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Planning The Global Business Enterprise

Decent Essays

Phase One: Planning the Global Business Enterprise
1. Identifying Global Business Opportunities The aircraft industry in The United Arab Emirates (UAE) is growing exponentially, both for commercial and military aircraft operations. Demand is strong for aircraft equipment, parts and services and there has been significant investment in establishing domestic MRO (maintenance, repair and overhaul) facilities in the region. “Opportunities for U.S. companies include fleet equipment, parts and services sales to both operators and leasing companies; sourcing aircraft parts and components, including advanced aerospace composite structures and components; and building MRO facilities and capabilities” (UAE Embassy, 2015). According to the …show more content…

As part of Lockheed Martin’s agreement with the UAE, projects that are implemented are required to add economic and commercial value to the UAE’s economy equivalent to at least 60% of the supply contract value (Tawazun, 2015). A joint venture MRO facility between AMI and Lockheed Martin would add both economic and commercial value to the UAE.
2. Analyzing International Competitors MRO competition is accelerating in Asia and the Middle East, with the major competitors being engine OEM’s such as GE, Pratt & Whitney, Rolls Royce, and to a lesser degree, Lufthansa Technik (LHT) and Air France Industries – KLM Engineering and Maintenance (AFIKLM) (MRO Titans, n.d.). UAE’s Mubadala Aerospace has acquired Abu Dhabi Aircraft Technologies (ADAT) and SR Technics (SRT) and is hoping to gain market share, while ST Aerospace is also a major competitor in the global marketplace. Many MRO’s have opened operations in the UAE and are making significant investments in growing their capabilities. “Investments in sectors like oil and gas, process industries and power generation is expected to drive demand for turbine services for the near future in GCC” (Middle East (GCC), 2010). As more participants enter the market and, considering the preference for outsourcing of maintenance activities, the market is expected to show healthy growth for the foreseeable

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