Gulf Air's Ѕtrategic Analyѕiѕ

Topics: United Arab Emirates, Dubai, Airline Pages: 14 (4102 words) Published: March 2, 2011

RUNNING HEAD: GULF AIR’S STRATEGIC ANALYSIS

Gulf Air’s Strategic Analysis
[Name of the writer]
[Name of the institution]

Table of Contents
Introduction3
Company Overview3
Environment Analysis4
Government Regulation4
Competition6
External Forces7
Industry Analysis8
The Core Business8
SWOT Analysis9
Strength9
Opportunities10
Threats11
Gulf Air Pestel Framework11
Political11
Economic12
Sociocultural12
Environmental12
Legal12
Porter’s Five Forces Analysis13
Bargaining Power of Suppliers13
Bargaining Power of Customers13
New Entrants13
Threat of Substitutes14
Competitive Rivalry14
The Strategy15
Commitment to Safety and Quality Maintenance17
Focused Criteria for Growth17
Conclusion18
References19

Gulf Air's Strategic Analysis

Introduction

The objective of my report is to analyze the strategy analysis in “Gulf Air” which is very important factor for the firm’s formulated effective strategy. The external environment consists of a wide array of economic and sociopolitical factors. It is the specific market arenas that the organization has chosen in its strategy; it provides the business opportunities to the firm and it’s also a source of threats or forces that may impede the successful implementation of a strategy. Macro-environmental Analysis (PEST factors affecting Gulf Air Airlines). To analyze the macro environment, I will use the PEST analysis, which refers to political, economic, social and technical factors that confront Gulf Air airlines. Also we use SWOT analysis as well. This analysis provides a no exhaustive list of potential influences of the environment on the organization. Each of the forces is categorized by a particular macro-level external influence, which directly impacts strategic direction at Gulf Air.

Company Overview

Gulf Air Company is the national airline of Bahrain, Oman, and the United Arab Emirates (UAE). It operates a fleet of 30 aircraft to 43 cities in 32 countries from Europe to Asia. The company has developed a reputation for outstanding cabin service and takes pride in its history as a pioneer in the Gulf airline industry and as an example of cooperation between governments. Gulf Air traces its origins to Gulf Aviation Company, which was established in Bahrain by a young British aviator, Freddy Bosworth. Bosworth had captured the local community's interest in flying via sightseeing trips and soon set up a commuter service between Bahrain, Doha, and Dhahran with his single airplane. Bosworth secured backing from a group of local businessmen and registered Gulf Aviation Company on March 24, 1950. Operations started on July 5. British Overseas Airways Corp. (BOAC) acquired a 55.5 percent interest the next year. Most of the airline's business was charter work for oil companies. The company started out operating rather small aircraft. Its first plane, the Avro Anson Mark 1, seated seven people. It was replaced in 1951 by the de Havilland Dove, which had room for one more person. The Dove flew for Gulf Air until the 1960s. Gulf Air was also using four-engine de Havilland Herons, which could carry more people and cargo and fly them farther. The scheduled network grew. Abu Dhabi, Al-Ain, Kuwait, Muscat, and Sharjah were connected in the 1950s. In the 1960s, Bandar Abbas, Bombay, Dubai, Karachi, Salalah, and Shiraz were added, while Fokker F27 turboprops replaced older model aircraft in 1968. This was an especially significant year because it marked the beginning of in-flight service for Gulf Air, an area that would become one of the pillars of the company's reputation.

Environment Analysis

Government Regulation

The airline industry in United Arab Emirates has always been fraught with regulation from both domestic governments and the United Arab Emiratesan Union. Before the 1980’s there existed heavy restrictions on competition in this industry imposed by individual...

References: Ali-Knight, J & S. Wild (2001) ‘Gulf Air’ inbound leisure market to Manchester, England: Is direct marketing the answer?’, Journal of Vacation Marketing, vol. 6, no.1
Brassington, F
Clark, A. (2004) ‘Has the low-cost bubble burst?’, The Guardian, p 34.
Dyson, R. G. (1990) Strategic Planning: Models and Analytical Techniques, John Wiley & Sons Ltd: Chichester
Felsted, A
Gilbert, D., Child, D. & J. Danielsson (2001) ‘A qualitative study of the current practices of ‘no-frills’ airlines operating in the UAE’, Journal of Vacation Marketing, vol. 7, no. 4
Gow, D
Hanlon, J. P. (1989) ‘Hub operations and airline competition’, Tourism Management, vol. 10, no. 2
Hotten, R
Insley, J. (2004) ‘You can make it if you try’, The Observer
Insley, J
Johnson, G. & K. Scholes (2002) Exploring Corporate Strategy, Pearson Education Ltd: Harlow
Laverick, S
Lohmann, M. & J. Danielsson (2001) ‘Predicting travel patterns of senior citizens: How the past may provide a key to the future’, Journal of Vacation Marketing, September, vol. 7, no. 4
Newman, C
Porter, M. E. (1980) Competitive Strategy: Techniques for Analysing Industries and Competitors, Macmillan Inc.: New York
Porter, M
Porter, M. E. (1996) ‘What is strategy?’, Harvard Business Review, vol. 74, no. 6
Tait, N
Thompson, J. L. (1997) Strategic Management: Awareness and Change, International Thompson Business Press: London
Tran, M
Wood, S. (2004) ‘Michael O’Leary’, Business Review, vol. 10, no. 4
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Loyality to Gulf Air Essay
  • Essay on Gulf War
  • the gulf of tonkin Essay
  • Gulf Of Thailand Essay
  • gulf stream Essay
  • Essay about Gulf of Tonkin
  • The Gulf War Essay
  • Gulf Oil Spill Essay

Become a StudyMode Member

Sign Up - It's Free