Export Strategy For Zaina Harvard Case Solution & Analysis

Introduction

            The paper attempts to describe the export market in which the company would enter to launch its product, along with the export strategy which would allow the company to form strategies to market its product in the selected region. While considering the export market section, the paper attempts to describe the characteristics and conditions of the selected market, whereas, opportunities and barriers to success along with key competitors in the market have also been described.

Furthermore, the export strategy describes the product design and development strategy and the ways for the company to market and position its brand. Moreover, the paper discusses product outsourcing strategies and sales and distribution channel for the company. Lastly, the paper highlights the trade regulation in the country.

The Export Market

Characteristics and Conditions of Market

PESTLE Analysis

Political

            The country that has been selected is Saudi Arabia for the exporting of the products. The country is governed by a monarch, who has the power to make internal and external decisions and is considered as the head of the state. The country is divided in to 13 provinces amongst which the total number of ministers in the cabinet is 22. Amongst the ministers of the nation, mostly are related to the King of Saudi Arabia. There is a political stability in the country as steps taken by the government is usually to support its citizen(Euromonitor, 2015).

Economical

            Saudi Arabia had been an agricultural country since until the discovery of oil in the year 1930’s. Currently, 90% of the country’s revenues and earning comes from oil industries. Furthermore, the country has a GDP of $622 billion, and is currently the second largest oil producer in the world. After many years of negotiation, the country has accepted to become a part of World Trade Organization (WTO) which supports foreign companies to perform business in Saudi Arabia with little restrictions(Euromonitor, 2015).

Social

            Islam is the most dominating religion in the country, while the culture and norms of Muslims living in Saudi Arabia are according to the teaching of the religion. Furthermore, Saudi’s men have more power in the society than women, but the percentage hasbeen rising on the account of women after the Middle East crises that had hit the Middle East region. Women have an Islamic tradition to wear hijab which is normally the dress code for Muslim women in Saudi Arabia. This allows a women to cover her face and body except for the eyes(Euromonitor, 2015).

Technological

            After the acceptance of internet in the year 1999 in the country, the government has decided to become less dependent on oil, and more focused upon scientific knowledge. The government has planned to open many new universities and education centers so that the country may produce students with an expertise on various subjects and could compete with other foreign students(Euromonitor, 2015).

Export Strategy Case Solution

Opportunities and Barriers to Success

            There are many opportunities for a company to enter in Saudi Arabia because of being an emerging economy. The spending power of its people has aroused companies to open various businesses including the online marketplace after the entrance of internet. Any country that has increased growth of purchasing power is a potential market for various companies around the globe. Since the country has managed to enter in WTO agreement, therefore it has to promote foreign companies and formulate laws which have equal trade level for citizen and non-citizen(Shoult, 2006).

Key Competitors

            The key competitors for Zaina would include those brands which have positioned as the luxurious brands in the country but are affordable in prices. These are the mid-price brands which include Zara, New Yorker, Aldo, and Stardivarius. These are the top brands which provide clothing products according to the desires and requirements of the market. A higher population of younger generation is accustomed to purchase from these stores who are often referred to as Millennial(Euromonitor, 2015).

The Export Strategy

Product Design and Development

            The company would hire designers which would be responsible for designing clothes in terms of making it a proper outfit for the women of Saudi Arabia market. Although the handicraft work and other designing shall be made directly from Kashmir, but the art of converting an outfit according to the market of Saudi Arabia would be performed in-house by the company itself(Stokes, Wilson, & Mador, 2010). ........................

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