Introduction
Modern technology has led to the development of sophisticated equipment used in industry and commercial organizations. Almost all new products in today’s society depend on electricity to operate. Due to the reliance on electricity, some electrical equipment and appliances can fail if not properly managed. The uncontrolled use of electricity can lead to unprecedented losses and destruction of equipment and appliances. Many advanced technologies have been developed to counteract the threat of electrocution to electrical appliances. One of the technologies developed to control the flow and destruction of electricity on electrical appliances is automation, control, and instrumentation.
Therefore, the technology is equipped with communication interfaces that monitor, monitor, and signal any possible faults in the system. This business plan document entails researching the United Arab Emirates market to enable Sprecher Automation to know the requirements for starting a new business in the United Arab Emirates. The business plan explores the market opportunities in the UAE and its competitors and proposes the budget required to open and operate a business in the United Arab Emirates.
Importance of the Automation, Control, and Instrumentation Technology
The use of automation, control, and instrumentation technologies reduces costs. The technology is equipped with communication interfaces that monitor and signal potential system faults, allowing engineers to fix defects before they cause significant damage to the business entity. In most cases, the technology detects high voltage events that could damage electrical equipment in use and notifies engineers to stabilize the flow of electricity in the system. Automation, control, and instrumentation technologies minimize the use of human resources as most operations are automated (Doukari & Greenwood, 2020). Process automation leads to faster procedures and increased output, resulting in increased profits for the business organization. In addition, automation, control, and instrumentation technologies enable faster response to electrical faults in the system. A timely response to power failures prevents system breakdown and ensures the continuity of operations in a business organization. Businesses that rely on automation, control, and instrumentation technologies get more value from their operations through efficient production.
Trends of Automation, Control, and Instrumentation Technology
Thanks to technological advances, automation, control, and instrumentation technologies have emerged, especially in industrialized countries. Some of the current trends in the use of automation, control, and instrumentation technologies are the use of sensors that detect faults in the system and notify engineers to correct them before they cause unprecedented losses. Another current trend in using automation technologies is computer-integrated manufacturing (CIM). This automation technology can detect and report possible failures in the system (Butt et al., 2021). However, current trends in automation technology may prove unreliable due to technological advances. Future automation, control, and instrumentation trends include IoT (Internet of Things) and robotic process automation platforms. These future trends are equipped with sophisticated technology to detect and fix system faults without requiring engineers. Future trends in automation technologies may offer possible solutions to defects found in the circuit to enable engineers to correct them accordingly.
Business Analysis
Starting a new business in a new environment requires proper preparation to overcome any obstacles that may come up when starting a new business. This business plan involves opening a technology business that will sell automation, control, and instrumentation technologies. The company will make automation, control, and instrumentation technologies available in today’s market. Specifically, the business will be located in the United Arab Emirates market and rely on products manufactured by Sprecher Automation, a global manufacturer based in Germany (Butt et al., 2021). The United Arab Emirates is becoming an industrial giant; thus, it needs automation, control, and instrumentation technologies to improve operations and production. The availability of automation, control, and instrumentation technologies will increase productivity and minimize system errors that can prevent business organizations from achieving their goals and objectives.
Market Analysis and Strategy
Market Intelligence in the United Arab Emirates
The United Arab Emirates is characterized by a stable market that plays an essential role in today’s business world. The United Arab Emirates has a well-established infrastructure that attracts local and foreign investors to its market. The UAE market attracts investors from all over the world and has clients from different regions. Due to the vastness of the United Arab Emirates market, almost all goods produced worldwide can be found there. Regarding technology, the United Arab Emirates market includes state-of-the-art technology products from around the world (Arthur et al., 2109). Thus, it would be appropriate to set up a business related to automation, control, and instrumentation technologies, since the market has already integrated enterprises related to modern technology products. The United Arab Emirates is home to thousands of industries and manufacturing companies dealing with various products. These industries and manufacturing companies will need automation, control, and instrumentation technology to improve the efficiency of operations at their premises.
There are several desalination plants in the United Arab Emirates. Examples of desalination plants in the United Arab Emirates include Shuweihat S2 Power and another water treatment plant in Abu Dhabi. These two desalination plants entail many operations and energy consumption that can be out of control due to the use of human resources. Using human resources to manage processes at these desalination plants can prevent companies from achieving their goals and objectives. Since the United Arab Emirates is in a desert, the primary water sources are desalinated seawater and groundwater. Thus, water projects and desalination companies are essential if a country is to meet the population’s water needs (Arthur et al., 2109). The automation, control, and instrumentation technology business was well established in the United Arab Emirates market and prospered rapidly.
One of the factors contributing to the rapid expansion of the United Arab Emirates market is the country’s political stability. The political stability reigns in the United Arab Emirates, which attracts local and international investors to start a business and manufacture in the country. The United Arab Emirates attracts buyers with products sold in its marketplace because fewer travel restrictions are placed on people entering or leaving the country. The country annually attracts millions of buyers from other countries of the world. Currently, the United Arab Emirates market ranks third in terms of logistics strength, technology readiness, and favorable business climate (Arthur et al., 2109). These factors have been cited as the main factors that continue to attract local and foreign investors to the country and buyers and customers worldwide. It is estimated that the United Arab Emirates market may become the most productive and competitive in the next ten years in the world.
There are several reasons why a new business venture in the United Arab Emirates will be successful. First, the new commercial venture will rely on products made by Sprecher Automation, a global manufacturer based in Germany. Sprecher Automation is world-renowned for producing high-quality products that effectively meet market demands in today’s business world. Sprecher Automation products are superior to many other products manufactured by various companies in other industrialized countries. Since the United Arab Emirates market is renowned for high-quality products, the introduction of Sprecher Automation products will be well received by potential buyers in the UAE market. Trade-in high-quality products will be an added advantage for the new venture due to its market status (Arthur et al., 2109). The Government of the United Arab Emirates has ensured that its market is characterized by favorable market conditions in order to attract and retain investors for the long term. The market proved to be suitable for opening new businesses.
Opportunities and Projects in The United Arab Emirates Market
There are many opportunities for a new business to flourish in the United Arab Emirates market. The Government of the United Arab Emirates has established significant purchasing and business opportunities to enable local and international investors to start new companies quickly. The government prioritizes integrating modern technologies into the market to solve today’s market problems. One common concern is data protection and privacy, which predisposes company information to hackers. However, modern technology plays a critical role in shaping the market in the United Arab Emirates, as most market transactions depend on technology (Al Naqbi et al., 2019). The government recognizes the importance of automating processes in the market because automation speeds up operations and leads to increased productivity. The use of technology in the markets of the United Arab Emirates attracts many investors and clients from all regions of the world. In addition, technology improves the execution of tasks in the market, making them profitable because they are time-sensitive. Therefore, investments in the United Arab Emirates are suitable for introducing reliable technology to accelerate market operations.
Drinking water in the United Arab Emirates comes mainly from desalinated seawater, as the country is in a desert. Since operations in the United Arab Emirates market cannot be carried out without a reliable water source, the country’s water companies need to expand their activities and production to meet the market’s water needs effectively. One way to enhance seawater desalination to meet market demand for water could be through automation, control, and instrumentation technologies. Thus, the United Arab Emirates offers business opportunities in automation, control, and instrumentation technology. Wastewater treatment is a common practice in the United Arab Emirates and is carried out by many water companies (Al Naqbi et al., 2019). Wastewater treatment requires reliable technologies that can reduce the cost of operations and increase productivity. Thus, the automation technology will be reliable for all water companies in the country and will be a great business idea to start an automation technology enterprise.
The United Arab Emirates market prioritizes clean technology and environmental technology. These technologies allow manufacturing companies to minimize environmental pollution and adjust their activities to meet the demands and needs of the market for various products. Automation technologies are green because they improve processes and support safe operations to save the environment. Therefore, setting up a technology business in the United Arab Emirates market to work with automation technologies will be appropriate and will attract many clients. The UAE Government has created a unique market infrastructure that allows business organizations to operate efficiently. Thus, participating in a challenge with a developed infrastructure will allow a new business to effortlessly raise and overcome any challenges that may threaten to derail it from achieving its goals (Butt et al., 2021). Companies in the United Arab Emirates market have a well-established infrastructure and business practices that allow them to grow and meet the needs and demands of the market.
Competitors in the United Arab Emirates Market
While there are many opportunities for businesses to thrive in the United Arab Emirates market, there is fierce competition in the market for almost all goods, products, and services sold. There will be fierce competition from other well-established business and automation technology, control, and instrumentation companies. ABB’s partners are one of the automation technology companies that will seriously compete with Sprecher Automation. ABB’s partners have been recognized as trusted system integrators and automation solution providers in the United Arab Emirates market. The company has been operating since 2014, is well established, and is familiar with market challenges that prevent business entities from achieving their goals and objectives (Butt et al., 2021). In addition, ABB Partners employs experienced employees who have been in the market long enough to know the best strategies to improve their employer’s productivity and profitability. Thus, the company will pose a threat to the new business venture.
Another competitor that Sprecher Automation will have to contend with to succeed in the United Arab Emirates market is an automation company. The automation company is located in the United Arab Emirates and is engaged in the production and sale of SCADA, RTU, and PLC, as well as other automation equipment. The company employs experienced employees and engineers who provide high-quality products. Thus, the new business entity will have to develop appropriate strategies to withstand competition from other well-established businesses and grow to meet the market’s needs. Other competitors in the United Arab Emirates market are Descon Automation Control System LLC, Industrial Automation, and Valve Automation. All of these companies operate in the United Arab Emirates market and have organized their activities to meet the needs and requirements of the market (Butt et al., 2021). Thus, the success of Sprecher Automation will depend on the strategies used to enter the market and appeal to customers of automation technologies.
Financial Analysis
The cost of starting a business in the United Arab Emirates is higher than in most countries such as the US and Germany. It is possible to start a business in the United States for as little as $200, unlike a company in the UAE, where at least $9,000 is required (Butt et al., 2021). Sprecher Automation would need significant capital to start a business in the United Arab Emirates market. In addition, the company will need to allocate enough funds to support the various employees required to work in multiple roles in the new market.
To increase business agility, improve business-to-customer interactions, and reduce inefficiencies, it is essential to integrate telecommunications work into the switchgear section, electrical substation, and server rooms. Telecom works require human resources for design, furnishing, and installation (EF&I), where each category of human resources will include three workers (Butt et al., 2021). These workers will require cable cutters, fiber optic installation, laser measuring equipment, and coaxial cable testing equipment as essential tools in telecommunications work. Along with acquiring these materials, the telecommunications operators will have to follow the merger strategy as a direct financial model guiding their operation. The merger (M&A) model will facilitate the upfront assessment of telecom operations by allowing business financing to match the cash needs of telecom activities (Butt et al., 2021). In addition, this model will promote corporate development as it integrates the finances of various departments and enterprises. Undoubtedly, telecommunications will improve communication between businesses and customers, providing a competitive advantage in the UAE market.
Sprecher Automation should consider opening a new automation business along with the telecommunications business. The telecommunications engineering business should be engaged in the provision of Internet services, as well as the manufacture and sale of telephones. Today’s technology requires phones to be fast and easy to use, facilitating rapid interaction between a business and its customers. In this way, Sprecher Automation will profit unrivaled from combining the two business projects. The telecommunications business will cost less than the automation technology business, as outlined in the budget below:
Conclusion
Entering a new market has always been challenging for many business organizations because they lack clear information and details about new markets. Call specifications and details depend on the government of the country in which the market is located. The United Arab Emirates has been a prolific market for many years and continues to grow to attract investors worldwide. The UAE market has great opportunities, and high demand for technology as most operations in the market require modern technology. Thus, Sprecher Automation, a technology company, will be well represented in the United Arab Emirates market. The German company is known worldwide for producing high-quality products and will adequately solve the problem of automation technology in the UAE market. Despite competition from other automation technology companies, advanced planning and transparent business strategies will help Sprecher Automation succeed and overcome any looming challenges in the UAE market.
References
Al Naqbi, S., Tsai, I., & Mezher, T. (2019). Market design for successful implementation of UAE 2050 energy strategy. Renewable and Sustainable Energy Reviews, 116, 109429. Web.
Arthur, D., Sherman, C. E., Al Hameli, N. S., & Al Marzooqi, S. Y. (2019). Materialism in the United Arab Emirates: A grounded model of materialism in an emerging market.International Journal of Emerging Markets. Web.
Butt, O. M., Zulqarnain, M., & Butt, T. M. (2021). Recent advancement in smart grid technology: Prospects in the electrical power network. Ain Shams Engineering Journal, 12(1), 687-695. Web.
Doukari, O., & Greenwood, D. (2020). Automatic generation of building information models from digitized plans. Pg. 1-15. Web.