EMAAR’s Development of a New Property Project in Tunisia
According to:
http://www.gulfnews.com/business/Real_Estate_Property/10033418.html,
The article states that EMAAR, the world’s largest real estate company by market capitalization which is located in Dubai, is developing a new property project in Tunisia with an amount of $1.8 billion. “The 442-hectare Marina development is located in the county of Sousse towards the southern end of the Golfe de Hammamet and will offer a mix of living options and tourist attractions with a large Marina Village at its centre”.
Well, I think Hamel’s framework is suitable to analyze such an article like this one since it analyzes the business model of the company that takes a certain project aiming to achieve a certain goal in the future. So, I am going to analyze it according to Hamel’s points of views to see whether EMAAR overall performance will be enhanced by engaging in such a costly project like this. Referring to Hamel’s point of view,
Core Strategy:
1. The Business Mission: EMAAR is the largest real state company in the world in term of market capitalization and according to its website, http://www.emaar.com/, it is planning to expand and increase its market shares and market capitalization by expanding in any parts of the world if that will add value.
2. Product/Market Scope: According to EMAAR’s website, EMAAR is running its business in many Arab countries such as Saudi Arabia, Syria, Morocco…ect and some international countries such as Malaysia. So, by entering Tunisia EMAAR is adding this country to its Arab portfolio countries which of course will increase the market capitalization of EMAAR which is its primary objective.
3. Basis for Differentiation: EMAAR is differentiating its self among its competitors by delivering a very high qualified and luxuries touches to the property it works on. For example, EMAAR has a joint venture with Armani to design one of the hotels that EMAAR runs in Dubai, Burj Al-Arab.
Strategic Resources:
1. Core competencies: As mentioned, EMAAR core competence it in the real state fields, and now, with a deal with the Tunisia president, EMAAR is offering its service knowing that there is no real state company in the world that is able to serve its customers the way EMAAR does. I believe EMAAR is one of the best of not the best that builds up 7 stars hotels such as Burj Al-Arab and that’s why this is its core competence which is being unique in term of offering luxuries properties.
2. Strategic Assets: EMAAR will add value to its overall assets they own in different parts of the world. Hamel has mentioned that those “strategic assets should be rare and valuable” for the firm to enhance its overall performance. I think EMAAR is doing so since few real state companies in the world that have strategic assets distributed all over the world; and, EMAAR has this advantage since its has run its business in many countries and own assets there. So, EMAAR is going to enhance its strategic assets in the Arab countries since it will run those properties in Tunisia which definitely will be rare and valuable that rarely a company may achieve.
3. Core Process: Hamel has mentioned in his framework that the “core process” is the basis of innovation that a company might have. This core process is what the people inside the company do. Relate that to EMAAR article, I really agree that core process is the basis of innovation since EMAAR employees know exactly with the customers are looking for and the ranking of the customers by their social statues. In other word, EMAAR is offering very luxuries hotels and villas, average luxuries and normal hotels and villas. That’s why, I think, EMAAR is innovative since the people in the company know the market demand and that’s why EMAAR went to Tunisia market. According to Al-Abbar, the CEO of EMAAR, “Tunisia is a country rich in heritage and we look forward to the opportunity of adding to its world class attractions with the development of Marina Al Quasar. This project is a timely addition to Tunisia's thriving tourism industry which has been attracting the world's attention”.
Customer Interface:
1. Information & Insight: I think EMAAR is acting in a proactive manner since it takes the opportunity of entering the Tunisia market. And, it has offered the customers that are hoped to buy the properties with the information of the properties and it was stated in the article that the properties including hotels and villas are ranked from 4 stars to 5 stars to very luxuries properties.
Wealth Potential:
1. Unique: I think EMAAR is really aware of that since customer precipitation is the key player here. I mean EMAAR will have many customers who are willing to buy properties, especially tourists who are the primary target of this project, since EMAAR is considered unique in the way it provides its services.
2. Profit Boosters: I think EMAAR is aiming to “lock-out the competitors” since it is the first company that engages in such a business like this in Tunisia which again will increase of expected profits for this business to EMAAR.
Overall, I strongly believe that EMAAR will be able to achieve its goal which is increasing the market capitalization by running this business since as I mentioned from my analysis, the overall performance of EMAAR is going to be enhanced from this new move that EMAAR has done so far.
http://www.gulfnews.com/business/Real_Estate_Property/10033418.html,
The article states that EMAAR, the world’s largest real estate company by market capitalization which is located in Dubai, is developing a new property project in Tunisia with an amount of $1.8 billion. “The 442-hectare Marina development is located in the county of Sousse towards the southern end of the Golfe de Hammamet and will offer a mix of living options and tourist attractions with a large Marina Village at its centre”.
Well, I think Hamel’s framework is suitable to analyze such an article like this one since it analyzes the business model of the company that takes a certain project aiming to achieve a certain goal in the future. So, I am going to analyze it according to Hamel’s points of views to see whether EMAAR overall performance will be enhanced by engaging in such a costly project like this. Referring to Hamel’s point of view,
Core Strategy:
1. The Business Mission: EMAAR is the largest real state company in the world in term of market capitalization and according to its website, http://www.emaar.com/, it is planning to expand and increase its market shares and market capitalization by expanding in any parts of the world if that will add value.
2. Product/Market Scope: According to EMAAR’s website, EMAAR is running its business in many Arab countries such as Saudi Arabia, Syria, Morocco…ect and some international countries such as Malaysia. So, by entering Tunisia EMAAR is adding this country to its Arab portfolio countries which of course will increase the market capitalization of EMAAR which is its primary objective.
3. Basis for Differentiation: EMAAR is differentiating its self among its competitors by delivering a very high qualified and luxuries touches to the property it works on. For example, EMAAR has a joint venture with Armani to design one of the hotels that EMAAR runs in Dubai, Burj Al-Arab.
Strategic Resources:
1. Core competencies: As mentioned, EMAAR core competence it in the real state fields, and now, with a deal with the Tunisia president, EMAAR is offering its service knowing that there is no real state company in the world that is able to serve its customers the way EMAAR does. I believe EMAAR is one of the best of not the best that builds up 7 stars hotels such as Burj Al-Arab and that’s why this is its core competence which is being unique in term of offering luxuries properties.
2. Strategic Assets: EMAAR will add value to its overall assets they own in different parts of the world. Hamel has mentioned that those “strategic assets should be rare and valuable” for the firm to enhance its overall performance. I think EMAAR is doing so since few real state companies in the world that have strategic assets distributed all over the world; and, EMAAR has this advantage since its has run its business in many countries and own assets there. So, EMAAR is going to enhance its strategic assets in the Arab countries since it will run those properties in Tunisia which definitely will be rare and valuable that rarely a company may achieve.
3. Core Process: Hamel has mentioned in his framework that the “core process” is the basis of innovation that a company might have. This core process is what the people inside the company do. Relate that to EMAAR article, I really agree that core process is the basis of innovation since EMAAR employees know exactly with the customers are looking for and the ranking of the customers by their social statues. In other word, EMAAR is offering very luxuries hotels and villas, average luxuries and normal hotels and villas. That’s why, I think, EMAAR is innovative since the people in the company know the market demand and that’s why EMAAR went to Tunisia market. According to Al-Abbar, the CEO of EMAAR, “Tunisia is a country rich in heritage and we look forward to the opportunity of adding to its world class attractions with the development of Marina Al Quasar. This project is a timely addition to Tunisia's thriving tourism industry which has been attracting the world's attention”.
Customer Interface:
1. Information & Insight: I think EMAAR is acting in a proactive manner since it takes the opportunity of entering the Tunisia market. And, it has offered the customers that are hoped to buy the properties with the information of the properties and it was stated in the article that the properties including hotels and villas are ranked from 4 stars to 5 stars to very luxuries properties.
Wealth Potential:
1. Unique: I think EMAAR is really aware of that since customer precipitation is the key player here. I mean EMAAR will have many customers who are willing to buy properties, especially tourists who are the primary target of this project, since EMAAR is considered unique in the way it provides its services.
2. Profit Boosters: I think EMAAR is aiming to “lock-out the competitors” since it is the first company that engages in such a business like this in Tunisia which again will increase of expected profits for this business to EMAAR.
Overall, I strongly believe that EMAAR will be able to achieve its goal which is increasing the market capitalization by running this business since as I mentioned from my analysis, the overall performance of EMAAR is going to be enhanced from this new move that EMAAR has done so far.
posted by Bandar at 10:00 AM
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