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Super Nanny Middle East Company’s Porter’s Forces

Institutional Conditions and Transitions

According to the definition that was given by Mike Peng, institutional transition ‘can be defined as fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect the organizations as players’ (Peng 2003). Although the fees for the schooling seem to increase, there are a lot of debates that argue such actions. As a matter of fact, the education in schools in the United Arab Emirates is rather costly, and that is, Super Nanny Middle East is not likely to face strong competition from the governmental establishments in case, the prices for education become lower, the company will be in a threat.

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However, as long as education is expensive, families are likely to hire nannies and provide them with the training programs (Pennington 2015). The system and organization of the company adjust to the new environment and change according to the new rules of the game. The condition in the market and possible threat of new entries and substitution influence the objectives and goals of Super Nanny Middle East.

The gained experience helps the company to go through changes, improvement, and advances to achieve prosperity and become more confident in the modern market. The child care sector is very popular in the United Arab Emirates, and that is, should be developed and restructured in accordance with changes observed in the market. Scientific researchers in the sphere of child’s development receive the priority and become the fundamental concern of Super Nanny Middle East.

Generic Strategies

Generic strategies are used for the business analysis in accordance with three primary directions, namely, cost leadership, differentiation, and focus (Cunningham & Harney 2012). When the accent is laid on the generic strategies, it is easier to understand the core principles that are relevant for the company. Super Nanny Middle East is focused on attracting as many clients as possible by providing reasonable prices for high-quality service in the sphere of child care. As a matter of fact, early childhood is a period where the development of the child is highly dependent on the people around them, and that is, skillful professionals receive the priority.

The company’s differentiation is focused on providing unique training for the nannies and families as well as high-quality service. The focused cost leadership provides the clients with the most reasonable prices in the industry, whereas focused differentiation of Super Nanny Middle East is centered on offering unique service on the market. The company’s principal strategies are the following ones, namely:

  1. Providing childcare that is focused on the cognitive development, improvement of skills, and abilities;
  2. Taking care of nutrition in accordance with the scientific knowledge;
  3. Ability to provide first aid in case of emergency.

Generic strategies are essential to be taken into consideration and developed as they influence the business significantly (Cunningham & Harney 2012). As a matter of fact, the ability to evaluate generic strategies and implement them into the working process is an integral part of the prosperity and success of every business. Generic strategies developed by Super Nanny Middle East reflect the needs of the client and are sure to satisfy every parent, especially when the strategies present not only in written form but in reality as well. The stated above generic strategies are significant for the company’s objectives and goals.

Porter’s Five Competitive Forces

According to recent researches, almost 95% of children in the United Arab Emirates are raised by nannies (Dhal 2011). The percentage is impressively big as parents in the United Arab Emirates are busy working and so preoccupied that they do not have enough time to spend with beloved children. The vast majority of families have nannies that help busy parents to raise children.

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As there is a big demand for the child care sector, a number of private and public nurseries, as well as daycare centers emerge. It seems to be complicated for the parents to spend time with their children, and that is, they need to be sure that they leave their children to someone reliable and trustworthy. Although there are a lot of professionals working in the sphere, it should be pointed out that the majority of kids will consequently have low self-esteem and poor discipline.

In addition, there are some cases that shock with the behavior of nannies, which abuse children and behave unprofessionally (Dhal 2011). The recent findings prove that early childhood, namely from the birth to three years, is significant for the positive cognitive development and socio-emotional aspect. The child will not remember himself at this age; however, the experience he faced will influence the adulthood, future academic performance, and success.

Despite the fact that some parents experience the phenomenon of the executive guilt, it is worth highlighting that they cannot give up a job as the income will decrease. Expatriates usually bring nannies from their home countries; there are a couple of reasons for such a choice. First and foremost, parents want their children to be acquainted with native culture. Secondly, they can trust more people from the home country. In addition, it may be cheaper.

Nevertheless, there are a lot of families who address local agencies to hire a nanny (Dhal 2011). Children spend the majority of their time with nannies, and sometimes they become very close. That is, it seems to be significant for the parents to find a reliable nanny. The family should treat a babysitter with respect and in case, it is needed to provide her with training as their children need to be healthy, happy, skillful, and active.

The major objective of the nannies is not to substitute the family but to provide the parents with appropriate support. The company that not only fulfills this aim but performs other additional tasks as well is Super Nanny Middle East. The motto of the company, namely ‘every superhero needs a super nanny’ reflects the values and beliefs of the company. To get better involved in the issue, the organization should be analyzed by the Porter’s model as it provides relevant information regarding the efficiency and significance of the business (West, Ford, & Ibrahim 2015).

Supplier Power

Powerful suppliers tend to reduce revenue in the industry. As a matter of fact, suppliers can coordinate the market and competition as they can raise prices and offer less quality products or services. Supplier power is one of the aspects that influence the competition on the market. The company is a monopolist on the market, and that is, the prices are regulated by the executives and increasing demand for high-quality and professional service in the area of child care.

Buyer Power

The families who want to hire a nanny also have the power to influence the market. Although there are a lot of options, it should be stressed that in the vast majority of cases it is rather difficult for working parents to dedicate enough time to find the best agency that offers reliable and trustworthy service. The majority of parents are looking for companies that will satisfy their desires and needs for the most reasonable price. Super Nanny Middle East is the type of company that will meet the requirements of every family and will provide them with a high-quality and professional work.

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The major objective of the company is to give every child care provider with a possibility to become a super nanny for parents’ superheroes. Super Nanny Middle East developed unique programs and workshops that allow everyone to improve knowledge regarding the peculiarities of working with children, establish the relationships based on trust and respect, and to develop skills needed to work with children and make the cooperation prolific and successful.

Moreover, the families will be attracted by an opportunity to know how to spend time with children with profit for their development. The objectives of the company include positive child development, appropriate nutrition based on scientific knowledge, and the ability to provide the first aid in case of emergency. The stated above aspects of the work of the Super Nanny Middle East are sure to satisfy even the demanding family.

Competitive Rivalry

It is worth stating that the rivalry is comparatively high in the sector of child care. The fact that almost 95% of families are looking for nannies in the United Arab Emirates stimulated the development of the industry. Different child care centers, as well as local agencies, offer a wide spectrum of services. However, is it worth making an accent that Super Nanny Middle East is an innovator in the industry of child care providers? A variety of programs that are directed to improve the skills and abilities of nannies and families in the field of working with children prove that the company is worth trust and respect.

Nanny will report all the significant moments to parents in order for them not to miss any achievement of their child. Meal plans will be developed according to the age, preferences, and healthy lifestyle in order for the child to receive the needed norm of vitamins and protein as food influences the development of a child in an impressive way. High-quality learning materials are unique and created by outstanding professionals in the sphere of child care.

More than ten years of experience working in the Middle East influenced the visions, beliefs, and values of Super Nanny Middle East and helped to establish a reliable team that will manage everything and support families in a child’s nurturing. There are no competitors in the area of service of Super Nanny Middle East as the service is unique.

Threat of Substitution

There is hardly a service or product in the world that cannot be substituted. Although Super Nanny Middle East offers highly professional service for nannies and families as well, it should be pointed out that the competitors can easily imitate the values and concepts of the company. In addition, the fact that the fees for school can become lower influences the behavior of families and can negatively affect the business.

However, it depends on the actions of the government and the situation on the market. Parents may decide to send their children to school earlier. Nevertheless, the children aged between one to five are still a target group. The service is not likely to be substituted; however, it is essential to note that there is a certain threat.

Threat of New Entry

Although nowadays Super Nanny Middle East is a unique company that offers a wide spectrum of services not only to nannies but to parents as well, it should be stressed that there is still a threat of new entry. As a matter of fact, the growing demand for high professional nannies in the sphere of child care is impressive, and it is the reason for the agencies and organizations to emerge. The unique experience of Super Nanny Middle East attracts not only families but rivals as well.

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They can steal the concept and try to create similar organizations. However, it is worth highlighting that they are not likely to succeed as the experience and trustworthiness of Super Nanny Middle East is reliable as the company exists on the market for more than ten years. Nevertheless, the threat of new entry remains. The company is famous for the uniqueness and high-quality service, and that is, the threat of new entrants that can compete with Super Nanny Middle East on the same level is reduced to the minimum.

Culture and Ethics

It is essential to explore the peculiarities of the culture in the United Arab Emirates in order to get a better understanding of the nanny industry in the country. Hofstede offers six dimensions of analysis, namely power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence (Adelina 2015).

First and foremost, Hofstede examines the score on the power distance. This aspect is high in the United Arab Emirates (90), and it means that society understands and accepts the fact that all people are not equal, and hierarchic order is an integral part of the society.

The category of individualism reflects the relation between the self and the group. According to the research, the United Arab Emirates is collectivistic with a score of 25. It means that the person tends to work in the team, and offense consequently leads to shame.

As for the masculinity, the United Arab Emirates scored 50. The society is in the middle between masculine and feminine. Masculinity describes the type of society that is guided by competition and aggressiveness at some point, whereas feminine is the type that appreciates family, taking care of other people, and quality of life.

According to the expert, the uncertainty avoidance is high in the United Arab Emirates (80). For the society time equals money, they are eager to work and become motivated with the financial aspect. It is worth highlighting that dimensions of indulgence and long-term orientation were not estimated.

The stated above information provides better insights into why Super Nanny Middle East is popular in the market of the United Arab Emirates. The company aims to adjust to the peculiarities of culture and market needs as it is essential for the prosperity and success of the industry. Understanding the needs of parents and being able to adjust to the cultural environment make the company successful and attractive to clients.

Reference List

Adelina, M 2015, Handbook of Gendered Careers in Management Getting In, Getting On, Getting Out, Edward Elgar Pub, Northampton , MA. Web.

Cunningham, J & Harney, B 2012, Strategy & strategists, Oxford University Press, Oxford, UK. Web.

Dhal, S 2011, “94 per cent of Dubai children reared by nannies,” Gul fNews. Web.

Peng, M 2003, “Institutional Transitions and Strategic Choices,” The Academy of Management Review, vol. 28, no. 2, pp. 275–296. Web.

Pennington, R 2015, “School fees pricing out students in Dubai,” The National. Web.

West, D, Ford, J & Ibrahim, E 2015, Strategic marketing: creating competitive advantage, 3rd ed, Oxford University Press, Oxford, UK. Web.

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