Dubai Investments PJSC: Company Analysis Essay

SWOT Analysis

Part 1: Internal Factor Analysis

Strengths

1. The company has a dynamic product diversification strategy to ensure sustainable operations (research and development).
2. The company has a steady and strong financial structure (finance).
3. The company offers very competitive terms for its credit facilities (marketing).
4. The product development and internal control system within different departments is well organised (production).

Weaknesses

1. Despite having been in operations for more than a decade, the rate of product differentiation and modification is slow (production).
2. The company has relatively high debts (finance).
3. Some of the products of the company are relatively expensive as compared to those of the competitors (marketing).

(Summary of internal analysis; Self-generated)

The company has the capacity to optimally sustain its business since the weighted score is 3.91.

Part 2: External Factor Analysis

Opportunities

1. Development of sub-brands of the current products of the Dubai Investments Company (marketing).
2. High chance of increasing sales as the company implements the current market expansion strategy (marketing).
3. The low competition due to customized products gives the Dubai Investments Company a clear lead in serving different market segments (marketing).

Threats

1. Stiff competition from companies offering similar products and services (marketing).
2. Dynamics of price differentiation may reduce the revenues of the company (marketing).
3. Reduced growth cycle due to high concentration of similar products offered by other companies (marketing).

(Summary of internal analysis; Self-generated)

The company has the capacity to optimally explore opportunities since the weighted score is 3.80.

Porter Five Forces

Threat of entry

It is very difficult for a new entrant in the investment industry to successfully create a strong brand that can challenge the dominance of the Dubai Investments PJSC. It would require massive capital for an aspiring investor to outperform the business prowess of the Dubai Investments PJSC. Therefore, a new entrant may face difficulty in increasing brand visibility and cutting a piece of the market share. Since the investment industry is characterised by the ability to produce high quality products, a new entrant will have to build a following from scratch. This means that a threat of new entrant is very low (UF).

Threat of substitutes

In the premium investment segment within the industry, the threat of possible substitutes is low since most of the services are customised, thus, rarely have substitutes. Very few companies have the ability to offer an alternative perfect substitute to customers who may be unsatisfied with the products offered at the Dubai Investments PJSC (Dubai Investments PJSC, 2015). However, unsatisfied customers may have other alternatives from where they can get similar products.

In order to remain relevant, the Dubai Investments PJSC has established a unique market for its customers through tailored optometry investment products that are customized (F).

Suppliers’ bargaining power

In the investment industry, the influence of the suppliers is low. Since suppliers within the investment industry operate at local and international levels, their influence differs. The partnership between the Dubai Investments PJSC and vendors has reduced the power of the suppliers (Nexis, 2015). The Dubai Investments PJSC has endeavoured to use its deep reservoirs as a strategy for balancing the supply forces in the investment market of Dubai (UF).

Buyers’ bargaining power

There is a strong power in the fragmented investment segments. Despite the fact that the Dubai Investments PJSC has a very strong brand name, the buyers in this sector have the power to influence the prices for the investment products and services. The power of the buyers is high since this industry is characterised by high competition (Wright, 2007). Fortunately, the Dubai Investments PJSC has been consistent in maintaining their prices at competitive rates (F).

Rivalry

There are several investment consortiums operating in the same industry with virtually all of them dealing with a variety of investment products and services. Players in the industry must be careful to survive any aggressive move by a competitor through creating a flexible brand name and constant product diversification. For instance, Dubai Investments PJSC provides the biggest competition due to its biggest market share and expanded network standing at 30%.

With many customers looking for good value for their money, quality in service delivery has remained the main basis upon which customers are making their final decision to purchase products in the volatile investment industry of Dubai. All the players in the industry are putting measures in place to ensure they attract customers (Nexis, 2015). Therefore, the size, in terms of space occupied by business premises, defines the temperature of the competition. In line with this, the Dubai Investments PJSC is the biggest and busiest investment group in Dubai (UF).

Recommended Strategy

SO Strategies

1. The company should increase its product development strategies to ensure that the low customer segment is well serviced.
2. The company should increase its marketing strategies to improve product visibility in the dynamic investment industry in Dubai.
3. The company should consider further product differentiation to improve its competitive advantage as the most reliable investment service provider.

ST Strategies

1. The company should improve its current focus on product proliferation to quality in order to successfully compete with companies that have specialized in a single product.
2. The company may also improve its financial structure through a series of strategic investments in the Dubai market.
3. The company may entertain the idea of managing its pricing strategies to ensure that clients in the high-end and low-end segments are served.

WT Strategies

1. The company should improve its current logistics support system to ensure that the overhead costs of running its operations are sustainable.
2. The company may also introduce more friendly credit terms and conditions for different segments of customers to create an environment of own competition.
3. The company should create pricing strategies that matches that of its competitors to guarantee sustainability of the current position of market leader.

Implementation, Evaluation, and Control

Implementation

1. Product launch should be executed after every two years, depending on performance recorded in the previous year.
2. The company can improve the current investments on logistics flow by 20% to guarantee good and sustainable returns in the short and long terms.
3. The company should introduce a strategic customer relationship management to ensure that the satisfaction level is above 95% since the entire business platform for the company is dependent on perceptions of customers.

Evaluation and Control

(Summary of internal analysis; Self-generated)

References

Dubai Investments PJSC. (2015). About us.

Johnson, G., Whittington, R., & Scholes, K. (2011). Exploring strategy (9th ed.). Alabama, Al: Prentice Hall.

Nexis, L. (2015). Business and management strategy. Chicago, Ch: Glo-Bus Spring.

Wright, P. (2007). A refinement of Porter’s strategies. Strategic Management Journal, 8 (1), 93-101.

Appendix 1: TOWS Matrix