Introduction to Management Project on Emaar Properties
Introduction to Management: BUS 309
Table of Contents
- a) Introduction and History of Emaar Properties. 3
- b) Competitive Advantage of Emaar Properties. 7
- c) SWOT Analysis of Emaar Properties. 8
- Strengths. 9
- Weaknesses. 9
- Opportunities. 9
- Threats. 10
- d) Rationale behind choosing Emaar Group. 11
- e) Recommendations. 12
Emaar properties was established in 1997 and it is involved in real estate development, and managing the residential and commercial properties. Emaar properties is operating I more than 16 countries including Saudi Arabia, United Arab Emirates, Syria, Pakistan, Egypt, Turkey, India, Morocco, Lebanon, France, United Kingdom, Jordan, an Indonesia. Emaar properties had transformed the infrastructure in Dubai, UAE. It is also making robust developments in the retail, Shopping malls and hospitality. Emaar properties has grasped 30% equity in a renowned retail and commercial bank of UAE, i.e. Dubai Bank (Al Bakri, 2014).
Emaar properties is characterized by its significant mega-structures in Dubai. Its flagship developmental projects include Dubai Downtown. Dubai Downtown is located near the globally recognized destinations like Burj Khalifa, Dubai Fountain and Dubai Mall. In addition, Emaar properties had established many state of the art communities like Dubai Marina, Emirates Living and Arabian Ranches (Emaar.com, 2016).
The unique selling proposition (USP) of Emaar properties is Innovation and high quality in the real estate development. USP helps Emaar properties in formulating and implementing effective sales and marketing strategies as well as targeting the most appropriate market segment. Emaar properties has won many award and recognitions because of its accomplishments and highly differentiated and creative projects in the real estate industry. Following are some achievements of Emaar properties (Emaar.com, 2016).
It has won International Business Excellence Award in 2016 due to its high quality customer services. Its spa of Palace Downtown Dubai won many awards due to best body treatment. Emaar Entertainment has achieved ISO certification of 28000: 2007 because of the supply chain management. In 2015, Armani Hotel Dubai of Emaar properties won award of best hotel chain (Emaar.com, 2016). The success of the Emaar properties is not limited to its high quality designs and development in the real estate, but its subsidiaries and other joint ventures in the area of hospitality, hotels, spa, residential, and entertainment etc. are doing great in business.
The new projects of Emaar properties include the cove, Sidra, Park point, Creek Horizon, Arabian Ranches etc. Following are the glimpse of the mega projects of Emaar properties which will give an idea about the sophistication, innovation, creativity and quality of the project (off-planproperties.ae, 2016):
- Sidra Villas Dubai Hills Estate
- The Address Residences Dubai Opera Tower 2
- The Address Residences Sky view
- Old Town Island
These highlights of these current and upcoming projects shows that how Emaar Properties carries the element of glory and creativity in its commercial and real estate projects in Dubai which has made it successful (PJSC, 2016). Emaar Properties however, has not achieved such glorious success in the time of days. It is the result of a focused strategic business approach implemented over the course of years.
The purpose of this report is to critically reflect the factors or elements that are the competitive advantage of Emaar properties. Therefore, to analyze the strengths, weaknesses, Opportunities sand threats of the company, SWOT analysis have been performed. In the end, the rationale that motivated the group member have nee discussed and necessary recommendations have been made for the Emaar properties to be successful and stay ahead in competition.
Emaar properties is one of the leading companies in the real estate developing industry. The most important competitive advantage of the Emaar properties is that it is public company which is supported by the government of Dubai. Moreover, it is characterized by the innovation and high quality. It is well reputed as it has undertaken various mega projects in the urban centers of Dubai. Its residential projects are elegant, innovative and represent life style. These attributes of Emaar properties makes it highly competitive in Dubai and all around the globe. Although it is facing competition but it is ahead in competition.
Emaar properties is highly concerned for the quality which is evident from the ISO certification of 9001:2000. It has won many awarded for its mega projects in Dubai like Burj Kahifa. It is ISO certified company which adds to its reliability as a brand (emaar.com, 2016).
The success of any organization also lies in the human resources or the employees. If the employees are not working towards the accomplishment of the organizational goals and objectives, then it is difficult to succeed in this era of competition (Need, 2006). Another competitive advantage of Emaar properties is its workforce and its effective human resource policies to keep the employee satisfied and loyal. Emaar properties emphasizes on employees branding and individual attention to its employees which is the critical success factor of the company (Mobbs, 2016). That is why it attracts a large number of individuals including expatriates to work with (Bernard, 2015).
Innovation is the key element of the Emaar’s projects. Its commercial and residential projects are creative and up to date with the latest integrated technology. It uses elements of elegance, sophistication and life style in its projects which is awe inspiring for the interesting parties. The Opera District in Dubai Downtown is the project of Emaar, which is characterized by the premium life style and creativity. In Dubai, Emaar has developed more than 36,600 residences along with the commercial projects of 4.3 million sq. ft. Emaar is recognized as developer of magnificent world-class homes and offices (tradearabia.com, 2016).
Opera District, Dubai by Emaar Properties
There are many factors that act as the competitive advantage of Emaar properties that have made it able to achieve global success. Emaar needs to keep this competitive advantage intact and keep on adding to it through effective strategic management and business planning.
SWOT analysis is an important tool used by the marketers and business organizations to evaluate its internal strengths and weaknesses as well as the opportunities and threats that are created in the external environment, SWOT analysis helps in the strategic business planning as well as in the business intelligence. Following is the SWOT analysis of Emaar Properties:
Emaar properties have a diverse brand portfolio and use a strategy of expansion. It has worked on outstanding commercial and real estate. Recently, Emaar hospitality group has launched Rove Satwa, a lifestyle brand in partnership with the Rove Hotels (Hospitalitynet.org, 2016). Moreover, strength of Emaar properties is its global expansion. It is operating in London and Paris too and planning to open new hotels there. It is operating globally which has also enhanced its global image (Cronin, 2015). Emaar Properties was ranked as Top Arabian developer and real estate Company in the Forbes ranking. It is also ahead in competition due to its largest asset base of $21.7 billion (Forbes rankings, 2016). Moreover, it has accomplished so many mega projects in Dubai which are state of the art and attract the tourists from around the globe. It has a strong brand reputation in UAE. As it is supported by government, it has a considerable advantage of that support.
Recently, shares of Emaar properties in Dubai went down due to fire in Downtown hotel Dubai, on new year’s evening. The shares of Emaar fell abruptly (reuters.com, 2016). On the other hand, Emaar is operating globally and every local government has its own rules and regulations which need to be followed by Emaar. Even though, sometimes the local government’s rules are not in favor of business but still it has to comply. Furthermore, changes in economic and environmental condition might affect the business operations in the globe. Unfavorable economic situation might affect the business of Emaar properties.
Emaar properties is planning to expand its operations in the Emirati visiting countries like Paris, UK etc. It is planning to launch new hotels in such regions. This is a great opportunity for Emaar properties as these countries have high rate of tourists which will help Emaar to grow its business (Cronin, 2016). Also, the Hospitality and Leisure subsidiary group of Emaar properties is making plans for global expansion in collaboration with various hotels and hospitality groups. For instance, it is planning for expansion in Saudi Arabia by opening hotels, resorts and luxury residential and commercial mega-projects (ArabNews, 2016). In addition to global expansion, it can make its position strong in Dubai by making developmental projects like Dubai Mall and Burj Kahlifa because of which Dubai is recognized worldwide. Emaar Properties can also operate in those markets that have not been tapped yet through joint ventures.
Despite the fact that, Emaar properties has global presence and expanding globally, there are many challenges and threats imposed by the factors in the external environment which could affect the business performance and operations of Emaar properties. The change in the economy could have serious implications for Emaar properties. Changes in interest rate and inflation might affect the real estate, price of the raw material etc. which will affect the business and operations of Emaar properties.
In addition, competition in the real estate industry is another threat for Emaar Properties. There are many other competitors that have a significant position in the industry. These competitors include Majid Al Futtaim Group, Saudi Bin Laden Group, and Nakheel PJSC Company. Change in the other factors of macro environment like technology will have significant implications for Emaar Properties. The prices of the property are volatile in Dubai. The competition is not limited to UAE, as the business of Emaar properties is growing and expanding globally, the competition has become global which needs strategic approach to stay ahead of the global competitors.
The SWOT analysis of Emaar properties will help in identifying its internal strength and weaknesses as well as opportunities and threats of Emaar Properties. It will help in the strategic business planning and strategic marketing of Emaar Properties. SWOT analysis will help in attaining the competitive advantage of Emaar which will facilitate it to survive and sustain in the competitive global environment. On the basis of SWOT analysis, Emaar properties can also make its strategic direction clear and evaluate how to avail the opportunities in the macro-environment. It will reflect that how Emaar can overcome its internal weaknesses through its competitive advantage and key strengths. Moreover, threats in the eternal environment of business can be avoided through a strategic approach in business.
The most important thing that motivated group to select the Emaar Properties for this report is because of its inspiring and breakthrough success in gulf countries as well as in the various countries of the world. Before the mega projects like Dubai Mall, Burj Khalifa etc. Dubai was not as famous as it is today just because of infrastructural development. Dubai Downtown is a popular destination for the tourist which is a great opportunity for Emaar properties to develop commercial and residential projects. Emaar properties has many subsidiaries and joint ventures through which it is expanding in the globe. The projects of Emaar properties are of high quality, and represent life style and creativity. Technology and innovation is most important ingredient of Emaar properties which it integrates into its every singly project. It is developing the magnificent buildings in Dubai which are awe inspiring for the tourist. Therefore, it can be said that Emaar properties is contribution enormously towards the economy as well as making the tourism and hospitality sector of UAE prosperous. These are the reason that acted as the motivating factor for the group members to select Emaar Properties as the organization to study.
Furthermore, it always intrigued group member to discover and understand that what are the factors or reasons that has made Emaar properties a successful company. What are the forces in the market that are facilitating Emaar and what are the challenges it is facing and how Emaar is able to respond to the challenges and threats in the eternal environment. In this era of global competition and dynamic environment, it is quite difficult to manage business and operations especially when it is spread around the globe. However, despite such challenges, Emaar Properties is able to withstand in the dynamic business environment, intense competition and ever changing economic situation and government regulations in the various countries of the world.
Emaar Properties has accomplished many mega projects and many of its projects are being planned and some are on the verge of accomplishment. These projects are world class and are going to create a great impact on the economy as well as tourism in UAE. It was a point of interest to know the strategic direction of Emaar properties in UAE as well as in the world.
Because of the above mentioned reasons, Emaar properties has been selected as the organization to study its history, competitive advantages and potential strengths, weaknesses, opportunities and threats through application of SWOT analysis.
On the basis of the discussion of this report, it can be concluded that Emaar Properties is on the height of success. But still there is room for improvement as the eternal environment is dynamic and competition is on the rise. Therefore, following are the recommendations for Emaar Properties which will help it in sustaining the competitive advantage worldwide:
- First of all, Emaar needs to focus on the marketing strategies while making expansion in Asia and other parts of world. Marketing is a key to great business and success.
- Emaar properties is planning to start its operations in London and France by developing hotels and restaurants there. This is a great opportunity for the global expansion.
- China is the emerging country which is making huge investments in the infrastructural development. Emaar properties can enter in China through joint ventures or subsidiaries. China is visited by tourists from the globe which is an excellent opportunity for Emaar properties. Especially its hospitality subsidiary will be of great worth in China.
- In order to compete and stay ahead in competition, Emaar Properties should do continuous improvement and quality management in its projects. Technological integration and innovation is the success factor for the most of the companies. Through technology and innovation, Emaar properties can have a competitive advantage always on its side which will help it in sustaining competitive advantage.
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Cronin, S. (2015). Dubai-based Emaar plans hotels in London and Paris in expansion drive. Available at: http://www.thenational.ae/business/property/dubai-based-emaar-plans-hotels-in-london-and-paris-in-expansion-drive (Accessed: 12 November 2016).
Emaar launches new generation lifestyle brand (2016) Available at: http://www.hospitalitynet.org/news/4075898.html (Accessed: 12 November 2016).
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Mobbs, C. (2016) Importance of employee Branding in the modern corporate world and its implementation in UAE. Available at: http://www.innovationforgrowth.co.uk/Blog/importance-of-employee-branding-in-the-modern-corporate-world-and-its-implementation-in-uae/ (Accessed: 12 November 2016).
Need, W.C.D.H.P. (2006). Human resource management: Gaining a competitive advantage.
New off-plan projects by Emaar properties in Dubai (2016) Available at: https://offplan-properties.ae/dubai-real-estate-developers/emaar-properties-new-projects/ (Accessed: 12 November 2016).
NEWS, A. (2016). Emaar hospitality group marks ambitious expansion to KSA. Available at: http://www.arabnews.com/news/emaar-hospitality-group-marks-ambitious-expansion-ksa (Accessed: 12 November 2016).
PJSC, E.P. (2016) Downtown Dubai | Emaar properties. Available at: https://www.emaar.com/en/what-we-do/communities/uae/downtown-dubai/ (Accessed: 12 November 2016).
UAE developers top in Forbes rankings (2016). Available at: http://gulfnews.com/business/property/uae-developers-top-in-forbes-rankings-1.1889119 (Accessed: 12 November 2016).
Emaar to showcase premium lifestyle projects (2016) Available at: http://www.tradearabia.com/news/CONS_244056.html (Accessed: 12 November 2016).