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Contents
1
Introduction.................................................................................................................................................2
History of the chosen company...................................................................................................................3
Form of the business ownership.................................................................................................................4
Advantages of the business type.................................................................................................................4
Disadvantages of the business type............................................................................................................5
SWOT analysis.............................................................................................................................................5
Strengths.................................................................................................................................................6
Weaknesses.............................................................................................................................................7
Opportunities..........................................................................................................................................7
Threats.....................................................................................................................................................8
PESTLE analysis............................................................................................................................................9
Political....................................................................................................................................................9
Economic...............................................................................................................................................10
Social.....................................................................................................................................................10
Technological.........................................................................................................................................10
Conclusions................................................................................................................................................11
References.................................................................................................................................................11
Introduction

The business markets all over the world have changed in a drastic manner over the past few

decades. Under the microscope of this changed business market scenario, it becomes important

to understand the different dynamics which have come into play now. For this purpose, there has

been an introduction of different tools which help in understanding the different dynamics of the

company. Two of the most popular tools used in this regard are known as SWOT analysis and

PESTLE analysis. Both of them are used for in-depth analysis of the internal as well as external

analysis of a company and the business market it is operating in. This analysis can prove to be

highly helpful in ensuring the different dynamics at play in the business market are factored in

when it comes to the formation of a prudent business strategy of the company. Hence, the use of

these tools has become very important in the business markets today. This report will venture to

render the use of these tools in the case of the company known as Suhail Bahwan Automobiles

LLC (SBA). It is a company based in the sultanate of Oman. The market of Oman may be small

in scale as compared to markets of other countries like the USA and China, but it is a very dense

and interesting market to study and understand. There is a diverse variety of different dynamics

which are at play here in the markets of Oman. The GDP per capita of Oman is more than

$15,650 as of 2017. This GDP per capita of Oman is almost the double of the GDP per capita of

China, which stands at $8,800 as of 2017. This gargantuan difference shows that the markets of

Oman may not be big in size, but it is indeed a very saturated and dense market. As a result, the

extent of different dynamics is also amplified here, which is a major reason for studying the

different dynamics of the business markets being faced by companies like Suhail Bahwan

Automobiles LLC.
History of the chosen company

The company was founded back in April of 2004. The company was started by Suhail Bahwan

Automobiles. Suhail Bahwan is a well-known and well-reputed entrepreneur of Oman. He

started from humble beginnings and created a business empire in bits and pieces over 40 years.

Today, this empire is worth billions of dollars and is easily one of the biggest business entities in

the Sultanate of Oman. Suhail Bahwan Automobiles is a kingdom of this business empire. It is a

flagship of the Suhail Bahwan Group. The company started with a bang in June 2005 by opening

up the biggest Nissan Showroom in the area of Qurum. Suhail Bahwan Automobiles started with

the brand of Nissan in the form of a partnership which was mutually beneficial for both the sides.

The quid pro quo agreement was fruitful for both the sides in the future. The purpose of the said

showroom was to make sure that the consumers get access to the quality products being offered

by Nissan in Oman. This start also gave the brand of Nissan an unprecedented level of strengths

and exposure in the area of Oman. The showroom worked wonders for Suhail Bahwan

Automobiles as well because it provided the company a start many other companies can only

hope for. The huge inflow of the consumers in the store proved it to be a great success from the

start. The status of being the biggest automobile showroom of Nissan further augmented the

anticipation of the store opening. However, this grand opening was only the start of the legacy of

Suhail Bahwan Automobiles. It soon started opening up more stores and shops to augment the

offering to the consumers in the market. All in all, Suhail Bahwan Automobiles started a total of

17 stores all over Oman. These stores were even in the most remote places so that the consumers

can get easy access to the services and products being offered. Apart from the stores, Suhail

Bahwan Automobiles also started 21 service centers. The purpose of these service centers was to

provide the most optimal customer care to the consumers of the company in the market. These
service centers proved to be a huge success for the Suhail Bahwan Automobiles. To cater to the

other needs of the consumers of automobiles in Oman, Suhail Bahwan Automobiles also started

a total of 35 spare parts stores all over Oman. These stores too were successful in catering to the

high level of demand from the automobile consumers in the market of Oman (Grodal et al,

2015).

Form of the business ownership

The form of business ownership in the case of Suhail Bahwan Automobiles is a Limited Liability

Company or an LLC. In an LLC, the owners of the company are only liable to debts or other

liabilities which are lesser than or equal to the amount they invested. If the liabilities exceed the

amount of investment, the owners are no longer liable to it. LLC is a rigid legal structure in

which many companies in the world are dressed. The popularity of LLCs can be linked back to

the conditions which ensure that the owners are kept safe financially in case of any dramatic

event resulting in nosedive of the financial position of the company (Filbeck et al, 2016).

Advantages of the business type

There are scads of benefits of an LLC business form. First of all, there are many relaxations of

this business form when it comes to the area of taxes. Apart from the taxes, the LLC structure is

also more beneficial in terms of paperwork. There are no huge piles of paperwork to be carried

forward in the case of LLCs. The profit distribution in the case of LLC is also flexible. This

aspect of flexible profit distribution can be a highly beneficial aspect for the company as it

eradicates multiple complexities. Apart from the aspect of profit distribution, the LLC structure

is also beneficial when it comes to the area of management. LLCs are generally easier to
manage. This ease comes as a result of the simplified structure and hierarchies. Many

complexities which are innate to other business types are not present in LLCs. This aspect makes

LLCs easier to manage and run. As an added combination of all these benefits, LLC is a highly

sought after the business form and is used popularly all over the world (De Bel-Air, 2015).

Disadvantages of the business type

Apart from the numerous benefits of the LLC business form, there are some disadvantages to this

business type as well. One of the biggest disadvantages of LLCs is that they are more expensive

to operate in comparison to other forms of businesses. The difference in expenses is not major,

but still, the LLCs are a little more expensive to operate and run. The banking in case of an LLC

can prove to be more tedious as well. This aspect may result in losses of time as well as some

other resources. The recordkeeping aspect in case of LLCs can also be more elaborate and

complex. This complexity may be due to the structure of the business type at hand (Shkvarya and

Frolova, 2017).

SWOT analysis

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. SWOT is a popular

and useful tool which is used for the purpose of analyzing the position of a company or business

entity in the market. This tool analyzes the internal as well as the external dynamics of a

company. To accurately describe the position of a company or business in the market, it is

essential to analyze both the internal as well as the external factors of the company at hand. This

purpose can be achieved by rendering the use of SWOT tool. The company at hand is Suhail

Bahwan Automobiles. As mentioned before, it has a strong presence in the automobile market of
Oman. To enhance the given position of the company at hand in the given market, it is important

first to understand the position it is in. As mentioned before, internal as well as external factors

of the company need to be addressed here. For this purpose, it is important to first conduct a

SWOT analysis of the company in the given market. The following is a SWOT analysis of

Suhail Bahwan Automobiles in the market of Oman:

Strengths

Suhail Bahwan Automobiles has multiple strengths in the market of Oman. The strengths of any

company are intrinsic in nature and fall under the domain of internal factors. One major strength

of Suhail Bahwan Automobiles is the fact that it is the flagship company of a business giant by

the name of Suhail Bahwan Group. This can prove to be a very important factor in many ways.

Firstly, this gives the company a sense of security and satisfaction. Moreover, due to the same

reason, the company has access to abundant financial resources to sustain itself in case of any

disturbing episode. This aspect further adds to the sense of security and confidence of the

company. Apart from this, the company also enjoys a high level of presence in the automobile

market of Oman. This presence is in the form of scores of showrooms and shops throughout the

length and breadth of the Sultanate of Oman. This high level of presence in the markets is a very

important strength of Suhail Bahwan Automobiles as it gives it a high level of competitive

advantage over many of its competitors. Apart from all this, Suhail Bahwan Automobiles has

also established a reputable brand image in the market. This image has been developed as a

result of years of high-quality products and services to consumers. This strong brand image

serves as another important strength of the company (Deng and Wang, 2019).
 Weaknesses

Apart from all the stated strengths, the company also has multiple weaknesses. In a way similar

to strengths, the weaknesses of a company are intrinsic in nature and fall under the domain of

internal factors. These weaknesses negatively impact the performance of Suhail Bahwan

Automobiles in the market. One of the biggest weaknesses of Suhail Bahwan Automobiles is its

slow rate of growth in accumulating consumers in the market. In other words, the market share

of Suhail Bahwan Automobiles is not growing at an optimal rate. There is a room for significant

improvement in the growth of market share in the case of Suhail Bahwan Automobiles.

Furthermore, Suhail Bahwan Automobiles also lags behind in the area of HRD or Human

Resource Development. There is not enough importance given to the area of HRD in the case of

Suhail Bahwan Automobiles (Tausif and Haque, 2018).

Opportunities

Opportunities fall under the category of external factors. The opportunities being faced by any

company are extrinsic in nature. One of the most significant opportunities for Suhail Bahwan

Automobiles is the dealership it has with Nissan. This aspect makes it the only player in-game,

and as a result, the demand is bound to increase. Moreover, by offering issues like free

maintenance, it can significantly augment its market share. This aspect of enhanced offering also

adds to the list of opportunities for Suhail Bahwan Automobiles to increase the current level of

market share. The company can also render the use of ongoing trends like digitalization to

increase its market share. There are various ways of using the tool of digitalization to enhance

the performance and share of the company in the market. Apart from all this, the increase taking

place in the market base can also prove to be a significant opportunity for Suhail Bahwan
Automobiles. Via the use of this aspect, it can increase its consumer-base and add to its profits

and revenues (Mahroogi and Narayan, 2019).

Threats

There are numerous threats in the markets as well, which Suhail Bahwan Automobiles must be

wary of. If any negligence is made in this area, it can result to be a source of hefty losses for the

company. Hence, every precaution needs to be taken in this regard to averting any such

unpleasant outcome. For this, it is essential first to identify the different threats which exist in the

market. One of the biggest threats for Suhail Bahwan Automobiles is the high level of

competition which exists in the market. As mentioned before, the automobile market of Oman is

very saturated. As a result of this saturation, it is not possible for the company to grow at a rapid

pace. The important aspect here for Suhail Bahwan Automobiles is to sustain its growth rate

under a high level of pressure from the market. Apart from the saturation of the market, another

threat which exists in the market is in the form of a high level of rising in the expectations of the

consumers. This issue is a spinoff problem of the high level of competition in the market. As

there is a wide range of variety available for the consumers to choose from in the market, they

have developed a high level of expectations from the companies in the market. If Suhail Bahwan

Automobiles is not able to fulfill these expectations, the consumers will simply move on to the

next option they have in the market. To ensure that this aspect does not harm the business of

Suhail Bahwan Automobiles, it is important for it to work on two distinct areas. Firstly, it must

work on innovating so that it can stay ahead of the curve in the market. Not only this, Suhail

Bahwan Automobiles needs to make sure that it increases its level of current customer loyalty.

These actions can prove to help deal against the aforementioned threats in the market (Nusair

and Al-Khasawneh, 2018).

PESTLE analysis

PESTLE is an acronym which stands for Political, Economic, Social, Technological, Legal, and

Environmental. PESTLE is another useful tool in the analysis of the market. Although SWOT

analyzes the internal as well as external position and nature of the company in a market,

PESTLE analysis is used for a further in-depth analysis. PSTLE deals with mostly external

factors of the market. The external factors play a vital role in the performance of a market. These

factors also play a pivotal role in shaping the business decisions of a company in the market.

This analysis can prove to be very helpful in helping a business in devising its business strategy.

Any business strategy which does not incorporate the external factors of the market is doomed to

fail from the start. Keeping this aspect in mind, it is important to conduct a PESTLE analysis of

Suhail Bahwan Automobiles in an in-depth manner. In this report, only the first four aspects of

PESTLE i-e PEST will be discussed and analyzed. The following is a PEST analysis of Suhail

Bahwan Automobiles:

Political

(Ji and Fan, 2016).

Economic

Social

(Alam et al, 2016).

Technological

There has been significant importance of the role being played by technology in the automobile

dealership sector. Technology is a factor which is focused on significantly by the consumers. If

this aspect is ignored, there are multiple complications which may arise ultimately leading to a

fall in demand (Uppula, 2017).

Conclusions

In the end, it can be concluded that the upcoming future of Suhail Bahwan Automobiles in the

market of Oman is challenging. These challenges will present themselves in the form of multiple

threats and opportunities in the future. If Suhail Bahwan Automobiles fail to cater to these

specific opportunities and threats, it may fail in the future. Also, Suhail Bahwan Automobiles

needs to shift its focus more towards the area of expansion. This way, Suhail Bahwan

Automobiles will be able to diversify its position in the market. Also, it would mean a higher

potential for growth in the future. Within the market of Oman, there are some aspects which

Suhail Bahwan Automobiles needs to focus on. For example, HRD is an area which has been not

focused on adequately by Suhail Bahwan Automobiles until now. This practice needs to change

for ensuring better performance of Suhail Bahwan Automobiles in the future.

References

Alam, M.S., Alam, N. and Khan, M.A.I., 2016. The Performance Analysis of Saud Bahwan

Group, Oman: An Empirical Study. International Journal of Economics and Financial

Issues, 6(4), pp.1646-1649.

Al-Busaidi, M.A., Jukes, D.J. and Bose, S., 2016. Seafood safety and quality: An analysis of the

supply chain in the Sultanate of Oman. Food Control, 59, pp.651-662.

De Bel-Air, F., 2015. Demography, migration, and the labour market in Oman.

Deng, W. and Wang, X., 2019. The Political Ecology of an Automobile-Dependent Society.

In Development of a Society on Wheels (pp. 181-196). Springer, Singapore.

Filbeck, G., Kumar, S., Liu, J. and Zhao, X., 2016. Supply chain finance and financial contagion

from disruptions: Evidence from the automobile industry. International Journal of Physical

Distribution & Logistics Management, 46(4), pp.414-438.

Grodal, S., Gotsopoulos, A. and Suarez, F.F., 2015. The coevolution of technologies and

categories during industry emergence. Academy of Management Review, 40(3), pp.423-445.

Ji, Q. and Fan, Y., 2016. Evolution of the world crude oil market integration: a graph theory

analysis. Energy Economics, 53, pp.90-100.

Mahroogi, F.O. and Narayan, S., 2019. A recent review of hybrid automotive systems in Gulf

Corporation Council region. Proceedings of the Institution of Mechanical Engineers, Part D:

Journal of Automobile Engineering, p.0954407019836055.

Nusair, S.A. and Al-Khasawneh, J.A., 2018. Oil price shocks and stock market returns of the

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Restructuring, 51(4), pp.339-372.

Shkvarya, L.V. and Frolova, E.D., 2017. TRANSFORMATIONS IN SOCIO-ECONOMIC

DEVELOPMENT OF THE GULF GROUP STATES. Economy of Region/Ekonomika Regiona,

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Tausif, M.R. and Haque, M.I., 2018. Market dynamics and future prospects of the automobile

industry in Saudi Arabia. Problems and Perspectives in Management, 16(4), p.246.

Uppula, R., 2017. Customer Relationship Management in Automobile Sector-A Comparative

Study. ITIHAS-The Journal of Indian Management, 7(1).