Article image: Launching a company in the UAE as a competitive advantage

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Since 2004, the UAE has been governed by Sheikh Khalifa – the older son of the state’s founder Zayed Bin Sultan Al Nahyan Full version

Competitive advantage is the property of your company, which allows you to sidestep your rivals. Competitive advantages of the enterprise results in its competitiveness. They can be determined by the availability of the company's material resources, such as highly qualified personnel, location, access to technology. But most often a competitive advantage is the brand's ability to offer the client something more valuable than other representatives in this niche.

Company formation and launch of its operations in the UAE is the competitive advantage of the company for some reasons. First, the UAE is the environment that offers businessmen extremely favorable tax conditions. This is not only the absence of income and corporate taxes but also non-existence of tax on imports and exports on the territory of free trade economic zones. In addition, the UAE has the convenient geographical location, and the government of the state welcomes innovations and does everything possible to turn the United Arab Emirates into the financial center of the Middle East.

Before you formulate your competitive advantage, you need to conduct the competitive analysis, which includes the assessment of the weak and strong points of your rivals. The competitive strategy will be the result of the careful competitive analysis. The analysis will help you to identify both potential opportunities and threats that you may face in the future.

Michael Porter – a competitive advantage

Michael Porter is the famous American scientist, the author of economics theories, numerous works and 18 books devoted to the issues of competitive strategy. According to Michael Porter, there are two ways to achieve the competitive advantage. The first way is the price advantage, and the second one is the item differentiation. In the first case, the enterprise puts the more favorable price for the product. In the second one, it makes its goods more attractive to the buyer regarding quality, certain characteristics, etc.

Competitive advantages of the goods give the company the opportunity to stand out on the background of similar companies on the market. Competitive strategy of the enterprise should be formed taking into account the competitive advantage that it can offer. Now let's discuss competitive strategies of Porter. Michael Porter identifies three competitive strategies that will help the brand to sidestep its rivals:

  • Leadership strategy in costs – implies the production of goods at a lower price;
  • Strategy of commodity differentiation – production of goods of higher quality;
  • Focal strategy - an excellent strategy for small businesses, implying targeting several markets simultaneously.

Competitive advantages of the organization – this is what helps it to attract the attention of the user, accentuating it on its strengths. Competitive advantage entails the development of the identity of the company and the improvement of key competencies. The presence of the company in the UAE is an undeniable competitive advantage. A lot of enterprises were convinced of this on their own experience.

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