Assessment Oman Air Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Assessment Oman Air Case Study Solution

Company background:

The company was incorporated and started its operations in the year 1993 with brand name Oman Air which is a national carrier of Oman. It started its international flights from Oman to India and Dubai and received great response from the audience. Later on it started to grow rapidly by providing high-quality service and meeting the high professional standards. This resulted in developing a great brand image and reputation in the market because its workforce and management team was very much dedicated and loyal to its organization and they possessed necessary skills to provide better services to its customers for retaining them.

The company started to target the market through running its operations by targeting the niche market and expanded its operations in around 48 destinations which resulted in providing the company with a strong presence in the market, punctuality, excellent service and a great respect for professionalism. Muscat was developed as major traffic hub by Oman Air because it helped the company in providing better tourism, commercial and industrial activities in the Middle East.

This leads the presence of Oman Air to grow internationally by creating its brand positioning and brand image as an airline service which encourages fuel efficiency, safety, better quality and customer service along with the adoption and adaption of its technology by utilizing the innovative products which creates a distinct position of the company in international market (Oman Air, 2016).

Situation Analysis:

The situation analysis is performed by evaluation of the company as well as the overall industry in which company is carrying out its operations. This leads to critically analyze the history of the company since its incorporation. The history of the company reveals that it had enjoyed a lot of glorious moments but, it has also faced critical times as well in which the performance of the company was not up to the mark.

SWOT Analysis:

SWOT analysis provides the analysis of the company through internal and external situational analysis by evaluating the company to identify their strengths and weakness through internal analysis and identifying opportunities and threats through external analysis. The SWOT analysis of Oman Air Company will provide a comprehensive and more detailed overview of the operations and business of the company (Ommani, 2011).

Internal Analysis:

The internal analysis includes strengths and weaknesses of the company’s operations and activities carried out by the company and it is generally identified from the financial and value chain activities of the company.

Strengths:

It can be analyzed from the website and annual report of the company that its major strengths consist of the rising growth rate of revenues and its market share is also rising. The company has a strong brand image and it is a leading firm in the airline industry.The company contains business units which are having required skills and experience by providing better services to its customers. Moreover, the strength of the company is related to the market entry barriers and it is followed by lower labour costs by retaining them for a long time.

Weaknesses:

From the financial statements, it can be analyzed that the company is unable to manage its operations for generating the funds and it is unable to utilize its funds effectively and efficiently for generating enough return on their investments. The company is unable to generate profitability and it is facing losses since 2011, which shows that company is unable to manage its funds. In the year 2015, the company is able to minimize its loss by 21% whereas, its loss has again increased by 50% in the year 2016 which is an alarming sign for the company to foresee and maintaining the future profitability.

External Analysis:

The company is evaluating its external position through identifying its opportunities and threats by looking at the industrial outlook and competitive position (Pickton & Wright, 1998).

Opportunities:

After analyzing the industrial trends, company’s opportunities have been identified as the ability of the company to grow its operations and customer base along with the growing economy of Oman and Airline industry which will lead to the company’s growth in the global world. This can be done by expanding its operations globally through the utilization of its major Hub Muscat to attract its target or customer base internationally by targeting more than 48 destinations where airline service is having boom and better growth rates.

Threats:

The company is facing competitive rivalry and the industry is facing many challenges but the challenges which create threats for the company consist of changes in the pricing structure of the services by the competitors. This results in difficulty for the company to manage and create a balance between lower prices and high-quality service. Moreover, the company also faces a threat and business risks from the external environment and it is very difficult for the company to manage its cash flows due to the losses faced by the company which questions its going concern because of the losses in consecutively 5 to 6 years...................

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