Battle of the glitters in the United Arab Emirates
Publication date: 4 July 2020
Abstract
Learning outcomes
Expected learning objectives students will be able to examine the possible reasons for a company’s poor performance using relevant business tools. Students will be able to critically assess the role of technology and social media in the gem and jewellery industry in Dubai. Students will be able to analyse the customer segmentation approach used by five diamonds and to critically analyse its advantages and disadvantages. Students will be able to use the SWOT framework to identify the key weaknesses of and threats to five diamonds and identify the strengths and opportunities that the company needed to capitalize on, to be more competitive in the industry and generate high profitability. Students will be able to critically analyse the fit between the firm’s current business strategy and its business environment and develop a “turnaround” strategy.
Case overview/synopsis
Five diamonds were a trading company that dealt in gems and jewellery, natural pearls and branded watches. The company had been founded by Mustafa Al Fardan in 2003 and was currently run by his son Mohammed Al Fardan who held the position of General Manager. The company was based in Dubai, United Arab Emirates (UAE) with two local branches and eight international branches in China, France, India, Switzerland, Hong Kong and the UK. The branches were located in Palm Strip Jumeirah and in the Jumeirah Al Naseem Hotel, in the Umm Sequim area. The Palm Strip Jumeirah region is one of the largest and crowded areas in Dubai with world-class facilities such as hotels, clinics, restaurants, beaches and clubs, making it a perfect location for tourists. The Umm Sequim region is in the same area where the iconic seven-star hotel, Burj Al Arab, is located. The place is also a “must be” place for tourists and has recorded a significant increase in traffic at different times of the year. Despite their strong presence locally and internationally, the firm was facing fierce competition from the hostile business environment. Industry trends and the business environment were changing the local and global gems and jewellery industry landscape. These changes had offset five diamonds’ business strategy and its long-held business tradition. As a result, the company yearly profit had started to plummet. The company needed to revise its existing business strategy and the way it operated in the market. Failure to do so would have resulted in the firm missing the huge growth opportunity and also put itself into jeopardy.
Complexity academic level
This case is useful for undergraduate and postgraduate students majoring in marketing, business management and/or strategic management.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 11: Strategy.
Keywords
Acknowledgements
Acknowledgement: The authors wish to express our highest gratitude to Allah for his blessings and guidance. They would wish to thank Mr Mohammed Al Fardan, a General Manage of Five Diamonds who was very welcoming and friendly, for his time, trust and the much valued information he provided in order for us to be able to present this case study.Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Almheiri, M.K., Ahmad, S.Z. and Abu Bakar, A.R. (2020), "Battle of the glitters in the United Arab Emirates", , Vol. 10 No. 2. https://doi.org/10.1108/EEMCS-02-2019-0030
Publisher
:Emerald Publishing Limited
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