The UAE retail sector continues to grow, supported by the upgrading of existing retail stores and the addition of state of the art new mega retail stores. The UAE market presents retailers with diverse relatively high-income consumers. Exporters who are willing to establish personal relationships, consolidate shipments, and meet the labeling requirements of the UAE market will find a rapidly growing sector in which to sell a wide range or products. Annual sales in the industry are estimated at $3.5 billion. The UAE food retail sector continues its aggressive growth. More large type stores are being built. French retail chain already operates in the market while a new one is being prepared to launch its services. Value of retailed products are currently estimated by trades at about $2.5 billion. The French Retail Giant, Carrefour, has moved aggressively into the retail of food and non-food products in the United Arab Emirates and is expected to open at more locations across the UAE. Other Arabian Peninsula markets are definitely in the cards for this retailer as consumers go more and more for low prices and everything under one roof. Aruvian's R'search analyzes the Food Retail Industry in the UAE in Michael Porter's Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
Food Retail Industry in the UAE' Porter's Five Forces Strategy Analysis
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Food Retail Industry in the UAE' Porter's Five Forces Strategy
Analysis
Published on May 2010
Report Summary
The UAE retail sector continues to grow, supported by the upgrading of existing retail stores and the addition of state of the art new
mega retail stores. The UAE market presents retailers with diverse relatively high-income consumers. Exporters who are willing to
establish personal relationships, consolidate shipments, and meet the labeling requirements of the UAE market will find a rapidly
growing sector in which to sell a wide range or products. Annual sales in the industry are estimated at $3.5 billion.
The UAE food retail sector continues its aggressive growth. More large type stores are being built. French retail chain already
operates in the market while a new one is being prepared to launch its services. Value of retailed products are currently estimated by
trades at about $2.5 billion.
The French Retail Giant, Carrefour, has moved aggressively into the retail of food and non-food products in the United Arab Emirates
and is expected to open at more locations across the UAE. Other Arabian Peninsula markets are definitely in the cards for this retailer
as consumers go more and more for low prices and everything under one roof.
Aruvian's R'search analyzes the Food Retail Industry in the UAE in Michael Porter's Five Forces Analysis. It uses concepts developed
in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of
a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They
consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces
normally requires a company to re-assess the marketplace.
Table of Content
A. Executive Summary
B. Introduction to the Industry
B.1 Industry Definition
B.2 Industry Profile
B.3 Industry Structure
B.4 Future Outlook
C. Porter's Five Forces Strategy Analysis
C.1 Bargaining Power of Buyers
C.2 Bargaining Power of Suppliers
C.3 Competitive Rivalry in the Industry
C.4 Threat of New Entrants
C.5 Threat of Substitutes
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D. Conclusion
E. Glossary of Terms
Companies Mentioned
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