After much in-depth research of NeverWet, the following table of the company’s strengths, weaknesses, opportunities and threats has been created:
- Multi-purpose product
- Industrial uses
- Primarily a water/liquid repellent
- Little to no rainfall in Saudi Arabia
- NeverWet could be useful for workers in the oil industry as it could keep their shoes and clothes clean, and help them last longer - NeverWet could be used as a rust and corrosion repellent
- NeverWet’s name could be misleading to consumers as it does not suggest the product’s other uses
NeverWet is a multi-purpose product that has a variety of uses including anti-corrosion, self-cleaning, and a many industrial uses. Since NeverWet is such a versatile product that can be used in many different ways, it has the potential to be quite successful in the Saudi market.
NeverWet is primarily a water repellent, and annual rainfall in Saudi Arabia is very low, so this may contribute to, and be the cause of, low sales in the market.
As the oil industry is booming in Saudi Arabia, NeverWet would prove to be very useful for workers who wish to keep their shoes looking new. Further, it can be used as a rust and corrosion repellent
As the name suggests, NeverWet is a liquid repellent, which may be misleading to consumers as they may think that it is only used as a water repellent.
The ideal consumer of NeverWet is general labourers. According to the word bank, Saudi Arabia last measured a labour force of 9,558,815 people in 2010. This is an extremely large consumer group. Since Saudi Arabia has a rather severe shortage of water resources, water is very expensive there. NeverWet is therefore ideal for Saudi Arabians because it repels sweat and can ultimately reduce the cost of laundry. It is a very appropriate product for Saudi Arabia for the above two reasons; not only can it save water, but in turn, save money as well. In this environment, NeverWet can be utilized, and is likely to become a necessity for the citizens of Saudi Arabia. Target Market
Currently, the economic situation in Saudi Arabia is good. In 2011, the Saudi Arabian gross domestic product (GDP) amounted to $576.8 billion, an increase of 6.8%, actually a record high. Inflation was at 4.7%, compared with 5.3% in 2010. While revenue skyrocketed to $296 billion, an increase of 50 percent, the highest increase of nearly 10 years. Spending on the other hand measured $213.6 billion, an increase of 25%. Overall, there was a fiscal surplus of $82.4 billion. Saudi Arabia’s total imports measured $176.7 billion, a surge of 1.54%. Based on the World Bank and the International Financial Corporation report, the investment environment in Saudi Arabia is also improving; in 181 countries worldwide, the Saudi commercial freedom ranked twenty-three in 2007 and has since risen to number thirteen as of 2009. For global trade and logistics, Saudi Arabia has a great geographic location. This is conducive to reaching the large market this country has to offer, as well as neighboring countries. This data illustrates that NeverWet’s entry in the Saudi Arabian market possible.
Currently, there are no other products which are even remotely similar to NeverWet available on the market in Saudi Arabia. NeverWet is faced with a true lack in competition. However; should we hesitate to bring NeverWet to Saudi Arabia, we could lose our first mover advantage. First mover advantages include: capturing market share without worrying about competitors trying to seize the same customers, when rivals do come, the first mover has advantages such as known products, brand loyalty, as well as up-and-running distribution systems over the competitors. In the US however, competing products do exist such as Liquipel and...
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Liquipel Watersafe Technology
Trading Economics. Labor force - total in Saudi Arabia. 2013. Web. 25th Mar 2014.
World Bank Data
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