Emaar - The Center Of Tomorrow, Today Case Study Help
Suitable New Markets Countries:
It will be suggested to Emaar to expand its operations to European countries which includes France, Spain and Italy as Europe has a tourism rate of 64.1 percent therefore, the demand for hotels and visits in shopping malls will be high as compared to other cities. Furthermore, the hotel industry in Europe is considered to grow by a compound annual growth rate of 2.4 percent thus increasing the chance of capturing significant market and revenues in Europe. Furthermore, the political environment of these countries is stable, the laws and regulations pertaining to purchasing property are favorable as there are no restrictions in buying commercial residential properties or acquire land. (Expatica, 2020)
Moreover, the foreign investments and the economy of the suggested countries is developed and flourished, ensuring high demand of luxury hotels and malls in the country. On the other hand, as tourists’ visits for business purposes is high, it is likely that the professionals would prefer staying in luxurious and premium hotels, such as:Emaar.Therefore, indicating the expanding in the countries will be financially feasible.
PESTLE for the suggested country:
The PESTLE analysis for Spain, France and Italy is provided in Appendix 3, 4 and 5 of the case report:
Expansion Strategies
Using Ansoff Matrix framework, it will be advised to the business to expand its business to Spain by employing market development strategy i.e. by acquiring high end and most visited hotels in Spain which includes ME Madrid Reina Victoria and Ayre Hotel Rosellon, Barcelona as these hotels enjoys significant market share, have strong brand image and offers hospitality services at premium rates. Acquiring these hotels will provide competitive advantage to the company and ensure significant profits are earned and will enable the organization to achieve quick growth. (touropia, 2020)
Constructing new hotels in the region is not recommended due to various attached risks, which includes difficulty in finding the ideal location and building customer awareness. In addition, it is advised to the business to acquire renowned shopping malls and residential properties due to high number of hotels in the region and lack of market and customer understanding of Spain, undeveloped land on ideal location might be difficult to find and capturing significant share in the country might be difficult. Moreover, acquiring the companies will ensure proper control over strategic matters is maintained and significant market share is achieved as competition will be reduced by acquiring luxurious properties.
Conclusion:
Based on the critical evaluation of the globalization strategy employed by Emaar, the organization is suggested to enter European countries which includes France, Germany and Spain. The expansion strategy involves acquiring renowned hotels, shopping malls and residential properties due to various attached risks, which includes difficulty in finding the ideal location, building customer awareness and lack of market and customer understanding of Spain.............................
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