oxygenics dubai middle east venture

Dubai أوكسجين إكسدبي

Global Business Project Plan

http://www.energytechlabs.com/index.html


Module 01: Planning the Global Enterprise

• ETL is a small California-based company that produced Oxygenics showerheads for 20 years

• Today, Oxygenics is a leading line of eco-friendly showerheads on the US market

• Oxygenics showerheads save water and energy

• Products are innovative, commercial-grade quality, beautifully designed and have a lifetime warranty


Dubai أوكسجينModule 1: Planning the Global Enterprise إكسدبي

Potential Target Market: Dubai



Module 01: Planning the Global Enterprise

Dubai – Business Opportunity Factors:

• Desert region, scarce water• Government restrictions on water use by 2008• Diversified economy – from trade and oil to tourism and services• One of the fastest growing cities in the world• Property and construction boom• Highly developed infrastructure• Favorable conditions for FDI• Stable political and legal environment



Module 02: Analyzing International Competitors

Competitors with low-flow technology:

• Grohe (German) – 3 dealers in Dubai

• Delta (U.S.) – Dealer in Dubai

• Smaller Chinese/Australian manufacturers

Other potential competition:

• Moen

• Kohler

• American Standard

• Evolve – eco-friendly showerheads



Dubai’s Geographical factors:

• Desert

• Natural inlet (Dubai Creek)

• Port City (India)

• Hot & humid climate

Major Industries:

• Pearl exports

• Oil

• Tourism

• Service industries (IT & Finance)

Module 03: Assessing the Economic – Geographic Environment



Module 03: Assessing the Economic -Geographic Environment

Dubai’s Economic Conditions:• Gross Domestic Product (GDP $46 Billion US Dollars)• Currency (Dhirham)• Third-largest export & re-export center

Physical Infrastructure• Toll Systems• Transportation

- Water*Air*Land



1. Demographic Statistics

• Population (75% Male)

• Median age (27 years)

2. Cultural Analysis

• Culture/Language (Arabic)

• Religion (Islam)

• Attire

3. Social Institutions

• Education

• Healthcare

4. Informal trade barriers

• Business relationships (built on personal and mutual trust)

Module 04: Assessing the Social-Cultural Environment



1. Government & Politics

2. Formal Trade Barriers

• Foreign exchange controls

• Taxes & Ownership rules

3. Cost advantages for setting up your business in Dubai

• Competitive energy, real estate, financing cost

• Competitive labor costs – labor force is multi-lingual and skilled

4. Intellectual Property

• World Intellectual Property Rights Day

• Intellectual Property section at Dubai customs (created June 30, 2005)

Module 05: Assessing the Political - Legal Environment



1. ETL’s strategic objectives include goals related to:

• Product offerings

• Target market and customer benefits

• Financial offerings

• Employee retention

• Environmental contributions

2. ETL will open a representative office in the Jebel Ali Free Zone

3. ETL will import showerheads manufactured in China

Module 06: Select Global Company Structure



1. ETL will operate as a centralized organization headquartered in California

• Disadvantages can be overcome due to simplicity of Dubai operations

• Centralized organizations offer many advantages

2. Possible strategic alliances in Dubai

• Environment Agency Abu Dhabi – local government

• Leading architects/Interior designers

• Developers

• Water saving consultants

• Local retailers/distributors

Module 06: Select Global Company Structure



Module 07: Financing Sources for Global Operations

1. Economic Environment

• Highly developed infrastructure and communication systems

• No income and corporate tax

• US$ 1 = DH 3.675



Module 07: Financing Sources for Global Operations

2. Start-Up Cost

$700,000.00

3. Financing Sources

Domestic Financing

20% Down plus Collateral



Module 08: Global Management Information System

Reports • Sales forecasts• inventory reports & shipping information• commodity cost data• industry trends• “best prospects” lists

Information Sources • Internal sales staff & export management company• Manufacturing operations• commodity indexes• trade magazines• U.S. Department of Commerce

Information Technology Management• Plexus Supply Chain Management & Order Fulfillment software• EDI (Electronic Data Interchange)



Staffing: ETL will employ:

Training and Development: ETL will provide the necessary training so the employee do his job with a thorough understanding corporate processes, culture, and mission

• Host country nationals to become integral part of company culture

• Prior to assignment, managers will spend time in Dubai to build cross-cultural sensitivity and experiences

Module 09: Identifying Human Resources for Global Business Activities



Performance Appraisal: ETL recognizes the difficulty in evaluating expatriate employees and will follow these guidelines to improve performance appraisal consistency

• On-site manager will appraise all on-site employees

• On-site manager will be trained in the appraisal process to avoid bias

Compensation

• Balance sheet approach – equalizes purchasing power across countries so employees can enjoy the same standard of living as they enjoyed at home – plus premium for overseas assignment

• Base Salary – will be paid in U.S. currency

• Foreign Service Premium

• Allowances

• Taxation

Module 09: Identifying Human Resources for Global Business Activities



Module 10: Managing International Business Activities

1. Economic and Financial Risks

2. Social and Cultural Risks

• 96 % Muslim

• Weekend – Friday and Saturday

• Maternity Leave – Paid Three to Nine Months

• 30 Days of Paid Vacation, plus Holidays and Sick Days



Module 10: Managing International Business Activities

3. Political and Legal Risks

4. Risk Management Techniques

• Representative Office with National Agent

• Jabel Ali Free Zone



Product Concept: The patented Oxygenic technology offers customer the best showering experience of their lives

• Revolutionary designs

• Innovative technology and above standard performance

• Unparalleled savings

• Unbeatable customer satisfaction

Product Life Cycle: Dubai’s economic growth and environmental awareness will assure a long an prosperous product life cycle

• Economic growth

• Environmental awareness

• World class infrastructure

Module 11: Product and Market Planning



Branding and Packaging: ETL’s goal is for the Oxygenic’s name to be the most recognized name in shower heads throughout Dubai and the UAE region by obeying the Rules of “C”

• Customers first

• Clear and concise

• Communication

• Creative thought

• Congruence

• Consistency

Module 11: Product and Market Planning



Module 12: Global Distribution Strategy

1. Infrastructure Analysis – Ocean and air freight from China, 9th busiest port, advanced infrastructure and freight systems.

2. Distribution Barriers – Few barriers, Jebel Ali Free Zone, ‘warehousing & distribution base of the Middle East, coexistence of East meets West.

3. Distribution Channel – Nippon Express door-to-door service from China to Dubai, ocean & air freight, warehousing services.



1. Build relationship and marketing opportunities with Dubai Government's Department of Tourism & Commerce Marketing & Royal Family

2. Non-traditional advertising including hotel in-room digital signage, mobile advertising, and grass-roots promotion

3. Enlist Environment Agency Abu Dhabi and other regional agencies to promote Oxygenics showerhead solutions for energy, water consumption

4. Arabic language version of website, marketing material, digital billboards

Module 13: Promotional Plan, Goals and Media Plan

Fast Fact:

As the human body ages, levels of oxygen start to diminish in the skin, breaking down collagen and elastin. Oxygenics showerheads are designed to replenish oxygen with each shower and rejuvenate skin.



1. Dubai promotes itself as “The Desert’s Most Exciting City”

2. Dubai is one of the fastest growing cities in the world

3. Dubai’s hotel hospitality business is booming

4. Dubai’s natural water supply cannot keep up with urban demand

5. Water restrictions in the United Arab Emirates are on the rise

Module 13: Business & Economic Environment

Fast Fact:

With Oxygenics, an average 300-room hotel will start to see investment paybacks within 3 months.



Module 14: Cost, Demand and Competitor Analysis

1. Estimated production costs and other business expenses that will affect product pricing

2. The potential demand for this product, based on the current booming market and expected continued growth points toward a positive product trend

3. Competitor analysis shows that Australia, Taiwan and China companies are the main exporters of showerhead products to the Dubai region



THANK YOU


oxygenics dubai middle east venture

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