Challenges Facing Emirates Motor Company

6087 Words Jun 10th, 2015 25 Pages
Challenges Facing Emirates Motor Company in the Importation of Automobiles from Germany to UAE
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Executive Summary
There are a number of challenges faced by organizations wishing to conduct business with other firms in a foreign country. The reason behind this is that the organization will be required to engage either in the importation or exportation of goods or services. The Emirates Motor Company has for many years engaged in the importation of Mercedes Benz from Germany into the UAE. One of the major challenges that the organization has suffered is lack of sufficient funding. As such, the organization has not been in a position to fully exploit the UAE
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The company is considered to be one of ‘German’s big 3’ manufactures of luxury automobiles along with BMW and Audi. The three manufacturers currently dominate the world market for luxury cars. Over the past years, Mercedes Benz has been seen to engage in activities aimed at increasing its global presence. The company has been seen to open franchises in Asia, Europe, and the Middle East in order to take advantage of the rapid economic growth in the regions. The company has also been seen to keenly monitor its African market. It has opened a franchise in Egypt to help it conduct business with Africa more efficiently and effectively. In 2014 alone, Mercedes Benz sold 2.5 million cars.
Besides the manufacture of automobiles, the company also offers financial services. It performs this role through the help of Daimler Financial Services AG. The arm of the organization has aided the company to further penetrate the Middle East market. In 2009, Mercedes Benz announced the official opening of Mercedes-Benz Leasing Middle East and Mercedes-Benz Finance Middle East. The two new companies owned by Mercedes Benz had their headquarters established at Dubai, one of the regions making up the United Arab Emirates (UAE) (Coughlin & Ambrosio, 2012). They were established with the aim of providing lease and loan services to private and business customers who wish to purchase pre-owned and new commercial and passenger automobiles from…