STRATEGIC MANAGEMENT SYSTEM OF OMAN AIRPORT

MANAGEMENT COMPANY
Introduction:
Strategic management is a well-known phenomenon in business world. According to
Summit-Bonnici (2015) strategic management is defined as the process of evaluating,
developing, and implementing strategies in order to retain or increase competitive
advantage. The evaluation process is concerned with both the external and internal
settings. Business models, corporate direction, competitive strategies, worldwide
strategy, acquisitions, and collaborative action are all part of the planning process. As
stated by Clayton (2019) the strategic management approach means more than just
adhering to a set of regulations. It is a philosophical business strategy. Top management
must first think strategically, then apply that thinking to a procedure. The strategic
management process works best when everyone in the organization knows the strategy.
Here we discussed and evaluate the strategic management of Oman airport management
company (OAMC).

According to the official site of OAMC, Oman Airports is a government business linked
with the Oman Investment Authority that was founded in 2002 to manage civil airports in
the Sultanate of Oman, including Muscat International Airport, Salalah Airport, Duqm
Airport, and Sohar Airport. In 2019, the corporation expanded its services to include
regional airport management in the oil concession regions of Fahud, Marmul, and Qarn
Alam. The company's mission is to renovate and improve Oman's airports in order to
reach the required goals and to provide a safe and distinctive travel experience for all
airport users for this purpose they struggling to develop new strategies to cope with the
existing deficiencies.

Objectives:

In this assignment, we explore the Oman Airport Management company's strategic

management system by:

• Analytical review of the Oman Airport Management company's major strategic

management processes, by focusing on Special relevance to the company's innovative
techniques.

• Evaluation and assessment of OMAC's strategic competitiveness using SWOT analysis,

taking into account the company's entire performance.

• Suggestion of logical plan in accordance with the company's risk management

strategies.

Key features of strategic management system:

Oman Airport Management Corporation (OAMC) manages and operates Oman's airports,
which include Muscat International Airport, Salalah Airport, and numerous additional

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domestic airports. To increase operational efficiency and deliver a better customer
experience, According to Annual report (2020) OAMC has used various new strategies in
its strategic management procedures.

The utilization of technology in its operations is one of the primary innovative strategies
that OAMC has used. OAMC has made significant investments in technology to
automate and optimize its operations. For example, OAMC has deployed a passenger
flow management system that combines sensors and cameras to detect passenger
movements and enhance airport resource use. This approach has assisted OAMC in
reducing airport wait times and congestion, leading in an improved customer experience.

Another creative tool that OAMC has used to improve its operations is data analytics.
OAMC gathered and evaluated data from different sources, including aircraft schedules,
passenger demographics, and consumer feedback, to find trends and patterns. This has
assisted OAMC in optimizing its resources, lowering expenses, and improving its
services.

Another new tactic used by OAMC is the use of a customer-centric approach in its
operations. OAMC has prioritized the passenger experience by offering a variety of
amenities and services including as lounges, duty-free shops, and restaurants. OAMC has
also introduced a customer feedback system, allowing travelers to submit input on their
airport experience. This feedback is utilized to improve OAMC's services and enhance
the passenger experience.

Furthermore, as part of its strategic management procedures, OAMC has established a

sustainability plan. OAMC has worked hard to reduce its carbon footprint by installing
energy-efficient technology and practices including solar panels and LED lighting. To
reduce its environmental effect, OAMC has also worked on trash reduction and recycling
promotion.

By its strategic management procedures, OAMC has also proven a commitment to

sustainability. To lower its carbon footprint and environmental effect, OAMC has
undertaken many sustainability measures, such as the adoption of energy-efficient
equipment and procedures. According to OAMC's 2020 annual report, the company's
energy usage has been cut by 8.5% compared to the previous year, proving the efficacy
of these activities

Generally, OAMC's strategic management procedures are distinguished by innovation

and a focus on the consumer. To enhance its operations and give a better passenger
experience, OAMC has introduced various new strategies, including as the use of
technology and data analytics. The emphasis on sustainability indicates OAMC's
dedication to responsible and ethical business operations.

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SWOT analysis:

SWOT analysis is a renowned strategy development tool. Basically, it is an acronym of

strengths, weaknesses, opportunities and threats. As stated by Sarsby, A (2012) SWOT
analysis helps to think and, as a result, influences your decisions. SWOT analysis cannot
make decisions for you, nor can it ensure success. But it helps in planning to set future
realistic goals. We may examine the strategic competitiveness of Oman Airport
Management Company's (OAMC) overall performance using the SWOT analysis
method.

Strengths of the company:

Strong airports network: Oman Airport Management Corporation (OAMC) has built a
robust network of airports in Oman, including some of the country's largest and busiest
(traffic increase at Oman airports 2013). The Oman Airports Management Company
(OAMC) is in charge of managing and running all airports in Oman, including Muscat
International Airport, Salalah International Airport, and Sohar International Airport.

Innovation: The innovative techniques adopted by OAMC in Oman aims to improve

connectivity and accessibility throughout the country while also bringing more visitors
and companies to the region. The corporation has made significant investments in
renovating and extending its airports, which has improved the quality of services and
amenities for passengers. Furthermore, the airports have been planned to encourage long-
term expansion while minimizing environmental effect.

Customer-centric Approach: OAMC has a customer-centric attitude, as seen by its

attempts to improve the passenger experience and customer satisfaction. Since OAMC
understands that passengers are at the center of the aviation sector, it seeks to deliver a
seamless, efficient, and delightful experience for all passengers that utilize its airports.

Skilled workforce: Workers are valuable assets to any firm, whether for profit or not.
Numerous experts emphasized the importance of workers in building a competitive edge
for the organization (Jalagat et al. 2017). OAMC has a highly qualified team that includes
experienced airport managers, engineers, and customer care representatives who
contribute to the company's success. Employees at the organization are committed to
delivering outstanding service to guests and ensuring that operations function properly.

Weakness:

Dependance on tourism: One of OAMC's major problems is its reliance on tourism.

Oman's economy is strongly dependent on tourism, and any interruptions in the industry
can have a considerable influence on the company's income.

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Limited reach: Oman has a tiny domestic market, which limits the possibility for
domestic air travel expansion. This makes it difficult for OAMC to expand its domestic
income streams.

Opportunities:

Growing industry: OAMC has the ability to grow its activities into new local and
international markets. This might assist the firm in diversifying its revenue streams and
decreasing its reliance on the tourist sector.

Growing tourism: Oman, the second biggest country in the Middle East, has a wealth of
natural resources and has plenty to offer travelers. It features a lengthy coastline with
pristine beaches, stunning mountains, and some of the greatest deserts in the world with
undulating sand dunes. With the breath-taking Khareef festival of Salalah, Musundam in
the Khasab area, known as Norway of Arabia, and Bhala, which contains forts and castles
recognized on the UNESCO world heritage list, Oman is one of the top ten nations in the
world for visitors to visit (Baporikar, 2012). Oman has made significant investments in
tourism infrastructure and marketing, which might contribute to increasing demand for
air travel in the region. This provides an opportunity for OAMC to expand its operations
and improve its income.

Diversification: OAMC might look into collaborations with other airlines and airports to
broaden its reach and income sources. Partnerships with low-cost carriers or alliances
with other airports in the vicinity might fall under this category.

Threats:

Vulnerable security: The aviation business is vulnerable to economic and political

unrest, which can impact passenger demand and income. To prevent any potential
negative repercussions on its company, OAMC must continuously watch economic and
political events in Oman and the region.

Social risk: Social risk, like any other risk, occurs when a company's own conduct or the
actions of people in its operational environment create vulnerabilities. In the case of
social risk, stakeholders may identify vulnerabilities and exert pressure on the firm to
modify its conduct. As the capacity to listen to the viewpoints of business stakeholders on
social issues becomes a competitive need, controlling social risks will need to become
more thoroughly integrated into corporate strategy (Kytle, B. and Ruggie, J.G, 2015).

Increasing competition: Several airlines and airports in the region compete with OAMC,
which might reduce its market share and income. To remain competitive, the firm must
invest in new facilities, improve customer service, and grow its activities.

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Recommendation plan:

According to Oman Airport Management Company's (OAMC) SWOT analysis, it is

critical for the firm to develop effective risk management strategies in order to reduce
possible threats and capitalize on opportunities. Here are some reasonable suggestions
that can be linked to the company's risk management strategies:

Diversification of revenue stream:

OAMC should look for ways to diversify its revenue streams and lessen its reliance on
the tourist sector. This might involve growing into new markets like freight transportation
or ground handling services. OAMC can mitigate the impact of any interruptions in the
tourist business and improve its financial resilience by diversifying its revenue streams.

Monitor political and economic development:

Economic and political unrest can have a big influence on the aviation business, and
OAMC should keep a careful eye on any possible concerns. OAMC may build
contingency plans and take proactive efforts to avoid potential risks by staying up to
speed on economic and political events in Oman and the region.

Improve operational management:

OAMC should priorities operational efficiency in order to minimize costs and increase
competitiveness. This might involve investing in new technology and automation,
simplifying operations, and enhancing interdepartmental communication. OAMC can
improve its financial performance and risk management by enhancing operational
efficiency.

Develop crisis management:

To prepare for future crises such as natural catastrophes or security threats, OAMC
should build a thorough crisis management strategy. The plan should include processes
for dealing with various sorts of emergencies, such as communication protocols,
evacuation plans, and emergency response teams. OAMC can reduce the effect of
possible crises and preserve the safety of its personnel and passengers by adopting a crisis
management strategy.

Foster a culture of risk management:

OAMC should promote a risk-management culture throughout the business, with all
workers educated in detecting and reporting possible risks. OAMC can improve its risk
management techniques and lower the chance of possible threats by encouraging all
workers to be proactive in detecting potential risks and taking necessary steps.

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Examine security measures: OAMC should examine and update its security measures
on a regular basis to ensure that they are successful in minimizing security concerns such
as terrorism. This would boost the company's reputation while also ensuring a safe and
secure passenger experience.

OAMC may increase its risk management techniques and lessen its reliance on the tourist
industry by adopting these recommendations. This would increase the company's overall
competitiveness and assure long-term success.

Conclusion

Oman Airport Management Corporation (OAMC) is a key participant in Oman's aviation

business, with a large airport network and a customer-focused attitude. A company's
SWOT analysis identifies its strengths, weaknesses, opportunities, and threats, which
may assist guide strategic choices.

OAMC's robust airport network, which includes four international airports and many
regional airports, is one of its primary strengths. The firm has invested in renovating and
extending its airports, attracting additional airlines and increasing passenger volume.
Another advantage is its client-centric strategy, which has increased customer happiness
and loyalty.

However, OAMC has various flaws, including a lack of income diversification and a
reliance on a small number of airlines for a large amount of its revenue. Also, the
corporation is competing with other airports in the region, which may affect its market
share.

OAMC also has various prospects, such as rising demand for air travel in Oman and the
Middle East, as well as the ability to expand its services and operations. In addition, the
organization may use technology and innovation to improve its operations and customer
experience.

OAMC should examine numerous proposals to reduce these risks and capitalise on
possibilities. Diversifying its income streams, investing in technology and innovation,
extending its services and operations, watching economic and political trends, and
developing effective risk management techniques are among these.

Overall, OAMC's robust airport network and customer-centric strategy are significant
assets, but the firm must address its deficiencies and overcome external threats to
maintain long-term viability and development.

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