Dubai World Central Microenvironment - Research Paper Example

DUBAI WORLD CENTRAL: CREATING SATISFACTION AND VALUE DUBAI WORLD CENTRAL: CREATING SATISFACTION AND VALUE Dubai Wold Central (DWC) is a an economic support currently being constructed in Dubai aimed at using different components in meeting logistics, aviation, humanitarian, exhibition, commercial, residential, among other purposes (Dubai World Central, 2015). The economic zone will allow for an annual capacity of 160 million passengers and 12 million tonnes of cargo and will augment the competitiveness of Dubai and Al Maktoum International Airport. Dubai Wold Central has several components including Al Maktoum International Airport, Aviation District, residential district, logistic district, and reserved area for the development of commercial, leisure, and exhibition facilities (Dubai World Central, 2015). An external and external environment, target market and positioning, SWOT, and marketing mix are analysed in the paper to allow for the formation of insightful recommendations for implementation at DRC. DWC’s microenvironment Analysis of the microenvironment of DWC will be done using Porter’s five forces and Value Chain analysis. Porter’s five forces Porter’s five forces aid in the analysis of a business internal environment through examining the influence of suppliers, consumers, new entrants, substitute products, and competitors to the organization (Porter 2008, 12). Threat of new entrants: Low DWC provides a new technologically advanced platform of management of aviation, logistics, and other forms of business related or adjacent to an airport; it has differentiated itself from the competition and faces very low threat of entry. The need for the development of advanced infrastructure, a lot of capital input as evidenced by the development of DWC, which is estimated to costs $US 33 billion aid in deterring any new entrants. Bargaining power of suppliers: moderate The development of the modern infrastructure at the DWC means the use of the very best suppliers of technologically advanced software and the enormity of project requires reliance on the best contractors and developers, Getting quality hardware, software, and manpower requires the payment of a steeper price that gives the suppliers power over DWC. The power of the suppliers has however been reduced using contracts, competitive bidding, and agreements but still supplies have control resulting in the moderate bargaining power of suppliers for DWC. High costs of purchase and maintenance of Material Handling Equipment are also the other factor that provides for supplies having bargaining power. Bargaining power of customers: Low DWC serves a wide market, owing to its global scale of operations, resulting in the ability of a single consumer to have considerable power to influence the decisions and pricing. Consumers lack access to a platform offering the quality and extensive services available at DWC reducing their bargaining power further. Competitive Rivalry: High Freight requirements by consumers include global operations, proper handling of cargo, and high experience are the main competitive areas for DWC and the competition that is high owing to its global nature. Provision of value added services is the other way of competing in the freight business. Threat of substitutes: Moderate There has been massive development in the aviation industry that has made the main factor for success and competition among the players to be value added services and efficient service delivery. Substitutes include other operators offering the same services but with the quality and excellence at DWC, the threat from substitutes is moderate. Value Chain Analysis Primary Activities The main activities at DWC include ensuring the proper functioning of all the facets of DWC, guiding customers through the different points of services. Quality service provision and excellent customer care are the other primary activities at DWC aimed at ensuring customers achieve value for their money. Secondary Activities Ensuring supplies are in place for the maintenance and servicing of cargo hauling systems and other systems at DWC aid in meeting demand and quality expectations. Human resource management is the other secondary activity that ensures employees are trained well for the provision of excellent customer care and meet quality needs of DWC. Marketing and sales are the other secondary services offered at DWC to ensure consumers are informed of DWC service provision. DWC’s macro environment DWC macroeconomic environment analysis makes use of PESTLE framework that provides an understanding of the influence of economic, political, social, technological, and legal factors affecting a business (Murray-webster, 2010: 88). Political: DWC and the whole aviation industry have received a high political support that has allowed the whole aviation industry to flourish in the recent years in the whole Gulf region. DWC is the product of the forward thinking of Dubai ruler and UAE Vice President and Prime Minister His Highness General Sheikh Mohammed Bin Rashid Al Maktoum and the President of civil aviation His Highness Sheikh Ahmed Bin Saeed Al Maktoum. The political leadership has been very instrumental in ensuring the success of DWC from the development to international success and acclaim. Economic: there has been a rise in global income levels from the recovery from the economic recession in 2008 that has positively affecting traveling and logistics. The level of business has improved and in Dubai high levels of income have spurred growth and the need for economic growth has provided support for DWC in terms of access to more clients and ability to afford services. Transport and setting up of new business is made possible by high-income levels augmenting the possibility of DWC to be more profitable and successful in meeting its aim and objectives. The growing importance of Dubai as an aviation hub and the success of businesses in Dubai have increased the demand for air travel and related services provided by DWC. Social: Social factors including the need for access to technologically advanced and quality services in the aviation industry has put DWC at a better position of accessing more customers. Air travel has also gained more importance globally compared to other forms of travel owing to the economy’s globalized nature and the need for fast delivery of products and services to different global locations including to and from Dubai through the DWC. Technological: Incorporation of latest technology is the hallmark of success of DWC owing to highly developed technology allowing for real-time management of DWC infrastructure. Seamless communication is possible owing to the presence of a command control centre consisting of PCS U-SYS Framework, Flight Information System, and Airport Docking System. End to end system integration has allowed DWC to have high operational efficiency. The start of use of electronic permit issuance to entry, storage, and exit of goods to customers in the DWC is clear evidence on the application of technology in the development and success of DWC. Legal: Compliance with aviation rules and regulations of both international and domestic nature is a requirement for all players in the aviation and logistics industry. DWC has to comply with regulations guiding passenger transport, goods, and service provision. Domestic laws and regulations including having an open sky policy have allowed DWC to flourish in the market and have a competitive advantage. Environmental: Special emphasis on environmental impacts of the project was undertaken in the design and the undertaking of DWC from the Al Maktoum Airport that began operations in 2010. The importance of environmental conservation to the consumers has been taken into consideration with the development of DWC evidenced by the insistence on the development of a smart city with clean and conducive working and living environments. DWC’s target market and their positioning within the market The target market for DWC include logistics and aviation companies aiming at operating from the DWC and other businesses that can be undertaken near the airport. Another target market is air travellers from different global destinations who use the airport serviced by airlines that form the main client base for the Al-Maktoum International airport that is part of the DWC. Cargo transporters and other businesses aiming at the transfer of different regions through the DWC are the other customers served by the DWC. DWC has managed to access a good market position despite that it is still under construction as evidenced by the international and national aviation and logistics services that are provided. The market position of DWC is poised to be high when completed depicted by the success of DWC in completing agreements with investors and aviation industry players from different regions including Japan and the USA. The situation of Japan Trade Center and the agreement with North Texas District Export Council (NTDEC) are clear evidence of the high market position that DWC is occupying and further success is awaited on its completion (Basrur, January 28, 2015). The successes of Al Maktoum International Airport first phase since the opening of the airport on June 27 and signing of 15 airlines shows the success of the business (Dubai Information, 2015). SWOT analysis SWOT entails the analysis of the ability of an organization or business enterprise in harnessing its threats and taking on available opportunities to overcome threats and weaknesses to achieve growth and profitability in a complex business environment. Strengths Strong geographic location between Europe and Asia Fast growing hub in international travel Access to a wide variety of travellers including business people, tourists, academicians, among others Access to cheap aviation fuel Technological advanced in development, security, maintenance, and operations High safety for all Convenience to consumers Quality service provision Efficient service delivery Start of the art physical connectivity in terms of port, airport, roads, allowing for efficient connectivity Weaknesses Transfer of goods from the DWC to other regions is affected by the ban on large trucks operating on urban roads increasing costs Slow cargo inspection process requiring the use of electronic seals for GPS tracking Opportunities Open sky policy allows for access to a high number of airlines plying the airport Access to international airlines and destinations including GCC and international routes Integration of Asian countries in world economy allows for high demand for aviation and movement of goods and passengers globally Growing growth of global trade Meet the need for infrastructure development in Dubai It will become the largest cargo hub globally Threats Reduced growth to some of the countries that have not modernized logistics including Saudi Arabia High global competition and aviation costs threats the ability to provide quality service An analysis of the current marketing mix Product: DWC provides a conducive environment for businesses, good quality living, sustainable working environment, and access to all the basic requirements for high standards of livelihood. Promotion: Promotion of DWC entail the use of websites, public address by the government and other officials, traditional marketing, attendance of MRO shows by DWC delegates, and television, print, and radio advertisements. The other promotional material used by DWC is road shows promoting the facility including the road show conducted in US that led to signing of an agreement with North Texas District Export Council (NTDEC) allowing for MRO investment in DWC. Price: competitive pricing is the m ain manner in which the prices are set at DWC in regards to the global competition and the need to make Dubai a global destination for leisure, business, academic, tourism, and as connection to North Africa, Asia, Europe, Gulf Coast Countries (GCC), among other global localities. Place: DWC is located in a strategic position owing to the close proximity to Jebel Ali Sea Port that is the sixth largest container terminal in the world (BI-ME, 2013). Dubai is a strategic location providing access to global passengers on business, leisure, tourism, academic purposes, and transportation of cargo to global destinations. Physical Evidence: the physical evidence in DWC depicts the use of technologically advanced systems, hardware, and software located ion a strategic location for access to air traffic from Europe, Africa, and Asia. Quality service and efficient operations have been made possible by the presence of the start of the art facilities at DWC and much infrastructure development. Process: efficient quality provision and the development of a sustainable environment coupled with the excellent service provision at DWC allow high consumer satisfaction. DWC has an emphasis on the development of a smart service through technology allow for consumer convenience and reliability of services delivered with an emphasis on customer safety. People: DWC has demonstrated excellent use highly skilled personnel starting from the design and development stage with the use of the services of Leslie Jones Architecture for the design of AMI Airport who was involved in the design of Dubai and Heathrow airports. DWC uses highly trained personnel and emphasizes on employees providing an excellent customer. Recommendations for improving the marketing mix to maximize customer satisfaction and create closer connections to the customer From the analysis, there are some recommendations that will allow DWC to have a better customer satisfaction and meet the needs of the consumers better in the market. These recommendations will concentrate on the improvements to the marketing mix to make it more focused to the consumer and augment satisfaction levels. Making use of internet marketing, and e-commerce will allow access to international customers as part of the promotion in the marketing will complement the success of DWC. Incorporating customer feedback in the development of better service provision at DWC will also ensure that DWC gets in touch with the customers and allows consumers to be more satisfied when the service provided is in line with their needs. Provision of value added services for consumers using the cargo services offered by DWC would also form the other platform of enhancing customer satisfaction. Ensuring high quality of services, safety, and efficiency will allow DWC to be in a position of setting competitive prices to ensure high demand and success in global and domestic market. A process allowing for easy tracking of cargo and inspection that takes limited time will allow for the high competitive advantage of DWC and will increase the satisfaction of the consumers. The excellent use of highly trained personnel who have an emphasis on efficiently meeting consumer needs and making the consumer feel at peace and get value for their money and that they are respected, is the other recommendation for DWC marketing mix. References Basrur, T. (January 28, 2015). Japan Trade Centre launches operations at Dubai World Central. AME Info. Retrieved on April 14 from http://ameinfo.com/finance-and-economy/trade/international-trade/japan-trade-centre-launches-operations-dubai-world-central/ Dubai World Central. (2015). About DWC. Retrieved on April 14 from http://www.dwc.ae/about-dwc/ Guide to Dubai, (2015). Dubai World Central International Airport. Retrieved on April 14 from http://www.guide2dubai.com/info/dubai-world-central-airport.asp Porter, M. E. (2008), On competition, Cambridge, Massachusetts: Harvard University Press. Welch, A. (March 16, 2015). Al Maktoum International Airport. E-architect. 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