. Business should react to the factors changes and the managers approach toward those changes is very vital. With the understanding of this factors that wil l 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 Making. ledger of Marketing (American Marketing Association Quincy, Ronald. SWOT Analysis Raising strength of your organization Rutgers School of Social Work. http//www.learnmarketing.netwww.omanair.com