Gulf Air's Ѕtrategic Analyѕiѕ

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


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

Table of Contents
Company Overview3
Environment Analysis4
Government Regulation4
External Forces7
Industry Analysis8
The Core Business8
SWOT Analysis9
Gulf Air Pestel Framework11
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

Gulf Air's Strategic Analysis


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...

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