ADSM Master of Business Administration Key marketing strategies implemented by the brand in UAE

Solution

3.0 Marketing Strategies Implemented by the Brand in UAE

The analysis of the marketing strategies implemented in Aramex brand in UAE, the secondary data analysis was adopted. The data used in the analysis was sourced from the available secondary sources, annual reports and published reports. This approach is reliable as it adopted the use of recent information on Aramex Company with trusted reports only adopted to harness validity levels. For instance, Aramex (2020) was used which had been developed by the company and verified by Earnest and Young Company. Other sources used to source the data included the regional economic outlook for the Middle East and central Asia released by the International Monetary Fund (IMF) organisation (IMF, 2020). Also, different surveys by the PwC were also used as a survey for exploring the change in consumer habits in digital age (PWC, 2019; PWC, 2018).

3.1 Macro-Environmental Analysis

In this case analysis report, the macro-analysis was carried out through the use of Porter’s Five Forces.

3.1.1 Porter’s Five Forces Analysis

Threats of New Entry (Low Power)

There is a high possibility of venturing in the logistics and supply chain where Aramex operates. Nevertheless, to sustain an ongoing competition, an organisation must offer enormous investments in areas of warehousing, automobiles, information system and also aviation systems. For instance, Aramex’s asset-light business model significantly relies on distinct international and local suppliers whereby 2019 amount to $1,030 in terms of revenues and $1,464m in total assets (Aramex, 2020). This is a significant amount that limits a successful entry into this specific market.

Buyers Power (Low Power)

Aramex offers significant efforts aimed at sustaining their clients, reputation and brand. Based on their 2018-19 business report Aramex (2018), it was noted that the Aramex brand reputation is dependent on the public trust evidenced by the general public in their service integrity. Clients require to be in a position of trusting information credibility sourced. Also, through legal and regulatory compliance by Aramex, the authorities including customers and security officials trust the organisation in diligence (Aramex, 2018). In this regard, the switching cost is low in this industry despite issues of trust, credibility and information privacy being critical factors, developed over time hence leading to challenges in the switching option for the clients.

Supplier Power (Low Power)

There are multiple suppliers engaged by Aramex which include oil, fleet, spare parts, information technology (IT) solutions and materials for packaging with their local resources being majorly exploited (Aramex Delivery Unlimited, 2018). Due to the positioning of the company as one of the leading in UAE, their suppliers are majorly interested in gaining a win-win relationship instead of a negative one. Further, the business model of Aramex is such a way that it operates through a light asset business where it does not own the fleet but dependent on different international and local suppliers (Aramex, 2018).

Threats of Substitutes (Moderate to High Power)

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