Macro Approach

Agenda• Overview• Industry Scan Porter Five Fore Force Pest Analysis • Generic Strategy• Core Competencies • Value Creation Vs Value Capturing • Way Ahead

Overview• UAE is the second largest economy in GCC• It is most diversified economy in GCC• It’s GDP stands at USD 570 billion in 2014• It has been resilient to recent oil crisis and grew by

4.3% in 2014• As per Middle East Institute report, Wealth

Management is worth USD 110 billion market in UAE• Large no expats with high disposable incomes • Large SME market uncovered by institutional lending

Porter Five ForceCompetition Rivalry : High• Presence of 65 banks and large no international wealth management firms

• Global wealth Management firms indulged in cherry picking of UHNIs for off –shore investments

• Large no of local financial service intermediaries and breaking house

Challenge : How to tweak business model to flank the competitors

Porter Five Force

Bargaining Power of Supplier• European Meltdown and oil crisis has adverse impact on wealth industry

• UAE has been the economy which has shown resilience to oil crisis

• Global financial market is looking at UAE as it is expected to grow by more than 5% in coming years

Opportunity: Capitalize the low bargaining power of supplier

Porter Five Force

Bargaining Power of Customers • Large untapped market of working expats

• Very low insurance penetration

• Large growing size of SMEs, which find difficulty in rising fund from banks

• EXPO 2020 is to fuel the SMEs capital requirement Focused approach on target group is the key

Porter Five Force

Threat of New Entrants• A lot of new players entering the market Meantime hold in target segment can be made strong enough to face challenge

Porter Five Force

Threat of Substitutes • PWC Global Wealth Management Report 2014-2015 shows UAE market is still

unaffected by digitalization of financial channel

Have time to prepare strategy for digital platform

PEST Analysis Political Analysis: Favorable • UAE has stable political scenario• Arab Spring peacefully passed away in UAE Economic Analysis: Favorable • UAE is diversified economy with robust tourism industry

and trade hub • UAE has been resilient to current oil crisis • UAE is expected to grow by more than 5% in coming

years thus creating more wealth• EXPO 2020 is to fuel domestic economy

PEST AnalysisSocial Analysis: Favorable • UAE has been most liberal country in UAE

• Large no of foreign expats makes its cultural heterogeneous

• Large no of expats assures availability of ample talent and sharing of new ideas

Technological Analysis: Favorable • Rapidly changing technology space and growing infrastructure

• Citizens and expats are adept with changing technological space

Generic Strategy • Against cost leadership and differentiation, focus approach is best suited

• Narrowing down focus on Indian Expats and SMEs engaged in tourism and travelling can enable us to flank the competitors

• Focused approach on target segment will help in cost optimization

Core Competencies : Can be Created Service- Not only products and service but to work with clients in fulfilling their financial or business objectives

Technology- Use of data analytics to develop the customized products, identify target audience and way to reach the target audience/ clients in a very cost effective way

Talents- Pool of talents , who are not only mere sales person but a product Manager/Consultant who can feel in shoes of clients and sometime aggressive to create value for firm’s stakeholders

Value Creation Vs Value Capturing- A Case Study

Established in 2007, X is highly successful Financial Service firm in UAE. Coming in scene in arena of global meltdown this firm was successful in capturing value for itself with help of targeted financial products, technology and aggressive marketing. This firm declared profit of AED 191.3 million in 2014 but at the same time we can find numerous consumer complain on every platform against its aggressive marketing, high interest rate and some unethical practices

HTC, Korean handset maker considered as innovation leader in mobility space. Their recently launched HTC one series is widely considered as most innovation handset in market but this tech giant declared loss of USD 64 million in Q1 of 2014

Beauty lies in balance. Creating value for customers and capturing the same in return e.g. Paypal , BancVue, MuSigma, etc

Way Ahead

• CFO service• Venture Capital Fund / seed Fund• Private Equity Fund• Private Banking • REITs