Innovation and Business Development at Al Futtaim Group: A Report

This report provides an overview of the Al Futtaim Group of Companies, detailing its innovation history, current performance, and future potential. The report discusses the company's expansion, driven by innovation in various sectors including automotive, financial services, and technology. It highlights the company's achievements, such as its early adoption of hybrid vehicles and its strong market share in the UAE. The report also examines the challenges the company faces, including competition from global brands and the need for continuous innovation to meet evolving customer expectations. The analysis covers the company's organizational structure, its competitive strategies, and the drivers of innovation, such as globalization and increasing customer demands. The report concludes by emphasizing the company's success and the importance of innovation for its continued growth, providing insights into its market position and future strategies.

Managing Innovation in Business 1
Managing Innovation in Business
Student’s Name
Al Futtaim Group of Company in Dubai

Managing Innovation in Business 2
Executive Summary
In this paper, Al Futtaim Group of companies is discussed. The discussion basically
entails the innovation success of the company, including the challenges and the main
achievements in the industry. The expansion of the business amid the competitive market
requires availability of highly quality workforce, who, in various ways innovate and come up
with new ideas. This innovation, especially the drivers of innovation are discussed as the key
elements that leads to the growth and expansion of the every company.

Managing Innovation in Business 3
Table of Contents
1. Introduction............................................................................................................................4
2. Organization and industry overview....................................................................................4
2.1 Al Futtaim Group of Company and its innovation history..............................................4
2.2 The Al Futtaim Group of Company existing Innovation performance and
capabilities..................................................................................................................................5
3. Conclusion...............................................................................................................................9
4. References.............................................................................................................................11

Managing Innovation in Business 4
1. Introduction
In this report, the Al Futtaim Group of Company is discussed, citing their innovation
history since its inception up to the recent date. The innovation success is measured by the
quality of products that meets the desires of the consumers and direct clients of the company.
The report also, discusses the current technology that the company uses, the performance as
well as the capabilities or the maximum potentials of the company. The report also, outlines
the performance and the existing state of the company as at the year 2016.
2. Organization and industry overview
2.1 Al Futtaim Group of Company and its innovation history
The company was first initiated in the early 1930s as a trading company. Since is
establishment, Al-Futtaim has been expanding and progressing in terms of its fixed assets,
capital investments, number of employees and liquid assets. Their main headquarters is based in
Dubai, United Arab Emirates.
The company started by linking with the industrial and commercial partners in offering
their services and expanded their business into various practices. Currently, the company delivers
services that includes, but not limited to automotive, engineering and technology, financial
services, electronics and general services among others. The company has expanded its business
operations to more than 60 branches across the United Arab Emirates. The company after its
expansion, decentralized every aspect of operation that offered flexibility to the individual
business so as to attain a competitive strategy. Each individual company, therefore strives to
offer services (Buckley & Hanieh 2014, p.158).
I would like to work in this company after completion of my undergraduate studies since
it offers a good environment for knowledge development and experience. The reputation of the

Managing Innovation in Business 5
company is far much enough to set a standard of a career future, especially for those pursuing the
BBA. The key innovative products that the company offers includes the electronics and other
engineering and technology products. These range of products are attract large number of
customers that increases the turnover of the company. They also offer nautica lifestyle products
which are innovative and diverse in terms of quality and design. This diversification makes the
company to serve the needs of the varied nature of their clients in a manner that is satisfying. The
company is never afraid of pushing their limits in terms of technology and innovations. This
constitutes their expansion and the ever increasing turnover of the company.
The company was one of the first Arab companies to establish trade links with world’s
largest business corporations like the Toyota Company. The company employs their workers
from various parts of the world that come from over 10 different countries. The performance of
the company has been outstanding due to the diverse nature of employees that the company
boasts. The total staff of the company is estimated to be more than 40,000, unlike during the
early stages of its establishment where they had a few number of employees or staff members.
They concentrate on satisfying their customers and clients by offering quality services within the
expectations of their clients. Their mission statements centers at various values such as respect of
their clients and individual members, trustworthiness, inspiration and innovations.
The level of integrity that the company has upheld, as well as the social responsibility and
service delivery gives the company a stand in the future.
2.2 The Al Futtaim Group of Company existing Innovation performance and
capabilities
When measuring the company’s performance, I used the evaluative approach to the
varied range of products as well as the existing business data. Also, application of the

Managing Innovation in Business 6
appropriate methodologies helps one to identify the drivers of the innovation within and
outside the management of the Al-Futtaim Group of Company.
The company’s current innovation rates is at its peak, where most of the products and
types of business they engage in, is nearly saturated. After their involvement in the
automotive, financial and engineering and technology services among others, the company
seem to be dry of new ideas. The company therefore, needs more realization of ideas in order
to manage the competitive nature of the market. The total divisions, in terms of the products
that they offer are more than seven. These divisions covers the real estate management
services, retail services, travel and tours, electronics, automotive and insurance among other
services. These are some of the innovations that has driven the company into the next level of
business operation in the United Arab Emirates. In the United Arab Emirates, the Al-Futtaim
Group of Company are the major automobile dealers, whereby they directly compete with
first production industries such as the Bavaria motor works (BMW), Nissan, KIA, and
Hyundai motors among others. These other industries are threatening the market shares of the
company, since they compete from all the angles, that is, both the quality of the products and
their prices (Almezaini 2012, p. 57).
Al Futtaim Group of Company in terms of hospitality sector needs to improve. They
need to create conducive environments to their guests, and ensure that they meet the
preferences of the individual customers. By personalizing the customer satisfaction, the
company will be able to increase the loyalty of their customers. The AL-Futtaim
Technologies, for example, will ensure better interaction of the customers with the hotel
management and staff members. Every customer that the company serves is very crucial, and
thus they should never take customer satisfaction for granted.

Managing Innovation in Business 7
Improving the customer experience is one of the drivers of innovation for the Al-
Futtaim Technologies, where services such as the simplification of transactions should be
implemented in their operation systems. Checkouts and check-ins should be simplified
processes that takes their customers less time. Technology is at the heart of every competitor
company, hence Al-Futtaim Group of Company or the Al-Futtaim Technologies should
implement the use of efficient credit cards at designated points to enable their clients to pay
for the services at their convenience. This is one of the external focus of the company, where
they need concentrate in order to attract and retain most of the clients or customers.
The management should utilize the engineers and the computer experts which are part
of the company’s staff to ensure that they are always up to date in terms of the technology
that they are utilizing. This provides a competitive advantage over the rest of the competitors
in the market. Effective team working of every department member of the company will
ensure that the success is achieved (Sager 2007, p.10).
Competition from various companies such as the Nissan Motors, Hyundai and other
companies are the key innovation drivers that makes the Al-Futtaim Group of company staff
to tirelessly improve on their service delivery. The stiff competition in terms of prices of the
automobiles for example, has necessitated the application of more technology in the
production and supply process to minimize the costs incurred in those processes. These
minimized costs will ensure the output products have low prices, which will eventually
provide for the competitive prices of their end products (Almezaini 2012, p. 50).
Increasing globalization of the Al-Futtaim Group of company is another key driver of
innovation. The company is seeking to spread its influence in terms of expansion of service
delivery and that is seen in the presence of mobile branches in many of the countries (Over

Managing Innovation in Business 8
10 different countries). This expansion calls for creative strategies of expansion and
managing satellite branches in various parts of the world. This includes such provisions as
how to run those branches concurrently according to the provisions of the set standards of the
headquarters. Managing the employee attendance of the ever increasing number of staff
members or employees of the company.
Increasing customer expectations calls for innovation within the company. The Al-
Futtaim Group of Companies has good reputation, and in that case, have had a lot of long
term loyal customers. To meet their needs in terms of satisfaction in terms of their services
that they provide, the company has been forced to employ highly qualified staff members.
This kind of staff that ranges from engineers, managers to the general staff have to offer
services that satisfies every individual customer (Spraggon and Bodolica 2014, p.10). This
satisfaction of customers s due to improved innovations that meets the needs of the clients,
and hence retention of the existing customers and attractions of new customers.
The Al Futtaim Group of Company has also, enjoyed the continued support of the
government of Dubai and Abu Dhabi in terms of provision of conducive environments that
provides for smooth operations. The government of Abu Dhabi recently provided the
company with a piece of land that helped the company in the expansion of business
operations (Hertog 2007, p.54). The piece of land could accommodate almost 15000 vehicles
that the company stocks for local sales as well as their exports.
2.3 The industry in 2016
As at 2016, Al-Futtaim Group of Companies has made a lot of progress, for example,
it is the pioneered the sale of the hybrid cars. The company leads in terms of sales of the
Toyota Prius type of hybrid cars. This is one of the achievements that the company has made

Managing Innovation in Business 9
in history (by registering over 530% growth in terms of sales). The Al-Futtaim’s continued
sensitizing of its customers to use the hybrid type of cars is one of the major boosts to the
incredible turnover. These hybrid vehicles are economical in terms of fuel consumption,
apart from being environmentally safe since it emits less carbon to the atmosphere.
The Al Futtaim Motors as at the end of the year 2016 was covering the largest part of
the shares in the United Arab Emirates stock market. As a matter of fact, almost 70% of the
total shares came from the Dubai market alone. The Al Futtaim Motors still retained the
largest market share in terms of the market supply of vehicles (almost 20,000 vehicles),
through various dealers such as the Western Auto, Green Valley Motors, River Start and
Legend Motors among many other dealers. Through its main car dealer, the Ghassan Aboud
Cars, the company exports a minimum of 11000 vehicles to the external markets such as the
Indian market, China, Southern America and West African among other various countries of
the world (Randheer and Al-Aali 2015, p.54).
The net worth of the Al Futtaim as at 2016, was more than $2 billion, making it
among the top richest companies in the United Arab Emirates. Other co-companies that are
part of the Al Futtaim includes the Al Futtaim Motors, Wester and Robinsons & Co. among
others.
3. Conclusion
Al Futtaim Group of Companies is one of the most successful companies in the
world, and it is due to its success in terms of business expansions. The company expanded
locally, and eventually to a global company due to innovation drivers that acted as a pull.
Due to ever increasing technological advances in nearly every sector, competition is
increasing forcing companies to find new methods of satisfying their existing customers

Managing Innovation in Business 10
while attracting new ones. Reputation of the company plays a critical role in influencing the
growth and development of the company. This is the case with the Al Futtaim Group of
Companies, where, for many years, they have kept their reputation by ensuring that their
customers are every satisfied through delivery of quality services.

Managing Innovation in Business 11
4. References
Almezaini, K., 2012. Private Sector Actors in the UAE and their Role in the Process of
Economic and Political Reform. Business Politics in the Middle East. London: C. Hurst,
pp.43-66.
Buckley, M. and Hanieh, A., 2014. Diversification by Urbanization: Tracing the Property‐
Finance Nexus in Dubai and the Gulf. International Journal of Urban and Regional
Research, 38(1), pp.155-175.
Hertog, S., 2007. The GCC and Arab economic integration: a new paradigm. Middle East Policy,
14(1), pp.52-68.
Randheer, K. and Al-Aali, A., 2015. What, Who, How and Where: Retailing Industry in Saudi
Arabia. Journal of Competitiveness Studies, 23(3), p.54.
Sager, A., 2007. The Private Sector in the Arab World–Road Map towards Reform. Arab Reform
Initiative, 10.
Spraggon, M. and Bodolica, V., 2014. Dynamic Characteristics of the UAE. In Managing
Organizations in the United Arab Emirates (pp. 1-16). Palgrave Macmillan US.