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The development of a creative and safe space that children aged 6 to 12 can meet and interact with others in is critical in this day and age. This is due to the different social pressures that are currently piling on the younger generation. Critically, these days, children only get to interact with each other in close proximity or through the virtual divide. There have been numerous debates on the impact of virtual interactions on children of this age, vis-à-vis their physical, emotional, and even mental development needs. Arguably, such locations have to be both accessible and parent- and children-friendly due to the fact that the latter cannot be left unsupervised while they play. Indeed, whereas there are numerous parks that kids can go to, the proposed idea is a modernization of a park to also include creative and engaging technology that today’s younger generation can enjoy.
There are few places that are both secure and safe for such interactions in the UAE. It is against this backdrop that the business is suggested. The larger premise will include a gym, nutrition department, gaming department, and a food court. Although the primary target audience for the space is children, there will be other activities that will also be used to attract and keep the parents entertained as their children interact. The local club will, therefore, cater for the needs of both the parents and the children. Critically, there will also be group sessions which ensure that children are not only mentored but also get to fully interact with each other in a controlled and fun setting. The club will be open to membership from any interested person, as long as children are never left unattended. The business will be referred to as the UAE Social Club House.
Objectives
Below are the objectives of the UAE Social Club House:
- To provide a safe and secure space for children aged 6 to 12 to interact, play and have fun under the watchful eye of their parents and management
- To offer nutritional and healthy living advice to all members including children struggling with various healthy living decisions
- To provide a unique combination of outdoor and indoor experiences for members who are interested in incorporating technology in outdoor fun activities
Mission Statement
Our mission is to provide a safe, private and secure physical platform where children aged 6 to 12 can interact, have fun, and learn about themselves, and others, in an attempt to make more supportive, productive and accountable individuals in the society through fun games and social interaction.
Guiding Principles
The business will be guided by various principles. The first being integrity, which is critical in ensuring that the services offered are not only of quality, but also for the best of the members. A second guiding principle will be discipline, which will be instilled in both the parents and the children that will sign up for membership. Further, the management will be guided by a principle of accountability for all actions done or taken.
Success Keys
One success key that will be used to measure the progress of the business is the feedback in regards to quality that will be received from the clientele (Shaharudin et al., 2012). Second, availability of both space and equipment to cater for the target market will also be considered one of the success keys.
Company Description: The UAE Social Club House
The UAE Social Club House will be a multi-functional space for both parents and children. The company will provide healthy and day-to-day nutritional advice, mentorship and social interaction for children and parents using a creative, fun and engaging approach. Some of the departments that will be located within the premise include the gym, gaming section and food court. The management will develop group activities to help children interact with each other in an attempt to live healthier lives, while at the same time, excel in whatever they do. Individual mentorship sessions will also be allowed if requested.
Type of Ownership
The company will be legally incorporated from the start. This will allow the management to acquire the right funding for the project from the start.
Start-Up
The company will lease property in a two-acre plot to ensure that everything within the premise is utilized. The front will include the reception and the company offices. All the departments will be on the ground floor of the establishment, which nutrition, gym and gaming departments well furnished. The same area will also have a café where parents can relax as they watch their children participate in different activities. The food court will be at the back and will be divided into snack and fast-food section and healthy foods. It is important to note that part of healthy eating is teaching and allowing the children to also enjoy the fast foods – but in moderation. The back yard will have a swimming pool and a Jacuzzi.
Location
The UAE Social Club House will be located in Abu Dhabi, which is one of the most populous cities in the UAE. The location is strategically chosen to ensure that it can attract the right type of clientele.
Products and Services
Description
The primary product or service that will be offered is the gymnastics, where children can go and have fun through games and other coordinated activities. The gymnastics department will include options for games such as football, basketball and tennis for the children. These will also be complimented by indoor games such as chess. Indeed, apart from the gym, the premise will have other facilities that will help engage the children. Some of these facilities include music department and even gaming zone.
Competitiveness
Critically, there are no direct competitors of the UAE Social House Club. This is due to the fact that this will be the first all in one social house in the region. However, there are some individual companies that will serve as competitors. This includes the children’s arcades, malls, and parks. These competitors offer at least one of the services that will be offered at the social house, making them indirect competitors.
Product and Service Sourcing
There are numerous product and services that will have to be outsourced. For instance, the management has to source for products that will be used in the gyms such as towels, and even cleaning supplies, which are a necessity in the industry (Annanperä and Liukkunen, 2014). Although the social house will have permanent staff, some consultants will be used from time to time to rejuvenate the children’s (and parents’) experiences. It is important to note that the company will have specific requirements that the suppliers will have to adhere to in order to ensure quality.
Products and Services for the Future
It is expected that the club will be able to offer organized home activities in the future. This is for families that want to get the set-up and also engaging games at the comfort of their homes, for instance, a full weekend. Privacy is becoming more important for families and individuals in UAE. This future service will help cater for this need.
Industrial Analysis
Hewer (2018) argues that the wellness industry, where the social house will fall, holds about 15% of the total tourism industry in the country. This means that the industry is largely made up of foreigners who visit UAE and get to enjoy the additional services such as wellness and spa. Mahroum and Al-Saleh (2016) explain that there is a significant difference between how locals take up the same service as opposed to how the foreigners do. This can be directly tied to the fact that for decades, the locals did not value the importance of wellness, as it was not deemed cultural appropriate. However, as Singh and Jain (2020) confirm, globalization and a shift in mindset has opened up the industry in such a way that more locals are looking after their wellness and general health in more modern ways such as through spas and social houses.
It is critical to also note that the UAE Social Club House will fully tap into children’s industry. It will do this in two ways. The first is through the provision of things (products and services) that children like, and are willing to engage in. The second is by offering parents the option to have their children enjoy their time with their friends in a safe and healthy environment. One can argue that this industry is also growing, especially in regards to services that allow children to better interact with others. Yoon et al. (2014) explain that parents are looking at options that help their children leave their homes and play or rather, interact in a social setting. Therefore, it can be argued that not only is the industry viable, but also appears to be growing. There is demand for the service.
Tests in the Market
Sufficient market research was done to check the viability of the business. First, the research that was done checked on the accessibility of similar premises in the area. Afterwards, a study was done on whether the target audience would appreciate having a social house nearby. Lastly, market research was done to know what the public would expect from such services, and how the company could best capture their needs. Critically, all the tests that were done (in the market) were to check for viability and profitability of the project. It should be noted that frequent market tests have to be done to ensure that the management still understands and provides for the needs of the target audience.
Market to be Targeted
There are two things that have to be considered when talking about the market that is to be targeted. The first is the fact that the primary target audience is children. Joghee and Dube (2016) explain that there are numerous policies and laws that do not allow advertising and targeting children directly (Akturan, Tezcan and Vignolles, 2011). Further, ethical concerns might arise if the management targets children directly. It is important to note that the targeted children will be from ages 6 to 12. To ensure that the primary target audience is reached without any legal or ethical ramifications, the business will also have parents as the secondary market.
Market Needs
The target market needs a secure and safe place where children can have fun, interact with one another and still learn valuable life lessons that make them accountable and responsible adults in the future. It is expected that a significant number of the target market will be from middle and upper class of the society, who also crave the extra socialization that is often denied them due to social standing.
Market Trends
One key market trend that affects the business is the population’s willingness to spend money on fun activities. This is critical due to the fact that the community is opening up to alternative ways of having fun. Initially, cultural and religious constraints mired how people would interact with one another, including spaces in which individuals could interact. According to Pujari (2012) the additional fact that men had to chaperone women and children all the time made it harder for women and children to socialize due to the fact that the men had to work as well. It can be argued that it is this trend that makes the business that more viable.
Market Growth
The market is expected to grow exponentially in the next few years. There are two reasons why this is expected. The first is the fact that more people in the population are opening up to taking up such services. The second is that due to globalization, people from different cultures are moving to work and live in the UAE, meaning they will be more open to the service offered as it is also available in their home countries.
Positioning/Location
The social club house will be located at a strategic location that is easily accessible yet quiet and serene to allow for the type of ambiance that is desired. The premise will have ample free parking for all its clients.
SWOT Analysis
One of the strengths of the business is that it offers a safe space for children to interact. Marzouki (2020) explains that one of the biggest challenges of malls and other arcades is security. In fact, in numerous public spaces, parents are often told that they have to keep an eye on their children as this is not the work of the management. However, at UAE Social Club House, parents can be assured that there will be enough security to ensure that all children are safe. This is further enhanced by the fact that parents can also choose to keep a keen eye on their children throughout their stay in the club. This is critical as it makes families going out more fun without the worry of whether the children will be safe or otherwise.
A second key strength of the business is that it provides a one-stop solution for various fun and wellness activities for both parents and children. Currently, there are few companies that offer the same. Both the parents and the children can get everything they need inside the club. From the gym to the outdoor swimming department to the food court and both the digital and traditional gaming departments. All these zones offer different activities for the club members. Further, it should be noted that the additional mentorship for the children is a strength. The children will not only be able to have fun and socialize with others, but they will also be able to learn how to be better and more responsible adults when they grow up.
Other strengths include the fact that the company offers nutritional advice to its clients; offers a wide range of activities; and has qualified personnel. Indeed, healthy eating is one of the biggest trends in the world currently. This is especially based on the global pandemic that has made more people start to think critically about their general wellbeing. The club will not only offer nutritional advice based on healthy eating but also how families can also incorporate snacks and fast foods to create a healthy diet. Taghavi and Seyedsalehi (2015) note that one of the biggest myths is that healthy eating does not involve snacks or fast foods. Shamout (2016) explains that eating the snacks and fast foods in moderation is also part of healthy eating. The fact that the club offers such options and advice makes it that more viable.
The availability of qualified staff in the business is also a strength, as mentioned. One of the reasons for this is the fact that there are few qualified staff for the same in the region. The personnel will also be key in attracting the target market to the club. It is important to note that the club will primarily rely on highly trained locals to offer services. This will ensure that the locals understand the culture and the needs of the target market, and also help boost a sense of ownership among the community (Alif Fianto et al., 2014). Consumer service will also be keen in these trainings to lower consumer pain points (Ahmad et al., 2014). Further, the staff will be trained in-house to international standards to ensure that they offer quality service.
Weaknesses
One of the main weaknesses of the firm is that it is capital intensive. The starting costs of the business will be high due to the numerous activities that the company offers. Further, the monthly operating costs are also expected to be high due to maintenance of the space and also payment of salaries and even licenses. It is essential that both the start-up and operating costs be lowered to ensure that the company can break even faster. It is important to note that a large operating cost will also mean premium rates for the services offered. This might not help the company grow in the future as many of the clients might find it significantly expensive. Apart from ensuring cost saving measures, it is also important that the company thoroughly consider the pricing strategy. This will not only ensure that the company does in fact break even, but also help manage the clients.
Opportunities
Despite the mentioned weaknesses and threats, the business has numerous opportunities that the management can take advantage of. The first, as explained earlier, is a future service. This service entails offering similar services at home. If anything, the year 2020 has proven that businesses that can reach clients at the comfort of their home are the way to go. This can be incorporated into UAE Social Club House. Indeed, there are several things that have to be unpacked in regards to the opportunity mentioned. The first is that a social house is pegged on the fact that people can meet other people and socialize. How will this be replicated at home? This can be done in two ways, through the provision of the equipment needed to have a virtual hangout for different families that are interested in hanging out together, or secondly, through the actual planning of family specific events that bring groups together.
A second opportunity that can be tapped into is the provision of corporate services for companies. These services can be offered both at the premise or at a chosen location. It is encouraged that corporate rates be created from the beginning that allow companies to bring in their staff for different activities. The fact that the firm will be in a secluded area, with various departments that corporates can use for their activities makes this opportunity a viable one. It is important to note that if taken up, a separate strategy has to be done on how to attract the corporates as they are not the primary target audience.
Threats
A major threat to the business is the constant changes in technology. As mentioned earlier, the space will incorporate both traditional socialization approaches and technology. The gaming zones, and other departments that will be using technology will be affected with any change in tech. Petratos (2020) explains that gaming zones for children often change and newer versions of the games or even equipment are often found in the market. Changing the equipment can be costly and should be planned for in order to lower costs. The threat of changing technology is not specific to this one business or industry. This makes it easier for the company to plan properly for such a threat. It is imperative to note that the company cannot afford to ignore the changes. This is due to the fact that if such is done, the clients might not find the older technology as interesting, therefore, negatively affecting the bottom line.
Strategy Pyramid
It should be noted that strategies are often tested during implementation. For this to be successful, the strategy pyramid has to be considered, evaluated and adjusted (Smith and Wallace 2019). One of the things that has to be considered when discussing the strategy pyramid is the balance between activities and spending. As stated, the company will require significant starting capital I order to run. The finances will be discussed in the next section of this business plan. Despite this, it should be noted that the activities and pricing that are suggested should be able to not only cater for the spending that will have been done, but to also record significant profit. Using the strategy pyramid, it can be argued that the key strategic objectives should be to provide the services as promised while making profit for the business.
The simple strategic objective mentioned should guide the tactics that will then be used. For instance, a tactic that can be used is the inclusion of value-added services that can encourage the target audience to spend more money while in the club. For instance, whereas the clients can access all the departments and the swimming pool, the company can also install a shop where clients can purchase or even rent some items such as floaters for swimming, hair caps to protect the child’s hair as they swim and so forth. The inclusion of these value-added services will help generate more income for the company, therefore, improving the bottom line. As per the pyramid, after the tactics, programs have to be developed that help the company achieve its strategic objectives.
Unique Selling Proposition (USP)
There are numerous unique selling propositions that the business offers. The first, as previously stated, is the all-in-one stop shop approach it takes. Critically, clients often look for a fun and engaging spot for both parents and children to no avail. It is more common to find specific fun areas for children, like arcades and parks, or engaging spaces for adults. The fact that the UAE Social Club House offers both for parents and children is a unique selling proposition. It should be noted that due to the fact that there are currently no other companies offering the same, this will be one of the marketing strengths of the company.
Second, the fact that the fun zones incorporate what can be referred to as traditional fun activities and digital ones acts as a unique selling proposition as well. An example can be given to explain the notion further. In the club, children will be able to play basketball, climb a wall, swim and even run around. All these can be referred to as traditional ways of having fun as they allow children to get out and have fun with little to no digital equipment. On the other hand, there will also be a digital gaming zone that the children have access to. This is a more modern and tech savvy department with digital games such as the play station, FIFA, call of duty and so forth. A combination of the two, coupled with the mentorship aspect, is perceived to be a unique selling proposition as it cannot be found anywhere else in the region. It should be reiterated that all the said activities will be monitored by the company staff to ensure that children are safe and learning.
Competitive Edge
The large size of the club house contributes to its competitive edge. There are two ways it does this. The first is that the expansive space ensures that several things can be hosted within the same compound. Therefore, feeding into the one stop shop narrative that has been discussed. Secondly, the large space provides other amenities that parents would need such as free parking, which can be hard to get at the normal parks and arcades (Malik, Ghafoor and Iqbal, 2013). As explained earlier, the premise will be in an accessible area, but ideally not in the middle of the city. This will allow for a serene ambiance that exudes of class, relaxation, fun and privacy. It is critical that when thinking about accessibility, the management also considers parking. Ample parking has been used as a marketing gimmick for malls and other similar premises due to their scarcity. In fact, the issue is not only space but also safety of the property of the clients. The club will offer this through its large space and also qualified personnel.
It can be argued that the rates that will be offered by the club will also be offer competitive advantage. It is critical to note that there will be two main categories for pricing. These will be individual and corporate. For the individual package, there will be family packages and daily packages. The difference will be in terms of duration of membership, where family packages will be for a whole month while daily packages, as the name suggests will be charged per day. Despite the type of package, families or individuals will have access to the whole club during their duration. This is set so as part of the competitive edge.
Marketing Strategy and Positioning
It is critical that the marketing and positioning strategy be inclusive of all the needs of the market. According to Simchenko and Yanovskaya (2020), many marketers often create strategies that do not consider the target market. From how they will be reached to what they like, these are just some of the things that have to be considered when discussing the marketing and positioning strategy. The marketing and positioning strategy should not only show how to target the market but also how to maintain a steady growth of the same. El-Dief (2018) notes that whereas there are numerous approaches on how to enter a new market and how to attract clients, there are fewer approaches on how to maintain one’s position within the market (Fetscherin, 2015). With newer entrants into the field, it can be challenging to come up with creative ways of continuously capturing the market. One of the unique selling propositions of the business makes this easier, however. Due to the ever-changing nature of technology, it is easier for marketers and the management in general to come up with creative ways of continuously capturing the market.
Advertising and Promotion Strategy
The company will use both traditional and digital advertising and promotion approaches. For traditional, adverts will be put up in television, radio and newspapers (Chakrabortty et al., 2013). Further, the company will set up billboards and other signage that will both act as advertising and directions to the premise. It is important to note that even though a significant number of people are online, traditional media still has relevance in this day and age (Chen and Chen, 2015). It should be noted that the adverts that are put out should be in both the local dialect and English. This is due to the fact that although locals make up the majority of the target market, UAE has an influx of foreigners who can also be targeted. It is important that the advertising should be crafted in a way that does not deny any of the two groups an opportunity to become members of the club.
The dynamics of family in the UAE have been changing over the years. Reyaee and Ahmed (2015) note that a majority of families in the UAE that are willing to spend on wellness are young. Ideally, this also means that a significant number of the target population is on social media, therefore, can be reached (in regards to advertising) through various digital platforms. Zolkepli and Kamarulzaman (2015) note that one of the advantages of digital advertising is that it is cost saving compared to the traditional approach. As mentioned, the company has to lower costs at all times, making this approach the primary marketing and advertising strategy for the firm. A second advantage of digital advertising is that it can be highly customized based on the target audience (Fetscherin, 2016). Further, it can reach more people than the traditional approach. It is due to these reasons that the company should consider centering its marketing and advertising strategy to digital.
It is critical that the business also have a user-friendly website. One of the reasons for the website is that it will allow clients to get more information about the club that they cannot get on the social media platforms. Siamagka et al. (2015) note that creative and engaging websites are key in attracting clients to a business. Such a page should not only offer vital information to the target audience but also act as a link between the club and the market. Affiliate marketing can also help boost the website and reach more people. Critically, the website has to be updated constantly with offers and other information that the public might need. It goes without saying that the social media profiles should also be active and engaging. McCann and Barlow (2015) note that marketers are often confused on content generation for social media. However, there are professionals who can be hired specifically for this to ensure that the company continuously engages with the public through their social media handles. All these have to be managed singularly through the omni-channel approach in order to create a seamless experience for the clients.
Target Milestones
The table below shows milestones of the UAE Social Club House:
Table 1: Milestones of the UAE Social Club House
Financial Plan
Critically, the financial plan has been based on extensive market research that has been done in regards to all aspects of the business. It can be argued that the industry contributes approximately 15% of the tourism revenue in the country. Therefore, it can be concluded that a target of 2.5% market share within the first one year is attainable. It is important to note that the price of membership and daily packages will also be determined by the start-up costs and the operating costs (Almutlaq, 2016). Therefore, one key financial objective is to lower both the start-up and operating costs. This will in turn help the management control and lower the premiums that the clients have to pay. However, it is also important to note that the premiums will be consistent with other similar services in the industry (Aziz, Amlus and Jusoh, 2015). It is estimated that the cost per day for access to the club will be AED 80, which is approximately USD 27 per adult and AED 40, which is USD 10 per child.
It is important to note that a Point of Sale (POS) system will be used to ensure that all financial records are kept safe. This will also make it easier for management to monitor and adjust the bottom line accordingly. The POS system is critical in marketing as well as it will clearly show what the company should invest in. Schio (2020) notes that a clear projection of cash flow and expenses is critical for proper planning in any business. The company will have experienced staff who can manage the financial department to ensure that the firm is profitable. However, all departments will have to understand basic finance in order to align their goals and objectives to those of the organization.
Vital Assumptions
It is important to note that there are several vital assumptions that have to be made as the business starts. For instance, it is assumed that employees will not be overwhelmed with work immediately due to the fact that a lot of ground work still has to happen in ensure the club runs at full capacity. Further, it is assumed that the company will break even within three years based on current trajectory. The graph below shows some of these vital business assumptions.
Break Even Analysis
It is estimated that the company will require a revenue of AED 1,500,000 per month in order to break even. The suggested amount is inclusive of all the licenses and other operating costs that are recorded monthly. However, this does not factor in the cost of equipment that will be purchased once – when the business starts. It is important to note that the sale of membership will be the primary revenue collector even though there will be other value-added goods and services offered. It is important that the breakeven analysis only include the core business due to the fact that the other added goods and services are not a reliable source of revenue.
Projected Cash Flow
It is important to note that payment of membership will be done both in cash or credit card. The cash option is especially for families or individuals who want the daily packages. On the other hand, it is expected that the clients looking for monthly packages will use credit cards. The fact that the business allows for both ensures that there will be a steady flow of cash within the business as well. A stable cash flow is important in the stability of the business due to day-to-day purchases or activities. It is expected that the company will have a steady cash flow of approximately 7,000,000 AED by the end of the first year.
Projected Balance Sheet
As mentioned earlier, the company will look for funding from different avenues. It is expected that some of the funding will be provided in the form of loans. Therefore, it is anticipated that the company’s net worth will increase when the debts are paid off. This can be spread out to be completed within the first five years of the business. It is essential that the business not focus on repaying all the loans at once, but rather get a sustainable and gradual repayment plan.
Table 2: Projected Balance Sheet
Business Ratio
There is one business ratio that has to be highlighted in order to manage the financials of the business. It is important to note that a significant number of the assets will be long term with only a few short-term assets.
Table 3: Business Ratio
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