Choose A Saudi Business From The List And Answer The Questio ✓ Solved

Choose A Saudi Business From The List And Answer The Questions Http

Choose a Saudi business from the list and answer the questions: Identify the business briefly. What is the business strategy? Describe its products and/or services. Identify its customer (segmentation, target market). Why do you think that customers buy their product and/or service from this company? Identify two competitors and describe how this business differentiates itself from them. Does the business have a competitive advantage? Apply the BCG matrix to analyze the current business portfolio. If this were your business, what would you do differently? Explain your response. Analyze the company’s situation by using SWOT analysis. Please type your assignment as follows: 1- Font Size 12 Times New Roman 2- Single-spaced on A4 paper. 3- not less than 3 pages 4- need references 5- PDF version + uploaded on LMS The contents of the assignment must be based on your opinion, discussion; details your own critical thinking. Your assignment must be written in English only. Plagiarism, copying and cheating will NOT be awarded any mark, and disciplinary actions will be taken instead. Those who do NOT submit ON TIME considered late submission. Your mark will be ZERO. You are required to prepare a front cover for your assignment. The front cover attached (Appendix 1).

Sample Paper For Above instruction

Introduction

The Saudi business selected for this analysis is Saudi Aramco, the world's largest oil company, based in Dhahran, Saudi Arabia. Established in 1933, Saudi Aramco plays a pivotal role in the global energy market and is a significant contributor to the Saudi economy. The purpose of this paper is to analyze Saudi Aramco's business strategy, products, target market, competitive positioning, and other strategic tools like SWOT and BCG matrix to assess its current standing and future prospects.

Brief Overview of Saudi Aramco

Saudi Aramco operates primarily in the exploration, production, refining, distribution, and marketing of petroleum and petrochemical products. It holds one of the world's largest proven oil reserves, estimated at approximately 266 billion barrels. The company also ventures into downstream activities, including refining and chemical manufacturing. Its primary customers are global energy markets, including international oil companies, nation-states, and large industrial consumers.

Business Strategy

Saudi Aramco's overarching strategy focuses on maximizing hydrocarbon revenue while diversifying into downstream sectors to reduce dependency on oil exports. It seeks to maintain its technological leadership in oil recovery and refining efficiencies, and to expand its global footprint via strategic partnerships and joint ventures. The company's goal is to sustain profitability amidst volatile oil prices and increasing renewable energy competition.

Products and Services

The company’s core products include crude oil, natural gas, refined petroleum products such as gasoline, diesel, jet fuel, lubricants, and petrochemicals. It provides energy solutions globally through refined petroleum and chemical products, and offers integrated energy services. Downstream investments include refining facilities in Asia, North America, and Europe.

Customer Segmentation and Target Market

Saudi Aramco's primary customers are industrial consumers, energy companies, and governments worldwide. Its target market spans global markets with a focus on countries with high energy consumption such as China, India, and the United States. The company targets large industrial users and governmental energy agencies that require stable, reliable energy supplies.

Reasons Customers Purchase from Saudi Aramco

Customers choose Saudi Aramco due to its vast reserves, reliable supply chain, and reputation for high-quality products. The company's global reach and integrated supply chain ensure product availability and competitive pricing. Additionally, Aramco's technological excellence and stability provide confidence to customers seeking consistent energy supplies.

Competitors and Differentiation

Key competitors include ExxonMobil and Royal Dutch Shell. Saudi Aramco differentiates itself through its enormous reserve base, cost-efficient operations, and strategic government backing. While ExxonMobil and Shell have diversified investments, Aramco’s dominance in oil reserves provides a competitive edge, especially in the Middle East.

Competitive Advantage

Saudi Aramco possesses significant competitive advantages, notably its low production costs, vast resource base, and governmental support, which provide stability and influence in global oil markets. Its integrated operations from upstream to downstream create efficiencies and barriers to entry for competitors.

BCG Matrix Analysis

Applying the BCG matrix, Saudi Aramco can be categorized as a ‘Cash Cow’ due to its large market share in the global oil industry and relatively stable revenues. It has potential ‘Stars’ in renewable energy investments and ‘Question Marks’ in emerging petrochemical markets, requiring strategic investment to convert into future ‘Stars’.

Potential Business Improvements

If this were my business, I would invest more in renewable energy and diversify beyond fossil fuels to prepare for global energy transition. Developing new technologies for cleaner energy production and establishing partnerships in renewable sectors would future-proof the company.

SWOT Analysis

- Strengths: Large proven reserves, low-cost production, governmental backing, global integration.

- Weaknesses: Heavy reliance on oil revenues, environmental concerns, exposure to volatile oil prices.

- Opportunities: Investment in renewables, expansion into petrochemicals, technological advancements.

- Threats: Increasing adoption of renewable energy, fluctuations in global oil demand, geopolitical risks.

Conclusion

Saudi Aramco exemplifies a major global energy enterprise with substantial resources and strategic positioning. While it currently enjoys a competitive edge, the energy industry’s shift towards sustainability necessitates innovation and diversification. Continual strategic assessment using tools like BCG matrix and SWOT is vital for maintaining its market dominance and preparing for future energy landscapes.

References

  • Al-Hassan, B. (2021). Saudi Aramco's strategic transformation in the energy transition. Energy Policy, 148, 111898.
  • GEI, (2022). Overview of Saudi Aramco's operations. Global Energy Insights.
  • International Energy Agency (IEA). (2023). Oil Market Report. IEA Publications.
  • Meadows, D. (2019). Competitive analysis of Saudi Aramco. Journal of Energy Industries, 42(2), 157-172.
  • OPEC. (2023). Annual Statistical Bulletin. OPEC Secretariat.
  • Porter, M. E. (1980). Competitive Strategy. Free Press.
  • Reuters. (2024). Saudi Aramco’s expansion into renewables. Reuters News.
  • Smith, J., & Roberts, T. (2022). SWOT analysis of oil companies. Energy Economics, 102, 105545.
  • United Nations Economic Commission for Europe. (2023). Energy Markets and Sustainable Development. UNECE Publications.
  • World Bank. (2023). Global Oil Market Trends. World Bank Reports.