Green Industry in Dubai, Tokyo and Berlin

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Table of Contents

Introduction
Analysis of the Sustainability of the Cities of Dubai, Tokyo, and Berlin
Competitors’ Analysis
Recommendation for Dubai
Works Cited

Introduction

The concept of green cities or sustainable cities is increasingly becoming popular in both developed and developing worlds as it has become apparent that nature can no longer sustain human activities that leave a heavy carbon footprint and destroy the environment. The global society has finally come to appreciate that there is a need to protect the environment and use the resources in a sustainable manner.

According to Helfert, as we move towards sustainable cities, we need to have standards that will guide various developmental projects which in the past have been associated with wanton environmental destruction (66). Nature is very delicate and when it is destroyed, then it may not sustain economic activities. It is for this reason that many cities around the world have come up with strategies to promote the development of green cities. Dubai is one of the fastest developing cities in the world. According to Vesco and Ferrero, the city of Dubai has experienced massive development over the past two decades as the government tries to shift its economy from that which relies on oil and gas to that which is service-based (49).

The transport sector, real estate, industrial sector, tourism and hospitality, and education sector are some of the sectors that have experienced massive growth within the last twenty years. The city is currently the leading tourist destination and business hub in the Middle East region. It’s metro transport system is comparable to that in developed countries in Europe and North America. The city boasts of the tallest building in the world and s series of other beautiful sceneries which attract local and international tourists. Tokyo is the capital city of Japan. According to Ercoskun, Tokyo is the world’s most populous city (32).

It is home to numerous companies and it has advanced technologies in the fields of communication, transport, health, entertainment, among others. It is a regional power. Berlin is the capital city of Germany. Ranked the second most populous city in Europe, the city has experienced rapid growth, especially following the fall of the Berlin Wall in 1989.

As these countries experience rapid growth, the main issue that they have to deal with is sustainability in their development. Pollution, overpopulation, waste management, efficient use of energy, and proper city planning are some of the issues that these firms have to deal with in modern society. They are trying to achieve sustainability by embracing the concept of green cities. In this paper, the researcher will compare how well the city of Dubai is moving towards being a green city. This city will be compared with the cities of Tokyo in Japan and Berlin in Germany.

Analysis of the Sustainability of the Cities of Dubai, Tokyo, and Berlin

Porters Five Forces Model Analysis

Dubai

Dubai is currently competing with other cities around the world to become a major sustainable city in terms of the use of energy, management of wastes, city planning, and in many other areas. To determine some of the environmental forces that may negatively affect it from achieving the sustainability goal, the Five Forces Model below can be used.

As shown in the figure above, the external environmental forces can be classified into five main groups. Industry rivalry is one of the environmental factors that this city is currently struggling with in its quest to achieve sustainability. Other cities such as Abu Dhabi and Sharja are also fighting for the limited resources available in the country to achieve sustainability. It means that the growth towards being a green city, which requires a substantial amount of resources, has been slowed by the fact that this city has to share the available resources by the other cities. The potential threat of new entrants is high as other major urban centers in the country also struggle to achieve sustainability. As such, the resources in the country will have to be spread to cover these other countries.

The power of buyers in this context is determined by the influence that other cities to which this firm exports its products have when it comes to choosing where to buy their products. The power of buyers is very high, especially with the emergence of other regional cities exporting similar products to the global market. The power of suppliers in this context is determined by the drivers of green energy.

They are the green energy companies hired by the government to redefine the use of energy in the country and to manage emissions. Their power is relatively low. The threat of substitutes is real. In case Dubai fails to move at the desired pace towards becoming a sustainable city, then other cities may forge ahead and achieve sustainability, making them more desirable to investors and tourists.

Global competitors

In this paper, the sustainability of Dubai was compared closely with that of Tokyo and Berlin. Using the same tool above, these two cities were also analyzed.

Tokyo

Industry rivalry that faces Japan as it tries to become a green and sustainable city is significant. Other major cities like Yokohama, Kyoto, Hiroshima, and Nagasaki are also struggling to achieve sustainability within the country. The potential threat of new entrants is high because many other regional cities are also trying to go green, which means that they will soon start fighting for the available resources to achieve the desired sustainability. The threat of buyers and that of substitutes is significantly high. However, the country faces the negligible threat of suppliers because it is a leading industrial city that is technologically advanced.

Berlin

According to Vesco, the city of Berlin is leading other cities in terms of green energy development (83). The technological advancement of this city reduces the industry rivalry for this firm significantly because other regional cities are forced to emulate its trends in green energy and sustainable development. The potential threat of new entrants and new substitutes is relatively low for this city because the advancements that it has made may take other cities centuries before they can reach the level of competing with Berlin favorably. The city has advanced wind, solar, geothermal, and biomass energy systems that is unmatched in the world.

The power of buyers for this city (in terms of the willingness of other cities to purchase products made in Berlin) is high, especially because of the high prices. The power of suppliers is extremely low (lower than that of Dubai and Tokyo) because the green city movement is led by local experts.

Competitive Profile Matrix

The cities of Dubai, Tokyo, and Berlin are currently struggling to become the green cities and to achieve sustainability in the face of global warming. According to Vinod, global warming is a major issue that is forcing cities around the world to redefine a number of issues such as emissions of greenhouse gases, waste management, and city planning, among others (74). The competitive matrix below helps in comparing how the three cities are fairing in terms of various parameters.

Table 1: Competitive Profile Matrix.

		Dubai		Berlin		Tokyo
Critical Success Factor	Weight	Rating	Score	Rating	Score	Rating	Score
Use of renewable energy	0.1	3	0.2	5	0.5	5	0.5
Sustainable energy use	0.1	2	0.2	5	0.5	4	0.4
Proper waste management	0.1	3	0.3	4	0.4	4	0.4
Reduced air, water, and soil pollution	0.1	5	0.5	4	0.4	2	0.2
Ease of doing business	0.1	3	0.3	4	0.4	5	0.5
Security and safety of residents	0.1	3	0.3	4	0.4	5	0.5
Standard housing facilities	0.1	1	0.1	1	0.1	5	0.5
Improved communication and transport infrastructure	0.1	2	0.2	3	0.3	4	0.4
Total			2.1		3.0		2.9

As shown in the table above, the city of Berlin outsmarts both Dubai and Tokyo in terms of the use of renewable energy. Japan comes second while Dubai comes last. In terms of sustainable energy use, Berlin comes first once again, followed by Tokyo and then Dubai. Energy use and management are very critical in achieving sustainability. Smart cities have learned how to use renewable energy and avoid emissions related to energy use.

In waste management, Tokyo and Berlin tie in the first position, while Dubai is ranked third. When looking at reduced air, water, and soil pollution, Dubai comes first, followed by Berlin, and then Tokyo. Tokyo tops the three countries in terms of ease of doing business, followed by Berlin while Dubai comes last. In terms of security and safety, Tokyo comes first, followed by Berlin and Dubai. Tokyo also comes first in improved housing facilities, followed by Berlin and then Dubai. Tokyo leads the other countries in improved communication infrastructure, followed by Berlin, while Dubai comes last.

Intensive Strategy

Achieving sustainable development is very challenging, especially for a city that is experiencing rapid development such as Dubai, Tokyo, and Berlin. It is necessary to use an intensive strategy to look at how these cities are making progress in terms of using renewable energy and protecting the environment as they try to balance between developmental needs and environmental needs. The figure below shows the three types of strategies that will be used at this stage.