Diversification Strategy for Oman Air: Expanding into Budget airline diversification Market

Question

Task: How can Oman Air successfully diversify into the budget airline diversification market to capitalize on growing demand for affordable travel options??

Answer

Introduction

Oman air has registered a steady growth since its establishment in the early 1970’s but the airline has restrained a hard-line towards diversification by focusing only on servicing high paying clients. Today, globalization has resulted in working professionals travelling further from their home in search of better employment opportunities.

Many seek budget airline diversification services which offer affordable air travel to the working class, most intend to simply get a ride home and not interested in luxury air travel. Today the budget and economy air travel industry are seeing an increasing number of clients and many budget airline diversification registering higher profits than luxury airlines making is important for a well-established airline like Oman air to consider diversifying to the budget air travel sector.

Proposed Diversification

Oman Air has been registering continued growth over the years but it has limited its self to top dollar clients. Oman like most other countries in the Middle East offers many employment opportunities which result in attracting skilled professionals from Africa and Asia. The skilled professionals tend to opt for budget airline diversifications to commute to and from home and results in opening up a huge market which is currently being catered to by Air Arabia. This also opens up a huge opportunity for Oman Air to diversity by opening a subsidiary budget airline diversification which would cater to budget air travel thus allowing the business to maximize its profits.

Equipment and Personal

Being an airline which is already well established in the region means Oman Air already has the equipment, Expertise, data base and knowledge to set up a budget airline diversification at a very affordable price. The organizations also have strong ties with major aircraft manufacturers allowing them to secure aircraft quickly to start up the business and begin tapping into the market.

Tapping To All Budget Clients

Oman being its home country means the budget airline diversification can be designated to one of the major airports in a similar manner as the pattern followed by the UAE. In the UAE Emirates flies to Dubai, Etihad flies to Abu Dhabi and Air Arabia has its headquarters in Sharjah. Each of the airlines falls under a different category thus allowing the three airlines to tap into all customer budget groups.

Future Forecast

It is important to understand the global economies have experienced several major stresses in the past decade which has resulted in many consumers becoming cautious. This has resulted in many accepting to make sacrifices and opting for budget airline diversifications which have helped boost the budget airline diversification industry as a whole mak