M.A.

F
Rehan Mehdi
Table of Contents
Majid Al Futtaim: Strategic Evaluation and Recommendations.....2
Introduction..............................................................................2
1. History of Majid Al Futtaim.....................................................2
2. Leadership and Vision............................................................2
3. Portfolio Overview.................................................................3
4. SWOT Analysis.......................................................................3
5. PESTEL Analysis.....................................................................4
6. Porter’s Five Forces Analysis..................................................5
7. Application of Growth Models.................................................5
7.1 Ansoff Growth Model..................................................................5
7.2 Porter’s Growth Strategies.........................................................6
7.3 BCG Model.................................................................................6
7.4 McKinsey 7S Model....................................................................7
8. Challenges Faced by Majid Al Futtaim.....................................7
8.1 Technological Disruption............................................................7
8.2 Global Financial Crisis (2008).....................................................8
8.3 Political Uncertainty..................................................................8
8.4 Competitor Presence..................................................................8
9. Recommendations.................................................................8
9.1 Strengthening Omni-Channel Presence.......................................8
9.2 Investment in Technological Innovation.......................................8
9.3 Regional Diversification.............................................................8
9.4 Sustainability Initiatives............................................................8
9.5 Talent Development...................................................................8
9.6 Customer Loyalty Programs........................................................8
9.7 Agile Risk Management..............................................................8
Conclusion................................................................................ 9
Majid Al Futtaim: Strategic Evaluation and
Recommendations

Introduction
Majid Al Futtaim (MAF), a Dubai-based conglomerate, has become a key
player in the Middle East’s retail, entertainment, and hospitality sectors.
Established in 1992, the company has expanded its portfolio to include
hypermarkets, malls, cinemas, and hospitality businesses. Known for
innovative ventures like Mall of the Emirates and VOX Cinemas, MAF now
faces challenges in a rapidly evolving landscape marked by technological
disruption, shifting consumer preferences, and global economic
uncertainty. This report evaluates MAF’s strategy, analyzes its challenges,
and provides recommendations through the lens of growth models and
management frameworks.

1. History of Majid Al Futtaim

Majid Al Futtaim was founded in 1992, with its first landmark, City Centre
Deira, opening in 1995. MAF pioneered the integration of retail and
entertainment in the UAE. Its flagship project, the Mall of the Emirates,
launched in 2005, introduced iconic features like Ski Dubai, combining
luxury retail with unique experiences.

Key milestones include:

 Expansion into international markets, including Egypt, Oman, and

Kenya.

 Diversification into new sectors, such as franchise food brands and

digital analytics.

 Emphasis on sustainability and long-term investments under CEO

Alain Bejjani.

2. Leadership and Vision

Under Alain Bejjani’s leadership since 2015, MAF has prioritized digital
transformation, customer-centricity, and regional integration. Bejjani’s
long-term vision is to embed technology and sustainability into MAF’s
operations. This approach aligns with the group’s purpose: “great
moments for everyone, every day.”

Key leadership initiatives include:

 Establishing centers of excellence for analytics and technology.

 Promoting a unified corporate culture underpinned by the values of

being “Bold, Passionate, and Together.”

 Developing human capital through the Leadership Institute.

3. Portfolio Overview
MAF operates across five main business verticals:

1. Retail: Carrefour hypermarkets (285 stores in 16 countries).

2. Properties: 27 malls, including Mall of the Emirates and Mall of

Egypt.

3. Entertainment: VOX Cinemas, Ski Dubai, Magic Planet, and

Dreamscape Immersive.

4. Hospitality: Partnerships with Kempinski, Sheraton, and other

global brands.

5. Ventures: Food franchises like Panda Express and California Pizza

Kitchen.

This diversified portfolio ensures steady revenue streams and resilience

against market shocks.

4. SWOT Analysis
Strengths Weaknesses

Strong brand reputation. Heavy reliance on UAE market.

High capital intensity of

Diversified portfolio across sectors.
operations.

Pioneering innovations (e.g., Ski Slow adoption of e-commerce

Dubai). initially.
Strengths Weaknesses

Robust financial governance (BBB

High operational complexity.
rating).

Opportunities Threats

Expansion into emerging Increasing competition from global e-

markets. commerce platforms.

Economic and geopolitical instability in the

Digital transformation.
MENA region.

Sustainable and green

Changing consumer preferences.
initiatives.

5. PESTEL Analysis
Political:

 Regional instability (e.g., Arab Spring) affects operations in Egypt

and Lebanon.

 UAE’s supportive government initiatives in non-oil sectors benefit

MAF.

Economic:

 Economic downturns and fluctuating oil prices reduce discretionary

consumer spending.

 High infrastructure costs challenge profitability during financial

crises.

Social:

 Rising demand for experiences drives MAF’s shift toward lifestyle

offerings.

 Growing youth populations in the MENA region present opportunities

for cinemas and entertainment.

Technological:

 E-commerce and digital platforms redefine retail and customer

expectations.

 Adoption of AI, analytics, and robotics aids operational efficiency.

Environmental:

 Sustainability trends push MAF toward green building certifications

and renewable energy.

 Harsh climate necessitates energy-efficient operations.

Legal:

 Regional variations in tax laws, labor regulations, and privacy

standards affect compliance.

6. Porter’s Five Forces Analysis

1. Threat of New Entrants: Moderate

 High capital investment in malls deters new players, but digital

platforms lower barriers in retail.

2. Bargaining Power of Buyers: High

 Buyers demand seamless, personalized experiences across

platforms.

3. Bargaining Power of Suppliers: Low

 MAF’s scale and diversified supply chain reduce supplier

dependency.

4. Threat of Substitutes: High

 Platforms like Netflix and Airbnb challenge MAF’s entertainment and

hospitality businesses.

5. Industry Rivalry: High

 Competitors like Emaar intensify competition with larger malls and

diversified offerings.

7. Application of Growth Models

7.1 Ansoff Growth Model
The Ansoff Matrix identifies growth strategies across four dimensions:

1. Market Penetration:
 o Strengthen loyalty programs across Carrefour, VOX Cinemas,
and malls.

o Increase footfall through events and promotional campaigns.

2. Market Development:

o Expand into untapped markets like sub-Saharan Africa and

Central Asia.

o Customize offerings to suit local preferences.

3. Product Development:

o Launch subscription services for cinemas and integrated

shopping benefits.

o Develop new entertainment offerings, like virtual reality

gaming hubs.

4. Diversification:

o Venture into complementary sectors, such as health and

wellness or renewable energy.

o Invest in tech startups to bolster digital transformation efforts.

7.2 Porter’s Growth Strategies

Porter’s growth strategies provide insights into MAF’s competitive
approaches:

1. Cost Leadership:

o Optimize supply chains using automation and AI to reduce

costs.

o Leverage economies of scale in Carrefour’s logistics and

procurement.

2. Differentiation:

o Enhance customer experiences through unique offerings like

Ski Dubai and immersive cinema experiences.

o Invest in sustainability to attract environmentally conscious

consumers.

3. Focus Strategy:
 o Tailor hypermarkets and entertainment options for local
markets.

o Develop smaller-scale malls in secondary cities to capture

regional demand.

7.3 BCG Model

The BCG (Boston Consulting Group) matrix helps categorize MAF’s
business units:

Category Business Units Strategic Focus

VOX Cinemas, Mall of the Maintain growth and invest in

Stars
Emirates innovation.

Optimize operations and

Cash Cows Carrefour hypermarkets
invest in market share.

Question Expansion markets (e.g., Assess potential and allocate

Marks Africa, Central Asia). resources selectively.

Underperforming assets (e.g.,

Dogs Reassess viability or divest.
low-traffic malls).

7.4 McKinsey 7S Model

The McKinsey 7S framework evaluates internal alignment across seven
dimensions:

1. Strategy:

o Embed sustainability and digital transformation in all

operations.

2. Structure:

o Centralize analytics while maintaining operational autonomy

for regional units.

3. Systems:

o Leverage technology to integrate CRM, supply chains, and HR

systems.

4. Shared Values:

o Promote “Bold, Passionate, Together” as core cultural pillars.

 5. Style:

o Encourage collaborative, forward-thinking leadership.

6. Staff:

o Invest in employee development through the Leadership

Institute.

7. Skills:

o Focus on data analytics, AI, and customer experience

capabilities.

8. Challenges Faced by Majid Al Futtaim

8.1 Technological Disruption
 E-commerce platforms like Amazon challenge MAF’s retail
dominance.

 OTT platforms such as Netflix disrupt traditional cinema revenue

streams.

8.2 Global Financial Crisis (2008)

 Reduced consumer spending and tightened credit access prompted
MAF to strengthen financial governance.

8.3 Political Uncertainty

 Regional instability, like the Arab Spring, impacted operations in
Egypt and Lebanon.

8.4 Competitor Presence

 Emaar’s Dubai Mall surpasses MAF’s malls in scale and global
recognition.

 Airbnb’s competitive pricing impacts MAF’s hospitality business.

9. Recommendations
9.1 Strengthening Omni-Channel Presence
 Integrate physical and digital customer experiences through unified
loyalty programs.
9.2 Investment in Technological Innovation
 Expand predictive analytics and automation in logistics.

9.3 Regional Diversification

 Focus on sub-Saharan Africa and Central Asia for growth.

9.4 Sustainability Initiatives

 Adopt green technologies and renewable energy solutions.

9.5 Talent Development

 Scale up digital training programs within the Leadership Institute.

9.6 Customer Loyalty Programs

 Offer subscription models for bundled retail and entertainment
benefits.

9.7 Agile Risk Management

 Develop flexible operational frameworks to address geopolitical and
economic uncertainties.

Conclusion
Majid Al Futtaim’s diversified portfolio and innovative approach have
established it as a regional leader. However, challenges like technological
disruption, geopolitical uncertainty, and fierce