Description
Your task is to produce a management report providing strategic solutions for an issue or Strategic issue or issues that you have identified in your own organisation or Strategic Business Unit.
The solution(s) should be based on thorough analysis and should involve critical evaluation of a range of potential solutions. The emphasis must be aiming to achieve competitive advantage. The choice of the final strategic decision should be justified. The solutions must not be descriptive of what the organisation is actually doing but analytical and proposing what it could and should do. This may be different to the actual decisions made by your organisation. It may however be a justification of what is actually proposed by the organisation but must justify it in the light of other options and through analysis. Which approach you take depends on the circumstances of your organisation.
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Running head: OMAN AIRPORTS COMPANY STRATEGY ANALYSIS
Oman Airports Company Strategy Analysis
Institution Affiliation
Date
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OMAN AIRPORTS COMPANY STRATEGY ANALYSIS
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Oman Airports Company
Oman Airport is a public company owned by the government of Oman, and it is charged
with the responsibility of operating and running the operations of the many airports in Oman.
Oman is a country located on the southeast tip of the Arabia peninsula. The country is officially
known as the Sultanate of Oman, and it is blessed with oil as a natural resource. It is a
developing country, and the aviation industry has been identified as one of the major areas which
can help provide jobs for very many people as well as help increase the productivity of the
service sector in the economy. Oman Airports has been identified as a catalyst for growth
through developing and managing aviation infrastructure to guarantee that the industry grows.
Oman Airports Company has employed a number of strategies with the aim of helping to
increase the return on investments, but they could still do better to guarantee development and
growth.
Assets under control of Oman Airports Company
The company currently oversees operations across several airports in the country, and
they manage the day to day activities of these airports. The first and the largest of these airports
is the Muscat international airport. This is the major airport that serves Muscat the capital of the
country, and it is also the main hub for two major airlines that serve domestic and international
routes (Al-Abri, Abdel-Hady, & Al-Abaidani, 2016). These airlines are Oman air and SalamAir
which are both expanding their operations and making use of the airport. The airport has also
undergone expansion projects recently that have allowed the company to grow and have the
capacity to cater to even more people.
OMAN AIRPORTS COMPANY STRATEGY ANALYSIS
The company also manages and oversees the operations at Salalah airport, Sohar Airport
and Duqm Airport. All these are local airports in Oman that serve different parts of the country,
and they serve as economic growers as they help with the logistics of both people and cargo for
business in these areas. The airports are also undergoing various developments to make them
more efficient in their operations and will continue to grow and to contribute to the local
economies of the regions that they serve. This is an important factor as it shows the critical role
that Oman Airports plays as a company to Oman as a whole.
Strategies being used by Oman Airports
Infrastructure Investments
There is a wide range of strategies that are being employed by Oman airports with the
goal of helping to increase the overall productivity of the company and that of the aviation
industry in Oman. The first strategy has been that of investing heavily in infrastructure projects.
It is notable that the government of Oman has been spending a lot of money on infrastructure
across the country. In the case of aviation infrastructure, the airports have been built under the
Oman Airports, and this has significantly improved the infrastructure that can be used by the
airline operating in the country (Gubenko, & Ksenofontova, 2015).
Muscat international airport is a great example of the investment that Oman Airports is
putting into infrastructure. Just recently, the company opened a new terminal in the airport that
will allow them to handle more than 20 million passengers annually and this is a significant
investment that will provide more room for all the people that are involved and will enable the
company to handle more airline that are transporting people all across the world. Having extra
capacity for expansion is critical for the long term success of the company, and this strategy has
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OMAN AIRPORTS COMPANY STRATEGY ANALYSIS
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been noted to be effective. There are also other infrastructure projects that are planned for other
local airports, and the company seems committed to improving the airports.
Facilitating Other Businesses
The company has also adopted a strategy of creating a conducive environment for all the
other businesses that can operate in their facilities. To start with, the firm allows retailers to set
up shop in the airport's duty-free zones, and this helps guarantee that they can collect rent from
these shops. There is a wide variety of shops among them restaurants and other selling
mechanize and they are all placed strategically to sell to the different travelers that are using the
airport at any one time. There are even more of these shops in the newly launched terminal, and
this helps the company offer even more space to businesses. This helps Oman airports to collect
rental income from them, and this increases their revenue.
Second, the company operates as an advertising agency. There are many surfaces in the
airports and on the screens that are in open spaces. The company offers advertising services
where they allow a company to run their adverts on these spaces. The adverts range from posters
that are placed on the boards to videos that play on the screens within the airport. This
advertising is very effective as there are many companies that are willing to invest in marketing
to travelers and selling a wide range of products that travelers use from one time to another
(Wald, 2016). This provided a constant stream of revenue as there are always some adverts being
displayed within the company’s airports.
There is also the issue of the actual traveling. The company has invested a lot of money
into advertising the airports that it runs to be well placed for many car...