Physical environment

Is important in exporting your product but first let’s understand the meaning of physical
environment. It refers to the approaches of sending your product so UAE has a variety of ways
such as airport and UAE has 9 airports and another way is by delivering your product by
shipping that is why we have chosen UAE to deliver our product because this country has many
facilities way.
Nature of Demand.
Nature of Demand can be explained based on different demographic and market factors, as you
can see that there is a high demand of face masks resulting from Covid-19.
Size and Extent of Demand.

Most of the N95 masks are imported because the local manufacturers lack the capacity to
develop masks of a similar quality. The company should consider this as a short-term business
where the company is supposed to engage in delivering the face masks and once the crisis is
over, the business will no longer be viable.
Product Category and Stage of Product Life Cycle.

The company is offering a drop shipping service. The company is engaging in a drop shipping
business. The business is focusing on delivering healthcare products which are essential in
fighting the corona virus. Drop shipping mainly depends on the communication technologies
where orders can be placed on the company platforms and follow-ups made to ensure such
orders are delivered as requested.
Cost Structure of the Industry

ABC ltd does not incur any costs related to production of the products. It plays as a link between
the manufacturers and the market. The company engages in the drop shipping services in the
industry. It does not manufacture of produce any of the products supplied.
Competitive Structure in the Industry
The drop shipping business is having competition with other company, In UAE, there are local
manufacturers and importers of the N95 masks. There is a challenge in delivering the products to
users, it becomes challenging in managing competition. However, the local manufacturers and
importers are not able to meet the demand in the current situation.
Competition Analysis
There are local and international companies engaging in the mask business in the region. Brand
competitors are the major threat in the country because they have gain loyalty and a customer
base.
It has partnered with different manufacturing companies in the United States and china for it to
manage its business effectively. Shanghai Dasheng

The company spends a significant amount of their revenue on research and development. This is
one of the areas from which a competitive advantage is gained. The management is highly
skilled and can access information about manufacturers
Challenges relating to souring of products have been overcome by having multiple sources of
products.

Technology, and research and development are essential developments which play a vital role in
ensuring the business is highly effective in executing its purpose in the industry.

The political environment has an impact on the legal and institutional environments. This is
because there are political decisions that are made which have an effect on the nature of laws and
regulations developed in the country.

Economic Environment

The population of UAE is at 9,890,402. This has been a significant growth of the population and
it is projected to grow further in future. The country’s GDP is expected to reach 421 billion US
dollars in the year 2020 (Bridge, 2020). This is a significantly high GDP for a country because it
is rich in resources.
Cultural and Social Factors
Behaviors, values, social norms, and language are essential cultural and social factors to be
considered in the delivery of effective business strategies in the country. The general cultural and
social behavior influences the corporate culture in the country which is a necessary factor in
developing an understanding of the needs of the society and the business operations.

. Demographic Trends
Adult literacy levels are high at 93% which indicates that people in the region have capabilities
to understand issues and make rational decisions.

The company has highly skilled managers who are able to engage in different international
business negotiations. Secondly, it has a strong brand name thirdly, it has a strong financial
muscle
Weaknesses include lack of own products to supply in the market. Secondly, the

company does not have physical presence in the UAE which makes it challenging to market.

Thirdly, there is limited flexibility in the pricing of the masks. Lastly, there are many substitutes

of the products in the market.

Threats. First, there is high competition in the business. Secondly, change of legislation

and legal issues may lead to effects on the business.

The company has different suppliers of products which makes it possible to deliver the capacities
demanded in the market.
Objectives

5.1. International Objectives

 To develop a strong market for the drop shipping services across the Asian region.

 To diversify the company’s market and business niche.

 To offer a social service during this time of crisis.

5.2. Market Objectives

 To be a market leader in the region by providing the best quality of products at favorable

prices.

 To focus resources on managing the new market effectively and delivering on the

customer needs and requirements.

 To work towards developing a good reputation for the company’s brand name by

maintaining high quality supplies and quality services to customers.

Market Positioning

Market Positioning refers to the ability to influence consumer perception regarding a brand or
product relative to competitors. The objective of market positioning is to establish the image or
identity of a brand or product

Market Entry Strategy

Rapid penetration is the pricing strategy that will be used by the company in entering the UAE
market.
Place

The business will focus on drop shipping products from different manufacturers to organizations
and individuals who need such products. There will be no physical location to hold and distribute
the products.
Promotion

Main stream and social media are essential promotional channels through which popularity of
the brand can be built