Essay on Challenges Facing Emirates Motor Company

6096 Words Jun 19th, 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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In the process, the company has made it easier for potential automobile customer to prefer Mercedes Benz cars as a result of the wide range of credit facilities provided. As a result, the demand for the brand in the UAE has risen (Adler, 2006).

Literature Review a) An Overview of the Emirates Motor Company’s Import Business
Most of the manufacturing activities for Mercedes Benz are carried out within German. However, some of the franchises in the UAE are involved in the assembly of the brand and sales of spare parts. Some of the outlets that deal with Mercedes Benz automobiles import finished cars from Germany with the aim of distributing them to their stores spread across the UAE. The Al Fahim Group and Gargash Enterprises are the leading dealers of Mercedes automobiles in the UAE. The Al Fahim Group owns the Emirates Motor Company (EMC), the authorized distributor of the Mercedes Benz brand within the UAE (Coughlin & Ambrosio, 2012). Gargash Enterprises on the other hand is the official Mercedes Benz distributor within Sharjah, Dubai, as well as the Northern Emirates. The two dealers mainly re-export their cars to other countries in the Middle East. In this paper, we will pay more attention to the Al Fahim Group. The Al Fahim Group consists of a number of companies based in Abu Dhabi. Over the past decades, the group has shown great interests in a number of sectors. The Group is a major player in the automobile, hospitality,

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