Analysis of Causes of UAE Economic Downfall

Analysis of Causes of UAE Economic Downfall Introduction and Business reasons: The global liquidity crunch has affected most of the countries and among the highly affected countries is United Arab Emirates which was one among the growing business hubs in the world with its massive development and acceptance of different culture and business. Dubai known as the economic capital of U.A.E was badly affected by the recession. Consequently, huge fortunes have been wiped out due to Dubais current economic crisis exposing the risk of doing business in the Gulf. The expansion of Dubai was very ambitious but improbable. A $64 billion project that was initially planned at 107 square miles for a development that was to be the worlds largest collection of theme parks, shops, residences, and hotels called the Dubai Land.  For now all these remain a fantasy which is the cause of the economic downturn. WILSON, Z (2009) As a consequence to that, various other projects like an underwater hotel, a Tiger Woods golf course, a residential community set among full-scale replicas of the Seven Wonders of the World, a rotating skyscraper, and a beach designed by Versace, complete with chilled sand have been delayed. However after six years of quick expansion, the emirate had approximately $600 billion going into construction and is home to the worlds tallest building, the worlds largest shopping mall,  the biggest man-made island and  an indoor ski resort. These rapid developments caused a 7% increase in population anually. WILSON, Z (2009) However, once the recession hit the country, the economic conditions and development scuttled. Currently, an estimated 50% of construction have been delayed or cancelled, banks have stopped lending, real estate prices fell down by 41% in the first quarter of 2009 and are estimated to drop more and the stock market has fallen 70% from its peak. Due to this economic crisis, the expatriates living in the emirate are either fleeing or have lost their jobs. When the economy of Dubai was in its booming stage, it had 80% of its total 1.7 million residents to be foreigners. As long as this economic condition prevails in the emirate, life is going to be a challenge for the foreigners and other residents. However Abu Dhabi which is the capital of U.A.E has helped Dubai with $10 billion which is still a small amount when compared to the debt of Dubai estimated to be over $50 billion. Abu Dhabi is also being affected slowly due to the recession. However the impact is lesser than Dubai since Abu Dhabi controls over 90% of U.A.Es oil reserve and is also home to one among the biggest investment company in the world known as ADIA (Abu Dhabi Investment Authority) The research will have its focus mainly on the damage done to the financial market and Business of the country. U.A.Es strategy towards gaining momentum in overcoming the economic crisis will be critically analyzed. Personal reasons: U.A.Es development has always amused me. The country is one among the leading business hubs with all major multinational companies in the world. I had always wanted to study the business sector and financial market of U.A.E but coming from an Engineering background I did not have the tools and resources to do so which is the reason I have taken MSc International Business. I am taking this opportunity to study the countrys business using the tools and resources that I have already studied and going to study during my course. Moreover it would help me to understand more about International Business and reasons to the economic downfall of U.A.E. This would also help me once I go back in order to start a business. The knowledge of the economic situation and its detailed study would help me a great deal. III.PRELIMINARY LITERATURE REVIEW: During the late 2007, with the US economy going through its worst post war recession, the global economy faced the most synchronised recession ever which was a result of increased globalisation and global interdependence financially and trade linkages. The economies of almost all the major developed countries shrivelled rapidly along with many trade dependent developing countries which include U.A.E along with other major countries like India and China. Anirvan B and Pami D (2010). Before the spread of the global recession, it was believed only the U.S economy will face the economic downfall. But almost the whole of Europe and cuntries like India and China were also hit badly along with U.A.E which is a small developing country with big ambition. The economy of dubai was growing at an alarming rate with projects estimated to approximately $660 billion until the recession hit. In november 2009, the announcement of Dubai that it was going to freeze $26 billion of debt was a shock to the world and after two months when the real estate market crashed, Dubai government had over $60 billion debt which created serious doubts in the minds of investors about Dubai. A political science professor at Durham University in the U.K. stated The real story of Dubai is that it was a trick, Christopher D (2010). Abu Dhabi which is the capital of United Arab Emirates has been using its $43 billion of annual oil revenue to work controlled by one among the worlds biggest investment company called ADIA (Abu Dhabi Investment Authority) building art museums, mosques and a renewable energy research institute. Pendleton and Devon (2010) Vol.  185 Issue 5, p108-109 With the likes of abundant oil reserves of Abu Dhabi and one of the worlds biggest institutional investors (ADIA), Dubai has a ray of hope in surviving the current economic crisis. Abu Dhabi Inbestment Authority is known to be one of the biggest financial institutions in the world ranking second after the Bank of Japan, according to the Oxford Business Group. Roy and Sudip ()2006, Vol.  37 (444), 70-76. The company established in 1976 by the late ruler of U.A.E Sheikh Zayed Bin Sultan Al Nahiyan had its gaol towards investing the countrys surpluses in International market with low risks. The company currently manages U.A.Es surplus oil reserve which is estimated to be approximately $500 billion. The company has been able to raise its liquidity during this global crisis when equity market was struck severely. The country is mainly depending on the turnover of this establishment. The companys aproach towards investment in US and Europe market are looking strong. Sheikh Ahmad say s US treasuries are still the most liquid benchmark bonds in the world and will remain an important diversification tool. Mccrum and Philip (2010), Vol.  54 ,8, p30-31. In 2009, Dubais Jebel Ali airport which is going to be the worlds biggest airport found its construction at halt as its development plans were threatened by the gloabl economic crisis. The current economic situation has mainly affected the real estate market of U.A.E. With reduced net migration, decreasing jobs and the lack of availbility of credit has badly affected the real estate market. The prices for properties has gone down by 40% and reduced liquidity and credit for developers has shut down major projects. While there is no consumption data, inflation figures are below requirements. Dubais à ¢Ã¢â€š ¬Ã‹Å"housing, electricity, gas and other fuels inflation was at 0.5% in February 2009 which was the lowest during that year. Emerging Markets Monitor (2010) 16,(32) 17. The emirate of Abu Dhabi shows less vulnerability to the current economic crisis when compared to Dubai. The Dubai Government had announces at 6 month stand still for debt payments in november 2009. U.A.Es economic recovery only started gaining momentum in 2010. In this research, I will endeavour to highlight the key positive development that has occured since the recession and critically analyze the countrys future strategy. IV.RESEARCH questions and OBJECTIVES: 4.1 Research QUESTIONS: What are the reasons for the tragic economic downfall of U.A.E especially in the emirate of Dubai? What is the extent of damage to the financial market and business in the country due to the recession? How badly is the real estate market sector affected due to recession and what are its impacts on the residents? How has this economic downfall affected the countrys financial market? What are the measures undertaken by the government and private business sectors to recover from the financial crisis? 4.2 Research OBJECTIVES: To critically analyze the reason for the economic downfall in U.A.E. To critically analyze and comment on the extent of damage and the precise business sectors that are most affected due to the recession in U.A.E. To critically evaluate the downfall in the real estate market and its impact on the residents To evaluate the effect of recession on U.A.Es financial market. Finally, to comment on the measures undertaken to recover from the financial crisis and recommend measures which can help the recovery V.RESEARCH PLAN: Analysing a global phenomenon (the green phenomenon) at a European level and carrying out researches about a pillar industry (the automotive industry) that indicates most of the European countries economic health implies that various data are available. Whilst numerous advantages such as giving precious in-depth data concerning the topic, it also means that important drawbacks will arise such as so-called fake or disinformation data. Furthermore, this fact also implies that while collecting accurate data on such hot topics, the need to constantly access the latest and up to date data will be crucial and even unavoidable alongside my research. 5. 1 Data collection methods outline 5.1.1 Secondary Data In order to complete my research, I will be using secondary data like text books that are available at Coventry University related to Business strategy and Management to use the appropriate tools required to analyze a company or business that is hostile due to recession. Books like Business strategy Formulation Ulwick, Anthony W (2004), Chaotics: The Business of Managing and Marketing in the Age of Turbulence  Kotler, Philip  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  C, John A (2009) and Stock Market Cycles: Practical Explanation Bolten, Steven E.  Ãƒâ€šÃ‚  (2000). Other databases like EBSCO will be used to find journals and articles related to my research area. Articles like à ¢Ã¢â€š ¬Ã‹Å"Jebel Ali terminal faces 12-month delay Foreman,c (2009) Middle East Economic digest, Vol 3,(9) 18 and à ¢Ã¢â€š ¬Ã‹Å"Contractors pay for falling prices Foreman,c (2009) Middle East Economic digest, Vol 53,(5) 27-30.. Other articles and journals will be used for as my research progresses. Database li ke SAGE journals will also be used to find journals on Global recession and its effect on develpoed and developing countries. 5.1.2 Primary data Interviews One on one interview will be conducted with the IT department head of ADIA (Abu Dhabi investment Authority) as a part of primary data collection for my research. The interview will help me understand and perceive how the company is doing and regarding their current investments. Depending on the quality and depth of the information collected from this interview, I will be conducting another interview with the Marketing Manager of Abu Dhabi Cable Factory L.L.C which is a company I used to work for before the start of my course at Coventry University. All these data will help me comment on the present economic condition in United Arab Emirates and their future plans as my research progresses. 5.2 Data collection methods per objective In order to complete my first objective, I will be using journals and articles from databases like EBSCO and SAGE journals that contains materials purely on recession, its roots and forecasts. The second objective will be addressed using the information collected from the interviews and journals from EBSCO. For the third objective, information will be collected from databases like EBSO and SAGE journals. Additional information will be collected from local newspaper articles in United Arab Emirates. For the fourth and the fifth objective, information collected from the interviews will be used along with other journals and articles. In order to recommend measures which could help the recovery from recession, I would use information from books like Business strategy Formulation Ulwick, Anthony W (2004), Chaotics: The Business of Managing and Marketing in the Age of Turbulence  Kotler, Philip  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  C, John A (2009). 5.3 Analysis of data Primary data collected by interview will be grouped accordingly to answer the necessary objective of my research work. In order to do so I will be using the NVIVO 9 software which will help me analyze any unstructured information collected. 5.4 Limitations As far as the secondary data is concerned, the limitations are that the information available is from a third persons point of view which might not be accurate and also that we could find information contradicting some particular information since the research will talk about issues concerning the reason for the countrys current economic condition and measures that could be employed to overcome the economic crisis. The limitations for the primary data would be that the information collected may not be precise as it is information regarding a company or economy from an individuals perspective. VI.ETHICS I will ensure that I will follow the Universitys ethical procedures and submit the low risk ethical approval form and follow all the guidelines. For my primary data collection, I shall use the participation information leaflet for interviews and also attach a consent form for interviews. Interviews will not be conducted in ways that could go against the ethical issues like harm the respondents or question their honesty. All the data collected will be treated confidentially and will not be used for any other purpose than the research work. All data will be securely kept in line with the Data Protection Act 1998. VII.LIST OF REFERENCES Wilson, Z (2009) ROAD TO NOWHERE  : FAST COMPANY 138, (13) 90-93 BusinessWeek (2009) ECONOMICS POLICY JAWBONING THE BANKS  4161, (4) 8-13 available at http://web.ebscohost.com/ehost/detail?hid=15sid=67e26db4-aa56-4136-9b5e-63151b0d62e8%40sessionmgr14vid=10bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bthAN=47040807 Foreman, C (2009) Jebel Ali terminal faces 12-month delay : MEED-  Middle East Economic Digest 53, (9) 18 Anirvan, B and Pami, D (2010) Synchronisation of Recessions in Major Developed and Emerging Economie  : The Journal of Applied Economic Research 4, (2) 197-223 avalible at http://mar.sagepub.com/content/4/2/197.full.pdf+html Pendleton and Devon (2010) Middle Eastern Mirage  : Forbes 185, (5) 108-109 Mccrum and Philip (2010) Abu Dhabi begins to open up.  : MEED-  Middle East Economic Digest 54, (8) 30-31 Ulwick and Anthony, W (2004) Business strategy Formulation Kotler  ; Philip, C and John A (2009) Chaotics: The Business of Managing and Marketing in the Age of Turbulence   Bolten and Steven, E.  Ãƒâ€šÃ‚  (2000) Stock Market Cycles: Practical Explanation Middle East Monitor:  The Gulf (2010) 20, (5) 4-5 avalilable at http://content.ebscohost.com/pdf23_24/pdf/2010/D9B/01May10/49018531.pdf?T=PP=ANK=49018531S=RD=bthEbscoContent=dGJyMNHr7ESeqLE4yNfsOLCmr0mep7VSs6u4Sq%2BWxWXSContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIA Emerging Markets Monitor (2010) Vol.  16 Issue 32, p17-17 available at http://content.ebscohost.com/pdf25_26/pdf/2010/5DB/22Nov10/55340054.pdf?T=PP=ANK=55340054S=RD=bthEbscoContent=dGJyMNHr7ESeqLE4yNfsOLCmr0mep7VSsKi4Sa6WxWXSContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIA Analysis of Causes of UAE Economic Downfall Analysis of Causes of UAE Economic Downfall Introduction and Business reasons: The global liquidity crunch has affected most of the countries and among the highly affected countries is United Arab Emirates which was one among the growing business hubs in the world with its massive development and acceptance of different culture and business. Dubai known as the economic capital of U.A.E was badly affected by the recession. Consequently, huge fortunes have been wiped out due to Dubais current economic crisis exposing the risk of doing business in the Gulf. The expansion of Dubai was very ambitious but improbable. A $64 billion project that was initially planned at 107 square miles for a development that was to be the worlds largest collection of theme parks, shops, residences, and hotels called the Dubai Land.  For now all these remain a fantasy which is the cause of the economic downturn. WILSON, Z (2009) As a consequence to that, various other projects like an underwater hotel, a Tiger Woods golf course, a residential community set among full-scale replicas of the Seven Wonders of the World, a rotating skyscraper, and a beach designed by Versace, complete with chilled sand have been delayed. However after six years of quick expansion, the emirate had approximately $600 billion going into construction and is home to the worlds tallest building, the worlds largest shopping mall,  the biggest man-made island and  an indoor ski resort. These rapid developments caused a 7% increase in population anually. WILSON, Z (2009) However, once the recession hit the country, the economic conditions and development scuttled. Currently, an estimated 50% of construction have been delayed or cancelled, banks have stopped lending, real estate prices fell down by 41% in the first quarter of 2009 and are estimated to drop more and the stock market has fallen 70% from its peak. Due to this economic crisis, the expatriates living in the emirate are either fleeing or have lost their jobs. When the economy of Dubai was in its booming stage, it had 80% of its total 1.7 million residents to be foreigners. As long as this economic condition prevails in the emirate, life is going to be a challenge for the foreigners and other residents. However Abu Dhabi which is the capital of U.A.E has helped Dubai with $10 billion which is still a small amount when compared to the debt of Dubai estimated to be over $50 billion. Abu Dhabi is also being affected slowly due to the recession. However the impact is lesser than Dubai since Abu Dhabi controls over 90% of U.A.Es oil reserve and is also home to one among the biggest investment company in the world known as ADIA (Abu Dhabi Investment Authority) The research will have its focus mainly on the damage done to the financial market and Business of the country. U.A.Es strategy towards gaining momentum in overcoming the economic crisis will be critically analyzed. Personal reasons: U.A.Es development has always amused me. The country is one among the leading business hubs with all major multinational companies in the world. I had always wanted to study the business sector and financial market of U.A.E but coming from an Engineering background I did not have the tools and resources to do so which is the reason I have taken MSc International Business. I am taking this opportunity to study the countrys business using the tools and resources that I have already studied and going to study during my course. Moreover it would help me to understand more about International Business and reasons to the economic downfall of U.A.E. This would also help me once I go back in order to start a business. The knowledge of the economic situation and its detailed study would help me a great deal. III.PRELIMINARY LITERATURE REVIEW: During the late 2007, with the US economy going through its worst post war recession, the global economy faced the most synchronised recession ever which was a result of increased globalisation and global interdependence financially and trade linkages. The economies of almost all the major developed countries shrivelled rapidly along with many trade dependent developing countries which include U.A.E along with other major countries like India and China. Anirvan B and Pami D (2010). Before the spread of the global recession, it was believed only the U.S economy will face the economic downfall. But almost the whole of Europe and cuntries like India and China were also hit badly along with U.A.E which is a small developing country with big ambition. The economy of dubai was growing at an alarming rate with projects estimated to approximately $660 billion until the recession hit. In november 2009, the announcement of Dubai that it was going to freeze $26 billion of debt was a shock to the world and after two months when the real estate market crashed, Dubai government had over $60 billion debt which created serious doubts in the minds of investors about Dubai. A political science professor at Durham University in the U.K. stated The real story of Dubai is that it was a trick, Christopher D (2010). Abu Dhabi which is the capital of United Arab Emirates has been using its $43 billion of annual oil revenue to work controlled by one among the worlds biggest investment company called ADIA (Abu Dhabi Investment Authority) building art museums, mosques and a renewable energy research institute. Pendleton and Devon (2010) Vol.  185 Issue 5, p108-109 With the likes of abundant oil reserves of Abu Dhabi and one of the worlds biggest institutional investors (ADIA), Dubai has a ray of hope in surviving the current economic crisis. Abu Dhabi Inbestment Authority is known to be one of the biggest financial institutions in the world ranking second after the Bank of Japan, according to the Oxford Business Group. Roy and Sudip ()2006, Vol.  37 (444), 70-76. The company established in 1976 by the late ruler of U.A.E Sheikh Zayed Bin Sultan Al Nahiyan had its gaol towards investing the countrys surpluses in International market with low risks. The company currently manages U.A.Es surplus oil reserve which is estimated to be approximately $500 billion. The company has been able to raise its liquidity during this global crisis when equity market was struck severely. The country is mainly depending on the turnover of this establishment. The companys aproach towards investment in US and Europe market are looking strong. Sheikh Ahmad say s US treasuries are still the most liquid benchmark bonds in the world and will remain an important diversification tool. Mccrum and Philip (2010), Vol.  54 ,8, p30-31. In 2009, Dubais Jebel Ali airport which is going to be the worlds biggest airport found its construction at halt as its development plans were threatened by the gloabl economic crisis. The current economic situation has mainly affected the real estate market of U.A.E. With reduced net migration, decreasing jobs and the lack of availbility of credit has badly affected the real estate market. The prices for properties has gone down by 40% and reduced liquidity and credit for developers has shut down major projects. While there is no consumption data, inflation figures are below requirements. Dubais à ¢Ã¢â€š ¬Ã‹Å"housing, electricity, gas and other fuels inflation was at 0.5% in February 2009 which was the lowest during that year. Emerging Markets Monitor (2010) 16,(32) 17. The emirate of Abu Dhabi shows less vulnerability to the current economic crisis when compared to Dubai. The Dubai Government had announces at 6 month stand still for debt payments in november 2009. U.A.Es economic recovery only started gaining momentum in 2010. In this research, I will endeavour to highlight the key positive development that has occured since the recession and critically analyze the countrys future strategy. IV.RESEARCH questions and OBJECTIVES: 4.1 Research QUESTIONS: What are the reasons for the tragic economic downfall of U.A.E especially in the emirate of Dubai? What is the extent of damage to the financial market and business in the country due to the recession? How badly is the real estate market sector affected due to recession and what are its impacts on the residents? How has this economic downfall affected the countrys financial market? What are the measures undertaken by the government and private business sectors to recover from the financial crisis? 4.2 Research OBJECTIVES: To critically analyze the reason for the economic downfall in U.A.E. To critically analyze and comment on the extent of damage and the precise business sectors that are most affected due to the recession in U.A.E. To critically evaluate the downfall in the real estate market and its impact on the residents To evaluate the effect of recession on U.A.Es financial market. Finally, to comment on the measures undertaken to recover from the financial crisis and recommend measures which can help the recovery V.RESEARCH PLAN: Analysing a global phenomenon (the green phenomenon) at a European level and carrying out researches about a pillar industry (the automotive industry) that indicates most of the European countries economic health implies that various data are available. Whilst numerous advantages such as giving precious in-depth data concerning the topic, it also means that important drawbacks will arise such as so-called fake or disinformation data. Furthermore, this fact also implies that while collecting accurate data on such hot topics, the need to constantly access the latest and up to date data will be crucial and even unavoidable alongside my research. 5. 1 Data collection methods outline 5.1.1 Secondary Data In order to complete my research, I will be using secondary data like text books that are available at Coventry University related to Business strategy and Management to use the appropriate tools required to analyze a company or business that is hostile due to recession. Books like Business strategy Formulation Ulwick, Anthony W (2004), Chaotics: The Business of Managing and Marketing in the Age of Turbulence  Kotler, Philip  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  C, John A (2009) and Stock Market Cycles: Practical Explanation Bolten, Steven E.  Ãƒâ€šÃ‚  (2000). Other databases like EBSCO will be used to find journals and articles related to my research area. Articles like à ¢Ã¢â€š ¬Ã‹Å"Jebel Ali terminal faces 12-month delay Foreman,c (2009) Middle East Economic digest, Vol 3,(9) 18 and à ¢Ã¢â€š ¬Ã‹Å"Contractors pay for falling prices Foreman,c (2009) Middle East Economic digest, Vol 53,(5) 27-30.. Other articles and journals will be used for as my research progresses. Database li ke SAGE journals will also be used to find journals on Global recession and its effect on develpoed and developing countries. 5.1.2 Primary data Interviews One on one interview will be conducted with the IT department head of ADIA (Abu Dhabi investment Authority) as a part of primary data collection for my research. The interview will help me understand and perceive how the company is doing and regarding their current investments. Depending on the quality and depth of the information collected from this interview, I will be conducting another interview with the Marketing Manager of Abu Dhabi Cable Factory L.L.C which is a company I used to work for before the start of my course at Coventry University. All these data will help me comment on the present economic condition in United Arab Emirates and their future plans as my research progresses. 5.2 Data collection methods per objective In order to complete my first objective, I will be using journals and articles from databases like EBSCO and SAGE journals that contains materials purely on recession, its roots and forecasts. The second objective will be addressed using the information collected from the interviews and journals from EBSCO. For the third objective, information will be collected from databases like EBSO and SAGE journals. Additional information will be collected from local newspaper articles in United Arab Emirates. For the fourth and the fifth objective, information collected from the interviews will be used along with other journals and articles. In order to recommend measures which could help the recovery from recession, I would use information from books like Business strategy Formulation Ulwick, Anthony W (2004), Chaotics: The Business of Managing and Marketing in the Age of Turbulence  Kotler, Philip  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  C, John A (2009). 5.3 Analysis of data Primary data collected by interview will be grouped accordingly to answer the necessary objective of my research work. In order to do so I will be using the NVIVO 9 software which will help me analyze any unstructured information collected. 5.4 Limitations As far as the secondary data is concerned, the limitations are that the information available is from a third persons point of view which might not be accurate and also that we could find information contradicting some particular information since the research will talk about issues concerning the reason for the countrys current economic condition and measures that could be employed to overcome the economic crisis. The limitations for the primary data would be that the information collected may not be precise as it is information regarding a company or economy from an individuals perspective. VI.ETHICS I will ensure that I will follow the Universitys ethical procedures and submit the low risk ethical approval form and follow all the guidelines. For my primary data collection, I shall use the participation information leaflet for interviews and also attach a consent form for interviews. Interviews will not be conducted in ways that could go against the ethical issues like harm the respondents or question their honesty. All the data collected will be treated confidentially and will not be used for any other purpose than the research work. All data will be securely kept in line with the Data Protection Act 1998. VII.LIST OF REFERENCES Wilson, Z (2009) ROAD TO NOWHERE  : FAST COMPANY 138, (13) 90-93 BusinessWeek (2009) ECONOMICS POLICY JAWBONING THE BANKS  4161, (4) 8-13 available at http://web.ebscohost.com/ehost/detail?hid=15sid=67e26db4-aa56-4136-9b5e-63151b0d62e8%40sessionmgr14vid=10bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bthAN=47040807 Foreman, C (2009) Jebel Ali terminal faces 12-month delay : MEED-  Middle East Economic Digest 53, (9) 18 Anirvan, B and Pami, D (2010) Synchronisation of Recessions in Major Developed and Emerging Economie  : The Journal of Applied Economic Research 4, (2) 197-223 avalible at http://mar.sagepub.com/content/4/2/197.full.pdf+html Pendleton and Devon (2010) Middle Eastern Mirage  : Forbes 185, (5) 108-109 Mccrum and Philip (2010) Abu Dhabi begins to open up.  : MEED-  Middle East Economic Digest 54, (8) 30-31 Ulwick and Anthony, W (2004) Business strategy Formulation Kotler  ; Philip, C and John A (2009) Chaotics: The Business of Managing and Marketing in the Age of Turbulence   Bolten and Steven, E.  Ãƒâ€šÃ‚  (2000) Stock Market Cycles: Practical Explanation Middle East Monitor:  The Gulf (2010) 20, (5) 4-5 avalilable at http://content.ebscohost.com/pdf23_24/pdf/2010/D9B/01May10/49018531.pdf?T=PP=ANK=49018531S=RD=bthEbscoContent=dGJyMNHr7ESeqLE4yNfsOLCmr0mep7VSs6u4Sq%2BWxWXSContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIA Emerging Markets Monitor (2010) Vol.  16 Issue 32, p17-17 available at http://content.ebscohost.com/pdf25_26/pdf/2010/5DB/22Nov10/55340054.pdf?T=PP=ANK=55340054S=RD=bthEbscoContent=dGJyMNHr7ESeqLE4yNfsOLCmr0mep7VSsKi4Sa6WxWXSContentCustomer=dGJyMPGvtk%2BwrrFQuePfgeyx44Dt6fIA

Samsung Distribution Channel

Samsung marketing strategy in china Nowadays, China’s communication industry is developing rapidly, and China has become the biggest mobile phone market all over the world. There are many international renowned mobile phone manufactures and local producers in this market and these companies are competing fiercely in China’s mobile phone industry. It is known that, in 1999, when the domestic mobile phone brands entered the mobile phone market, few people had expected that the domestic mobile phone brands would survive in this market. However, with the passage of time, the local brands made great development and their total market share surpassed that of the international mobile phone giants including Nokia and Motorola. In 2001, the market share of domestic mobile phone was 15%; in 2002, the rate was more than 30%; and in 2003, the market share rose to more than 50%, which was a historical breakthrough for the domestic brands. However, since 2004, the condition of China-made mobile phones has become negative. As the competition in this market gets fiercer, foreign mobile phone manufactures are consistently developing new brands and improving their distribution channels, and the domestic brands have lost the once-owned channel advantages. Because of some problems of domestic mobile phone industry, the market share rate has dropped dramatically, and most of the domestic mobile phone companies have suffered great losses. What was worse, some domestic mobile phone enterprises such as PANDA, EASTCOM, and SHOUXIN were so badly defeated that they were out of the Chinese mobile phone market. In this market with fierce competition, Samsung–a Korean mobile phone brand has developed quickly in recent years and continuously won the first place in market share. As one of the world’s top three major mobile phone manufacturers and the Korea phone leader, Samsung mobile phone’s product concept is â€Å"fashion-leading technology†. Its brand development strategy is to create the best products in the world. Samsung has created many number ones, such as the world’s first mobile phone that has a rotating screen–SGH-V200, the world’s first MP3 phone, the world’s first TV phone, watch phone and the world’s first CDMA/GSM dual-mode mobile phone. Samsung mobile phone is taking the high-end product strategy, which is different from Nokia and Motorola. In the high-end electronics market, Samsung is always the first to launch a variety of superior products and it always makes high profits by virtue of time advantage. In China in the year 2008, Samsung introduced 20 models of mobile phones, of which the appearance, the function and the quality are designed with advanced concepts, innovative technologies and world-class standard. Samsung mobile phones are always popular in China and the other countries all over the world. The success of the Samsung mobile phone enterprise in China lies in its unique industry background and professional strengths, and the company also benefits from research and development and the marketing strategies which are compatible with the environment. Marketing strategy is the marketing logic whereby the company hopes to achieve its marketing objectives, which includes special strategies for target markets, positioning, the marketing mix and marketing expenditure levels. Once the overall competitive marketing strategy is set, the company is ready to begin planning the details of the Marketing Mix, one of the major concepts in modern marketing. The Marketing Mix consists of many variables that the company should do to increase its product demand. These variables are known as the 4Ps: product, price, promotion and place (distribution). The reasonable Marketing Mix could help the company to establish strong positioning in the target markets. Based on the understanding of the importance of 4Ps Marketing Mix and its impact on China’s mobile phone industry, this paper is divided into five chapters. Chapter one is the introduction. It briefly introduces the research background and its academic and practical implications. Chapter two is the thorough analysis of current domestic mobile phone market. After the introduction to China’s mobile phone development history, this chapter mainly analyzes the internal and external environment of China’s mobile phone industry by virtue of the SWOT Analysis Method. Though the analysis, it is known that domestic mobile phones have some advantages, such as the cost advantage, localization advantage and fast market reaction advantage. The weaknesses of the domestic mobile phones are that the core technologies are weak, mobile phone qualities are not guaranteed, there is serious product homogenization and most of the domestic mobile phone enterprises are on a small scale. It is certain that the local mobile phone industry has many opportunities for its development, which include the sound economic conditions, the support from the government, the coming of 3G era and the coming of phone replacement rush. However, domestic mobile phone companies do face some threats, such as the threats from copycat mobile phones and the international mobile phone’s fierce competition. Chapter three is the introduction to Samsung mobile phone and the analysis of its successful marketing strategies in China. In this chapter, it is known that Samsung’s successful marketing strategies could mainly be expressed by the variables in its Marketing Mix. In product, Samsung is always focusing on producing high quality products to build strong brand image and enhance the brand value, offering perfect after sale services to own good reputation, launching continuous product innovation to maintain brand image and brand vitality and supplying distinctive and fashionable designs to maintain brand differences. In price, Samsung has effectively assessed the value and the quality of its digital electronic products, the importance of the product’s unique, stylish design and knows that the consumers are willing to pay high price for such products, and therefore it adopted the skim pricing strategy. In channel strategies, Samsung has always insisted on national agents, and it has prudently selected the national agents to do its distribution. In terms of the promotion strategies, Samsung always focuses on unifying advertising agencies and launching a series of effective advertising campaigns. Two of its excellent promotion strategies are launching a variety of sports sponsorship, focusing on Olympic TOP Program and making use of entertainment activities to enhance fashion marketing, which proved to be qui te effective. Chapter four concluded some implications to the local mobile phone industry. It is suggested that, in terms of the product, the domestic manufactures should master and develop core technologies, enrich the product line and produce more high-end products. Besides, the mobi

All About Past Gamsat Essay Topics

All About Past Gamsat Essay Topics You may find there's a compelling argument for learning another language after all! Selecting the proper topic for a persuasive speech can be not such an easy matter to do as it might appear. From among the persuasive speech topics listed here, select the one which you are most well-informed about or make sure you've got the time required to research and prepare an all-inclusive speech that covers every facet of the topic. For instance, a sociology professor may offer an overall topic like the effect of poverty in urban environments. Normally, having three significant arguments to demonstrate your point is sufficient for a convincing paper. At exactly the same time, detecting cause and effect relationships isn't that easy in regards to the selection of a great cause and effect essay topic. When you're choosing an essay topic, it's important to select one which has a lot of information and statistics to back up your perspective, nor exaggerate any info that you've chosen to write about. Around the world, immigration is a popular topic as countries suffer from war and financial disasters. The Debate Over past Gamsat Essay Topics Naturally, you can pick any topic, nobody could ever know that you're describing experience that you never actually had, but don't forget that it is always simpler to tell the truth than to invent lies. Some can require research although others may require the usage of the five senses and figurative language. F. Bacon The main goal of the capital isn't to get as much money as possible, yet to make sure that money causes a better life. Whilst philosophy involves each of the above, it is likewise a social, everyday occurrence that's useful to every one of us. The Battle Over past Gamsat Essay Topics and How to Win It Work on grammar and be certain you can continue to keep a consistent tense and perspective. When you are finished with your essay, you must not simply check it for spelling and grammatical errors, but nevertheless, it also has to be checked for logical fallacies. Preferably, it needs to be something that you're an expert in. You have to be able to use persuasive language. The ideal topic for your essay is one which is aligned with your region of study. It will be reviewed and evaluated in tight time. 1 important thing that you should do when writing your essay is to ensure it is personal. Writing an excellent essay might be a bit of cake if you are feeling inspired. Utilizing a writing service is the best means to have a well-written essay to use as a guideline to make sure the essays you write are hitting each of the important points and are at the appropriate depth needed for your academic grade. Thus, it's important to read corresponding formatting guide. There are many steps which you should take as a way to compose an exemplary essay. So without further ado, here are a few effective writing tips to produce your common app essay stick out! In this kind of situation, it's more convenient to discover ready-made essays and use them as an example. An argumentative essay is a certain sort of academic writing. In open-ended essay assignments, deciding on an essay topic gets crucial to the general success of the bit of writing. There are several good persuasive essay topics to pick from. If it's necessary to write your whole essay in 1 day, do your very best to give yourself breaks so you don't burn out. Attempt to consider what age is fantastic for students to date with one another. The very first step is where a significant number of students become stuck. The variety of body paragraphs will mostly rely on the amount of your paper. The Past Gamsat Essay Topics Game Writing about nuclear weapons is always a superb idea. While students may initially enjoy the idea of deciding upon an essay topic, they soon understand that the determination of essay topic ideas can be somewhat difficult. Otherwise, you must have a look at a number of the easy compare and contrast essay topics on the many scientific innovations. Persuasive essay topics don't always must be of a significant nature, you can write about things which are linked in your life. Understanding how to compose a strong argumentative paper can help you advance your very own argumentative thinking. If you're struggling, you always have the option to get help by utilizing an essay writing service such as ours. In an issue of speaking, picking out persuasive essay topics is similar to telling yourself what you wish to convey to the rest of the planet. Still, figuring out the very best topic for your essay isn't your only concern for a student.

Classic Behavioristic Principles of Psychology Developed...

According to Gewirtz and Pelà ¡ez-Nogueras (1992), â€Å"B. F. Skinner contributed a great deal to advancing an understanding of basic psychological processes and to the applications of science-based interventions to problems of individual and social importance.† He contributed to â€Å"human and nonhuman behavior, including human behavioral development, and to various segments of the life span, including human infancy† (p. 1411). One of Skinners greatest scientific discoveries was â€Å"single reinforcement† which became sufficient for â€Å"operant conditioning, the role of extinction in the discovery of intermittent schedules, the development of the method of shaping by successive approximation, and Skinners break with and rejection of stimulus-response†¦show more content†¦The introduction has demonstrated the origins and influences of both reinforcement and behavioral therapy Skinner In this case, we first discuss about the modern-day applications of reinforcement learning in education. Second, we will discuss about the modern-day applications of reinforcement learning in behavior therapy. Lastly, an overall conclusion will be provided to discuss about how Skinners theory of human behavior and how it influenced and evolved reinforcement learning in both education and behavior therapy today. Modern-day applications of Reinforcement learning in Education Originally, reinforcement learning was motivated by â€Å"animal learning of sequential behavior, but has been developed and extended in the field of machine learning as an approach to Markov decision processes† (Ishii and Yoshida, 2006, p. 326). According to Andersen and Sandaker (2010), â€Å"A reinforcer is a stimulus which affects the probability of the kind of behaviour that produces it.? There can be both positive reinforcers and negative reinforcers. One where â€Å"behaviour that produces stimuli that reinforce consequences will increase.† The other is where â€Å"behaviour that produces these stimuli decreases or behaviour that removes them or postpones them increases.† Therefore, â€Å"many reinforcing stimuli are unconditional and function as reinforcers without prior learning. man is aShow MoreRelatedBehaviorism and Classical Conditioning Essay3350 Words   |  14 Pagesmentalistic and overly conscious theories. In 1913, John B. Watson gave severa l lectures describing a new, exclusively mentalistic concept of the science of psychological study. Watson abandoned any possibility of introspection, choosing to claim that psychology can only be the study of observable human behavior and anything that is not observable does not exist. To many psychologists of his time, Watsons new theories were not only radical, but ridiculous, but to the younger American psychologists, fatigued