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Toyota Australia to UAE - Essay Example

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Table of Contents Topic Page no. Executive Summary 2 Macro-environmental analysis 3 SWOT analysis 5 Risk Assessment 6 Modes Of Entry 7 Support Service Available In The Country 7 Conclusion 8 Recommendation 9 Appendix 10 Bibliography 10 Executive Summary The following paper deals with the market analysis of UAE to find its feasibility for the export of the brand of cars manufactured by Toyota in Australia…
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Toyota Australia to UAE

Download file to see previous pages... The popularity of the Toyota and its reputation has been considered in dealing with the analysis. Selection of areas were highlighted which could provide added benefit to the export of the business. The underlying risk associated with the entry of foreign markets was also studied in detail. The market of UAE have been found to be promising for the Australian export market and owing to the benefits the market provides Toyota should not resist its temptation to test its fortune in the market. An added advantage which the market of UAE provides is in the low price of diesels, which generally increases the sale of cars. Other than the general market analysis a study of the associated service has been done to find out whether any obstacles lie in the smooth running of the business. 7. Macro-environmental analysis of UAE 7.1 Political and Legal Environment of UAE: The government of UAE is the combination of seven emirates which is ruled by the president. The government of UAE is flexible relating to the investment from the foreign countries. It promotes and encourages foreign countries to enter their region and carry out business. Despite the nation being the combination of seven different emirates but there exist federalism in the UAE companies law and is applicable throughout. The UAE free zone offers 100%foreign ownership and tax exemptions to companies operating over a period of 15-50 years (United Arab Emirates UAE tax rates, n.d). So it is quite encouraging for the companies to invest in UAE. Owing to such favorable factors the foreign investment in UAE accounted to108billion dollar in 2011. (FDI in UAE, 2008,) 7.2 Economic Environment of UAE: The economic condition in UAE is always on a high and in recent times it is expected to grow at a rate of 3-3.5% in 2011. UAE’s rising economy can be contributed to the export of oil, which over the years have gained considerable amount of revenue for the country. It significantly rose to 30% and caused earnings of 74 billion dollars (UAE oil income up 30% in 2010, 2011). It happens to rise at a considerable rate every year. The employment rate in UAE is considerably high as the foreign companies are obliged to recruit local people. Out of approximately 2 million populations in the emirate a staggering 86.6% of them are economically active. (Holdsworth, 2010) Dubai sees 19% decrease in unemployment rate 7.3 Socio-cultural Environment of UAE: The standards of living of the inhabitants are pretty high owing to the good financial position of most number of people. UAE has a diverse culture of people as many foreign bodies have established their base in the country. 7.4 Competitive Environment in UAE: The demand for luxury cars in UAE is always on a high and the automobile industry faces sufficient growth over the years in UAE. There is a strong presence of local car manufactures as well as the presence of international brands like Hyundai. The sales figure of Arabian automobiles recorded an 18% growth and the increase in sales of the Japanese firm was accounted due to introduction of new brands of car. The overall market grew by 19.7% in the year of 2010. The rise in sales of cars have added considerable amount of competition among the big players in the market. (UAE automotive industry record high growth in sales, 2011) 8. SWOT analysis STRENGTH 1. The company ,Toyota had ...Download file to see next pagesRead More
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