Middle Eastern Private Business Market - Assignment Example

Mariam Humaid Al Dhaheri - ID: M80004226 BUS 620 - 17th May Q1: What do you think are the three most significant trends facing companies operating in the UAE today. Specify your answer for a particular company. Explain your reasons for concluding that the trends you mention are significant. How do you think the company should respond to each of these trends? D P World company ltd analysis Introduction The DP World Company is an international marine company with its headquarters located in Dubai. The company offers marine transportation services to the customers globally with its extensive number of ships sailing almost in all global harbours. This makes it much adequate for the customers to have the confidence in the transportation services of the company. The company ensures that all its sailing trips are effectively and timely undertaken. In its undertakings, the company has been facing numerous grievances that ought to be overcome as they are hindrance to major developments of the company. Competition On the company’s move to introduce globally industrial and commercial transportation services, the company has been facing numerous competitions from the rival companies in the same line of services. As the need arises for the company to sustain its venture in the market in order to facilitate its achievements, the company undertakes various methodologies that ensure that it sustains its competitive advantage over the rival companies. In the transportation industry, there are numerous companies of which some are already developed and pose a great threat to the DP World marine transport company. The company has to effectively and extensively take caution in all its undertakings in order to ensure its dominance in the transport sector is not a threat. Security and political threats Security has also been a threat to most of the companies operating in the UAE. Most of the companies tend to be prone to terror attacks from the terrorist groups who tend to be the anti-governmental groups. This poses a great threat to the company’s venture in the place though there being some of them being ventured in the area. This is a limiting factor to the expansion of the company within the areas as they value their expansion in the area as an increase in the terror attack areas. This makes the companies venture in the wider geographical areas that they seem to believe of having peace and economic stability. The company has had its branches all over the world with a branch in Canada where its operations are also facilitated. Interference from other countries From the political instability in most of the UAE countries, there have been continued interruptions from the wider community countries that either having their personal interests in the countries situations as well as the resources in the counties affected by the disagreements. This takes the company a great take to survivor through the grievances by enhancing external developments and growth of its venture. The company has set in various branches in foreign countries to enhance its growth. The company ought to facilitate its global services on the marine transportation. With the issues, they appear to be a threat to the undertakings of the companies in the country as they have to clearly and comprehensively undertake their duties with fairness and due care. This is therefore more demanding for the company to have their stability in order to achieve their growth and sustainability in the work force. Having a secured environment, stable country as well as lack of the stiff completion would help in the running and expansion of the business in the area without the risks of liquidation. 2. Q2: Choose an emerging multinational company from the Middle East and describe the reasons for its success / its sources of competitive advantage. Explain your answer. Mubadala Development Company Reasons for the company’s success and continued competitive advantage Well planned operational management system As ventures in the industry increases, the company has brought in various and strategically planned operational strategies that have made it much more effective to operate in the country and the foreign countries. The company’s ability to set several subsidiary companies is one of the greatest achievements in promoting international business. The subsidiaries found in most of the countries where they find it conducive to manufacturing and assemble their products. The availability of skilled labour, raw materials and market are the major criteria used in selecting the suitable geographical location to set up their branches they facilitate an effective operational strategy of the company. Joint ventures Through joint ventures, the customer satisfaction is usually attained. This is because the clients can easily and efficiently get the products of their choice hence enhancing their loyalty through satisfaction. Customer’s loyalty makes it more appealing to the company as it makes it more likely of the customer’s return. The subsidiaries have also provided jobs for the local community in the located areas. This henceforth makes the community in the location have the passion for being associated with the company’s brand name as they are proud of the company. Investing in other companies With the company’s venture in other company shares, it has been a facilitating factor to the growth and development of the company. From the investments of shares, the company earns income that is essential for expansion. With adequate funds, the company has been able to extensively develop its operations in the country and in foreign countries where its investments are located. This facilitates the company’s competitive advantage over the rivals thus market dominance. Long-term investment strategies With the company’s ability to venture into long-term investments, they have been a propelling factor into the company’s dominance into markets thus is sustainability in the market as a result of a strong competitive advantage over the rival companies. The company has been in the move to enhance that that the relationship between the consumers and the producers is a healthy and satisfying relationship that ensures the sustainability of the customer as well as that of the company in its line of production. The relation also ensured that there is the efficient and effective flow of information from the consumers and the producers in all direction chain flow of information. The move also has a duty to enlighten the consumers and producers of the world market prices of the different products and services, as well as the consumer preference and the prevailing market conditions. These capabilities make the company to be able to make the right decisions leading to market dominance thus having a healthy competitive advantage. Religious differences that affect the performances of the industries in the area are among the factors that pull behind the growth and development of the company. The company has set in concepts that are stratified in dealing with some personal issues such religious differences may cause the cultural differences among the involved parties. Thus in dealing with people from different religious groups care should be taken to prevent having conflicts that would be unnecessary. Lack of common objectives also does cause conflicts as there will be a lack of unitary and pluralism among the involved parties. Lack of togetherness will always be three sources of conflict. The company ensures that there is the plurality among the employees thus enhancing the growth of the company. 3. Q3: Briefly explain the entry modes available to a company when considering entry into foreign markets. If you were a fashion brand not yet present in the Middle East (for example Lululemon, but it may also be another one), which country/countries would you enter first and which entry mode would you recommend. Why? Entry modes to a foreign market available for a company Joint Venture With the entry into the country to venture its operations, the company would best fit in a venture strategy through which is the process of a joint venture. Having and equitably growing company the company can join hand in hand with it thus launching its operations in the country. This is a much less expensive method as the company does not have to necessarily have its own buildings to undertake the business. This method gives the company ample time to venture into the country markets thus ensuring and facilitating its dominance before the building of its facilities. Direct venture Once a company is in the plans to venture into a foreign company, it can as well choose to venture into the chosen country directly without necessarily involving another company for a joint venture. The company can have its own facilities, land and construct its own industry. This would be considered as a direct venture and the company seeks for the registrations in the country to venture in for its set up. Though at times the method might be expensive it can as well be used. With this the company starts to operate thus entering into the market. Franchising This is the method of allowing another company, the franchisee to use the brand name and the logos of the company called the franchiser at fee that they usually remit to the company. The franchiser has the guiding rules to the franchisee on the various uses of the brand name and the logos of the company. The products produced by the franchisee should be similar to those of the franchiser in order to retain the company’s profile. This method reduces the expenses that would be incurred by the foreign country. This results to the market entry of the company through the franchisee. Lulu lemon marketing strategy Lulu lemon Athletica Company is retailing as well as a designer company of different athletics gears in the Northern America and Australia. The company offers a wider variety of apparel that includes shorts, tops, jackets and fitness pants. The products are all designed to offer a lifestyle that is free and healthy in the activities such as running, general fitness and yoga. Fitness products include the bags, underwear, water battles, socks, instructional yoga DVDs and yoga mats. The company makes the clothes for different clients both male and female. The concept of capturing both the male and the female genders makes the company have a wide range of customers. This is a marketing mix that targets both genders thus having the maximum number of clients. This makes the company have a competitive advantage over the other competitors. Having well distributed retail shops all over the place helps the company reach out its extensive number of customers all over the world. This also brings out the customer satisfaction thus earning customer loyalty. Country to venture in In promoting international business, the company would be suitable to venture in Dubai, which is among the UAE countries. This is because, in the country, there are increased technological advancements that would rather be suitable for the company in enhancing its continued growth and innovations in its venture field. With the numerous number of individuals visiting the worldwide known city, there would be the availability of the company’s’ markets for its products thus the increase in the volume of sales yearly. This would be in the front line to enhance the company sustainability and dominance in the market. Recommended market entry mode: Joint venture With the numerous companies in the city the company would be suited with the use of the entry method to venture in to the country. With a joint venture, Lulu lemon would be reducing its costs that would be incurred in the setup of a complete and well fitted branch will the required facilities. This makes the company to also avoid the risks of liquidation thus being free in its operations. This market entry method is much easier as the only requirement of the company is to have their products reach the company that they have joined for the operations for the distribution to the shops of the company or rather to the retailers and consumers. Work cited Abdelal, Rawi, Mark Blyth, and Craig Parsons, eds. Constructing the international economy. Ithaca, NY: Cornell University Press, 2010. Rock, Michael T., and David P. Angel. Industrial transformation in the developing world. Oxford: Oxford University Press, 2005. Stokes, Carlie Charlene. "Healthist ideologies: the case of Lululemon Athletica." (2008). Read More