Dubai Chamber of Commerce (Essay Sample)

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10th June 2014
Dubai Chamber of Commerce: Company Analysis
Companies are extending their services outside their home countries. On one hand, the practice of establishing international business operations is aimed at realizing new market accessibility, cost advantages, and new talent pools. On the other hand, firms with sole reliance on their domestic strength are faced with increased threats from foreign investors. This paper analyzes Dubai Chamber of Commerce. Furthermore, it examines the firm's history, strategic position in the emerging global markets, innovative activities, and the current financial analysis. Additionally, the paper explores some of the challenges and opportunities that companies face while operating in global settings.
History of the Company
Dubai Chamber of Commerce was founded in 1965. The private company's main purpose of establishment was to provide support towards Dubai's business community, besides ensuring that Dubai becomes an outstanding international business hub (Dubai Chamber of Commerce & Industry, 2007). Dubai Chamber of Commerce is a non-profit organization. The company's Chairman is Abdul Rahman Saif Al Ghurair while it’s President and CEO is Hamad Buamim.
The establishment of Dubai Chamber of Commerce was necessitated by a decree from the late ruler; Sheikh Rashid bin Saeed Al Maktoum (Alyousuf, 2008). Activities in the organization began with 450 members. Besides, a 12-member board of directors was in existence in 1965. However, the membership has grown, exceeding 150,000 in 2013. The company constitutes members from all economic sectors. Additionally, 24 board members exist; with the company's recent development involving the creation of 27 business groups. Furthermore, Dubai Chamber of Commerce has created 43 business councils through establishing council divisions by country.
The firm provides services such as issuance of Certificates of Origin, arbitration and mediation, holding entrepreneurial training programs, and organizing economic forums and trade fairs. The company also offers legal service provision, contract drafting, and provision of access to numerous reports and updated research.
1.1 The Company's Strategic Position in the Emerging Markets
Dubai is a fast-growing business hub (Dubai Chamber of Commerce & Industry, 2007). As such, major companies flock the region. Being one of these companies, it is increasingly becoming important for Dubai Chamber of Commerce to gain competitive advantage. As a result, the organization protects, supports, and represents the interests of Dubai, the business community. This is achieved by developing a commercial climate that is highly sophisticated.
Furthermore, the company has its focus on keeping abreast with global economic developments. Thus, the establishment exhibits rapid reactions to the dynamic market conditions — offering advice to the members about effective approaches towards enhanced business performance. In addition, the company boasts of over 120,000 members, leading to the realization of research and information center. The firm provides crucial information, legal services, and documentation (Arnold, 2012). It is also noteworthy that Dubai Chamber of Commerce offers practical business solutions and networking opportunities. The need to become a regional leader in trade has necessitated the opening of three offices in different parts of the Emirates. The practice aims at accomplishing the corporation’s mission and expanding the market.
1.2 Company Innovations and Related Significance
In 2012, Dubai Chamber of Commerce collaborated with another body to create a Commission for local banking. The commission was the first one of its kind in the region, targeting Middle East and North Africa (MENA). Later, an International Business Network was launched by the Chamber; aimed at realizing Dubai's global business set up. Hence, Dubai Chamber of Commerce became the first organization in the Middle East to provide membership at international levels.
The company's innovative activities have spearheaded ambitious development projects in the Emirates. For instance, the Chamber has established a strategic partnership; involving Compagnie Française d'Assurance pour le Commerce Extérieur (COFACE). The partnership has resulted in credit-rating services to expand international business practices (Al-Khouri, 2010). Moreover, Dubai Chamber of Commerce monitors debt collection processes using online services. As such, international B2B debts are recovered through the international debt collection service.
A recent development has also seen Dubai Chamber of Commerce launch a trading portal that is exclusive. This portal uses online means. The portal, dubbed DubaiBizMatch.com, enables companies registered with the company to trade online. Notably, the trading is conducted between companies that are affiliated with Dubai Chamber of Commerce and other global companies. The innovation has strengthened the company’s competitiveness because of perceived business access to wider global markets (Arnold, 2012). Hence, Emirates has been established as an information hub and gateway to worldwide trade. The refurbished website works to the delight of browsers because it is user-friendly, offering splendid services to all guests and members. The website is also efficient because of instant services that are provided to users and visitors; upon clicking the mouse.
1.3 Challenges and Opportunities Faced By Companies in Global Settings
1.3.1 Identifying Market Demands
Success in business is characterized by the provision of products and services that customers require (Alyousuf, 2008). With existing problems that need to be solved on the consumer's side, the supply of products or services is inevitable. However, the process of identifying actual needs of consumers in foreign countries is difficult. As such, Dubai Chamber of Commerce may be misguided and hence face various challenges because of making the assumption that what is demanded outside the company's geographical location is related to domestic demands.
1.3.2 Diluting the Power of Brand-Name
Some forms of entertainment, movies and the internet expose corporate symbols and company culture. The implication is that diluting the power of brand-names makes it difficult for organizations to gain consumer trust — upon falling prey to brand-name dilution. For the case of Dubai Chamber of Commerce, resentment brings about negative effects on the firm's performance.
1.3.3 Cultural Nuance
Print media plays a significant role by influencing consumers to purchase products. For example, the advertisement section of newspapers provides marketing messages to consumers. The intention is to attract consumer attention (Al-Khouri, 2010). However, what is perceived to be humorous in one culture may not necessarily be humorous in another culture. Hence, while dealing with different markets, firms are faced with the dilemma of establishing appropriate forms of message delivery to serve all customers. Companies such as Dubai Chamber of Commerce are faced with the challenge of producing effective advertisement that has accurate translations; besides a deep understanding of the people's culture, morals, level of motivation, and religious views.
1.3.4 Communication Style
Barriers to effective communication include differences in language, pace of negotiation in business and the match between facial expressions and words u...