Majid Al Futtaim

Majid Al Futtaim is an Arabic holding company located in Dubai. The history of corporation dates back to 1992 (“Who We Are,” 2017). As of 2015, it possessed and operated a large number of shopping malls, entertainment centers and retail establishments. Its enterprises are spread all over the Middle East, Asia, and North Africa including such countries as United Arab Emirates, Oman, Bahrain, Jordan, Egypt, Armenia, Georgia, and others (“Who We Are,” 2017). The main vision of the Majid Al Futtaim Group is to “create great moments for everyone, every day” (“Our Vision,” 2017). Consequently, their mission is based on working accordingly to fulfill the stated above aim.

The General Description of the Company

Majid Al Futtaim Group was established by a famous Emirati businessman Majid Al Futtaim who became a sole owner of the corporation after splitting their family business empire with his cousin. Currently, his company is considered to be one of the most respected businesses in the United Arab Emirates. It operates in fifteen international markets and provides employment places for more than 40,000 people (“Who We Are,” 2017). What is more, Majid Al Futtaim Group has obtained the best credit rating of all private companies in the area. Considering the portfolio of the company’s activities, it includes such sections as property, retail, and ventures. With regard to property, the corporation owns 21 shopping malls and 12 hotels (“Who We Are,” 2017). As for the retail, Majid Al Futtaim has the rights to the Carrefour franchise, and thus, the supermarkets can be seen in 15 countries of the Middle East, Africa and Asia (“Who We Are,” 2017). Lastly, the venture portfolio is comprised of numerous VOX cinema screens and Magic Planet centers (“Who We Are,” 2017). In addition, Ski Dubai, Orbi Dubai and Ski Egypt are also operated by Majid Al Futtaim Group (“Who We Are,” 2017). Furthermore, it is a parent company of the consumer finance company called “Najm” that is a fashion retail enterprise (“Who We Are,” 2017). It represents a huge number of world famous brands such as Abercrombie & Fitch, AllSaints, lululemon athletica, Crate & Barrel and Maison du Monde (“Who We Are,” 2017). Besides, Majid Al Futtaim supports the sphere of healthcare. As a result, five City Center Clinics are operated by the company (“Who We Are,” 2017). Furthermore, they work closely together with a world famous leader Veolia dealing with facility and energy management (“Who We Are,” 2017). In addition, the company has established a partnership with Gourmet Gulf whose operations consider food and beverage industry (“Who We Are,” 2017).

Competitive Advantages

The company under consideration has contributed a large number of resources in order to become one of the most popular leaders in the sphere of business trade and entertainment. Hence, it has outperformed its competitors owing to several factors:

1. Innovation. With every passing year, Majid Al Futtaim has been applying numerous innovations in order to gain profits. Obviously, this has enabled the company to reach success compared to its rivals.

· Majid Al Futtaim has been awarded for the use of innovative technology in media deployment which allowed the corporation to develop its design excellence and gain more profits owing to net marketing.

· The members of Majid Al Futtaim Group were rewarded for their excellent leadership and expert qualities.

· Another innovation is effective sales promotion. Each year, Majid Al Futtaim organizes different events in order to introduce new products to their customers.

· Majid Al Futtaim Group is known for its excellent leadership. Its current Chief Executive Officer, Alain Bejjani, has been using his management strategies in order to improve company’s operation (Saadi, 2015).

2. Excellent responsiveness to customers.

· The company’s main aim is to provide their customers with the best services possible. Consequently, they propose their customers a huge number of discounts, sales, benefits, and free services.

· The products and services of the company are easily accessible for every individual. All their shopping malls, supermarkets, and other leisure facilities are located in different areas.

· Majid Al Futtaim Group is famous for its excellent customer service. All people visiting the company’s malls and entertainment centers are served by polite and professional personnel.

· Majid Al Futtaim provides their customers with many after sales services. For example, individuals buying products in shopping malls are given a warranty service. Hence, if they are not satisfied with the purchase, the company refunds the money paid for it or replaces it.

3. Implementation of only excellent policies in order to guarantee the customers’ satisfaction with both its products and services.

· The company invests into the development of local communities and country in general. They plan to expand and build new malls, entertainment centers, hotels, cinemas, etc. in UAE worth $8bn (Anderson, 2016).

· Majid Al Futtaim plans to acquire Geant stores in order to rebrand them into Carrefour (Fahy, 2017). They also intend to reduce the prices and propose their customers easy online ordering (Fahy, 2017).

· All employees in Majid Al Futtaim work following the policy of customer receptiveness. They are motivated by decent salaries and extra bonuses. Hence, an excellently performed job of workers, increases customer satisfaction levels and, as a result, improves the company’s reputation.

SWOT Analysis

Strengths

· The company has an excellent growth rate. With every passing year, they expand the number and variety of their products and services. Moreover, they open new ventures in other countries.

· Majid Al Futtaim is famous for its experienced staff. The company’s personnel is highly professional in the sphere they work in.

· The corporation undertakes numerous marketing and advertising innovations. In addition, during production activities, they use new technology in order to improve the quality of the products.

· The enterprise offers a wide range of facilities. Majid Al Futtaim proposes a great number of services and entertainment destinations. Furthermore, they are involved in such spheres as financing their consumers, providing various healthcare services and managing energy provision.

Weaknesses

· One of the company’s weaknesses is bank loans. Majid Al Futtaim often requests getting funds from banks. For instance, in 2016, they signed a $281.6 million loan agreement with a consortium of banks to finance their scheme in Egypt (“Dubai Mall Operator,” 2016). In case of some problems in a bank itself, they can lose the financial support.

· Another weakness is the limited possibility of the future market growth. With appearance of new trading companies, Majid Al Futtaim can lose their customers if they do not maintain trading standards for some reasons.

Opportunities

· Considering company’s active net marketing, they can reach a good level of Internet sales. All products and services can be represented online which will allow the company to sell more products and attract more clients.

· Majid Al Futtaim Group can initiate new acquisitions. They are constantly growing and according to the Holding CEO, Alain Bejjani, they plan to continue their expansion in the markets of UAE, Oman, Saudi Arabia, and Egypt (Deulgaonkar, 2017). Obviously, if they acquire local enterprises, it will make their entrance into these markets easier.

Threats

· Intense competition in the market is the main potential threat for the company. The list of main company’s rivals includes Microsoft Corporation, InterContinental Hotels Group PLC, and National Bank of Abu Dhabi. Consequently, Majid Al Futtaim Group should provide only high quality products and services in order to remain successful.

· Another threat is the increase in cost of raw materials. As stated above, the company should only use high quality materials in the production process. The cost for best materials can rise, so it is essential for Majid Al Futtaim to remain efficient with their production in such a situation.

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