preview

Logistics Industry Analysis

Better Essays

EXECUTIVE SUMMARY:
This report will analyze the Supply Chain and Logistics Industry in the United Arab Emirates during the last five years. The tools and techniques used for this analysis shall be PESTEL and PORTER’S 5 forces. Further this report shall discuss about the Industry type based on the competition existing in the market and its current phase in the Industry cycle.
This report shall be considering the Industrial study conducted by major players in the Supply Chain and Logistics Industry in UAE and Logistics Reports issued by various government departments and other Logistics companies existing in the market, to discuss the critical success factors and identify the strategic groups existing.
Industry Sector:
Supply Chain and …show more content…

The decline of global trade in 2009 led to a dip of 8% but picked up in the following years. The World Bank’s logistics performance index issued in 2010 rated Dubai as the best for its logistics infrastructure in Middle East.
Added, an increase in globalization has demanded for improved industrial efficiency. Other infrastructural developments such as the Al Maktoum Airport and Dubai Logistics City have provided a multi model logistics hub. Supply chain and Logistics industry in Dubai has contributed towards 14% of UAE’s GDP in the year 2012.
Further infrastructural developments in the future includes Khalifa port in Abu Dhabi, expansion of Port Khalid in Sharjah, extensive goods rail networks connecting the GCC countries and other Airport and Port expansions. This vigorous investment in the sector is essential due to same trend prevailing among other GCC countries. This would further improve the market size and continue growth in sector.
Socio-cultural:
Social factors do have a profound influence in the industry and the market. Industries have to evolve with the change in living standards and income level of the consumers. As per the World Bank specification, UAE is classified as a ‘High income and Mid-sized populated ' country. The local market has not grown to the required level compared to the other high income group economies, which attracts a substantial percent of expatriates to invest in the local market. High Standards of

Get Access