abstract = “Purpose – To investigate the impact of the internet in “traditional” market – An opinion piece based on Michael. Fathoming Porter’s five forces model in the internet era. Type: Article; Author(s): G.D. Karagiannopoulos, N. Georgopoulos, K. Nikolopoulos; Date: ; Volume . Abstract, Porter’s Five Forces model is a powerful management tool for analysing the current industry information because of the Internet.
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Since 80 percent of the total labour force in the kingdom are non-Saudis, there is no scope for labour unionism. Remember me on this computer. One important factor that makes Saudi companies less competitive in the world market is the complacency of businesses and their slow response to the changing environment. Moreover, Saudi industrial strengths in gas, chemicals, machinery, and banking are important contributing factors to the nation’s success.
The conceptual Thee model will now be used for a broad country analysis of Saudi Arabia and for the specific analysis of selected industries to illustrate the practical application of the model. The first part of this section discusses Saudi Arabia and its industries in light of their competitive advantages in the macro-environment.
Saudi te disadvantages While most Saudi industries remain viable, weak areas also exist and must be Downloaded by University of Dubai At Further reading Al-Farsy, F. Competitive advantages of Saudi Arabia can be found in various sectors. Educators, Researchers, and Students: In this article, the conceptual framework of Porter’s model will be used to analyze industries and to identify the competitive advantage of Saudi Arabia.
Over the past two decades there has been enormous growth in the number of industrial plants operating in the kingdom. Porter’s model can be applied quite effectively to the UK, France or Switzerland.
The paper analyzes the competitive advantages of Saudi Arabia with Porter’s model. High levels of unemployment add to this burden. A strong banking sector Saudi Arabia’s banking sector is strong and is not susceptible to negative influences from the world financial crisis.
Fathoming Porter’s Five Forces Model in the Internet Era
Another advantage of Saudi Arabia lies in the distinct labor-management interneg. The relative decline in its competitiveness demands a reexamination of its national competitive advantages.
The kingdom’s proven gas reserves stood at trillion cubic feet inthe fifth largest in the world. Intrinsic economic factors affecting Saudi industrial productivity include unlimited natural resources e.
The following economic trends are also apparent in Saudi industries: Apple has achieved success as one of the most valuable companies in the world. On the other hand, switching cost is low, which means that it is easy for customers to switch from Apple to other brands, thereby making competition even tougher.
Fathoming Porter’s five forces model in the internet era – Research Portal | Lancaster University
Introduction A substantial creditor to the The kingdom of Saudi Arabia is the largest country in the Middle East and rest of the world the 12th largest in the world, measuring approximately 2. Michael Porter suggested that corporate rivalry contributes to a nation’s competitive advantage Warner et al.
They can also use landline telephones to make calls. An International Journal Undoubtedly, the oil sector has helped Saudi Arabia gain and maintain its competitiveness.
Saudi Arabia is dedicated to the concept of free trade based on competition.
Jasimuddin Lecturer in the Industrial Engineering Department, King Abdulaziz University, Jeddah, Saudi Arabia Keywords Saudi Arabia, Competitive advantage, Economic conditions, Export Abstract Saudi Arabia is one of the world’s wealthiest nations per capita and, through possession of a large share of the world’s oil resources, an economic power.
To participate successfully in the fast-approaching global economic integration, Saudi Arabia will need to control its budget deficit. Saudi Arabia is determined to pursue healthy macroeconomic policies to stabilize the internal and external values of its currency and to develop its capital market sufficiently to serve as a catalyst for development. Saudi Arabian Airlines is already considering privatization and has begun studies in this connection. Saudi Arabia’s future prospects in engineering do not look too promising either.
Saudi industrial uniqueness also arises from the plethora of medium- to large-sized companies which make up the backbone of export prowess of Saudi Arabia. The challenge is to make sure that the benefits from oil create a sustainable economy with robust, private businesses and strong local demand.
Saudi Arabia is already at a disadvantage due to its high social costs. A very important consideration will be the state of the macro-economy. Strong anti-trust legislation Some important economic factors contributing to Saudi strengths include strong anti-trust legislation; low entry barriers to business; and development of common standards which promote exports. This condition makes individual suppliers weak in imposing their demands on firms like Apple.
The facts have been taken from secondary sources and documentations for reference purposes. Log In Sign Up. The long-term objective of the Saudi government’s industrial policy must be to diversify the kingdom’s economic base and to reduce its dependence on the export of crude oil.
In relation, there is intermet high level of supply for most components of Apple products. The evolution of Saudi assets, both human and capital resources, provided the pathway to preeminence in the engineering, chemical production, machinery, and banking industries. One of Saudi Arabia’s strengths is the consumers’ demand for high quality products.
Therefore, trends in these determinants also predict to a great extent the nation’s industrial competitiveness. Porter’s factor determinants of national advantage relate closely to a nation’s strengths in industrial production and, consequently, to its leading industries. The size of the Saudi market is also attractive to investors since it is the fivf market for goods and services in the Arab world.