Introduction
Emaar was established in 1997 as a real estate deeloper than creates master-planned communities to meet demands and needs of people (Emaar Properties, 2010). Few of the significant masterpieces of Emmmar include: Downtown Dubai, the Burj Khalifa Tower, the Dubai Mall, and the Dubai Fountain. Currently, Emaar is expanding the company's market for master-planned communities in major markets across USA, India, Pakisatan, Jordan, Saudi Arabia, Egypt, United Arab Emirates, Canada, Turkey, and Lebanon. Aside from the full real estate concentration, Emaar also has stakes in the hospitality and leisure industry with the creation of Emaar Hospitality Group LLC.
For the year 2011, Emaar Properties posted a revenue of AED 5.87 billion (for the three quarters), which was a little lower than the AED 12.15 billion posted in 2010(Emaar, 2011). The current capitalization of Emaar is AED 16.5 billion, making it one of the largest real estate organization in UAE. The revenue of Emaar comes from its 12 hotels and resorts, as well as from the 650,000 sq. m. of revenue generating assets [from rents] (Emaar, 2011). In essence, the revenue of Emaar can be traced to its four key group divisions: Property Development UAE, Property Development International, Malls and Retail, and Hotels Resorts and Hospitality.
As Emaar Properties moves international, the competition also grows steeper. To combat this threat and risk, Emaar uses its core competencies as defined by the organization's success in the UAE market. By using the Emaar Dubai business model and practices, Emaar anchors on an already trusted marketing design, project management, and supply chain and distribution networks. The global expansion of Emaar is a very important aspect to the company's growth as it increases its revenue from international operations. The organization follows a very simple method of growth: using of core assets into income generating sources that will increase the company's thrust in the market.
Strategy of the Company
Emaar Properties PJSC's mission statement is "to transform Emaar into a one-stop, global solution provider for lifestyle, including homes, work, play, leisure, retail, health, education, finance, industry and more...to make Emaar the example of Quality Lifestyle across the Globe (Emaar Properties, 2010)." The organization does not just aim to become the leading real estate developer, but it aims to provider more than real estate development.
Differentiation is a vital part of the company's business strategy. Emaar develops unique products and offerings according to market segmentation. This ensures that products are specifically crafted to meet different growth engines as clustered by the market. Emaar's expertise in master-planned communities helps the company to expand operations to international markets. These master-planned communities are not focused on the residential or commercial demands of the market, rather these communities offer variety of products and services that can meet the unique customer segments of Emaar.
The business strategy can be seen on how Emaar develops strong stakes in the hospitality and shopping mall subsidiaries to meet demands of market and to create significant revenue. This is also true to Emaar's creation of affordable housing through its subsidiary—the Al Dawahi (Emaar, 2011). In essence, the business strategy of Emaar is not solely anchored on differentiation, but also on low cost [for this still appeals to general market audience].
In terms of evaluation and measurement of productivity, Emaar's segmented organizational structure provides the company an easy way to evaluate how each division works. This means that the division is monitored and evaluated based on the financial performance. Yet, in terms of aesthetic and design, evaluation of Emaar can only be anchored on external reviews. Overall, evaluation of the productivity of the workers is deeply anchored on the financial results and productivity of the company, rather than on the operation procedures.
References:
Emaar. (2011). Emaar Properties PJSC Corporate Presentation. Emaar Properties PJSC.
Emaar Properties. (2010). About Emaar. Retrieved from http://www.emaar.com/index.aspx? page=about-mission
