Suppose you are a strategic consultant for a company that intends expanding its business You suggest that the

‘Emerging Market’ is a good option. The CEO asks you to make a study and prepare a report.(You may choose any one country from the emerging countries )

Solution

Industry dominant features:

Automobile industry

The UAE is known to be the GCC’s second largest automotive market (after KSA) and growing. Not only does the UAE have a large volume of cars but as per the study conducted by Athanasios Tsetsonis, the UAE has also become a hub for car parts for the GCC and MENA regions. As per the study conducted by IMF’s World Economic Outlook, the UAE population will reach about 10.8 million people where 70% fall within the age of 20-39 by 2020. Also, as per another study conducted by Organisation Internationale des Contructeurs d ‘Automobiles (OICA) approximately 80% of the total vehicles in the UAE are passenger cars while only 20% are commercial vehicles.

https://www.emiratesnbd.com/plugins/ResearchDocsManagement/Documents/Research/Emirates%20NBD%20Research%20UAE’s%20Automotive%20Sector%20Overview%204%20February%202015.pdf

http://www.oica.net/wp-content/uploads//pc-sales-2016-Q2.pdf

http://www.imf.org/external/pubs/ft/weo/2016/02/

Therefore under such statistic it is undeniable that the demand for repair shops are also on the rise along with Abu Dhabi’s investment initiative towards ‘The Auto City’ with an attempt to create a cluster of workshops and service centers.

https://www.venturesonsite.com/projects/united-arab-emirates-/buildings/9344-auto-city-in-abu-dhabi

Software industry

As per the World Economic Forum’s Information Technology Report in 2015, when it comes down to the UAE’s network readiness, the UAE ranked the top scores for the following categories:

Mobile network coverage against total population (1^st)

Impact of information and communications technology towards basic services (1^st)

The importance of this technology to the government and future (1^st)

Efficiency of information and communication technology in the government body (1^st)

Procurement and incentive from the government into information and communication technology (2^nd)

Worldwide, the UAE is ranked 23^rd and ranked 1^st in the GCC + MENA regions.

VRIO

Short for Value, rarity, imitability, and organization; VRIO is a model that helps a firm understand better rather these resource capabilities can actually serve as competitive advantage (Jurevicius,2013).

Valuable

RMD Cars enables a wide variety of services and also optimizes comfort and response time for the client. Through the press of a button in the app, the client will be able to either speak to a mechanic over the phone or without saying any words request a mechanic to the site requested. Once there, the mechanic will do a check-up of the car, diagnose the problem, fix it on site if possible and if not share a detailed report with a full diagnoses and expected costs. Not only that, RMD Cars also can be called for simpler car related services such as bringing fuel to the car, cleaning, or just simply answering general questions.

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