Free «Al- Futtaim vs. Al- Habtoor» Essay Sample

Al- Futtaim is a United Arab Emirates (UAE) based company considered a trading corporation. Established in the 1930s, Al- Futtaim is among the rapidly progressing regional business corporations centered in Dubai, UAE. The company operates in numerous countries globally and has more than 65 companies across a diverse array of sectors.  Some of the featured sectors include industry, services and commerce. The business firm has created employment to more than 20,000 individuals in different countries. Growth and development of Al- Futtaim can be attributed to its focus on the entrepreneurship and customer relations. This has been made possible through the constructive relations with the community at large and the individual consumers. The company has immensely realized its returns through the provision and response to the consumer and society demands in time and appropriate manner. The company provides its customers with an unrivalled range of the best commodity brands with high quality services and after sales support. Al- Futtaim is divided into eight operational departments namely; engineering and technologies, automotive, electronics, real estate, financial services, retail, general services and joint ventures. The company’s focus is on decentralized approach, where individual businesses are enabled to be versatile and flexible, thus enhancing competitive stance. Competition is beneficial to employees, and the entire company since workers gets empowered by their responsibilities and authority. Al- Futtaim is a successful corporation, and this is owed to the proactive, managing strategy it possesses (Al- Futtaim Website, 2013). It also upholds the values of service, social responsibility and integrity, making it dominated by businesses built on the portfolios of leading brands in the world.



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Al- Habtoor Company

Al- Habtoor is one of the most successful and respected companies situated in the UAE. Headquartered in Dubai, it is best known for its construction businesses, where it engages in business sectors like automotive, education, real estate, and hotel, publishing and insurance. Today, the company is recognized globally and operates in the international markets. Al- Habtoor employs over 40,000 people who help in the driving of the company’s goals forward. The company has a plan for expansion, meaning the number of workers is expected to increase incredibly. The construction division of Al- Habtoor is extensively successful because of its frequent delivery of large-scale projects across the business states. In both public and private sectors, construction division has made Al- Habtoor exceptional customer and community relations. This has led to the creation of sturdy and loyal client base in both sectors. The corporation has its focus on five principle market sectors namely: oil and gas, rail, infrastructure, mining and building. The hotel division operates top class hotels some of them being five star properties. The automotive division involves the importation of motors and distribution to the potential buyers and retailers. For instance, Al- Habtoor imports more than 60,000 motors yearly from Japan and distributes them to service centers, showrooms and parts centers. The company is characterized by dynamic growth attributed to its commitment and dedication to operating in many business sectors (Al- Habtoor Website, 2013).  Good relation with its customers and the society it serves has also contributed to its tremendous success. 

Strengths and Weaknesses of the Companies

Al- Futtaim strengths comes from the teams’ ability to relate with and understand their customers. This enables the company to provide customers with suitable needs through workable business solutions attributable to effective implementation and design of business ideas. Impressive customer base has been created by means of proper and attractive business relation. The enormous customer base enhances the delivery of practical executable plans that aid in reduction of operation cost, hence giving way to new business ventures. The company possesses a business solution provider coupled with system integrator utilized to boost the workforce. Therefore, Al- Futtaim can recruit highly skilled and professional workforce with numerous years of experience (Ligaya, 2010). The company’s strengths are based on the people forming the company, the products the company produces and the services it offers.  Innovation is also part of the Al- Futtaim company since it has to keep with the changing customer desires. Partnerships with the world’s best companies have aided in the success of the company tremendously. Moreover, the use of systematic and strategic methodologies accompanied by best practices during implementation gives Al- Futtaim the top business opportunities. The Al- Futtaim weaknesses are majorly related to the employees where services are not provided as per the customers’ expectations due to employee disability or incompetence. Financial problems have also dragged the company down in some instances.

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Al- Habtoor is an innovation oriented company having quality management teams and strategies. The workforce in the corporation is highly qualified to enhance proper service to clients.  Through the provision of clients with strong, stable, accessible resources and support, Al- Habtoor has managed to maintain a loyal and strong client/ customer base throughout UAE. The Al- Habtoor team is often directed by the success urge and is the world’s best company. The team sees no limits in growth as long as profitable growth and improvement is met. Delivery of outstanding, excellent services and goods are the company’s strength. This is possible through continuous discovery of business opportunities, which aids in contribution of worthwhile results to the communities they serve. Ambition, being broad- minded and focus have enabled the successful growth of Al- Habtoor company an incredible deal (John, 2012). A weakness of the company has majorly been related to finance, where funding a project becomes a problem hence the need for partnership.

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Improving the Companies

Improvement of a business company requires serious concentration on the weaknesses of the firm.  Changing the weak situations into modest strengths gives a company the needed enhancement in its operations. Improvement adds to a company’s competitive advantage against its competitors. Customers also are maintained or attracted by the improved company. Therefore, Al- Futtaim needs to work on its relation with the employees to enable improvement of customer services. Employee training is a good step to begin with improving of their competence. The disabled employees should also be motivated enough and given work according to their capabilities (Sambidge, 2010). Financially, Al- Futtaim can engage in partnership programs where the main partners get to contribute the capital for projects hence saving the company of excessive financial use. Partnership is also essential particularly in times of losses because all the partners get to share in the loss and not just Al- Futtaim company. Many ideas are also suggested, and the board gets to choose the best idea to be implemented. Al- Habtoor, on the other hand, should solve its financial problems, which can be solved through the formation of partnerships. The same advantages of partnership and success can be realized in this company.

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Involvement and improvement on social media relations is vital for the growth and development of both companies. It is clear that Al- Futtaim and Al- Habtoor companies concentrate much on the customer and community relations. However, media relation is critical, particularly since they are considered international companies. Through media and social media channels, the companies can expand their customer and client bases. They companies concentrate only on the existing customer and society base which might be quite narrow considering today’s business markets. Therefore, it is significant for corporations to use social media for marketing and advertising in order to enhance their customer and community bases. Social media enables companies to interact with a wide population globally since they reach a vast group of potential customers (Sambidge, 2010). Through the media, people having no knowledge of the companies’ existence can be updated, and this can develop a vast customer and community base.

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Online Public Relations

Al- Futtaim began engaging in online public relations in 2010, where it launched its initial phase of online portal. This improvement enhances the purchase of goods and services online and access to after sales services. This immense step was enabled by the penetration of internet in the UAE region thus allowing the communities and customers to access easily to the company’s business portal (Ligaya, 2010). Personal computers have helped a terrific deal in facilitating this business for Al- Futtaim company and income is being realized to date. However, online retailing is not totally embraced in the UAE, and it forms only a small portion of the total retail business market.

Al- Habtoor company has not embraced much of the online public relations since it believes in its loyal and strong customer base. For years, the company has served its loyal customers and communities with pride and commitment; therefore, online marketing and retailing may not influence its success much. The company, however, embraces the existence and invention of information technology and its benefits to businesses. It utilizes the internet for advertising its products and services, but retailing online is quite unknown to Al- Habtoor (John, 2012). This is the key distinguishing feature between the two companies since they are both successful, and situated in the same city, in UAE. They engage in distribution and production of almost similar services and goods, thus similar business sectors. Both of them are effective in service provision and having strong and loyal customer bases makes them business giants. However, Al- Habtoor company seems to be more effective since its financial weakness is understandable and is presented in almost all businesses.


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