Insights-based market segmentation for competitive advantage: Majid Al Futtaim’ malls
Madhavi Ayyagari:
Sanjai K. Parahoo:
Leisure, Entertainment and Retail
November 2019
United Arab Emirates (UAE) is a story of economic success having achieved a Gross Domestic Product per capita of US$ 40864 in 2016. The value of UAE retail sector stood at US$ 56.6bn in 2016, and it is expected to exceed US$ 71 billion by 2021. However, the retail industry is facing a number of challenges including rise in e-commerce and pressures for digitalization, inflation, threat of oversupply, etc. In this environment, Majid Al Futtaim, a UAE-born company, has successfully established a competitive advantage across the Middle East and North Africa markets using a strategy focused of transforming shopping malls into entertainment, leisure and lifestyle destinations. The company owns and operates a range of super-regional, regional, and community malls that vary in size and type, with each destination strategically developed to meet the specific needs and requirements of its target market. The case profiles the strategy of Majid Al Futtaim, outlines the macroeconomic and industry context as well as provides insights into the consumer lifestyles and purchase behaviours.
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