The same way there are different models of business for business-to-customer businesses, there is also more than one business model for business-to-business commerce. Despite the fact that there are many business models out there, most B2B models include several common concepts.
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B2B Company Model
An organization has to have some value to offer the market, whether it is services or goods. In this case, the business-to-business model involves a Facility Management Company that specialized in Mechanical maintenance in Dubai. In order to be successful, the FM Company has to offer other businesses services focused on maintaining any mechanical equipment in the large buildings.
The second large part of the business model is the business customer – the target market to whom the organization is trying to sell its services. In this case, the company offers maintenance services to construction companies that build large buildings, towers, and other constructions.
For the services to be purchased by other business, the company should have its infrastructure in place. This infrastructure includes the right people with skills necessary for providing services as well as running the business. Moreover, the B2B model should also include some considerations about the company’s income as well as cash flow and cost structure (B2B Business Model 2008, p. 2).
One of the main ethical aspects of the company that provides maintenance services is the fair working conditions. As a construction sites can be quite strict in terms of working conditions for employees, the company has to guarantee fair pay, benefits, the nondiscriminatory working environment, and costs involved in management and training.
The Current State of Dubai’s Construction Market
In the last decade, Dubai has experienced a significant growth in the sector of infrastructure, so it is no surprise that it received international recognition as the hub of the Middle East recognition.
This massive increase in the real estate construction sector is contributed to the flow of emigrants from all over the world, which turned the city into a hub for one of the most breathtaking construction projects on the globe. The Dubai economy has undergone some significant changes in the last two decades. The graph below illustrates the Dubai’s construction sector in 2014 (Tsetsonis 2014, p. 2).
Figure 1. The graph of the Dubai’s Construction Sector (Dubai’s Construction Sector 2014).
The construction sector should benefit from a great expansion in the transport and hospitality sectors of Dubai. The current data suggest that Dubai is going forwards towards achieving the ambitious travel strategy.
By the year 2020, the tourism strategy is aimed at attracting 20 million tourists, which means the development of construction sites as well as an increased demand in Facility Management Companies that offer services in the area of mechanical maintenance. The graph below illustrates the percentage of Dubai’s construction projects related to the total amount of UAE projects.
Figure 2. Dubai’s Constuction Projects, the Percentege of total UAE Construction Projects (Construction Projects in Dubai 2014).
According to the latest report from the Dubai Statistics Centre, in the first half of 2014, the construction sector has contributed to almost 8% to the Dubai’s GDP. This demonstrates a potential growth of the real-estate industry of the Emirates (Dubai Construction Sector Contributed 7.89% to Dubai’s GDP in H1 2014: Dubai Statistic Centre Report 2015, para. 4).
The most significant catalyst for the future growth of construction sites and the demand for companies that specialize in mechanical maintenance is World Expo 2020 that is expected to attract up to twenty-six million visitors. The major view is that the Expo will have a positive impact on the economy as well as the demographic area. This also suggests a massive growth in construction of residential as well as commercial real estate.
Thus, a demand in maintenance service on construction sites will only grow in the next few years (Demand in Dubai’s Construction sector Has Soared in Light of International Events and Higher Tourism Numbers n.d., para. 5). As the market of real estate experienced a severe downfall in 2009, the matter of things has significantly improved since then. With tighter regulations as well as a strong demand, the market of Dubai’s real estate has bright future along with the companies that offer maintenance services.
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B2B Business Model, 2008. Web.
Construction Projects in Dubai, 2014. Web.
Dubai Construction Sector Contributed 7.89% to Dubai’s GDP in H1 2014: Dubai Statistic Centre Report 2015. Web.
Dubai’s Construction Sector, 2014. Web.
Tsetsonis, A. 2014, Dubai’s Construction Sector Overview. Web.