Emaar Properties: Strategic Management Analysis and Recommendations

This report provides a comprehensive strategic management analysis of Emaar Properties, focusing on its "EMAAR UAE COMMUNITIES" business segment. It begins with a background on the company, its financial performance, and its various business segments, with a specific emphasis on the real estate projects in Dubai. The report then delves into customer segmentation, identifying key customer groups and analyzing their needs. It examines the current and desired value propositions, outlining the company's goals for enhancing sales and profitability. The report analyzes the marketing mix (4Ps), including pricing, products, place, and promotion, and identifies key success factors. It presents an analysis of the company's operating model, followed by a resource and capability analysis. Finally, the report proposes a management agenda for the next 18-36 months, highlighting internal linkages that can be strengthened to achieve the company's strategic objectives. References to relevant literature are also included, providing a foundation for the analysis. The report aims to provide a deep insight into the strategic management of Emaar Properties, highlighting the key elements that contribute to its success in the real estate market.

Running head: STRATEGIC MANAGEMENT
Strategic Management
University Name
Student Name
Authors’ Note

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Table of Contents
Part 1 – Background to the business 2
Part 2 – Selection of the target of the customer 3
Part 3 - Current and desired value proposition in broad terms 5
Part 4 – Current and desired marketing P’s and Key success factors 8
Part 5 – Presentation and analysis of Operating Model of the business 10
Part 6 – Resource and capability analysis 13
Part 7 – Management Agenda for the next 18 months to 36 months 14
Part 8 – Internal linkage that can be strengthened 14
References 16

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Part 1 – Background to the business
The current study critically analyses strategic management with special orientation to the
business operations of the firm Emaar Properties. Different businesses of the company
comprise of property, malls, entertainment, hospitality, commercial leasing among many
others. However, the current study intends to lay stress on business of “EMAAR UAE
COMMUNITIES” that includes real estate projects of the company Emaar Properties in
Dubai. The pioneer of assimilated communities in specifically Dubai, Emaar Properties has
established a record in the process of development of superior quality homes in UAE.
Emaar Properties operates has business segments that include real estate, leasing as well as
related activities, hospitality and others. The performance of this particular section of
business can be enumerated using the sales figure of the firm. Financial declarations for the
period 2017 reflects that Emaar Properties registers around 22% growth in the sales figure of
Dubai Property and this figure stands at USD 2.944 billion (Emaar.com 2018).
Performance Background as per the annual report of the firm 2015 and 2016 is as presented
below:
Particular for real estate
segment (AED’000)
2015 2016
Revenue 6508705 7872685
Segment assets 53059250 53059250
Segment liabilities 27475431 28714281

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2015 2016
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
Revenue For Real Estate Segment
Revenue
2015 2016
0
10000000
20000000
30000000
40000000
50000000
60000000
Real Segment assets of Emaar
Segment assets
Part 2 –Target of the customer
Customers can be classified as per the size and industry in which the firm is operating.
Provided the fragmented nature of regional market of “EMAAR UAE COMMUNITIES”, it
can hereby be stated that segmentation of the customers can be more realistic.
As such, it might possibly be simpler to depict the needs of the customers together with
weight assigned to each criterion and the current position can be analysed against that of the
competitors. The selected rivals are from three different strategic groups namely
(International player, National player) utilizing the Customer Value Profile (Barney 2014).
However, different segments of customers are diverse needs. Thus, domestic along with large

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sized firms are taken into consideration for explicating the present case. The selected
domestic competitors include Danube Properties and Dubai Properties.
Scores are assigned herein for the selected firm in comparison to the competitors
Danube Properties and Dubai Properties (as domestic players) and international
players:
Market Served Weight Our selected corporation
Strategic Group 1 Strategic Group 2 Strategic Group 3 Average
Domestic and large sized corporation
International
Player
Domestic Player-
Competitor DP
(Dubai Properties)
Domestic Player
Competitor
(Danube
Properties)
Criteria of selection
Proficient and multidisciplinary team 20 12 14 11 9 11.33333
Knowledge regarding the industry 14 6 8 5 4 5.666667
Knowledge of the best operational practices 16 7 9 3 6 6
Potential to undertake system customization 10 6 6 7 8 7
Sevice support after implementation 15 6 8 6 6 6.666667
Building image of the brand 25 10 11 8 9 9.333333
100
Price (Transaction Price as perceived) 7 9 5 4 6
Score on Satisfaction of customers 5.5 7.5 4 4.5 5.333333
Market Perceived Ratio of Quality 110.5
Weight on quality attribute 70
Weight assigned to price 30
Total 100
The scores assigned herein are based on operational experience in th chosen industry in UAE
Competitors
Part 3 - Current and desired value proposition in broad terms
The target of the management is to enhance Dubai Property sales to approximately 30% from
the current level of 25% to particularly AED 18.03 billion within a period of 2 years and
attain sustainable rate of growth. Again, there is a need to augment net operating profit from

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the current level of 16% that is AED 5.70 billion to 20% in a period of 2 years. This it can be
hereby mentioned that there is a need to undertake a differentiated or focus strategy and
develop customer intimacy control or else its equivalent in different corporations (gray hair
experience) to certain extent enhance overall operational excellence. The rationale can hereby
be illustrated in the following manner:
Weight assigned to customer selection criteria as sketched in the customer value profile for
instance, proficiency of team; clear understanding regarding industry and knowledge as
regards best practices is 50%. This kind of factors can necessarily be addressed by
concentrating on grey hair experience as a specific discipline.
Clients also attach importance to effectiveness of costs that again will require concentration
on specific procedural template or else operational excellence discipline. This is carried out
for the purpose of maintaining a minor variance of price perception against various other
competitors (Frynas and Mellahi 2015). Particularly, this refers to standardization of various
non-critical and time consuming procedures and engaging different professionals as per cost
structure is comparatively lower in comparison to specific internal resources. Basically, this
might help in augmentation of scores of important qualitative factors and enhance market
perceived quality ratio (Gamble and Thompson 2014).
It might not be possible to take the course of Brains Rocket Science owing to certain specific
reasons as follows:
Undertaking different operational disciplines can be said to be very intricate in the real estate
and construction industry (Ginter et al. 2018)
Undertaking such direction is normally carried out at the firm wide level. There is little or no
control to alter this
Part 4 – Current and desired marketing P’s and Key success factors
Pricing structure:
-The price is over and above the domestic strategic group such as DP (Dubai Properties) and
Danube Properties as is evident from the premium pricing strategy of the corporation
-The price is equal or else higher than International Players Group

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-Time and material can be taken into consideration for delivery of tailored products (Hill et
al. 2014)
Products
The Emaar UAE Communities section of the business ensures delivery of products to the
residents that necessarily become a crucial part of lifestyle environment. This includes:
Retail sections, hotels, outlets for food as well as beverage, different educational institutions,
centres for healthcare along with mosques (Emaar.com 2018).
The Emaar UAE Communities section of the business also has an remarkable roaster of
specific lifestyle communities in particularly UAE and that include
Downtown Dubai that is necessarily a flagship mega-development of this business segment
and provides hundreds of homes built in stylishly designed apartment (Emaar.com 2018).
The company also offers Dubai Marina that is essentially one of the largest water front
having numerous residential towers, whilst Arabian Ranches is specifically an entirely-
established community of villa.
Place
Emaar UAE Communities section mainly concentrates on delivering its products in different
parts of UAE (Emaar.com 2018).
Promotion
Post of content online (Hubbard et al. 2014)
Blogging regarding ideas of real estate
Spreading pop-bys that are gifts to current as well as prospective clients
Target selected clients who value overall best solutions
Establishment of direct contact with the clients when necessary
Establishment of engagements and participation in various seminars as well as conferences
Through various publications

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Through workshops designed for clients
Maintenance of alliance and associations with various technology vendors (Morschett et al.
2015)
Physical Evidence
Formulation of project charter
Regular production of status reports
Evaluation of As-Is as well as To-Be procedures
Maintenance and documentation of work design
Examination of scripts (Rees and Smith 2017)
Different materials for training
Various user manuals
Survey report on satisfaction level of customers
People
-Experiences and proficient workforce together with industry as well as subject matter
experts
-Level of proficiency of construction engineers
-Familiarity of the people with local culture (Rothaermel 2015)
Procedures
-Blue print of design and construction process followed for delivery of product as well as
service of the company
Analysis
As per pronouncements of the company, there are premium customers who have the need of
products (real estate properties including lifestyle environment, lifestyle communities,

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waterfront developments, greens, springs, lakes, Emirates Hills and many others) of the
highest national as well as international standards at premium prices. The desired position for
the company is now to deliver superior standards of living by specialising in the finest
lifestyle and luxury with customization carried out by customer orientation. In addition to
this, the company also intend to become cost conscious in order to present competitive
pricing (Barney 2014).

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Part 5 Key Success Factors
Success factors related to skills and competency
Experiences as well as motivated workforce, specialized construction engineers
Accessibility to various consultants (that is gray hair along with various industry as well as
subject matter experts)
Advanced technological systems (Wheelen et al. 2017)
Potential for project management
Marketing as well as Alliances
Alliances with various technology vendors (Wheelen et al. 2015)
Well trained and effectual workers, proficient engineers, consultants and effective sales
personnel
Concentration on industry
Capability of organization
Proven methodologies
Support service after sales
Higher level of utilization of available resources (Wheelen et al. 2015)
Other resources
Desirable brand image
Comprehending culture of regional clients, language and exclusive requirements (Barney
2014)

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Part 6: Analysis using strategy canvas
The current position founded on Key Success Factors (KSFs) against other strategic group
players and competitors utilizing the strategy canvas
Current Position:
0
4
8
12
16
International Players
(Strategic Group I)
Competition from
domestic firms
Emaar Properties
As can be concluded from above, the firm Emaar UAE Communities has undesirable
position in comparison to Strategic Group I (referring to international players) in certain
areas, for instance, accessibility to consultants/ expert professionals, potential for project
management, maintenance of alliance with various technology vendors, proven work
methodologies and structure of fees. Nevertheless, it can be said that selected firm Emaar
UAE Communities has a desirable position in comparison to domestic players such as DP
(Dubai Properties) and Danube Properties (Gamble and Thompson 2014). Basically, the
domestic players represented by strategic group I and Strategic group II, however, they
mainly compete on low cost basis only.
Desired Position:
It is evident from the current position of the firm that there is need to improve on different
undesirable areas as presented above. Additionally, the company Emaar UAE Communities
also might consider differentiating themselves from the strategic group of International

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Players by augmenting focus of the company on the industry that are larger and more
attractive and assign significant weight to knowledge on industry as a specific part of
criterion of selection. In addition to this, the company might enhance the potential to respond
to needs of customers and customize their offerings as per their needs for creating exclusive
value and make it difficult for competitors to replicate the offerings (Hill et al. 2014).
Furthermore, management of the company can offer wide range of value added or else
complimentary services such as support service after delivery of homes to clients and many
others. This can support the view to concentrate on building strong and enduring customer
relationship.
0
4
8
12
16
Strong competitio from
international players
(Strategic Group I)
Emaar UAE Communities