Complementary Services & Value Creation in Saudi Arabia Research Paper

Introduction

The business world has been reshaped by the exponential growth in technology leading to the emergence of electronic commerce. E-Commerce has made it compulsory for business companies to find ready markets for their goods and attract customers [1]. E-commerce activities contribute to broad categories of relationships between sellers, suppliers, and marketers. In considering the e-marketplaces of a nation such as Saudi Arabia, it is imperative to note that the country deals with direct goods [17].

Complementary services

Complimentary service is a service that is directly related to the use of a product. Complementary services stand at a balance with the main service. These services are used by the company to install the main product. In other words, complementary services are required to facilitate the main product. The services are not only restricted to installation, but also maintenance and disposal of the product. Examples include payment, logistics, and assurance [11].

Service system value

A service system value is a term largely used in service management to refer to the configuration of people who are sharing information to achieve a given task. Many service systems are less or not coercive, and they seek the flow of information in a smooth way among the users. A service system value makes use of the available resources to evaluate and improve the present circumstances and those of others. The system service value evolves from a service-dominated environment whereby interactions between people are emphasized. However, it should be noted that some service system values use coercive means [3].

The relationship between complementary services and service system value

Complimentary services include logistics, payments, and assurance. The services have also been modified to entail reliable postal and delivery services, the absence of valid government regulation, and the absence of support from relevant security organizations. The thriving of e-commerce in Saudi Arabia has been challenging due to many aspects involved in the entire venture. Immature complementary services have been held to be a significant hurdle. A lot of interest has been generated towards finding a lasting solution by overcoming the said barriers [10].

There has been the establishment of suggestions to improve the complementary services to have a direct influence on the service system value [8]. In addition, the moderating value of culture is also considered. A shift in the focus on how to operate a service instead of focusing on how the goods are to be created is inevitable [5]. The shifting of attention will be in line with the need to have competent personnel to handle e-commerce transactions. For instance, unlike the earlier trend whereby the physical market had to be created, the new wave has now taken a different turn, and companies are compelled to have competent information technology experts to address the issue at hand effectively [14].

The selling of products by companies on the internet calls for skilled Information technology experts with the knowledge and required competence to interact with the internet freely. Therefore, it follows that without the required skill companies will lose profits due to poor approaches by the employee [4]. It is to be borne in mind that the skilled professional can multitask hence eliminating the need for having many employees. The training maybe not only orients the employees to business through the internet but also to caution on the required guidelines and ethics [1].

Secondly, the releasing of information by the companies in eCommerce to be in circulation has tremendous positive results. The main importance of offering instructions to those selling products online is that the desired goals are achieved, and both the seller and the buyer get to benefit. The information circulation creates awareness about a product or services to be offered [16].

The complementary services will call for a sacrifice from the company. A bigger step may be required to create a marketplace that provides offers and different gifts. Sellers will have a preference on market places that offer gifts to the buyers to enhance the buyer-seller relationship and loyalty in the dealings [5]. In the same way as developing a physical market, a prudent company on top of creating the market will further complement the market [15].

With a continuous update on the e-marketplaces, the concerned parties will be kept in touch with the dynamic nature of the market. Consumers have a preference for a market that keeps up to date enlightenment. The improved relationship created will be a persistent and determining factor in the popularity. Though a complementary service, without it vital strides cannot be possibly achieved specifically in the service, system value creation [12].

Keeping in line with the new trends and having a committed maintenance system of the e-markets is extremely important. This factor coupled with fast delivery can boost the e-markets in Saudi Arabia to attain greater heights. Notably, the United States is said to have streamlined e-commerce. Every consumer embraces a market that offers quality as contrasted from quantity goods. If Saudi Arabia desires to have an e-market similar to that of the United States, sufficient investment and serious embarking on a quality-oriented system have to be accomplished [13]. E-market that offers priority and discount to its customers has an upper hand and a relatively high bargaining advantage over that which does not offer them. The priority just like in the normal market has the effect of making a customer feel appreciated. The companies in the eCommerce business have to understand that it is only in improved service delivery that a stable value creation system can be enhanced [6].

Effects of the social environment

Interestingly, the relationship between the complementary services and the service system value is moderated by the social or cultural forces in Saudi Arabia. There is information suggesting that the number of internet users in Saudi Arabia is growing, and the e-markets are subsequently increasing. In addition, Saudi Arabia is considered to be the biggest purchaser of computers [11].

It has been averred that social environmental sustainability has significantly moderated the growth of e-markets in Saudi Arabia. It has to be observed that many religious and social issues in Saudi Arabia provide a fertile environment for electronic business. The culture of Saudi Arabia does not prohibit women from using computers hence diversifying the market. In such an environment, eCommerce thrives since the use of the internet is in all stages of life [16]. The driving force behind the thriving of eCommerce in Saudi Arabia largely depends on the fact that the social aspects of the people are not limiting. An exercise of free culture to venture into business has greatly propelled e-commerce [8].

Conclusion

The growth of system services value is a chain that unfolds from one step to another. The said stages include factors that affect the system service value and those that moderate. It has been established that complementary services create a positive relationship between the service system and the users. The relationship between the complementary service provision and the service system value creation in Saudi Arabia has been moderated by cultural values. The cultural values moderate the relationship in that the marketing strategy to market a product in the market observes the limits of the cultural values. Therefore, certain advertisements will not be appealing to customers due to cultural hindrances.

References

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