4. Justification of the chosen strategy
The main reason we choose it is Dubai is because it’s a international town in the world, just same like New York, London, Tokyo and Hang Kong. Also, because of its fast globalization, great population and remarkable geographic location bring the different kinds of cultures to Dubai, such as different tourist, currency and languages. The national and official language of Dubai is Arabic and second languages is English. So, there is no languages obstruction here. We could use English to communicate with government and public and if we hire employee locally, they would be familiar with English, Arabic and other language so they can take care of different kinds of customs well.
Due to American is the…show more content… Firehouse Subs could use local resources to to help them manage business.
Firehouse Subs may start business in Dubai as first step in middle east market. It’s a huge market for food business and we can open chain enterprises if it works well in Dubai. Therefor, a acceptable price strategy should be concern in operation.
Moreover, there is an important reason to choose Dubai to expand their business. It’s the high average growth of GDP. “The Gross Domestic Product (GDP) in the United Arab Emirates expanded 5.20 percent in 2013 from the previous year. GDP Growth Rate in the United Arab Emirates averaged 4.66 percent from 2000 until 2013, reaching an all time high of 9.80 percent in 2006 and a record low of -4.80 percent in 2009. GDP Growth Rate in the United Arab Emirates is reported by the National Bureau of Statistics, UAE.”(United Arab Emirates GDP Growth Rate 2000-2015, Trading Economics) So, the performance is too great to support Firehouse Subs start business and make sure the attractive for customs.
In addition, because of the quick growth of Dubai economic and more transportation will be built, more opportunities for business. The government offer a stable and flexible environment and Firehouse Subs could not concern the political effects. Dubai has so many tax-free zone and it’s almost duty free for personal. Dubai is also the major transport hub and financial center, Firehouse Subs will