Market benefits
Increased sales quantities due to increased market demand. The Kingdom of Saudi Arabia is the second world’s largest oil producers. It has the biggest reserves of oil which makes it competitive and therefore many countries rely on this product. It is this demand for the product which has improved its sales and enhanced the country’s gross domestic product. Other than oil, Saudi has diversified its economy to other activities like mining and agriculture. Given it’s a desert and experiences little rainfall, the country is one of the largest producers of dates. It supplies the whole of Africa, Europe and other continents. The demand for dates makes it possible for the Saudi to record a higher sales margin (Al-Torkistani, et.al 2015, pp.1-8).
Elsewhere, increased prices due to quality and reputation made Saudi to gain a considerable mileage over its operations. For instance, the lack of civil liberties in the country has made individuals improve litigation, legislation and mobilized public enlightenment. Also, the regional influence and it’s goodwill over the years and the renowned oil reserves have made prices to sky rocket. The funding of Sunni insurgencies is another crucial element which has contributed immensely towards it reputation. In precise, customers are always ready and willing to pay an extra coin provided the product has good quality.
Similarly, reduction in costs due to increased efficiencies is another market benefit. Saudi produces its products in large quantities and is among the members of the OPEC (Moran, 2015). This qualification makes it possible to enjoy economies of scales which reduces costs and improves production and system efficiencies.On the other hand, Saudi has among the highest number of foreign workers who have been given jobs in both the private sector and the public sector. Most of the labor force is highly competent in the various fields in which they are absorbed. The use of capital intensive labor in large productions and the specialization of labor is one of the advantage the country enjoys. Job specialization aims at assigning individuals with the duty they can perform well. In a nutshell, improved efficiencies tends to eliminate the draws backs and abnormal losses associated with the systems operations.
Consequently, increased productivity is one of the market benefits in the industry. for example, the county has embarked on education and training to ensure that non-Arabic speakers are given training to equip them with the basic communication skills apart from knowing their culture. Saudi Arabia oil dominance high profile has compelled the government to strategize on the socio-economic infrastructural program.The ease of communication, online business, good roads and other improved social amenities have made it possible for the country to capture a higher turnover in its activities.
Lastly, reduced future costs related to environmental cleanup, internal control and ethics breath is a non-market benefit. The Kingdom of Saudi, is governed by sharia law and therefore very strict on the breath of ethics. Obtaining bribe in business is considered illegal trading and punishable by the law. Among the internal controls are aimed at protecting the assets and ensure reduced wastage. Use of CCTV, electronic door lock tight securities are among the ICs in place. Saudi has managed its mines and wells thoroughly to shun environmental degradation and pollution. These measures and government involvement in trade has boosted its economy by a great margin. In summary, the Kingdom of Saudi is has in decades built its reputation which has seen the country advance in business through increased product demand.
Get Your Custom Paper From Professional Writers. 100% Plagiarism Free, No AI Generated Content and Good Grade Guarantee. We Have Experts In All Subjects.
Place Your Order Now