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Report focuses on International Business Globalization is to is provide the market information about Egypt

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International Business Globalization

Introduction

  This report is the main purpose is provide the market information about Egypt. It's essential to analyze the market and their different factors before expanding the business in other countries. This study is related to detail information about the Emaar properties in UAE and now expended in Egypt.

   It has to analyze the external factors of Egypt, customers and competitor analysis for the company and industry and business-related factors to expand in another market. This report also includes the marketing mix, and staffing policy follow in Egypt, marketing entry strategy for Emaar in Egypt

 

Emaar Background

Emaar Company was established in 1997 as the public joint stock company listed on the Dubai Financial market. It was developed the pioneering developer of integrated master-planned communities internationally; the Emaar group has transformed the real estate development sector in UAE.     

It was related to the real estate as well as developed the shopping mall & retails and hospitality & leisure in Dubai and also in other countries.it is the largest company of developing master-planning communities internationally and also in the global market. The Emaar group provides the world most visited lifestyle destination; a 500-acre neighborhood is home to the iconic Burj Khalifa, the Dubai Mall, and the Dubai Fountain. The Emaar group provides the facilities related to the hotel, shopping mall, Emaar communities management, Emaar industry and investment and also variety of development project of Emaar Properties. The Emaar group is related to the mage developments that define the built city of future (Company, 2017). Emaar properties also the redevelopment of Bibliotheca Alexandrina in Egypt. The Emaar group also provide food in Ramadan.

        They are running their project in different countries such as Pakistan, Saudi Arabia, Turkey, Syria, North Iraq, and India.They are working on community's development and management services in different countries such as shopping Mall, retail, hotel or other services.

Market and country analysis for Emaar

Sustainability of Emaar in Egypt can analyze by using most important marketing factors to analyze and evaluate the attractiveness of the company to expand its operations and services in Egypt. There is total score of 10, and all factors can be evaluated by the given score, based on attractiveness. 

External factors which make the market attractive

The political stability of Egypt (7/10)

Political stability for Egypt is below average as weak political stability which has stability index as -1.42 in 2016 and highest point as 1.53 in 2016. It has high trend for stability, but it is not much effective (Emaar, Economy, 2017)

The inflation rate in Egypt (8/10)

In 2018, an inflation rate of Egypt is 20.32 percent, and the average inflation rate in 2016 is 10.2 percent as compared to previous years. This factor is unfavorable for Emaar Company (Emaar, statista , 2018).

 

 

Corruption rate (8/10)

Egypt has the 32nd score by the 100. It is the 117 least country in 175 countries as the corruption index. Corruption rank is average86.48 in the Egypt which is unfavorable to operate in this country (economy, 2018)

Private sector debt in Egypt (6/10)

Private sector index for a loan in the country is increasing in 2018 by the previous years. This loan is all time high in this country which is not favorable for Egypt to enter for Emaar (economics, debt, 2018).

Customer and competitor which makes the attractive market

Products availability (8/10)

There is the high availability of the raw material for the construction of mega-planning development communities for the Emaar group. They are building the different shopping mall and hotel to expand their Emaar properties. This factor is favorable for the Emaar group.

Competition level (9/10)

There is high competition level in  Egypt country for real states development, there is less investment of locals, but it prefers foreign direct investment. So this factor is also favorable for Emaar properties.

 

 

Value of existing competitors (8/10)

The existing competitor is earning high because they earn a huge amount of profit through tourism in Egypt. There is moderate completion level, so it's favorable for the Emaar properties in this country.

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Business and industry related factors for attractiveness

Trade barriers (8/10)

 Egypt is the best for the construction market as real estate growing in every year in Egypt because of population increase in every year so for the strong demand of infrastructure project there are no trade barriers for Emaar properties in Egypt (barrier, 2017).

Transport cost (9/10)

Transport cost for Emaar in Egypt is moderate as they are using raw material for the construction of properties from the local market in Egypt and it has a low cost of transportation. 

Labor force (7/10)

The labor force participation rate in Egypt is low which is moderate and total employment rate is 79%. It is mostly using local as well as international labor, so there is the high availability of labor from different countries, but in 2018, the labor force is declining by the new labor strategies of Egypt.

Factors relevancy

These all chosen factors are most relevant because these reflect Egypt economy in an effective way to analyze the market.

Marketing mix and staffing policy

It will use standardization for its properties that it will offer the high level of communities to their resident people and tourist in Egypt. UAE and Egypt as both countries are Muslim community and they have same living standard almost which is already offering Emaar.

Product: Emaar Company will offer real estate development as same as it is offering in UAE. These services are demanding in Egypt which is analyzed by marketing analysis. There mainly pr related to services of development of communities, developing unique building and hospitality & leisure and shopping mall as well as retails. Emaar provides the management services in different countries.

Price: In Egypt, there are very few competitors for real estate so that it will charge high prices for its products and services in Egypt such as it will use skimming pricing strategy for its products in the new market. 

Place: It will use selective distribution strategy for the location as it will open its shopping mall and retail in specific places in Egypt such as in Cairo and nearby Great Pyramids and the Sphinx.

Promotion: Emarr will use bill boards and advertising by social media as the promotional tool to aware the community of Egypt about the real estate development, which is going to offer by this company in Egypt. 

Staffing policy

Emaar will use expatriates for Egypt, and these employees will base on UAE and other countries because, in Egypt, it is much difficult to arrange local employees. So it will use ethnocentric staffing policy by entering in Egypt which will also enhance the cost of the company to expand business in this new market. 

Marketing entry strategy for Emaar

There are six most important market entry strategies for the expansion of business at international level.

 

Licensing

This market entry strategy is about to get a license from the regulatory authorities of the new country and start a business. It may be licensing of the trade mark, copyright, etc. It's few faster way to grow your profit. It has the advantage of increasing profits as there is no share of any other partner and it has the disadvantage that in the case of loss, it has to bear all loss by itself. 

Joint Venture

It is another market entry strategy that companies can establish partnership business with the existing competitors which have the benefit for the low level of loss but a disadvantage as it has to share profits with partners.

Strategic alliance

In this market entry strategy, the company can start a strategic alliance with the existing company and it will benefit by decreasing threat for loss and will give increasing market share. The disadvantage is low brand building.

Exporting

This market entry is as it will use material from other countries and will sell products in another country. It will benefit from standardization and loss as the increasing cost of the company.

 

Franchising

This market entry is easy than other as it will open franchise by using an existing brand name which is famous in the country. It will benefit from increasing revenues but the disadvantage to increasing the cost by paying fees to the franchiser.

 

Contracting

In this market entry strategy, businesses can contract with the authorities for some period, it provides benefit as Turnkey projects which increase profits and loss of this entry strategy is it increases the cost of the company.

Suggested market entry for Emaar

It is suggested that Emaar Company should use licensing market entry strategy as it has increasing benefits with it and has fewer disadvantages. It will increase profits of the company because the Emaar properties also did same real estate development in UAE it is a large developer of real estate and management services. Emaar properties provide their service in Egypt so that they get to profit from there.Emaar group is a large company that can manage every thing its way. The Emaar group enters in Egypt to increase their profit and enhance their worth in other countries.

International business operational strategy

It should use global standardization strategy for the operations which will reduce the cost for the company, and by using this strategy, there will be achieved scope of the economy in the new market by reducing cost and increasing profitability.

Conclusion

It is concluded that this report has shown the market attractiveness as it is favorable to enter in Egypt for expansion of the business. It will earn high profits by expansion at the new market of Egypt. Emaar group enter in Egypt by adopting these strategies and gain the maximum profit from there to start a new project in Egypt. Egypt is better to place for the development of properties because the population of Egypt increases day by day. So that why increase the communities in Egypt for their residential people as well as the tourist. Shopping Mall and retail also is beneficial for the Emaar group because Egypt population increased in every year. So the Emaar group is favorable to enter in Egypt.

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