Factors and Strategies for Entering the Dubai Market Successfully

This report examines strategies for entering the Dubai market, a significant hub in the Gulf Cooperation Council (GCC). It identifies four primary modes of entry: finding a local distributor, adopting a regional approach, competitive positioning, and utilizing trade shows. The report analyzes the advantages and disadvantages of each approach, considering factors such as the challenges of finding a suitable local distributor, the impact of regional blockades, and the intensity of competition. Furthermore, the report highlights crucial factors for ensuring a successful venture, including external business environment analysis using PESTLE, industry analysis using Porter's Five Forces, understanding cultural dimensions via Hofstede's framework, and consumer behavior analysis. Finally, it mentions the availability of market reports from Alpen Capital, a firm providing financial advisory services in the GCC and South Asia. This report provides a comprehensive overview of the complexities and considerations involved in entering the Dubai market.

Running head: DOING BUSINESS IN EMERGING MARKETS
Doing Business in Emerging Markets
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1DOING BUSINESS IN EMERGING MARKETS
Table of Contents
1. Best way to enter Dubai:..............................................................................................................2
2. Factors to consider for ensuring a successful venture:................................................................3
3. Market reports:.............................................................................................................................3
References:......................................................................................................................................4

2DOING BUSINESS IN EMERGING MARKETS
1. Best way to enter Dubai:
There are four identified modes of entering or marketing in Dubai such as finding a local
distributor, regional approach, competitive positioning, and trade shows.
Finding a local distributor- It is preferred in most sectors. Many foreign companies do take this
approach to enter Dubai. However, finding the appropriate local distributor is indeed bit
challenging (Export.gov 2018).
Regional approach- American firms have long relied on adopting a regional approach for doing
business in Dubai. Dubai is also one of the largest and fastest emerging markets for American
services and goods. However, the approach can now be a challenge as it is an expected
consequence of partial blockade against Qatar. The ban was imposed in June 2017 (Export.gov
2018). Additionally, a 5 percent tariffs will now be imposed on the majority of goods across
associate countries of the Gulf Cooperation Council (GGC) (Export.gov 2018). This is in
actually will ask the end users to pay a more. The sales performance may be tested under the
circumstances. Hence, the regional approach may not be an ideal mode of entry.
Competitive positioning- This is another mode of entry where foreign companies position it like
a potential rival to the already existing foreign companies. The competition may be intense and
hence, this strategy also does not look a most viable approach to enter Dubai (Export.gov 2018).
Trade shows- Dubai is a commercial hub for regional countries that are the members of Gulf
Cooperation Council (GGC). The country hosts top-notch trade fairs and conferences. This is
indeed a good platform where foreign businesses may be able to meet the buyers from Africa,
Middle East, and South & East Asia. The number of the trade show is also increasing. The
details of such activity are available at www.export.gov/uae (Export.gov 2018).

3DOING BUSINESS IN EMERGING MARKETS
2. Factors to consider for ensuring a successful venture:
There are some factors which are important and should be considered while facilitating a
business in foreign locations. One of those is to understand the external business environment
analysis through the PESTLE. The external business environment analysis collects information
on the various factors of the target country like political, economic, social, technological,
environmental and legal. In every way, foreign businesses may be challenged if not being handed
strategically (Shiozawa 2015). Porter’s Five Forces is another factor which gives an insight of
the industry of the target market. It provides information on the competitive rivalry, bargaining
power of suppliers & customers, threat of substitute & new entrants (Shiozawa 2015). Hofstede’s
cultural dimension is also important to understand the business and common cultures in the
target country. Consumer behaviour is another thing which is important from the perspective of a
business in new markets (Shiozawa 2015).
3. Market reports:
Yes, the market reports can be availed from Alpen Capital which is a firm that provides
the range of financial advisory services to corporate clients across the GCC and South Asia.
Alpen Capital provides reports on the range of industries that exist in Gulf Cooperation Council
(GCC) and South Asia (Group 2018).

4DOING BUSINESS IN EMERGING MARKETS
References:
Export.gov. 2018. United Arab Emirates - Market Entry Strategy | export.gov. [online] Available
at: https://www.export.gov/article?id=United-Arab-Emirates-Market-Entry-Strategy [Accessed
24 Mar. 2018].
Group, A. 2018. Alpen Capital | Welcome. [online] Alpencapital.com. Available at:
http://www.alpencapital.com/index.html [Accessed 24 Mar. 2018].
Shiozawa, Y., 2015. International trade theory and exotic algebras. Evolutionary and
Institutional Economics Review, 12(1), pp.177-212.