The paper “ The Ineffectiveness of E-Market in Saudi Arabia“ is a well-turned variant on research proposal on marketing. Saudi Arabia is one of the world’ s wealthiest states per capita and, through ownership of a large share of the global oil resources, an economic giant. The economic success of the country is built in part on its comparative advantages and on overcoming its disadvantages. Even though the government strongly supports the existence of a free market economy based on competition, Saudi Arabia is yet to be successful in the global scene. One of the reasons for the poor performance in the global market by Saudi Arabia is lack of adequate skills in information technology, which hampers the effectiveness of the e-market (Jasimuddin, 2001). It is a paradox that the Kingdom of Saudi Arabia is only just embarking massive ICT programme that will make it a regional technology landmark.
Saudi Arabia can be regarded as the ICT giant in the Middle East given that it has over 27 million consumers and a significant number of global businesses. To support this, the telecommunications and information technology industries in Saudi Arabia represent more than 50% of those in the whole of the Middle East region (Saudi Arabian General Investment Authority, 2010). Yet, in spite of the fact that many of the world’ s ICT markets are expanding, the Saudi market remains relatively underdeveloped rated by global standards.
Despite the 10% growth in the ICT industry between 2001 and 2006, the Saudi market has not reached the levels that have been attained by other economies that can be compared to its level. Although many Saudi Arabian IT industries have shown signs of growth, e-commerce has remained relatively low.
This does not sound well bearing in mind that with many transnational companies, it should be very easy to reach various companies and market online, but this has not been the case (Saudi Arabian General Investment Authority, 2010). Given that e-marketing has become one of the necessities of life in our society today, Hundreds of millions of users access the Internet daily from all over the world. The use of the e-market has been cited to offer some advantages such as maintaining communication with customers, having effective channels of distribution, disintermediation and reducing the prices of products by decreasing the channels of distribution and so on.
Saudi Arabia needs an effective e-market to increase its competitiveness; but as identified above, this has not been achieved. This proposal thus seeks to set into motion a research study to gather information regarding the condition and how it can be improved. The intended research will focus on the attributes of Saudi Arabia e-market in comparison to the situation in other regions of the world. Statement of the problemIn spite of Saudi Arabia’ s market wealth, the country still performs below par in terms of its e-marketing strategies compared to other countries.
According to Jasimuddin (2001), one significant factor that makes Saudi companies less competitive in the market world is the complacency of business and their slow response to the changing environment. Further, another weakness is the lack of expertise and skills in the new sciences (such as semiconductors, telecommunications, fibre optics and software). Yet, these areas are of essence if e-marketing has to be effective. The research will, therefore, be carried out to assess the ineffectiveness of the Saudi Arabia e-market and the factors that have contributed to this state (such as those identified by Jasimuddin (2001)).
The study will focus on the various promotion channels used in e-marketing, the behaviour of the channel (that is what the various users perceive of it), whether the strategies used in e-marketing lead to customer satisfaction, the outcomes of the various e-marketing strategies and the contribution of the strategies to the overall effectiveness of e-marketing.
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Jasimuddin S. M. (2001) Analyzing the competitive advantages of Saudi Arabia with Porter's model, Journal of Business & Industrial Marketing, Vol. 16 No. 1, pp. 59-68.
Saudi Arabian General Investment Authority (2010) ICT, Available from http://www.sagia.gov.sa/en/Key-sectors/ICT/ (7 September 2010).
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