Emaar properties strategic analysis

Conceptual framework 5 2. Strategic analysis 6 2. External analysis 6 Emaar PESTEL analysis 6 Five forces analysis 10 VRIO analysis 13 2. Eternal analysis 15 Value chain analysis 15 2. SWOT analysis 16 Strengths 16 Weaknesses 17 Opportunities 17 Threats 17 2. Under the strategic analysis, the different framework has been utilized to achieve the goal successfully, for example, the PESTEL analysis, five forces analysis, and the VRIO analysis. They relate critical and useful information to understand the company and the external factors surrounding it and its operations. Value chain analysis has also been implemented in the paper to discuss and analyze the external analysis. There are also financial rations that represent the financial activities and projections of Emaar. Moreover, the paper also conducts a swot analysis which will be used to elaborate on the different factors that affect the company including its strengths, weaknesses, opportunities, and threats.

Its international market entry was profoundly influenced by their achievements, for example, the planning of the Burj Khalifa in Dubai that remains an outstanding and a competitive project in the entire world. Many countries enjoy its services including Egypt, and other African countries and Asia. Most of the customers are the developing countries that still have the demand and the need to develop infrastructure (Rodrigues & Mathew, 2012). Additionally, the company has employed a high number of employees totaling to 6600. Moreover, it has a financial base of revenue generation that adds to US5. The strategic analysis of the Emaar properties will cover some external organization environment factors such as political, economic, social, technological, legal and environmental. In this section, various analysis tools will be used for the strategic analysis.

Moreover, the strategic analysis comprises of external and eternal analysis and the SWOT analysis which will be elaborated appropriately (Ghemawat, 2010). The external review will consider tools such as PESTEL five forces and VIRO framework analysis. The constant study will imply describing and appropriately using the value chain framework. • The company stakeholders such as the non-governmental organizations, the government, protests, and activist movements help a lot on decision making. The collaboration is significant for achieving community goals. • The government also plays a significant role in finance and accounting- the local government sets good business environment policies and implements business regulations to be considered in the existence of the organization • Taxation- Emaar Dubai has significantly benefited from the zero taxes in Dubai for the last 20 years.

Low taxation rates ensure high profitability and high expenditure. • International relations- Emaar properties has focused on the creation of numerous international relationships thus developing and entering the global markets in other countries such as Egypt, India and North America. It has also tightened the competitions levels as the competitors equally use a lot of technology in their operations. • The supply chain of the organization n has been empowered by technology which shortens the product life cycle which creates an opportunity for new product developments. • Technology has also influenced research significantly in the organization. There are various sectors such as market, and organizational research that is facilitated by the use of the internet, computers, and software making it easier to develop strategies in the organization.

• Technology has also improved the security of IPR which promotes investments in the company. • There exist environment laws that ensure a safe and healthy environment. The Emaar properties, therefore, need to meet the requirements of the laws and regulations effectively. • The Emaar Company benefits from the new laws on real estate that geared long term residencies for investors in real states. Five forces analysis This framework is significantly used to analyze the impacts of external stakeholders of the business on the organization. They include the following: The threat of new entrants • The free entry of organizations into the market leads to a significant rise in the competition which will affect Emaar properties profitability and interfere with its market share. It will, therefore, help to reduce the bargaining power of the customers who will not have to control the prices of the products.

• Most of the customer’s order large or numerous products and services which give them an upper hand to seek discounts on the products they purchase. It means that the company will be able to give good discounts to consumers who have very big projects to be worked on. • The organization also has an exceptional quality of products and services that the customers cannot just get anywhere. Threats of substitute products • There are quite some substitute services and products of the company in the market countries and UAE. Operations The organization has a comprehensive and significant system for managing its operations. There are many departments with managers who manage the employees and their activities in the firm. Moreover, Emaar properties operate in many countries including China, Egypt, India, North America, and Saudi Arabia and Dubai.

This gives it a more extensive market advantage and share (Gereffi, & Fernandez-Stark, 2011). Outbound logistics The services are delivered directly by the employees to the consumers in various construction sites or in the organization where the company offers planning and management consultations to its customers. The current ratio of the Emaar Company dropped in 2017 by 0. from 2. which it reported in 2016. It therefore implies that the company’s liquidity reduced by a smaller percentage which can be mitigated and improved in the coming years. Moreover, the Gross profit ratio also reduced in 2017 by a percentage of 0. Some of the competitors include Jumeirah Group, Nakheel, Binladin Group, Al- Mojil Group and Majid All Futtaim Group. Additionally, other stakeholders such as buyers, financial institutions and shareholders play a very significant role in the success of the organization.

The financial institutions provide funds to the organization in order to complete its projects successfully and the shareholders also invest lot of capital in the company. There also exist digital market consumers, tenants, landlords and real estate property buyers who form the large consumer base of Emaar Expectation survey In this survey, some factors or elements are liked and desired by the stakeholders. They are also expected to have a significant influence on the organization. • The Emaar should focus on digital market to solve the high competition issue in the Middle East where Amazon is not well based. • The organization should also consider integrations and teaming up with other such as EBay which will increase its profitability and expansion. • To develop a new market, the stable government and political stability in Iraq and Syria should facilitate the existence of a great market which is open for development and growth.

• Emaar properties should also venture in introducing new strategies of payments and delivery which must be competitive in the market, • Emaar Company should also seek market growth and entry strategies to solve the slow market growth. It should also consider entering new or untapped markets. Analysis of the external environment of the company as illustrated in the paper has significantly contributed to the identification of several issues and strategies that can be used to address the issues. It is therefore important for other companies to consider such projects such as implementation strategies and market analysis to build their prominence and market share in the world. International organizations also have every many significant tasks which they do to maintain stability and sustainability in the international market.

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