Table:- bus network is mainly used by the

Table:-
7

In UAE
due to lack of parts manufacturing industries local authorized suppliers are
sometimes falling shorts of car part. Targeting this opportunity there has been
a lot of small-scale
car part suppliers in the market especially in the Northern Emirates. As per theory, the bargaining power is always higher
when the suppliers are less in the market but in this case, the gap is overcome by other third party players. Therefore
the bargaining power of the supplier is relatively low when compared with other
elements from Porter’s five force model.

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3.4.        
Bargaining
power of Supplier

As
part of Vision 2030 Dubai’s Road and Transport Authority(RTA) along with
Hyperloop One is going to implement a high-speed
revolutionary transportation project. This project is a part of the vision of
owning world’s leading infrastructure and
also in the region.(Salem, Sara.A.A,2017)

 

(Gulf News, 2016)

Table:-
6

In
line with the vision of Dubai 2030, the
transportation sector’s 25% would be driverless and smart. This would benefit an economy
with an annual saving of more than Dh22 billion.
(Gulf News, 2016)

3.3.        
Threat
of new entrants

 

The
UAE bus system help around 30million people to commute on a daily basis with
more than 193 routes provided on weekdays. The system has unique routes of
about 59 of which also helps people to travel without any hassle. However, the bus network is mainly used by the low-income group and there isn’t much done to
attract high-income groups and therefore
the major problem still remains to be the traffic congestion. (Vinod, Robin, 2015)  

3.2.3.    Buses/Taxi

 

The implementation of
Metro and trams was a great success to commute across the city for the
residents. Due to its huge demand, the
government has agreed on the refurbishing of five main metro stations like Burj
Khalifa, Dubai Internet City, Mall of Emirates, Emirates Exchange, and DAMAC. Currently, the entire metro system transports more than 650,000
passengers daily. (Priest,
Mike, 2017)

3.2.2.    Metro/trams

As
part of Dubai government’s initiative of
building a healthy society, the Roads and
Transport Authority has undertaken the project of constructing cycling tracks
that pass through residential areas like
Jumeirah Beach, Downtown, Oud Metha and many more. The agreed plan is to build
a total cycling length of 500km in Dubai by 2021. (Cerna, Fatima D.L., 2017)

3.2.1.    Cycling

The primary threat would
be the evolving public transportation
sector here in Dubai. The government has taken up various projects to enhance
the use of public transportation sector by introducing a new innovative way to commute.

3.2.        
Threat of Substitute

 

Bringing
a flat economical year in 2016, which caused an effect
on various sectors such as lack of new securities
followed by consolidation and salary reduction had pushed the consumers to be more price cautious. (Cooper.F 2017). All these factors are a strong indicator
of how price sensitive is a major point for most of the country’s population.

 

                                                                                                                

The above graph shows the demand for retail value dropped due to various factors.

 

 

 

 

Table:-
5

 

In
a recent survey conducted it states that a large
number of population in UAE considered price as the major factor for
purchasing of any product. It was found that price and quality are the major
driving factors for any purchase decision. Considering Expect, Females and Students
between the age group of 18-30 are more prices
sensitive than other demographic groups. (Pujari .V 2012) In
2008 when citywide bus service was introduced in the Capital an estimate of
50,000 people used the bus services,
these numbers increased dramatically even
after the fares were increased to Dh1 for free. But after two years when the
charges were increased to Dh2, the number of users dropped.
(The National 2014)

3.1.        
Bargaining
power of buyers:-

3.    
Porter’s
five force Analysis

 

 

 

 

For more
explanation on the topic please refer Appendix 1.

 

Strengths

Weakness

 
·       Unique
idea and first to implement
·       Friendly
user interface with real-time updates
and feedback system
 

 
·       Lack
of updated database on auto workshops in the region
·       Absence
of criteria for monitoring the workshops

Opportunities

Threats

 
·       Higher
vehicle density
·       Annual
Increase in the number of registered vehicles.
·       The total value of UAE’s used car market of
around US$2.5
billion in business.

 
·       Regulations
on new vehicle issuance to be implemented
·       Strong
public transportation network
·        Innovative and sustainable transport
facilities like Hyperloop and Tesla taxis.

 

2.    
SWOT Analysis

 

 

 

 

 

 

 

 

 

 

                 (United Arab Emirates Consumer Confidence,
2017)

Table:- 4

In the
United Arab Emirates, the second quarter
of 2017 showed slight growth in consumer confidence from 108 in the fourth
quarter of 2016 to 110 currently. The highest recorded consumer confidence was
in the first quarter of 2015 whereas the
lowest was in 2010 fourth quarter with 115 and 97 respectively. The average
consumer confidence in the UAE is 108.03 for the years between 2010 to 2017. In
the coming 12 months timeline, the
consumer confidence stands at 107.00. According
to the forecast, the consumer confidence
towards is estimated to be around 109.00 by 2020.(United Arab Emirates Consumer Confidence, 2017)  

1.2.        
United
Arab Emirates Consumer Confidence

(Emirates NBD, 2014)

Table:- 3

In the
entire MENA region, UAE is considered as a regional hub not only for cars but
also for vehicle components and parts because of being one of the largest
importers of used cars. Hence, the country plays an important role among the
GCC region positioning themselves as a major re-export center. (Emirates NBD, 2014)  

1.1.        
Automobile
Imports to the United Arab Emirates

1.    
UAE
Trends

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