Competitive Advantage of Universal Weather and Aviation Asia Pacific Company

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Table of Contents

Introduction
SWOT Analysis of Universal Weather and Asian Pacific, Inc.
Conclusion
References

Introduction

Overview

Universal Weather and Aviation Company was founded in 1959 by the late Tom Evans. The founder was often commended for his visionary foresight to establish an all- inclusive service provider in the flourishing aviation industry. Universal Weather and Aviation Company is the first company to offer support services for businesses and private flight operations.

Initially, the company started by updating pilots on weather reports. However, the company later expanded to include a range of other vital services considered necessary by business aircraft operators. These services include: provision of over flight permits, flight paths, cargo handling services, cookery and hotel and accommodation (Universal weather, 2013, p. 1).

As part of the company’s global strategy, Universal Weather and Aviation Company began to expand globally by opening regional offices in Asia, Europe, Latin America and Africa. Global expansion was a holistic approach to the needs of the clients across the borders. Regional offices outlined the company’s strategy and programs in the competitive market.

The strategy included: localization of services; global expansion; high touch to local clients; formulating and matching products and services with the needs of each market segment; and decentralization of services (Universal weather, 2013, p. 1).

With the modest growth in the international market as well as the increasing number of new entrants in the market, the company is currently facing stiff competition. The product line offered are based on the segments from which revenues are generated.

The company is divided into four segments offering distinct services. These segments include: Trip Support Services (TSS), Fuel Reselling (UVair), Fixed Base Operations (FBO) and Trip tools (Universal weather, 2013, p. 1).

Report Purpose

The purpose of this report is to explore Universal Weather and Aviation Company’s competitive advantage in the Aviation industry. The report will identify some of the challenges affecting the company’s competitive advantage and devise solutions based on the principle and practices of operations management. The most commonly used tool for assessing companies’ competitive advantage is SWOT Analysis.

SWOT Analysis of Universal Weather and Asian Pacific, Inc.

SWOT analysis is an instrument that is often used to assess an organization and the environment. SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is commonly used in business studies to explore the existing conditions in order to come up with possible solutions or strategies of addressing both internal and external challenges.

The main objective of SWOT analysis is to have firsthand experience of the problems facing the company and gain knowledge concerning probable developments and potentials.

Strengths

Universal Weather and Aviation Company is one of the top providers of flight service and operates an extensive network of ground support facilities found across the globe. With over 5 decades of experience, widespread quality control systems for monitoring clients, and the global network, the company has been able to provide the best ground support services to its clients.

The company also has advanced software which is incorporated into the aircraft to facilitate communication between the pilot and the control room (Universal weather, 2013, p. 2). Universal Weather and Aviation Company also boast of their own software development.

With an Asia centric office, Universal Asia Pacific usually provides a higher level of technical and customer support for Asian clients. On the development of navigation software, Universal Asia Pacific can also act as an extension arm to gather the latest and complete flight path allowed and open by each Asia countries’ respective civil aviation regulatory boards (Universalsalvation, 2013, p. 1).

In addition, the company has a UV air Fuel Management System and devoted team of global based fuel experts to ensure that customers gain from the UVair card in handling ensuing fuel expenses.

The card is valid in over 4000 destinations across the globe and offers reasonable prices for the card holder. Additionally, the company has an operational headquarter in Singapore to take care of the needs of the Asia Pacific market (Universal weather, 2013, p. 2; Collier & Evans, 2012, p. 6).

Weaknesses

Most of the Chinese speaking clients have often found it very difficult to communicate with the company’s headquarter due to language and cultural differences. For that reason, these clients want the company to be localized and to become more Asia oriented. They prefer to use services from companies that understand their business, flight requirements and services with an orient touch.

The clients are willing to pay for additional service and quality (Universalsalvation, 2013, p. 1). The almost opposite time zone difference between Houston and Asia is also very challenging as Asia Pacific clients might need to wait for a business day to get updates on their questions or inquiries. Many of these trips might be challenged with time.

The turnaround delay of one business day basically kills or makes the company ineffective to cater for Asia Pacific’s needs. Most clients promised increase in business with Universal Asia Pacific as they will not hesitate to use the convenience and quality services which they had been yearning for (Universalsalvation, 2013, p. 2).

Opportunities

There are large numbers Asia Pacific clients flying across the world either for business or personal reasons. Given the company’s vast experience and outstanding brand image in the global market, they can take advantage of this emerging market. They can also enter into alliance with the local companies to increase their presence in the region.

The local companies will benefit from the highly trained professionals and staff of the Universal Weather and Asian Pacific company. Universal also offered FAA dispatch courses and a set of operational workflow which client’s team can quickly and easier learn to increase their proficiency. Clients are willing to seek out quality products that they can relate to and learn from (Universalsalvation, 2013, p. 2).

Threats

The major threat facing the company, especially in the foreign market, is competition from both local and global players. The latter include companies like Base Ops, which is a subsidiary of the World Fuel Services. These companies have the ability to provide a wide range of services both locally and internationally through their vast networks.

On the other hand, smaller local companies have developed a reputation for high quality and speedy services. The strength of these competitors is due to the fact that they are indeed more established locally and have better connections with local regulators, and probably offer the cheapest prices in the industry (Universal weather, 2013, p. 2).

Another threat to the company is the currency and tax restriction in a number of Asian countries, for instance, China. Central Banks in these countries do not permit withdrawal of enormous amounts of money to pay for foreign goods and services. Instead, they have subjected companies to foreign fund transfer ceiling.

This normally causes unnecessary delays in payment and slows down business transactions (Universalsalvatio, 2013, p. 2). The company needs to develop a mechanism where their funds circulate locally to avoid inconvenience. This is not easy to accomplish but in order for the company to thrive in such environment, it is the only option. The use of local currency also acts as an incentive to trade in the local market.

Conclusion

With aviation business widely accepted in the Asian market as a business tool that saves time and resources, the company should leverage on this regional growth given its long term vision on leaving global footprints ready to capture opportunities which can turn up anytime and anywhere.

To remain profitable in the current and future business environment, the company needs to perform well in sales and also keep a good control over its expenses and be careful not to over expand too quickly. As long as it can continue to hold the fort as the pioneer to provide one stop service for general aviation, the company should be able to ride on the tides to grow and to expand in the Asia Pacific.

References

Collier, D., & Evans, J. (2012). OM (3^rd Ed.). Cincinnati: University of Cincinnati.

Universalsalvation. (2013). Ground Support through Universal Weather Aviation, Inc. Web.

Universal weather. (2013). Universal Weather and Aviation, Inc. Web.

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