As master developers and urban planners, it is crucial to recognize and learn from the successes of our peers. Emaar has set a global platinum standard in urban planning and community development, exemplifying best practices that have positioned them as a leader in the industry. Their achievements provide a blueprint that other developers, like Nakheel, could benefit from adopting.
The Case for Benchmarking
Why reinvent the wheel when a competitor has already demonstrated excellence? Benchmarking against successful peers is a strategy used across industries to improve efficiency and outcomes. For instance, Burger King discontinued its independent location scouting and opted to establish outlets near McDonald’s, leveraging McDonald’s extensive market research and prime locations. Similarly, they adopted popular menu items like the dollar menu, following McDonald’s lead.
In the beverage industry, Pepsi followed Coca-Cola’s introduction of Diet Coke with Diet Pepsi, recognizing the significant market demand for diet sodas. This mimicry strategy has been successful in capturing market share without extensive trial and error.
Examples of Industry Mimicry
- Visa and MasterCard: Both companies have adopted similar security features, such as chip technology and secure online transaction protocols, to ensure customer safety and maintain competitive parity.
- Samsung and Apple: The rivalry between these two tech giants is marked by each company’s rapid response to the other’s innovations, such as the introduction of facial recognition technology and advancements in smartphone design.
- Walmart and Target: These retailers have developed private label brands to compete on price and quality, mirroring each other’s strategies to attract and retain customers.
Strategic Recommendations for Nakheel
Nakheel, with its extensive land bank, including premium waterfront properties, is uniquely positioned to leverage best practices in the market. Emaar, though relatively new to waterfront developments, has quickly established a strong presence with projects like Creek Harbour and Dubai Harbour. This success story offers valuable lessons.
Nakheel could either adopt a strategy of closely following proven Emaar practices or recruit top talent from Emaar’s management team, which has been cultivated under the visionary leadership of Mohamed Alabbar. This approach would mitigate risks associated with trial and error and enhance Nakheel’s competitive edge.
Addressing Past Challenges
Nakheel has faced setbacks, such as the controversial Palm Gate buildings and the stalled Jumeirah Heights project. Other stalled projects, like Al Khail Avenue Mall, situated amidst rapidly growing communities, highlight missed opportunities. The Deira Island Mall is another example where potential remains untapped.
Moving Forward
The merger of Nakheel, Meydan, Meraas, and Dubai Properties presents a unique opportunity to consolidate resources and expertise. Adopting proven strategies from successful developers like Emaar can streamline operations and ensure a consistent quality of developments across all projects.
In summary, the blueprint for success is clear. Emaar’s achievements provide a “cheat code” that other developers can use. By following established best practices, Nakheel and its partners can achieve similar levels of excellence and avoid costly mistakes, ensuring sustainable growth and success in the competitive real estate market of Dubai.
About Author
Hamzah Abu Zannad is an industry expert, co-founder and managing director at Axiom Prime Real Estate Development. With over 20 years of experience in the Dubai real estate market, Hamzah has been instrumental in bringing innovative and sustainable living concepts to the region. Axiom Prime Real Estate Development, under his leadership, is known for its Dutch-inspired cozy and luxurious developments that focus on community-centric designs and cutting-edge technology. Their projects in Jumeirah Village Triangle and Jumeirah Garden City “Satwa” are testament to their commitment to creating spaces that foster a sense of belonging and offer unique opportunities for growth. For more information, visit https://axiomprime.ae/
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