Strategy For International Market Harvard Case Solution & Analysis


This project concerns China as the target market for Saudi Aramco for exporting its products. The Saudi Export market is producing a wide range export of petroleum products for China and in this regard, a very detailed market analysis, along with all other factors including exporting country outlook to importing country’s market place and status is given in this market plan. Saudi Aramco targeted the entire Chinese market for its oil exports.

A brief introduction about the oil and gas company, Saudi Aramco along with the background and forthcoming exceptions are discussed and the products, prices and oil companies in China as well as production ratios specifically,Petrochinaand Sinopec are also discussed. Overall, the Chinesemarket is the most vivid and appealing market for international exporters to produce and reproduce their products and their applicability. China has a wide but a more restrictive foreign investment climate than the other chief trading partners like Saudi Arabia, Russia, Germany and USA.

There is an increased oil consumption reported in China in the past few years, i.e. since 1990 to 2001 it has increased at a typical yearly ratio of 7.3%, which means that from 2.25m B/D to 4.88m B/D, respectively. This is done in concurrence with the society’s motorization along with the economic growth and the income growth. In China, Petrochina and Sinpec are the major oil companies.

            Saudi Petroleum Company is planning to export its petroleum reserves in the China Market and this marketing plan is about the oil export by Saudi Arabia to China. The product is the lower levelof the market as it enters as a crude oil supply, which is raw material of all kinds of oil and petroleum, barriers of market entry are very low at this time.The market analysis performed and the overall criteria of the Chinese market also evaluated to send the products. The overall guidelines are also mentioned in the plan that has to be followed for fruitful trade between these two countries.

Strategy For International Market Harvard Case Solution & Analysis

KSA-Historical Background.

Saudi Arabia (KSA), holds about 22% of the worlds’ recognized petroleumdeposits and has positioned itself as the chief exporter of fuel (petroleum), worldwide. The oil and gas segments accounts for around 50% of unrefined domestic item for consumption, and about 85% of transfer incomes.


In March, the oil was first found in KSA (1938), at a distance of 1,440m in the Dammam’s field of oil.Oil based financial plan is about 25%of the world’s oil reserves. 75% of Budget returns, 45% of the GDP, 90% of Transfer Earnings. The World Trade Organization was made in 2005. Unemployment is currently about 13% (local bank assessment; the range is asgreat as 25%).

The total area is about 1,960,582 sq. km, about 1/5th of the proportion of the US, whereas the overall climate is rough, dry harsh and extreme temperatures are noted. Most of the times uninhabited & sandy deserts. The main natural possessions includefuel, natural gas, gold and date tress. The total population is about 27,019,731,which also includes 5,576,076 non-national individuals.

To one side from fuel &petroleum, the KSA’s other natural possessions include gold, dates and natural gas, & the statemoney is the riyal (SAR)...........................

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