Strategic Recommendation Assignment

Strategic
Recommendation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Overview.....................................................................................................................................1
Strategic recommendation...........................................................................................................2
Ansoff Matrix..............................................................................................................................3
Bowmen's clock strategy ............................................................................................................5
SAFe Framework........................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic options refers as adoption of innovative alternative action oriented effort in
respect to the situation which are arise due to the impact of external factors which are faced by
the organisation. This includes the process of taking the advantage of opportunities, trends and
facts to grow their business operations in market through attainment of competitive advantage. It
is the responsibility upon the manager is to do SWOT analysis of organisation to identify their
strengths, weaknesses, opportunities and threats according to which they frame their strategies
and plans which helps to improve effectiveness of their actual operations. PESTLE analysis
helps in determination of the negative and positive impact of external factors. It helps in removal
of negative impact of such factors which restricts their growth in future. The growth should be
attained by the organisation through use of different actions such as development of their
existing product and services, entry in new market, improvement of quality of existing services,
production of new product and service etc. It helps in satisfaction of the requirements and
preferences of customer through which they should build effective relation with customers.
Oman Air is national airline of Oman. It operates both domestic and international passenger
flights (Anderson And et. al., 2013).
In the present report explain about, application of different type of strategies which
contributes in growth of business activities such as Ansoff Matrix, Bowmen clock's strategy,
SWOT and PESTLE analysis. Also, evaluation of the most appropriate strategic decision with
the helps of SAFe framework.
TASK
Overview
Oman Air is national airline of Oman which provides domestic and international airline
services for the purpose of carrying the passenger from one place to another. The other services
are provided by Oman Air along with their airlines includes regional air taxi and charter flights.
The main base of Oman Air is situated in Muscat international Airport. They are current member
of Arab Air Carriers organisation. It was founded in 1993 in Oman having Government of Oman
as parent company. The two base from their flights are coordinated includes Muscat international
Airport and Salalah international airport. The frequent flyer program of Oman air is known as
Sindbad Frequent Flyer. They operates their operations with the slogan of Modern Vision.
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Timeless traditions. The headquarter of Oman Air is Muscat international Airport in Muscat,
Oman. The total number of flights which are flown from the two base of Oman Air is 51. The
total number of destination which are covered by them from their Airline services are 50.
The operations of this airline is start from March, when they leased Boeing 737-300 from
Ansett Worldwide Aviation services which flew from Muscat to Salalah. In July of the same
year, their first international flight was operated to Dubai through using Boeing 737-300. It is
observed that, Omani government recapitalised the air line and increased their shareholding from
33 to 80 percent.
The large number of facilities are provided under flights which are operated by Oman
Air. All the meals which are served under the airlines are done on the basis of Halal Guidelines.
They also provided special meals to their passengers as per their request. They also served
Alcoholic beverages in the international flights except Saudi Arabia and Iran routes. The two
main flights which are used to carry passengers are equipped with WIFI facilities (Baggaley,
and et. al., 2015).
According to the analysis of the the flight schedule of Oman Air observed that their
airline network covered 50 destination of different 27 countries. The most number of destinations
which are covered by the Oman Airlines are 11 in India. They also having agreement with other
airlines such as Emirates, KLM, Singapore airlines, Thai Airways, Saudia etc.
Strategic recommendation
This will includes the description about the options which should be availed by the
organisation in future period of time for accomplishing their two main objectives of competitive
advantage and expansion of operations. The main aspects which helps ton expand the operations
includes new entry in market, providence of new product and service, investment in profitable
business units and reduction from such which are not sustainable in future period of time,
determination of new source of differentiation to face competitive pressure, adoption of
innovation to operate current functions and making of the decisions about the selection of the
option of trade-offs.
All these are such strategies having their significant contribution in the process of the
development of the activities in different manner through improvement or focusing on different
aspects of business. The management of Oman Air has lots of option which helps in attainment
of competitiveness in operations. The main task is about the identification of the most suitable
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option which has largest contribution in the process of development. There are many strategies
and approaches which have helps to attain integrated benefits through accepting and fulfilling
many strategic options simultaneously. In this regard identified that adoption of Ansoff Matrix
and Bowmen clock strategy helps to avail the strategic options and opportunities which present
in market in more effective and efficient manner. Along with that PESTLE and SWOT analysis
helps in determination of the impact of external factors on their strengths and weaknesses.
Ansoff Matrix
Application of this model in the process of availing strategic options is important because
it improves the understanding of the organisation about the risks which are associated with such
different options. This matrix is also known as product and market expansion Grid through
which organisation attain long term sustainability in their business operations. This will
motivates them is to adopt the new and innovative ways through which they should increase their
profits and expand their reach towards new customers (Erickson and Rothberg, 2013).
Through adoption of this Matrix, Oman Air is able to identify from numerous options of
developing new products and opening of new markets about which one is more suitable to the
current situation of their offerings.
In this Matrix, four strategies are included which contributes their effort to grow along
with risks which is attached with each of the option. The four different options which are
included in this matrix with their role in development activities are defined below:
Market development: This will refers as the process of targeting new markets and areas
with helps of their existing products and services. This will includes about more efforts are
provided regarding improvement of the sale of their existing products and services among
different individuals through development of existing features and improvement in the number of
benefits attached to use of such product and service. In this present strategy, Oman Air has the
option that using their same air-planes explore the destinations of new country where they don't
have operations till now. For Ex., start their flights in Bangladesh. Here, more chance is available
for development because large number of people reside in society are from Islamic religion. To
avail this option effectively need to do PESTLE analysis through which gathered the impact of
different factors in setting up of the new operations. For attraction of more individuals they need
to bring changes in the existing offers and customer services which are attached with their airline
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operations. This will provides the opportunity regarding improvement of their attraction among
all other airline companies which provides their services in new country.
Diversification: This strategy includes the option about introduction of new product and
service in entirely new market. This option of development contains the highest risk because
everything is new and unproven in market. This will makes the task more typical regarding
attainment of the trust and loyalty of customers towards their services. Also many issues are
faced by the management because not having understanding and knowledge about the factors
which are present in new market. Here, option available in front of Oman Air is to enter into new
country through adoption purchase of new air-plane. This will improves the internal strength of
Oman Air as burden of development is coming up on their exiting operations. Here, for
spreading the awareness among the individuals of society need to adopt rigorous promotional
policies to influence the mind of customers and their attraction towards their services. To gain
the success in the procedure of diversification Oman air is need to do segmentation of new
market on the basis of four basic criterion's such as demographic, psycho-graphic, behavioural
and geographic. It helps to assess the demands of customers which persist in different countries
to effectively satisfy their different demands. It helps to know their preferences and demands.
Here, more chance of failure are associated with the expansion activities because large number
of risk are present in new market. These risks can be identified as political, social, economical,
technological, legal and environmental because these conditions not remain same every time and
interchangeable which reduces the capacity about making of their structure more strong (Greco,
Cricelli and Grimaldi, 2013).
Market penetration: It is most safest situation from where growth should be adopted in
their functions and operations. This includes about expansion of business in the same market and
with the helps of the providence of same products and services through attraction of the large
number people. In this regard, Oman Air has an strategic option about attraction of more number
of passengers through providence of new offers and building their promotional strategies more
strong which attract more customers by spreading awareness among the customers about their
new offerings. There are many other options should adopt by Oman Air for increase in the
number of their passengers such as development of new market strategy which helps to
encourage people to choose their services instead of others by convincing them their services are
more beneficial for them. Also, development of loyalty schemes should contributes to retain their
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passengers for longer period of time. It helps in creation of good image and goodwill in
passengers. Another approach which contributes in this process about earning of more amount of
profits includes the use of Boston Matrix. It helps in determination of the such aspects which are
more profitable and investment of huge amount of money results in high returns. Special
discount offers at the time of occasions helps in improvement of the number of passengers. It is
considered as the safest option for the expansion and competitive advantage option because
management having the total information and understanding about the existing products and
proven in the market.
Product development: It is the process which includes the function regarding
introduction of new product and service in the existing market. In comparison to the strategy of
market penetration, it is more risky because here having only the knowledge about the forces
which are present in market but the acceptance of the new product and service is not proven in
market. This cab be used by the Oman Air for their expansion by increasing the number of
flights in existing 27 countries where they already operated their operations. For the success of
this option need to identify the load of passengers upon which airline and destination. So,
providence of services on such route helps in reduction of their burden and satisfaction of the
demands of passengers.
From the analysis of the benefits and risks associated with above mentioned four
strategies identifies that one of the best option which helps in expansion and having more
success rate in future is about the using of product/service development option. This option of
development should possess more success rate because management is having the full
knowledge and understanding about the external factors which are present in different nations. It
is also easy to assess the actual demand of their services which are generated through the
passengers of different destinations (Hair And et. al., 2012). Here, the success should be
achieved by the Oman air in growth through increase in the number of air-planes which is only
about 51. Here, need to purchase air-planes which are having more sitting capacity, high tech
facilities such as WIFI which provides more comfort to the passengers. This will provides the
opportunity regarding development of their internal strength through which they easily grab the
future opportunities. It also helps in the procedure of attaining competitive advantage in
operations.
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Bowmen's clock strategy
One of the other strategic option through option of growth is evolved includes effective
position of their existing product and services through which they can attain competitive position
in market. One of the effective strategy which helps to effectively positioned their product and
services is known as Bowmen's clock strategy. This strategy includes eight different approaches
of positioning according to the different situations. It is the obligation upon the management is to
first identify the actual position of their products and determine the issues which are attached
with their existing plans. So, these issues are removed with the help of Bowmen's clock strategy.
The positioning of the products and services should be based on two dimensions which are
known as price and perceived value. The eight different positioning approaches which is
available in front of Oman Air are defined below:
Low price and Low value added(Position 1): This position strategy not helps in
ascertainment of the competitive position in market. The passengers are getting low value from
the use of their services even when low prices are charged for their services. So, Oman Air gets
the competitiveness in operations through adoption of only one aspects which is becoming cheap
so, no one able to undercut you. This strategy is known as bargain basement strategy because no
value is gained by the passengers so the only option which attracts the customers is low price
(Ioannou and Serafeim, 2015).
Low price (Position 2): It is refers as the situation where businesses positioning
themselves as low cost leaders in the market. In this regard, required to adopt the strategy of cost
minimisation which helps to attain success in the process of becoming cost efficient leaders. It
provides the opportunity regarding attainment of economies of scale. So, here Oman Air is
required to provide more emphasis on application of such tactics which provides the opportunity
is to cut off the extra expenses and saves the costs which is further used in other productive and
expansion activities through which they can attain improve their profits. Here, the profits
associated with their services are low but even after they able to generate huge amount of profits
through improving the number of existing services which fulfils the demand in actual manner.
Position 3: Hybrid Oman Air Airline can adopt bowman strategic clock model in its
third position the company will be at hybrid differentiation. Because the company can offer low
price but the products are highly perceived value then its other rivals. Oman air can charge for
low price against the normal products that is beneficial for the passengers but also not too much
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costly for the company to maintain its sustainability in the market. The low price can attract
mass travellers with some specific kinds of products that will build its reputation among public.
The services which is offering by the company is will be counted as discount price strategy and
discount strategy is the most eye catching candy in order to allure the people. The icing on the
cake icing on the cake which matters for a company is the volume which it get in response of
putting the efforts in utilizing the bowman's clock model. The reasonable cost of product aid to
create a brand image with maximum profit.
Position 4 : Differentiation In fourth position of bowman's clock model companies
using differentiation strategies to perform their best offers as high quality at average price. The
companies wish to provide the best quality of product at highest level of sensed added value.
Along with a focus on quality the firm are also concentrated on the branding of products that's
why they establishes a significant reliable brand on the market that retain the customers.
Customers are more sensitive towards a product quality than the price even they can pay higher
price against the best quality. So when Oman Air will be offering a high standard service that
means the amenities while fling, correct timings of flight, ambience and the well trained aviation
staff then the customers can pay higher than the actual price of the flight. Travellers would like
to pay for the comfortable journey which they can enjoy with comfy seats and other facilities that
are serving by the hospitality staff of the flight if all these services are providing with the quality
then they will be happy with the charging price (Ioannou and Serafeim, 2015).
Position 5. Focused Differentiation In focused differentiation there are designer
products are offered with the high quality and high price. The company offers some aesthetics of
the products which has no substitution in the market there is a more real value of the product
with high price of the product. For an instance, Gucci offers a astonishing products with the
brand that has a high cost and that cost never going to be cut for any reason. However, there is
huge competition in the market but all the rivals would sustain on their prices without any
compromise. If Oman Air is offering such kind of brand then it does not need to kill the price in
order to gain the profit margin because the brand itself can maintain its position among customer
with a high quality and price.
Risky High Margins(Position 6): This strategy provides the option to Oman Air is set
the high prices of their product without offering any value to the passengers. High risk is
associated with this strategy regarding loosing of their existing passengers also.
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Monopoly pricing(Position 7): It is used when only service provider is exist in market
and customer don't have any other options. Here, price of the services are decided as per their
own interest and not taking care about the value perceived by passengers.
Loss of market share(Position 8): As per this strategy includes setting of standard price
for their services which provides low value to consumers. It means large number of options are
available from where they get high value services from other competitors at same price.
Adoption of this strategy by Oman air results in reduction of market share.
From the analysis of all the eight positioning approaches identified that Position 3 Hybrid
is best which provides dual benefit to the consumer about low price and product differentiation.
It provides the opportunity to provide high value to passengers.
SAFe Framework
It is one of the effective framework which provides direction in the procedure of selection
of right strategy which suits more to business conditions. This framework helps in assessment of
the usefulness and effectiveness of the strategies before their implementation in organisation in
real scenario. This framework includes three different aspects which are known as Suitability,
Acceptability and Feasibility. This helps the management is to fairly weigh up of their different
strategies and selects the one which satisfies the all criterion of these three strategies. It is
adopted by the management of Oman Air for identification of the usefulness of Ansoff Matrix
and Bowman's clock strategy. This will provides the opportunity regarding adoption of such
option from the one strategy through which overall growth in their operations is gathered. The
application of the approaches of this framework is defined below:
Suitability: It is effective criterion where suitability of the strategies are assessed as per
the operations of business (.McNabb, 2012). Here, suitability is measured on the basis that after
application of the approaches of the strategy they are able to achieve their objectives or not
which are framed by them. In the present report, Oman Air checks the suitability of Ansoff
Matrix and Bowman's clock strategy. Different kins of aspects which are governed while
checking the suitability includes environmental, expectation and capability suitability. The three
different questions from the suitability of above mentioned two approaches are ascertained are
mentioned below:
Q. Does the strategy use the strength of company effectively?
Ansoff Matrix
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From the four different approaches of expansion one is selected by management of Oman
Air which is most preferable includes service development. Here, internal strength is effectively
used in process of acquirement of new air-planes. Also, knowledge about external factors helps
in effective placement of such new services as per demand in different nations (Paroutis,
Bennett and Heracleous, 2014).
Bowman's Clock strategy
The hybrid strategy for attaining competitiveness is good but it not fully uses the strength
of the organisation like in terms of services, comfort of passengers, technological advancements,
food and beverages they are good and setting of the low prices results in loss profits.
Q Does strategy helps to overcome from difficulties?
Ansoff Matrix
The issue which is analysed by the management of Oman Air is continuous increasing the
number of passengers and demand of their airline services. So, adoption of service development
approach helps to serve the needs of passengers.
Bowman's Clock strategy
The Hybrid approach helps to overcome from issues but it results in loss because they are
not able to recover their costs due to setting of the low prices.
Q Does the strategy helps to attain the goals which they wants to achieve?
Ansoff Matrix
The main aim of Oman Air is to attain competitive advantage in market through growth
of their operations. This should be effectively achieved with the help of adoption of service
development approach through number of flights are increased (Popescu and Corbos, 2012).
Bowman's Clock Strategy
Trough adoption of this approach not overall objective is achieved. The differentiation in
services is able to gathered the aim of expansion but low prices results in loss in future period of
time.
Acceptability
This includes the process where acceptability of the strategy is checked on the basis of
the evolution of three aspects which are return, risk and stakeholder reactions. It is important for
Oman Air is to measure acceptability of both approaches to take effective decisions.
Ansoff Matrix
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Return: The main stakeholder of Oman Air includes government and passengers. From
the adoption of service development approach government attains the benefit about improve their
earnings and passengers get the benefit about effective satisfaction of their demand.
Risk: Less risk is associated with strategy as management having the knowledge
regarding external factors present in existing market (Ren and et. al., 2015).
Bowman's strategy
Return: The amount of return which is associated with strategy is less in comparison to
above mentioned method because low price is set for their new offerings.
Risk: The risk is associated with new offering is less in this method (Taplin, 2012).
Feasibility
This will includes determination of the resources which are available with management
or not. This includes identification of human capital, capabilities and aptitude which plays the
key role in successful implementation of strategy. Also needs to assess the financial feasibility.
Oman Air is nationalised airline having large control of government. So, financial they are strong
to effectively adopt the development strategies. Also from the analysis of past performance of
Oman Air identified that they have effective amount of machinery, money, manpower, materials
etc.
After application of SAFe Framework, observed that the strategy which is suitable and
effectively fulfils all the criteria provided under this framework is strategy of service
development in Ansoff Matrix. Through application of this approach large number of benefits
are gathered by stakeholders and also less risk is attached with application of the provisions of
this approach (Van den Berg and Singels, 2013).
CONCLUSION
It has been concluded from the above report that Oman air is nationalised airline which
provides both domestic and international flights. There are many options are available at present
which plays an effective role in the process of the development of functions. Application of
Ansoff Matrix improves the understanding about the different options of growth and risk
associated with them. Also, Use of Bowman's clock strategy improves the understanding about
the position of their existing services in different ways through which trusts and loyalty of
customers is attained and also contributes in improvement of brand image. One of the effective
strategic option for Oman Air to attain competitive advantage and growth in market is service
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development where number of flights are increased through purchase of new airlines and cater
the needs of growing demand of passengers. SAFe is effective evaluation criterion through
which most suitable expansion strategy is adopted after analysing their suitability, acceptability
and Feasibility. So, Service development strategy in Ansoff Matrix is selected after adoption of
SAFe framework.
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Taplin, R.H., 2012. Competitive importance-performance analysis of an Australian wildlife park.
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Online
Ansoff materix 2018. [Online]. Available
through<https://www.tutor2u.net/business/reference/ansoffs-matrix>.
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