Saudi Arabia - Heart Rate Monitor Watch

Topics: United Arab Emirates, Saudi Arabia, Arabian Peninsula Pages: 11 (4067 words) Published: January 25, 2013
Saudi Arabia is a country on the rise and exhibits characteristics of an emerging power, increasing its presence in global affairs. Saudi policymakers have made a rigorous effort to reform the country's economy and to position it as an investment destination as well as an important player in the global economy. The aim of this research is to analyze the market potential for Heart rate monitor watches in Saudi Arabia and to finally give a recommendation whether the respective market should be entered or not. The first step of the research is to analyze the Macro environment in Saudi Arabia, described in chapter two, by extending the influencing factors with general information about politics, economy, socioculture as well as technical, environmental and legal factors. Chapter three gives an overview of Porter's five forces including market competitors, potential suppliers, buyers of heart rate monitor watches, possible substitutes and new entrants. In chapter four, the questions "Why should we enter Saudi Arabia" or "Why should we not enter Saudi Arabia" gets answered. The last step of the search is a literature review on entry modes, described in chapter five. These feasible entry modes will be analyzed, taking into account influencing factors like the risk a company is prepared to take and the desired degree of control, market factors and environmental factors in Saudi Arabia, cultural and geographical distance, especially the problem associated with the role of women in Saudi Arabia. The outcome will be the selection of a suitable entry mode and designed marketing plan guidelines - including the "4 P's" of Marketing Mix; Price, product, promotion and place - for the chosen entry mode. 1.1 Sport Industry in Saudi Arabia

Sport becomes more and more popular among countries in Asia. A multi-sport event, the Asian Games, held every four years among athletes from all over Asia, including Saudi Arabia, and recognized by the International Olympic Committee and described as the second largest multi-sport event after the Olympic Games (The Sports Biz Asia Team, 2010). FIFA announced, as indication for the progressing interest in sport in Asia, that the World FIFA Cup 2022 will take place in Qatar (, 2012). Saudi Arabia gives focuses on the sport sector by allocating 12,5 % of their national budget to health and social affairs in 2010, which is the second biggest portion after education expenditures, in order to establish numbers of sport clubs to increase the welfare of society (US-Saudi Arabian Business Council, 2013) Saudi Arabia aims to steadily increase investments in sport industry in order to create opportunities especially for the younger population. 2General Information about Saudi Arabia

Saudi Arabia is the largest Arab state with a complete sovereignty in Western Asia by land area and it is the home to Islam's two holiest shrines in Mecca and Medina. The country's official language is Arabic and the capital city is Riyadh (Saudi e-Government National Portal, 2012). The map of the country and its 13 provinces are available in Appendix Figure 1 and Figure 2. 2.1Political Factors

2.1.1Political System
Saudi Arabia follows a monarchy system of government. The country is ruled by Al Saud Royal Family according to holy Qur’an. Political parties are banned in the country. The Shura Council, a Speaker and Saudi Cabinet are leading the government (Euromoney Country Risk, 2013). Saudi Arabia has serious problems with terrorism; therefore the government increased efforts to fight against terrorism (Library of Congress - Federal Research Division, 2006). The country is still politically stable, since on the Euromoney Country Risk Index Saudi Arabia had a score of 41.89 in June 2011 (out of max. 100) (Euromoney Country Risk, 2013). Morever, Saudi Arabia ranks 57th out of 183 countries in Transparency International’s Corruption Index for 2011 (International, 2011) which is moderate (TRANSPARENCY...
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