|Sl. No.||External Factor||Impact on internal factors||Actions/strategies taken to counter|
|Although Saudi Arabia was affected by the 2008 recession, the government implemented effective recovery plans. The impressive financial performance will help the company to operate successfully in the jewelry market since target customers have adequate disposable income.||The management will implement strategies that will take advantage of the strong economic performance. For example, it will have a system of segmenting customers, such as targeting middle- and income-earners will different qualities of jewelry. Consequently, it will meet the demands of all customers in the Saudi market.|
|Saudi Arabians are socially people, which will create the need for the company to manufacture products to meet the social needs of the customers. For example, the company should produce jewelry for all seasons and occasions.||The company will conduct regular research to understand the social needs of customers and ensure that all products meet them. For example, since the majority of the customers are Muslims, the company will use targeted marketing using customer service department to ensure that their needs are met during all seasons.|
|A majority of Saudi Arabians are Muslims, who comply with cultural values and beliefs. Thus, the company will have to adapt its business practices to the cultural needs of the customers.||The company will develop a corporate social responsibility program and cultural affairs department to support the country’s culture. For example, as part of marketing, the company will identify, finance, and attend cultural events.|
|Saudi Arabia has a considerably huge number of young adults and adults, who will make up the largest number of customers. Other demographic factors that the company will take into account are the level of education and income, which are relatively important in the country.||The firm will produce jewelry targeted to the youthful Saudi population. It will also have the usual line of jewelry and luxurious type targeted to the educated and high-income earners in the country. Segmentation will play an important role in this area.|
|Saudi Arabia, like other countries is committed to environmental protection and conservation, which will force the company to operate in a socially-responsible manner.||The company will have a CSR policy to ensure environmental sustainability in all its operations. It will focus in ensuring that its operations are not harmful to the environment.|
|Saudi Arabia has a relatively stable political environment, which enables the company to operate in a peaceful place.||The management will ensure that all its activities comply with the law to maintain the peaceful environment.|
|The government of Saudi Arabia supports business operations to improve economic growth.||The company’s management will comply with all government policies to maintain stability in the country.|
|Saudi Arabia has legal systems that regulate business operations. Therefore, the company should comply with all business legislations, such as business registration and consumer protection laws to operate successfully.||The company will consult legal advisors to ensure that it complies with all business-related laws. It will develop systems and policies that comply with all government and legal regulations.|
|Saudi Arabia has a strong technological infrastructure, which increased the demand for companies to invest in technology to succeed.||The company should invest in technology, such as for marketing and customer relations to improve operations. It should have up-to-date software and hardware to improve competitiveness.|
|The Jewelry market in Saudi Arabia is relatively concentrated and has numerous competitors, which will force the company to develop a competitive advantage of risk demise in the market.||The company will create a competitive advantage by learning about its customers and competitors through extensive market research. The research will help it to design and manufacture competitive products for its customers.|
Part B: Competitive
Companies should search for information about their competitors because they do not operate in a vacuum. Businesses always have another firm(s) operating in the same market and providing similar or substitute products or services. For example, business designing and manufacturing jewelry will compete with others in the market. Thus, information about competitors is necessary to understand the level of rivalry and the market share each of the other firms occupies. The management will make strategic decisions using the information when anticipating its share of the market. For example, some industries will have intense competition (red ocean), which means the business will occupy a small space, while others will have minimal competition (blue ocean), which means that the firm will have a significant market share. The jewelry market is a red ocean due to the many companies that are designing, producing, and marketing earrings, pins, and pendants. Thus, information about the competition will help to strategize on how to enter and the space to occupy.
Another benefit of learning about competition is to understand the strategies that rivals use to enter and remain in the market. Information about companies that have been in the industry for more than five years will help to inform the management of the effective approaches. Understanding the competition will also help the management to learn about the target audience to know how to change the strategy to align it with real customer needs. The knowledge will also help the company to communicate with customers better, as well as to differentiate itself from rivals (Murphy 23). The information is useful to improve processes, such as the design and production of jewelry and to navigate challenges inherent in the industry. Thus, businesses, especially start-ups should study as much information about competition to implement effective strategies.
Competitor intelligence is the information that a business can collect about its competitors through discovery and analysis of critical data. The management can collect a lot of information about a competitor through market research to find out the approaches that rivals use in the market. A person collecting the information can search through ads made by competitors to establish what they contain and how they communicate with their target audience. The advertisement contains a lot of data about competitors that the firm could use to align its strategy. Another method of collecting competitive intelligence is through rivals’ website. The sources include a lot of information about the competitor, including their mission, vision, and key objectives. They can learn the business strategies that consumers prefer by looking through reviews on a company’s website (Murphy 25). The company can also obtain information from a competitor by acting as a customer and asking targeted questions. Since the competitor cannot differentiate between who is a customer, the management will have a chance to gather a lot of information in the process. Notably, none of the procedures involves a direct financial cost for the company, and they will all generate a lot of intelligence to create competitive advantage.
Murphy, Christopher. Competitive intelligence: Gathering, analysing and putting it to work. CRC Press, 2016.