Dubai Logistics city project is the world 's first integrated logistics and multi-modal transport platform - with the new Dubai Logistics City (DLC), Jebel Ali Port and Free Zone and the new Jebel Ali International Airport (JXB) at its core. It is set up as another free zone in the desert, for reasons of vast expansion possibilities and close proximity of Jebel Ali International Airport which benefits companies for the perfect tri-modality within a single customs bond. Furthermore it is very easy to change freight from air, sea, or land transportation to neighboring countries as well as further locations. The reasons that have led to this project was although the existing facilities in the Dubai cargo village are considered to be the best
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When deciding to set up a branch the company has to look at different factors and issues such as if the facility give access to customers, workers, transportation, and materials (Inman, 2014). Furthermore the company would want to consider the factors trade zones, political risk, and any incentives that may be offered. Dubai offers a pleasantry of all of the above with a huge workforce and a largely neutral and stable role in its external political environment and its internal political stability. In addition Dubai offers free zones which are favorable for reasons that foreign companies could set up free of local ownership and benefit from a renewable 15 year guarantee of no taxation. Some issues and factors to consider for your customers are is if Dubai’s location can benefit their customers logistically. In addition will the customer receive any value adding activities? As stated in (Mangan, Lalwani, Butcher, & Javadpour, 2011) supply chain activities should enhance products to increase the customer’s perceptions of those products’ benefits. Customer value can be added to a product by improving its quality during storage, by improving the service associated with it, by reducing its costs, and/or by reducing its lead …show more content…
to open a branch in Dubai for reason of the information received of their top three clients. Based on the information not all of their customers would benefit from tri modality or the location. Furthermore, the extreme temperatures would affect the products of one of Schmidt’s major clients. Other factors in my decision are property can only be rented and not purchased and starting off where there is already a lot of competition inside the free zone. The free zones currently hosts 3,880 businesses originating from over 100 countries of which 39% come from the Middle East region, 29% from Asia, 20% from Europe and 7% from the Americas (Wouter, J., & Hall, P. V. 2007). I feel if Schmidt’s was to open a branch in Dubai it would spend too much time and resources in trying to convince their current major customers to use Dubai as a hub. In addition would just become another player in Dubai trying to build a customer base in a highly competitive logistics field.
Some opportunities companies settling in Dubai will face in the future is the possibility of expansion of the logistics platform and a constant innovation of technology to help in the process. The upcoming Expo 2020 is expected to boost the industrial sector of Dubai thus complementing the logistics segment of the economy. The much awaited event will trigger huge investments in airports, roads, ports which will bring significant
When deciding to set up a branch the company has to look at different factors and issues such as if the facility give access to customers, workers, transportation, and materials (Inman, 2014). Furthermore the company would want to consider the factors trade zones, political risk, and any incentives that may be offered. Dubai offers a pleasantry of all of the above with a huge workforce and a largely neutral and stable role in its external political environment and its internal political stability. In addition Dubai offers free zones which are favorable for reasons that foreign companies could set up free of local ownership and benefit from a renewable 15 year guarantee of no taxation. Some issues and factors to consider for your customers are is if Dubai’s location can benefit their customers logistically. In addition will the customer receive any value adding activities? As stated in (Mangan, Lalwani, Butcher, & Javadpour, 2011) supply chain activities should enhance products to increase the customer’s perceptions of those products’ benefits. Customer value can be added to a product by improving its quality during storage, by improving the service associated with it, by reducing its costs, and/or by reducing its lead …show more content…
to open a branch in Dubai for reason of the information received of their top three clients. Based on the information not all of their customers would benefit from tri modality or the location. Furthermore, the extreme temperatures would affect the products of one of Schmidt’s major clients. Other factors in my decision are property can only be rented and not purchased and starting off where there is already a lot of competition inside the free zone. The free zones currently hosts 3,880 businesses originating from over 100 countries of which 39% come from the Middle East region, 29% from Asia, 20% from Europe and 7% from the Americas (Wouter, J., & Hall, P. V. 2007). I feel if Schmidt’s was to open a branch in Dubai it would spend too much time and resources in trying to convince their current major customers to use Dubai as a hub. In addition would just become another player in Dubai trying to build a customer base in a highly competitive logistics field.
Some opportunities companies settling in Dubai will face in the future is the possibility of expansion of the logistics platform and a constant innovation of technology to help in the process. The upcoming Expo 2020 is expected to boost the industrial sector of Dubai thus complementing the logistics segment of the economy. The much awaited event will trigger huge investments in airports, roads, ports which will bring significant