Mai Dubai Water Market Assessment & Analysis: Global Impact - Essay Sample

Introduction

Market Assessment and analysis constitutes a qualitative and quantitative evaluation of the market (Mai Dubai Water, 2020). It takes into account various aspects such as market size both in value and volume, various segments of customers, buying patterns, competition, economic environments such as regulations and barriers to entry as well as strengths and weaknesses of the markets.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Market and marketing have become more international and global in nature, and this can only be ignored by managers around the world at their own risks (Zawya, 2020). In order to meet sustainable development and growth in the markets that are continuously becoming global or to simply thrive in the markets that are increasingly engulfed by international players, it is vital that the diversity and complexities of international marketing are understood by managers. Moreover, managers need to acquire and develop skills, knowledge, and aptitude that are needed to compete in international markets effectively.

Zawya (2020) argued that the rise of the globalization of consumer tastes, a more open economy as well as persistent development of global internet access had increased interconnectivity and interdependency of economies of various nations across the world. The necessity for a manger to acquire and develop the necessary skills to respond to these forces have great effects in companies of every size. The main focus of this study is to conduct an assessment and analysis of international markets of Mai Dubai. The study will perform an in-depth market analysis for Mai Dubai by conducting a SWOT and PESTEL analysis for Mai Dubai.

Selection of Company

Mai Dubai is a Dubai-based company that majors in the production of bottled water. The company is owned by the state-run Dubai Electricity and Water Authority (DEWA) and functions as one of the main key investments of DEWA towards diversifying their stream of revenue (Gulfnews, 2020). DEWA commands 99% of the Mai Dubai shares, although it still functions as an independently operated Limited Liability Company (Gulfnews, 2020).

The company, Mai Dubai, was launched in the year 2012 and in July 2016, the US Beverage World warded Mai Dubai a bronze award in its water category, while in May 2017, Mai Dubai was reported by Gulf News as being of the most preferred bottled water for Emirate passengers.

Mai Dubai SWOT Analysis

Strengths

• Health and hygiene conscious
• Stronger marketing and branding
• Stronger distribution networks
• Environmental friendly packaging: via the usage of recyclable plastic bottle
• Wider market
• A broader product portfolio

Weaknesses

• Stiff competition
• Misuse of empty bottles
• Incidences of used water bottles being restocked with local mafia slightly affect the image
• Availability of numerous players in the segment of packaged water leads to limited market share

Opportunities

• More collaborations with colleges, hotels, and corporates
• Should acquire competition to gain market share
• Increase distribution to sell higher numbers
• Increasing awareness of the health benefits of pure and freshwater
• Increased advertisements and sponsorship of sporting activities
• Expanding nationality to create a larger market

Threats

• Water shortages as the government may decide to reduce the supply of water to water packaging companies
• Low capital needed hence making it to be flocked by many companies
• High brand switching as people can drink any brand given to them when they become thirsty
• Government policy might affect the operations of the business

PESTEL Analysis

The PESTEL comprises six categories; political, economic, social, technological, environmental, and legal influences; all of these are external factors. The PESTEL analysis helps in identifying some of the external factors that might affect Mai Dubai in the future.

Political Analysis

Various political conditions can have an effect on the Mai Dubai bottled water company for the bad and good (Zoominfo, 2020). For instance, if the government raises taxes, then the cost of production per bottled water will correspondingly increase hence decreasing the consumers' purchasing power and, therefore, the quantity of sale; this may make Mai Dubai incur a lot of losses.

Further, if taxes are reduced, then the cost of production per bottled water will reduce hence lowering the cost of buying bottled water; this will, in turn, increase the consumers' purchasing power and result in increased sales, hence more profit to Mai Dubai.

Moreover, government regulations, such as the introduction of new laws and policies, can either encourage or discourage the sales of Mai Dubai, hence leading to profitability or loss (GlobalData, 2020). For instance, in the current pandemic brought about by coronavirus, the government may come up with new laws concerning working hours. For example, the government might come up with laws permitting the bottled Water Company to work from 7.00 am to 4.000 pm; this would have an overall effect of cutting factory working hours, leading to a reduced number of water that is being bottled hence low sales as consequently low profit (Zawya, 2020). Besides the government might decide to raise petrol taxes hence leading to petrol crisis which might interfere with the capability of tourists from reaching the water companies, halts the chain of distribution and leading to laying out of some factory employees; this can lead to the stoppage of the production process, hence a leading to financial loss to the bottled water companies such as Mai Dubai (GlobalData, 2020). The changes in government regulations and guidelines might have a significant effect on the various operations of the business. For instance, alterations in the tax requirements such as new tax rates, duty tax, or a revised interpretation of the tax laws, or changes in the accounting criteria might have adverse effects on the company's business operations.

Moreover, the ability for a new entrance into the water packaging business depends on the political atmosphere of a business environment of a given country (Zawya, 2020). The government may impose strict conditions that hinder foreign investors from getting into the water packaging industry; this may have an overall effect on protecting the local companies hence making them thrive under a favorable competition.

Economic Analysis

One of the main characteristics of the prevailing adverse development rate is normally the interest rate of borrowing (Zoominfo, 2020). Mai Dubai may borrow money for the purpose of conducting research on the current products as well as new technologies. If the price of undertaking the research is less, then the company might be capable of bringing products into the markets at a relatively low cost; this may make it possible for a majority of people to buy the bottled water as the price would be lower but with high quality of water within the bottles.

Moreover, if the consumers have loans, then they would have minimal disposable income for purchasing luxury products (Zoominfo, 2020). If the minimum wages were reduced, then this would lead to more money for the bottled water companies but would also result in minimal sales from the consumers.

Economic conditions are some of the main factors that can lead to the failure or the success of a business. If the market is strong, then the financial well-being of the Mai Dubai increases (GlobalData, 2020). Moreover, the adverse developments, as well as the nose-driving GDP of a nation, may abruptly the company's progress.

Social Analysis

Most people have nowadays recognized the need to be healthy. The damaging consequences of alcoholic drinks are never a secret to anyone. Most people are moving over their lifestyle for the purpose of remaining healthy (Zoominfo, 2020). This change of perception concerning a healthy lifestyle has been to the biggest advantage of the bottled water company. The common talks concerning non-alcoholic beverages have raised at the cost of alcoholic drinks. In the current generation, most people have attached importance to bottled water as well as other health products. Moreover, medical practitioners have played a vital role of advising people against alcoholic drinks and instead urge them to take at least eight cups of water a day in order to stay healthy; this has offered a soft spot for bottled water companies like Mai Dubai to make more sales as most people are adapting the culture of drinking fresh water for the sake of good health (GlobalData, 2020). The improved culture of drinking freshwater by the majority of people has increased demand for bottled water hence the potential financial gain by the bottled water companies.

Technological Analysis

The synergy that is attained via an appropriate mixture of marketing, advertising, as well as various promotional programs, cannot be overlooked. The relationships between these three aspects of activities lead to effective and efficient marketing of the products. GlobalData (2020) indicted that the technological advantage that has been offered by the internet serves as the most effective marketing tool for every company. The bottled water company, such the Mai Dubai, can take advantage of the technology and offer their products and services via the internet; Mai Dubai can use the internet for advertising its products and for gaining market penetration.

Furthermore, the advancements in technology in the field of product packagings such as cans and plastic containers made have made it convenient for various consumers to purchase the products (GlobalData, 2020). In addition, technological advancements have made it possible to automate the production of bottled waters hence increasing the efficiency of the bottling seed. Besides, technology made it easy for bottled water companies to easily express certain artworks in terms of images and writing in the water package materials; this has an overall effect of enhancing quality hence making most people associate with bottled water (Zawya, 2020). Also, the automation capabilities offered by the technology does away with manual productions by man as large amount of the water products can be produced within the shortest possible time by automation; this helps the bottled water company such as Mai Dubai to enhance efficiency and reliability of its production processes.

Environment Analysis

The environmental analysis involves the environmental factors that as well as other physical conditions within which the company operates. In constitutes factors like level of pollution, natural disasters, as well as water patterns (Zawya, 2020). The potential threat associated with water pollution has made municipalities use a lot of chemicals in treating water. The chemical ensures water safety but, at the same time, interferes with its natural taste; this has made most people opt for any alternatively available better-tasting water. This, therefore, has created a business opportunity for companies such as Mai Dubai to create water with better taste. Instead of consuming cheap but bad-tasting water tap water from the municipality, most consumers opt for purchasing bottled water; this, therefore, creates better business opportunities for bottled water companies like Mai Dubai. According to the Agriculture and Agri-Foods in Dubai, bottled water commands 11.9 percent of the market share of the Dubai non-alcoholic beverage market (GlobalData, 2020).

Just like many companies, the producers of bottled water have not only benefited from the general environment but have also threatened it. It has been approximated that over eighty percent of the plastic bottles get to dispose of on the environment hence causing pollution; this has invited hostility to the bottled w...