guidance for completion of strategy shr019-6 assignment

Introduction

The following report will discuss the various environmental conditions in brief that determine the success of a business organization. On the other hand, the key factors that lead to the competitive advantage of all the Omani companies in term of business, export and logistics will be addressed in the study. Apart from that, an accurate reflection of the entire discussion regarding the factors that lead to the workings for the Omani companies favorable within their jurisdiction will be identified. Besides that, five measures will be understood to minimize the potential threats that can reduce the efficiency of business within a competitive scenario.  Again, description will be provided regarding the fact that whether it is possible for the Omani government to assist all the companies within the companies regarding the potential threats and take necessary strategic actions with respect to Oman Oil Marketing Company. Pestle analysis will be done to measure the internal and external environmental analysis of Oman government and various organizations within it. Porter’s five forces will also be carried out to create better emphasis and significance of the analysis. Furthermore, strategic tools will be implemented to analyze the external and internal business environment in Oman.

Competitive advantages of the Omani companies

In the growing world o advancement and technology, business of all the nations are getting evolved day by day. Traditional businesses are getting shut with the ruse of the e-commerce industry. Oman is a country that meanly deals with the export of oil servers and crude oil worth its neighboring countries. Although competition is increasing day by day, yet opportunities to expand the business all over the world is also elevating. The emergence of the Ecommerce has helped The Omanis companies to regulate 50% of their functions online. With the steady growth of e-commerce, now it has become easier for the country to take a detailed track of all its customers in the world, track orders and interact with other distributors and market places in the world (Garble and Al-Shansi, 2019).

The geographical location of Oman makes it very easy for the country to trade and export with the other countries. This is because of the fact that it is surrounded by seas its sides.  The government has been instrumental in investing a lump sum amount in the development of harbors and cargo facilities. The development of the ports and cargo also helps in the steady rise of logistics sector (Bilal 2017).

 As per the international studies, Oman is a niche market for ecommerce. Since the country is a budding region where e-commerce has just started growing, it leaves ample opportunities to grow and expand new markets. With time, the logistic providers within the country are now using ecommerce platforms so that Oman can create its own Brand in the international world by growing more and more customers over a period of stipulated time (Mastriano and Khan, 2019). Moreover, it has also become the function of the logistic providers to accelerate the supply chain mechanism and improve the efficiency of service deliveries. Moreover, the advent of the artificial intelligence in the work processes of Omani campiness has helped in massive production and efficiency when it comes to output. In Oman, technology has started to unleash its potential when it comes to the development of e-commerce businesses (Rentizelas et al. 2018). Instead of getting saturated, loss of potential and opportunities lie ahead for the Manses entrepreneurs to grow their business and increase the brand name of their business.  The introduction of automation and AI will help in elevating the speed of production. On the other hand, the people of Oman are expert sailors and sea men. This creates better scope and opportunity for exporting of goods to the other nations. The business enterprise of Oman will grow more efficiently if they can properly understand the demand of the neighboring markets and create effective supply of goods and services (Seesaw, Ali and Khan, 2018).

Moreover, Oman maintain a good reaction with most of the European countries and that of the Middle East. Many Omanis companies have tie ups with European organization so that a confluence of culture happens in react to professionalism and work ethics. The steady growth if ecommerce and direct selling in the country mainly contributes in the sustainable growth of businesses. Besides that, not all the citizens are business indeed. Most of them are job edified and this provides ample opportunities for the business minded people to explore their potential and start their new ventures (Al Sure et al. 2018).

Business scenario and opportunity of Oman Oil Marketing Company

Although the global scenario when it comes to employment is becoming uncertain, volatile competitive and ambiguous, the scope for Omanis companies like Oman Oil Marketing Company is increasing day by day. Due to ecommerce, Oman Oil Marketing Company is focusing on interacting with foreign client all over the globe (Al Ani and Al Kithira, 2019). Internet is creating an additional advantage fir the company to increase and expand its client base. Traders from other countries can easily come on touch with the official so the company with the help of their official websites. Another major advantage behind the growth of the organization is due to the practice of digital marketing. Earlier., the organization had  a large sales team and marketing team that used to create awareness in the local markets regarding the best oil deals and prices. The main drawback of that traditional marketing was, it was slow and time consuming. Moreover , large amount or man power was needed who would carry out the ,marketing all over the country in zonal areas , it includes the travelling if the marketing team in other countries and talk with the officials of other companies to provide them with the best business deal. The recurring cost and the working capital to pay all the employees and incur their travelling cost were proving too much for the government. The application of ecommerce and digital marketing has enabled to uphold its services and marketing on a digital platform. With the help of digital platforms, it has become easier for the enterprise to create awareness in the minds of the customers online. The company is now using marketing its brand name and features with the help of social media marketing and YouTube marketing. Since most of the people are on the internet it becomes easier for them to become aware of the services of the company. More and more distributors can enroll themselves with the company to distribute their services all over the world (Al-Sarahi and Cheri, 2018).

Oman Oil Marketing Company has an expert digital marketing team that will help to devise new strategies to pull more and more customer traffic through the internet.  The method of digital marketing and awareness creation by leveraging the social media platforms has been immediately beneficial for the organization. Referral marketing strategy has been used by the company to multiply the amount of customers. With the help of word of mouth, the existing customers or the loyal customers will bring more customers thereby benefiting the entire growth of the company. Brand endorsements and advertisements on television are right now avoided as they incur huge amount of expenses. All these expenses are being saved and the entire money is used to increase the quality of the refined oil. Capital is spending in increasing the quality of services. More lucrative business deals are being made by the company (Agrawal 2019).

Five strategies to upgrade the business of Oman Oil Marketing Company

The five strategies that Oman Oil Marketing Company has adopted to empower this business in the country as well as in the overseas are discussed below

Blue Ocean Strategy

The main fundamental aspect of this strategy is to create low cost and profit generating module that will help in acquiring the customer base in a more efficient way. By virtue of this strategy, new market can be easily acquired and differentiation can be created in terms of quality of fuels and lubricants.  Oman Oil Marketing Company has adopted Blue ocean marketing strategy to channelize their product thorough their supply chain. In order to make this strategy successful, competitive pricing has been kept when it comes to the export of crude oils. By doing it is helping the organization to gain monopoly in its regions.  New markets are opening up for the company and the number of customer base is also increasing (Johnson 2016).

Competitive pricing

In order to capture and expand in a niche market, Oman Oil Marketing Company has been extending their services at a much affordable cost. The main motto of the company is to keep cheaper prices proves as comparison to others so that it becomes easier for the clients to grab the best quality deal within their affordability.  The best package is to keep low pricing in the beginning and gain the customer loyalty, once the customer loyalty is achieved, after that it will be easier for the company to increase its profit margin.

Referral strategy

Instead of doing advertising through media channels and brand endorsements the company is using referral strategy to increase the popularity and recognition of its brand name. The implementation of this strategy helps in create more and more client base and customer base from the existing users. The main reason behind the adoption of this strategy is that the company wants to decrease its expenses of the advertisements instead of asking a celebrity to promote their brand, Oman Oil Marketing Company aims to make their business a people’s business. The policy is that customers will bring more customers. As a result of this, exponential growth in the business will happen thereby promoting the services and revenue of the company. Referral strategy is both done with the help of online applications followed by the age old word of mouth policy which is the fastest growing business strategy in the 21st century (Agnihotri 2016).

Increase in the product quality

 In order to ensure that the quality of the oils is supreme, modern machineries are included in the factories so that crude oils can be refined in a proper manner. All the expenses of traditional marketing are being saved and those expenses are utilized in the service development (Al Suqri et al. 2018).

Digital marketing

This is the most important strategy to spread the business through ecommerce. By virtue of leveraging online applications and social media, Oman Oil Marketing Company is doing its marketing through e-commerce. Therefore, there is no longer need for traditional marketing team who will do the marketing segment of the business. Instead that entire cost can be spending in strengthening the supply chain mechanism. Moreover, automation will also help in digital marketing through emails and social media marketing. Again with the help of digital media, referral marketing, promotion and branding can be done much faster. All these processes will help in the constant growth of the company (Chaffey and Ellis-Chadwick, 2019).

Can the Omani government assist organizations in this processor?

It can be observed that Oman is a country of the free economy in which a free and open market culture is mainly being operated by the government. In addition, in this particular market, all the business organizations are allowed to invest in any of the sectors within the nation, by eliminating all sort of obligations by the governing authorities. However, the government of the nation can be recognized as one of the most essential factors in operating the economy of the country. The government is also the employer and buyer of the industry at the same time. It can be observed that the Omni Company has also been drastically growing since last 25years and have managed to acquire a considerable development (Kadeem, Pica and Shamsuzzoha, 2018). In addition to that, it can be observed that imitating a fluent and sound business operation is pretty much challenging in Oman, therefore, the business organizations require mere support from the government to gain a specific amount of revenue within a significant timeframe. Therefore, the business corporations must target these areas of the nation for successfully implementing the business strategy along with the assistance of the government. Based on this concept the key aspects are discussed below:

Government incentives: The free tax zones of Oman plays a significant role to boost-up the profitability of the nation and industries. It can be observed that the foreign-based organizations of Omni are also allowed to freely repatriate huge amount of profitability in both inside and outside on Oman.

Export-oriented business: Oman is the home of major trading organizations that have several economic blocks which includes WTO. Moreover, the Oman government also offers trade tariffs against the agreements that have been done by the business corporations of Oman with outside companies (Al Suqri et al. 2018).           

Transpiration and logistics: Oman also possesses a highly advanced transportation system that allows business corporations to operate in various regions across the globe. On the other hand, the sea routes of Oman allow the business corporations to connect with the Asian and European nations. Therefore, there is also a significant scope can be observed for the organizations to incorporate a disruptive trading activity (Al Maroni and Aten, 2018).                    

Pestle and Porter’s five forces of the organizations in Oman

PESTLE analysis

The PESTLE analysis of the business organizations of Oman are stated as follows:

Political factors

A monocracy political structure has been followed within the business sector of Oman. Therefore, it can be observed that the business organizations in Oman are mainly operated by the council of ministries at all scale. Moreover, the government of the nation also plays a specific role to operate the business behaviors of the organizations and have a significant attitude towards the FDI.

 

 

Economic factors

The economy of Oman is based on oil and petroleum business like other Arabian regions. Power generation projects, solid waste management programs are also appointed by the Oman government for maintaining the economy of the nation at a considerable level (Searle, 2019).

Social factor

The daily lives and custom culture of Oman mainly belong to the tribal community. However, the socio-cultural factors of Oman have also a significant impact on the business culture of the nation. On the other hand, as the majority of the society of Oman is Muslim leaded, therefore, the Islam culture has a significant impact on the business operations of the nation.

Technological factor

As the oil and gas manufacturing and extraction is the main industry of Oman, therefore, enhancing the production of these services and products are the main motive. In addition, enhancing the engineering and manufacturing sector of Oman is the major objective of the government of the nation.       

Legal factors

The Islamic Sharia law is the source of all legislation in Oman. The Oman law is based on common law system that is strict and strong in comparison to any other business regulation systems across the globe. Furthermore, the legal framework of Oman is very flexible and includes an upgraded business framework.   

Environmental factors

The vast area of Oman is comprised of the desert in which scarcity of water can be observed. In addition, Water desalination ventures have been incorporated within Oman to minimize the scarcity of water supply. However, as the entire industry on Oman based on oil extraction, therefore several environmental sustainability rules have been issues across the organizational sector of the nation.

Porter’s five forces of Oman’s organization 

Commutative rivalry

The oil and gas manufacturing companies are the upstream organizations of the nation, in which an intense competition can be seen. There are various large-scale business organizations are available within the market of Oman, such as Royal Dutch Shell, Exxon Mobil, BP and many more (Al Bushido, 2020).

The threat of new entrants

The upstream segments of the business sector of Oman mainly being affected by the threat of new entrants. Therefore, threats of new entrants are relatively high in this case. Huge capital and volatility of price are the critical factors in this case.

Threats of substitutes

The substitute industries of Oman are the nuclear power, coal extraction industries and bio-fuel production companies. However, these substitutes contribute their own and different contributions to the nation. Therefore, the threat of substitute becomes a low power in this case.

The bargaining power of buyers

The main buyers of Oman's manufacturing industries are refineries, traders, other global nations and international gas companies. Based on this the bargaining power of buyers becomes a low aspect (Jafri and Nair, 2018).

The bargaining power of the suppliers    

The bargaining power of the suppliers is fully integrated with the suppliers of the oil and gas industry. The entire value chain of the nation is critically dependent on the suppliers of this sector. Therefore, the bargaining power of suppliers become a strong force.    

Application of a range of strategy tools, concepts and frameworks

At the inception of the study of this segment, it is urgent to be transparent about the external environment of businesses in Oman. There are specific strategic concepts as well as methods that can be helpful for an organization to plan strategically in the case of unstructured problems for particular businesses. In this study, frameworks and concepts of proper analysis as well as strategic tools will be presented to resolve problems in the work field of Oman (Aron Al Rae, 2014).

Analysis of Value chain: As Mantel is one of the largest organizations in Oman, this organization changes its dynamics according to the market. This particular strategic concept helps an organization to identify the structure of need of the customers. The value system enables reading the active stream that demonstrates the value chain of the organization. By only evaluating this tool will not help any organization to perform well but along with this the organization must be aware of other support activities as well as multiply of involved activities. This strategic concept provides competitive advantage in the market field but the organization which wants to gain advantage must consider other possibilities such as internal and external economic stability of Oman (Bearish Tehama et al. 2017).

CSF or Critical Success factor analysis: There are different concepts of success factors in the market. An organization must follow some if it wants to be one of the largest enterprises in a specific region or province or around the world. For example, Mantel needs to evaluate the success factors of other organizations to sustain its own attributes in the market. If an organization critically evaluates different companies' success factors, the organization can be able to look into loopholes as well as pitfalls that can adversely affect the company. Every organization has to face some difficulties when it wants to sustain in the market. This strategic tool helps the organization to look its horizon and act accordingly (Rajasekar, 2014).

Benchmarking

This is a kind of strategy tool that helps an organization to measure the progress of the company by comparing other organizations at the same market field. In Oman, this tool of benchmarking is very commonly used. More than 75 percent of the organizations of each sector use this tool to evaluate its competency in the market. This particular strategic concept measures the objectives which are organizational and their operations relative towards other existing procedures which are similar. In the financial sector, this concept is often used (Berisha Qehaja et al. 2017).

To initiate this section of the study, it is necessary to have a clear view about the internal environment of businesses in Oman. There are certain tools as well as techniques that can help an organization for planning strategically towards the unstructured problem of their respective businesses. In this study, frameworks and concepts of proper analysis as well as strategic tools will be presented to resolve problems in the work field of Oman.

SWOT analysis

This specific tool is used to evaluate different kinds of internal issues along with some definite factors which can help an organization to perform well in the market. In case of Omantel which is one of the largest enterprises in Oman, this company has certain strengths and opportunities that help the organization make their business well. Besides this, the SWOT analysis may help to recognize weaknesses and threats of the business also. Internal business environment of an organization has a specific range of problems which are unstructured, by the help of SWOT analytical tools, the organization may be able to evaluate and overcome certain difficulties in the market of Oman (Gürel and Tat, 2017).

Analysis of Portfolio

There are two kinds of portfolio analysis, one is matrix of growth-share and another is matrix of directional policy. By this tool, the organization can allow the business to be evaluated according to their products and services. Many large enterprises of Oman provide various range of services and products. As the organizations evaluate their services which are the business portfolio of them, the business can be overviewed from the perceptions of customers so that the business can be managed as if there are any kinds of issues, those will be resolved after analyzing critically (Khalil et al. 2017).

Analysis of Experience curve

In most of the cases, this specific tool is ignored by the public organizations. On the other hand, more than 15 percent of private, manufacturing and financial organizations use this particular tool. To sustain strategic development in the long run, this tool of experience curve helps the organization. This particular tool means to develop and provide a massive range of products and services. In the case of this strategic concept is to put stress on price as well as cost over the specified time allocated for the organization, industry and services (Saqib et al. 2018).

Conclusion

The above study has stated that how a situation can be exact for a specific organization. First it has been discussed why this reflection is relevant to the study. After that, the discussion proceeds towards the five steps which can be taken by the organization so that the threats can get resolved easily. There are certain internal situations that an organization faces. In the case of facing an uncertain, volatile, competitive and ambiguous environment, how the organization resolves its issues in five steps has been shown profoundly. Besides this, it has been discussed how the organization can avoid severe difficulties in different situations. Therefore the report focuses on the factor that if the government of Oman either helps certain organizations. The key aspects of the discussion are mentioned clearly. There are various range of key factors that are discussed in the study. Then there comes Porter's five forces theory which are involved with the external environment of the organization. Thereafter, it has been discussed how the organizations in Oman can survive from the problems those are unstructured. There are internal and external business environments and by the mean of that, different strategic concepts and tools are discussed in the study.

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