Strategic Management Is Important Study In Business Marketing Essay

Strategic direction is of import survey in concern. It helps to construct a concern theoretical account which suits the concern activity. There are many concern which use the strategic planning that aid to be after their concern before get downing it. Strategic direction is one are of concern that show how successful and neglect the concern will be. It helps to foretell the hereafter facet on organisation long term end. In this undertaking, we Chose to discourse about a company will be established in future because we believed that we should be after before get downing the concern and helps us to place it norms and badness in the hereafter. In this study we, will speak about some Objective that will assist to set up the different scheme.

The existent estate industry is acquiring more of import because the demand of the client demand for suited adjustment in Abu Dhabi. This is the necessity of life and for better life manner.

The intent to this study is to place and analysis the facet of strategic direction on existent estate industry of XYZ company:

The Business Growth: The growing of XYZ belongingss will assist to put long term profitableness in order to accomplish a competitory advantage.

Strategic Plan: We will set strategic program that help to link to the organisation end and mission.

Abu Dhabi strategic program 2030: XYZ Company will be aid to set up Abu Dhabi vision of 2030 through implementing new program in the metropolis of Abu Dhabi.

Mission, Vision, Values and Goals


To separate XYZ Properties as the leader of the existent estate developers in the part, and to supply outstandingly high quality existent estate, recognized for stylish design in the really best locations, and accredited as an organisation which is committed to client satisfaction.

To make modern, efficient and attractive environments to help the economic and societal development.

To construct new life style in Abu Dhabi with our civilization maintained, equipped with the brightest Emirati heads.


To supply a first category client service by accomplishing the below:

Complete committedness to a superior quality.

Guaranting high quality in all our operations.

Changeless chase for the best in building sites.

Advanced undertakings to acquire the client satisfaction for singularity

Concentration on client demands.

Advance Abu Dhabi ‘s images as a planetary finish, a good topographic point to populate, to work, to see and to bask life.


To listen to our client, and to supply singularity to their life style, we will near our concern with ethical and trusty manner. Will keep UAE ‘s civilization and values, and as portion of it we will distribute it as our hallmark in all our undertakings. Therefore we will endeavor for uninterrupted growing.


Our end is to set up a strong repute in the UAE and Middle East part. We will put into individual development at first, to construct our repute as a leader in quality undertakings, and so we will travel to our chief end and construct successful communities and UAE ‘s landmarks.

SWOT Analysis


Determines what sort of chances that might assist us turn domestic and international such as what ‘s make us different.

Real estate market is a continuously turning market. Numerous chances are presented by a turning demand for belongingss services and substructure in the UAE, every bit good as the possible ways for turn toing such demand.

XYZ as a new developer will work closely with the authorities vision for Abu Dhabi 2030, new attractive force should be built, new metropoliss will be created and a different life style would be a alone feature of Abu Dhabi.


It determines the menace of the organisation such as new rivals, competitory pricing, new ordinances, advanced merchandises of the rivals and altering manner of the consumers. ( Bobette, 2008 )

The chief menace that the company faces is the high competition in existent estate industry particularly from the ruling companies such as Emmar and al Al-Dar.

In the last twelvemonth at that place was a big proportion of migration from Abu Dhabi to Dubai, which was due to the lower rents for office and residential adjustments in Dubai and the deficiency of proper adjustment in Abu Dhabi.

Industry Analysis

Industry life rhythm

In this portion, we will exemplify the industry life rhythm of our company. In concern market, the existent estate place has face ups and down because of the concern crisis. The industry life rhythm helps to find the existent estate industry phase and its place. We will seek to place in which phase is existent estate industry is by supplying informations. The existent estate market is in demand as stated in “ Abu Dhabi existent Estate market forecasted study ” . There are four major portion of Abu Dhabi be aftering strategy in different subdivision from 2009 to 2013. This research is done by a squad who tried to forecasted Abu Dhabi existent Estate hereafter. The findings were predicated that Abu Dhabi existent estate hereafter is in demand because of concern conditions and societal demand of the clients. We found that ( Abu Dhabi Urban Planning council, 2010 ) these informations shows the existent estate degree in market merely of Abu Dhabi.

The information represent that the existent GDP of Abu Dhabi in 2009 was 314,000 AED and by the twelvemonth 2013 will increase to 398,100 AED. The population in 2009 was 969,000 and by twelvemonth 2013 will make to 1,189,000 individual ( Abu Dhabi Urban Planning council, 2010 ) . The overall population of UAE in 2010 is 4,975,593 ( Cia, 2007 ) . The entire employment in 2009 was 574,300 individual and will make to 693,000 individual by 2013. This is a great betterment which reflects on the demand of occupations in the hereafter. While the office employment in 2009 was194, 400 that will increase to 232,000 individual by 2013. The retail disbursement in 2009 was 18,915 and will targeted to make to 23,300AED million.

From the above presented informations, it show the existent Estate industry before 2009 was in declined phase that affected most of concern and faced a loss. The most affect metropoliss of UAE were Dubai because it ‘s the chief concern country. As the clients demand addition, existent estate concern shifted from Dubai to Abu Dhabi. The deficiency of occupations in Dubai was sing the chief ground. This displacement made positive alterations in economical status of Abu Dhabi that may take to better installations in hereafter of the metropolis

From the founded information, we conclude that Abu Dhabi in twelvemonth 2009 was in declined phase. But as the existent estate concern is using in Abu Dhabi, its traveling through Growth phase. The existent estate industry concentrating on four country of concern like residential, Office, Retail and Hotel. The residential demand in 2009 was 226,000 units and will increase by the twelvemonth 2013 to 277,500 units ( Abu Dhabi Urban Planning council, 2010 ) . This figure represents that industry in “ Growth phase ” were the demand figure in addition degree. The same standards are besides in high demand of office, retail and hotel. This means that the existent estate industry is more in demand because of clients wants to happen low-cost house and office that helps to ease a better life manner, Customers became familiar with existent estate industry in Abu Dhabi and the autumn in monetary value ( Due to concern crisis ) helped them to happen appropriate adjustments.

As a new company, it helps will us to place better installations during this phase of the industry to accomplish economic of graduated table. We can construct trade name trueness since there will be a few barriers

The deduction for ( ten company ) organisation scheme

The deduction of the industry life rhythm of existent province will be suited for the long term strategic and effectual on the hereafter. The industry life rhythm affect xyz company scheme through:

Increase of net income growing through the consistence in pull offing resource

To accomplish a competitory advantage, we need to apportion resources and set capablenesss of Xyz Company that enhance its strategic end.

The industry life rhythm helps to determine the long-run ends of Xyz Company and helps to concentrate on each portion of the selling and fiscal facets.

This will let for better life manner for client that aid to place better installations suit the consumer gustatory sensation and pick.

The deduction of the industry in growing phase will be turn out an chance for the xyz company because that helps the company to construct its place and build image for the company.


Real estate market is a continuously turning market. Numerous chances are presented by a turning demand for belongingss services and substructure in the UAE, every bit good as the possible ways for turn toing such demand.

Buildings are lifting and metropoliss are created.There will ever be a demand for Properties and existent estate industry

Abu Dhabi started to play a major function in the planetary market, taking into consideration the strategic topographic point the UAE is in, and the assorted countries the industry can distribute to.

There is a deficiency of replacements in Abu Dhabi industry and that is an chance for XYZ belongingss

The industry itself is turning and spread outing, there are a batch of topographic points for new entrants to supply the service to the client, and nevertheless XYZ belongingss should construct its ain trade name and repute.


The chief menace that the company faces is the high competition in existent estate industry particularly from the ruling companies such as Emmar and al Al-Dar.

Menace of turning competition, as Abu Dhabi is developing rapidly, rivals are increasing and competition in Properties industry is turning.

The demand was immense but now because of the planetary fiscal crisis it was lowered dramatically

Financial crisis which reduces the clients ‘ ability for ingestion.

In the last twelvemonth at that place was a big proportion of migration from Abu Dhabi to Dubai, which was due to the lower rents for office and residential adjustments in Dubai and the deficiency of proper adjustment in Abu Dhabi.

Porter Five Forces Analysis:

XYZ Company is runing in the existent estate and building industry. The demand building to assorted countries is increasing in the UAE.

Real estate companies play an of import function to advance the trading and interchanging activities in any state. Porter ‘s theoretical account helps in make up one’s minding the attraction of the market and how it applies to our company. This can be achieved by make up one’s minding chance factors that enhance our concern activities every bit good as specifying menaces that hamper Gulf Express operations. We consider the five forces and find the grade of each force on a company ‘s behaviour as follows:

Menace of Entry:

In this portion we are traveling to discourse the barriers of new entries that face any Real estate company sing come ining the market:

Economies of Scale:

Real estate is a sort of concern that needs big distributions of belongingss and building resources. In such an industry, strong rivals dominate Abu Dhabi belongingss market such as Sorouh and Al-Dar, and rule UAE like Emmar, which they are in the industry from a long clip and have their ain repute. Otherwise, they provide their clients with the services they need. As a consequence, a new entrant should offer different and alone services every bit much as the power allows being in a competitory place.

Therefore, we can detect that the market contains many existent estate companies that in my sentiment provide high degree of services to its clients.

So we have high economic systems of graduated table barrier that increased the barrier of entry and hazards for our XYZ Company ( Threat ) . The menace will be increased if we are be aftering to come in the market on a big graduated table and to accomplish these big economic sciences of graduated table we should afford the hazard of increasing the investings of come ining this type of concern and besides the addition in our selling operations and activities costs.

Brand Loyalty:

The rivals in belongingss and existent estate industry such as Emmar, Soroh and Al-Dar have developed a strong trade name image with a history full of success. So any new entrant who has the needed capital to come in existent estate industry needs to construct a trade name image. As a consequence, this high trade name trueness for the existed companies in current market will increase the barriers to come in market and to take the market portions from others which will be considered as a menace to our company.

Customer shift costs:

The exchanging cost from one existent estate company to another is non that high and we can state it ‘s low and that because exchanging to another company does n’t necessitate blowing high cost or attempt. The cost comparatively is similar in all rivals, furthermore, that creates a menace for current companies and we can see it as an chance to our company.

Government ordinances:

XYZ as a new developer will work closely with the authorities vision for Abu Dhabi 2030, new attractive force should be built, new metropoliss will be created and a different life style would be a alone feature of Abu Dhabi. Therefore, Government in UAE gives great attending to advance existent estate in UAE. For this ground, there are low ordinances in UAE sing belongingss and existent estate companies which we can see it as an chance for our company.

Menace of Substitute:

There are several replacements for the existent estate industry. These replacements will restrict the ability of the company to increase monetary values. . The demands of clients to have or lease any belongings in any clip, at any topographic point them pick and at a specific monetary value they can cover, made the existent estate companies something necessary. However the menace comes while the company can supply a belongings at lower monetary value to the clients. Besides utilizing cyberspace and webs to have paperss attached online and digital paperss in order to salvage clip and attempt.

Buyer ‘s Bargaining Power

Buyers who are consumer or terminal users have a moderate bargaining power in belongingss and existent estate industry because of the undermentioned factors:

Domination of Buyers:

There are a big figure of purchasers or clients who would wish to have or lease belongings by utilizing belongingss and existent estate companies in Abu Dhabi. The industry of existent estate services composed of certain big corporations which race to accomplish the coveted client ‘s demand. They are abounding in few topographic points and can present services to cover expand location but in Abu Dhabi boundary lines. For illustration, Soroh company which its undertaking can be seen in Abu Dhabi Island and its boundary lines such as Reem Island and Lulu Island. So we can detect that any existent estate company which is boundary lines to specific emirate will concentrate all its attempts on boundary lines undertakings. As a consequence, this will be considered as a menace to our company.

Buying Measures:

The monetary value of belongings depends on the type of it as it ‘s a section or Villa of office aˆ¦etc. Besides it depends in which it ‘s for leasing, merchandising or purchasing. Therefore, the monetary value will non be the same and the clients will pick the monetary value that satisfies there demands. For illustration, if the client want to lease a section that include 4 suites it will be him more than leasing a section that include 2 suites. Besides the topographic point of belongings drama a function in seting monetary value. For illustration, purchasing a cafe on Cornish will be more than purchasing a cafe on Khaldiya Street.

Switch overing costs:

Buyers in this industry will hold low exchanging cost because they have other companies ‘ options with similar monetary value and supply similar demands of either to rent or purchase a belongings. I think in any belongings most of the demands will be similar the same to be satisfied which will raise the bargaining power of purchasers on monetary values or on the concern.

Supplier Bargaining Power:

Suppliers for existent estate industry are companies which provide the belongingss that the existent estate trades with. Besides companies which provide it supports to provide all web demands. Governments and Bankss could be providers. Suppliers in such industry will hold high bargaining power due to the undermentioned grounds:

Number of providers: in UAE market as a whole and in Abu Dhabi market as a particular there are a sensible figure of bottlenecks companies and Bankss which trades with existent estate companies to run its plants and undertakings. For illustration, Al-Kalij bank and Enshaat company. We can state that there are money options of providers for existent estate companies.

Competition among established companies

Industry construction and demand status:

As mentioned antecedently, the cardinal rivals of existent estate and belongingss companies in Abu Dhabi are AL-Dar and Soroh and other little companies. They are strong rivals and have loyal clients, but they are limited in Numberss. Besides they are sharing in many investing undertakings. As a consequence, the competition is represented in viing with houses ‘ trade name image and non with the figure of rivals. This tends to chair the competition and open the door to new rival to come in the market, even though confronting strong competition from ruling Real estate planetary corporation. So, we can reason that industry construction and demand status has a, moderate competition among established companies and we can see it as an chance for our company.

Business-level Strategy

Any concern that ends with the failure, it failed in specifying the suited and right schemes for their concern and there were missing of a good planning scheme and attack. Therefore, choosing the effectual and right schemes consider the most of import measure in get downing any concern. This is because ; the scheme of any concern is the cardinal factor behind the success of the company. However, XYZ Company should concentrate its attending on planing their corporate scheme that helps it to vie efficaciously with other rivals and make the company to accomplish competitory advantage. The end of our concern is n’t merely to be the leader of existent estate and belongingss, but besides we are seeking to stand successfully in such a sort of concern.

There is one chief schemes that can use and are of import to accomplish our ends:

Focus distinction schemes.

Focused Differentiation Strategy:

XYZ belongingss will implement the Differentiation Strategy to get the better of the menaces the company might confront. Analyzing our rivals offers to come up with different program and offers for our clients, for illustration Sorouh is offering its program “ Lease to Own ” , XYZ belongingss will non follow their thoughts but we will come with different thoughts that is centralized to our client demands and satisfaction. Our undertakings must hold unusual or alone characteristics, they will non be merely individual development, we will distribute to community developments to run private community compound with the best quality, those residential community, will be constructed to run into the criterions and demands of UAE national household life. We will besides offer outstanding scope of installations, including mosques, Gym, private schools, and shopping centre. And in the long term plans we will hold a maestro development which will be our landmark of the part, XYZ belongingss strongly believe in Abu Dhabi vision 2030, and the ability of Abu Dhabi to be one of the attractive force point in the planetary market.

As for the industry in Abu Dhabi there is a demand for residential and office adjustment and that is due to the addition in population in Abu Dhabi and the recent economic system encouragement in the last old ages.

Functional-level Strategy

The Value concatenation Model

The value concatenation theoretical account of Porter helps to find the value of the production through take downing cost and concentrating on the value. Many organisation use the value concatenation theoretical account because it ‘s helpful method to add value to different map and lower the monetary value. In our xyz company, we will use the value concatenation that helps to show our company merchandise ( adjustment, flats ) and put a suited monetary value for each. First of wholly, we will place xyz company primary activates that help to exemplify the input merchandises of the company. Then, we will place the end product through analysis support activities that helps to set up appropriate concern scheme and functional degree schemes for the company.

We Choose three beginning of Value concatenation:

Research & A ; Development ( primary )

Selling and Gross saless ( Primary )

Information System ( Support )

Research & A ; Development:

This portion focal point on the merchandise design and the production procedure. Xyz Company is a service company which provides appropriate adjustment and flat for the client.The xyz company will use R & A ; D through taking the money on annual installment from the clients instead than the whole sum. This will assist to be flexible in paying the sum by client and they get the ownership per centum till they pay the whole sum.The flexibleness in paying the money will give clip and acquire per centum of ownership of the house. For that, we will make through online merchandising system and the client acquire card. Another service is existent province “ happen belongings system which help the client to happen a suited place with specified design and description.

Selling and Gross saless

In Xyz Company, the selling and gross revenues play an indispensable function in making trade name image. We will utilize different agencies of advertisement that helps to show a good response of clients. We will make it by place their demands of houses and the design they prefer. This will assist to make a value for Xyz Company. This is a new company and we will utilize different mean of selling to construct a value of our company ‘s image. A good communicating scheme is scheme in other facets which help to find clients need and want.

Information System

In xyz company, the information system will be turn out a critical portion in merchandising and purchasing dealing.There is need to set electronic system that helps to pull off the different sort of fiscal records. We will utilize “ web based system ” that helps to show selling tool with client.By this, it will let us to post the description of our merchandises, find the suited location and cognize the procedure. Another facet of information system, it help to pull off the sale and stock list of the company through finding its value and net income growing.This will assist to be consequence in work and depend on dependable beginning of the making the concern of the xyz company.

The functional degree scheme focal point on how the company will better its operation through utilizing the concern schemes.These functional schemes will ensue in competitory advantage. In this portion, we will seek to exemplify how the functional degree scheme will carry on the xyz companies operation and will linked to accomplish typical competency. The functional degree scheme is related to concern degree scheme in term take downing cost, profitableness and distinction.

As you see in the diagram that we chose three activates from value concatenation theoretical account like selling, R & A ; D and information System. We will use each functional degree scheme based on the zyx company concern activity.

Selling Efficiency

In Xyz Company, we will utilize selling efficiency that helps to cut down the cost and usage of the selling merchandise to bring forth in efficient manner. There are three ways to accomplish efficiency like economic of graduated table, larning curve and experience curve. We will utilize each of these in value concatenation theoretical account activates. As the concern is using, the selling efficiency going complex. To accomplish selling efficiency, we will utilize the economic sciences of graduated table that helps to split the cost of selling over Xyz Company ‘s merchandise.Because selling has fixed monetary value on its advertisement, and publicity. If we cut down the unit cost, it will increase the merchandise volume. In Xyz Company, we will accomplish it through trade name trueness. We will fulfill clients need base on their pick, specification, quality and cost construction. We will offer merchandise ( house ) that matches client demand.This is known as “ Customer Defection Rate ” .

Marketing Invention

Achieving invention in taging will assist to fulfill client demand though finding their demand of merchandise. Customers want merchandise that are new in design and find their specification. Innovation in concern will take to high demand and trade name trueness. Invention is consider as the chief beginning that t consequence to competitory advantage and increase the growing. In Xyz Company, we will utilize the invention in planing of the ( flat, houses ) . First of wholly, we will seek to cognize what plan client like and establish on that, we will plan based on their pick, invention may assist to convey the cost high because it take clip and cost. As we discuss in portion 2, iyz company focal point on take downing cost construction and distinguish its merchandise. We will utilize invention by utilizing different design and bear downing the premium monetary value.

R & A ; D Quality

Quality is ever gives the strong feeling to company ‘s merchandises. In Xyz Company, we will concentrate on R & A ; D quality through interaction with client to cognize their picks. We will develop “ Find Property System ” . By this client may experience dependable and can acquire accurate information which will better the quality. R & A ; D are chief facet which determine merchandise dependability.In this portion, we will utilize TQM Concept in bettering the R & A ; D quality map. This will ensue to good repute of merchandise xyz company offer and will cut down mistake.

R & A ; D Efficiency

The efficiency in merchandise design will hold a superior impact of merchandise. In Xyz Company, we will hike efficiency thorough the merchandise design ( Apartment ) . We will plan the house which will cut down the cost of edifice. This will hold profitableness and lower the cost of edifice. As support to this scheme, will utilize invention which was discussed in marketing invention portion.

Information system Customer Responsiveness

In Xyz Company, to plan this portion we will utilize web base system merely for client service. The intent of using this system is to cognize client position, recommendations and reply their inquiries. Reacting to client is an of import portion that will heighten trade name trueness. So, our focal point on how to do this map more efficient and quicker for clients. Web base system allow to interact with them and react to their inquires, job in proficient and easy manner.

The functional degree scheme will back up concern degree scheme by:

Marketing Efficiency: This may be implemented through cost leading which may cut down the operation cost and heighten the selling through utilizing different agencies of selling.

Marketing Invention: This may done by design different merchandise that increases client demand. Cost leading will hold great impact in this country.

R & A ; D Quality: Business degree will back up it through cost decrease and focussing of quality ( offer better quality of service, IT and client response )

R & A ; D Efficiency: Effeicey may be implemented through building quality of design

Information system Customer Responsiveness: This may be by utilizing client feedback on utilizing distinction scheme.

The Distinct capablenesss functional degree scheme will bring forth:

Marketing Efficiency: It will do the selling procedure more values by advancing company ‘ merchandise and put a good image for the xyz company.

Marketing Invention: This portion requires creativeness and utilizing a originative thought will add value to selling operation which make it alone and better the selling mean of showing merchandises.

R & A ; D Quality: This will concentrate of merchandise fabrication and enhance and will bring forth better merchandises.

R & A ; D Efficiency: This will increase xyz company repute by showing a better quality along with service.

Information system Customer Responsiveness: It will let for utilizing different sort of communicating mean through enhance on function of each section.

Internal Analysis

Selling Efficiency

Apply and concentrate on cost leading degree scheme in reduces cost.

Partnership direction determinations and income.

Marketing Invention

External design: Authoritative and modern architectural design

Internal Design: supply classical Interior designs as client pick beside architectural designs

R & A ; D Quality

Strong and originative trade name ‘s design

Different degree of trade name ‘s monetary value to back up all clients ‘ income statements.

R & A ; D Efficiency

Reduce the cost of edifice

Make Sub contracts with Construction Company to supply us with building ‘s resource.

Information system Customer Responsiveness

Channel Scheme

Account direction

Business Model

In this undertaking, the end is to set a strategic program for existent province concern. Our concern will be approximately company that facilitates lodging service in Abu Dhabi. We sell houses, flat, office and Villa for clients. We tend to supply a lodging service through the client ‘s demand of location, country, and monetary value, design specification and size. It is really indispensable to cognize the clients demand in to set up a good concern.

The concern scheme of Xyz Company is focus on set uping cost leading and distinction. The concern scheme is discussed in item in concern scheme portion which will be used in Xyz Company puting the concern degree. This portion summarizes point that can be effectual with the activity of existent estate and how we will implement it through the cost and distinction merchandise.

The functional degree scheme of Xyz Company will be about the efficiency, quality, invention and client reactivity. We want to put a concern functional that increase the value of selling, R & A ; D and information system. We will collaborative the function of the functional degree to construct the chief blocks of the xyz company ‘ section maps. This will increase the public presentation of our company and productiveness through unifying the functional ability in work dimension.

The typical competences of Xyz Company are it selling merchandises, different merchandise, low-cost cost, the integrated information system service, client service trade name trueness and alone design of houses. We think that these factors will take to xyz company mission, end and accomplish a competitory advantage. As we progress, we will place other schemes that help to increase our profitably and efficiency.


We summarize that Xyz Company is a existent estate company which want to set up a belongingss concern. Our purpose to put a strategic program that enable to construct a competitory advantage by seting different schemes and analysis the factors lead to strong rudimentss program.

In Xyz company, we analysis the external environment which aid to find the SWOT analysis to dispute the troubles to put a concern and the discovery chances. In The concern degree scheme, we are utilizing two sorts of schemes. This will enable to put merchandise scheme and the cost that cut down the menace of internal facet. In, the functional degree scheme, we are utilizing basic section maps to increase its functional public presentation by utilizing different functional criterion to carry through it.

In decision, we think that the xyz company will bask a competitory advantage and profitableness because we will offer the different sort of internal and external schemes will assist to get the better of the barriers.

The functional and concern schemes will assist to set up a different will assist to implement an appropriate merchandise and the strategic program of the xyz companies.