Wednesday, October 9, 2019

Introducing Walmart into Saudi Arabia Essay Example | Topics and Well Written Essays - 2500 words

Introducing Walmart into Saudi Arabia - Essay Example This research will begin with the statement that Saudi Arabia is regarded as one of the largest food exporters in the Gulf countries. The market of Saudi Arabia has many barriers to entry since it requires the huge investment in establishing infrastructure, forming efficient distribution system, building brand name and also a considerable capital base for supporting the new entry. However, it can be portrayed that WalMart enjoys these advantages globally owing to its ability to invest the required amount for successful entry. So, in order to enter the market of Saudi Arabia, WalMart has to outline the estimate of investments to be made. The estimation is totally based on local requirement and competition. For understanding requirements of local Arabs and examine competitors in the market, WalMart should undertake an efficient market survey. The market survey will highlight the demand for the local Arabs and kind of products that they prefer most, besides indicating to the purchasing power of customers. The competitor analysis is the most important part of a market survey. The competitors and their business aspects will be critically analyzed by WalMart so as to identify strategies that they follow. The strategies followed by competitors allow WalMart to comprehend the exact likings and lifestyle of Arabs. Interviews with local Arabs will reflect their tastes and preferences as well as help in building trust and confidence. WalMart aims at selling most essential goods, which fulfills the basic need of any individual. The company does not highlight any particular product group and sells a wide-ranging set of products, thereby serving a diversified customer base. It can be noticed that many companies based in the United States (US) have ignored cultural beliefs of the targeted foreign markets and as a result, had encountered huge challenges that in turn led to the collapse of these companies. Nonetheless, it is extremely necessary for WalMart to consider all preva iling religious beliefs and traditions while preparing for entry into the Saudi Arabian market. It is observed that Saudi Arabia imports the largest amount of goods from the US, which highlights the fact that American products do not contradict social beliefs and traditions of the Arabs.

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