During previous times all spheres in commerce were fulfilled with a control of some businesses. Such giants as General Motor Company in the USA or Lever Brothers in the UK were the leaders in early times of industrial era. These and other companies controlled, first, production, its quality, and employee safety. There were several strategies made up to contribute into the process of further development within commercial relations.
Today more attention is paid on constantly increasing electronic markets and electronic business on the whole. For many international companies and local leaders in various branches of industry or provision of services it became too significant to join the space of the Internet developing and making wider the boarders of activity. There are several generally accepted strategies when providing e-commerce, such as: making out the outlook of e-business, integrating into current way of electronic disposal, improving service, realizing the trends of the community, simplifying the concept of making business via Internet, maintaining the security of person’s privacy. The above mentioned strategies can be reduced to three: challenges, solutions, results.
Saudi Ceramics Company being headquartered in Riyadh is one of the Saudi leaders producing high-quality porcelain tiles and sanitary ware. Established in 1977 it is spread on the area of Saudi Arabia with five offices and many showrooms all over the country. The shareholders of the company did not stop purchasing the auditory of potential customers as well as distributers by providing its service in the Internet.
First of all, it concerns markets in some European countries. The main information about the company is closer to clients because of Internet, that is why Saudi Ceramics has signed already several contracts to export products in such countries as Ukraine, Estonia, Russia etc. Furthermore, the company exports its products to more than 45 countries. The success of the company in the world arena is of governmental importance if it can be said in case of monarchic state system of Saudi Arabia.
Thus, the applications of its representation in the world are necessary to be put. As Soliman outlines: “With the increasing use of internet technologies and cross-organizational applications, the scientific and technological basis for document management has to be expanded as well” (Soliman & Affisco 37) That is why in the area of standardization of information about the structure of the company electronic markups are useful as well as metadata. Government agencies in different countries try to be informed with current updated data about different companies, because Internet is convenient, efficient and ubiquitous.
While the list of benefits of e-government is long, the level of technology adoption is generally low and limited to simple applications, such as posting contact information and links to other sites” (Soliman & Affisco 37). The other means to promote the products and services is to register minutes and help people access the manuals on the site. This stage of the company is in its development. The company mainly gives publicity to the auditory of Internet users.
Before the appearance of the Internet as a main platform of providing different information and communication technologies (ICT), companies used other definite infrastructures. Among them are: electronic data interchange (EDI), interorganisational information systems (IOS) and other public-based platforms. These infrastructures afforded an opportunity for companies to link their internal functions and to maintain ties with customers, suppliers and other partners as well. (Albrecht 14) The cost of such innovations was too expensive for the companies and they hardly had any benefits concerning it providing e-commerce. As Albrecht notes:
The benefits of these systems were limited due to two factors. First, the number of companies using these IT systems was relatively low compared with today’s ubiquitous Internet, thus limiting the number of potential partners. Second, even if a company used an ICT infrastructure, its IT systems and applications were not compatible with those of its business partners (Albrecht 15).
These factors along with new wants of people in commerce resulted in e-business a limited expanse beyond companies. Nevertheless, Saudi Ceramics have already reached certain levels of its development via Internet providing the relations between the company, suppliers and customers. According to the annual reports of the company it is marked that having an ambitious plans in 2005 to enhance a total production capacity of tiles to 32 million sq.m. the aim was achieved by 2008.
Moreover, by the year 2007 the company started to produce water heaters. Now Saudi Ceramics Company has a total of 2 contemporary tile factories, one sanitary ware factory and one plant for electric water heaters with a total number of workers equal to 1,700 people. Constant financial support of SCC is well performed due to growing up profit levels and prosperous construction segment of company’s policy. Sales increased in 2007 up to a grade of 22.8 per cent.
This indicator is still rising. Such conditions cannot but stimulate the growth of company’s investments into its presence in e-commerce. The web site of it is easy in use and helps controlling and acquiring the last news bout company and its development.
The activities of SCC are developed in course of the e-business operations which helps company to evaluate their products from customers’ point of view. This strategy is aimed to make out what should be done to reach this objective pointing out that it means new territorial expansion.
That is why the company tries to deliver its message of whole competency in sphere of ceramics through the upgraded informational technologies. It helps to be closer to the situation on markets not to miss moments of gaining better results. The intermutual work with main suppliers of the company and promoters of its visibility in e-business figures out a high-end position of Saudi Ceramics. Looking at the data of SCC expressed in numbers it becomes clear then to give this company all chances in cruel policy of influence allocation in the world.
Table 1 Key Statistics.
Investment portfolio of SCC contains stakes in Natural Gas Distribution Company (15.8 %), Ibn Hayyan Plastic Company (1.7 %) and Gulf Investment House (1.2 %). Such background along with expanding capacities in producing tiles and ceramic markers for roads resulted in modernization of current plants exceeding all planned expectations when the company has taken up net profits which enhanced 36.7% to SR127.5mn in 2007. This perspective notwithstanding gross margins was encouraged by the company administration in recent years.
In the international commerce Saudi Ceramics adopts an attitude of further obtaining of foreign markets. The policy of the company is aimed at reaching the respect and positive evaluation of its products in the world arena. This goal is obvious when speaking about company’s promotion in the Internet. It is so also when admitting the fact that Saudi Ceramic Co. has got European citation for high quality (CE), the German standard award (GS) a Russian certificate of quality (Gosstandard) and the certificate of standard (ISO 9001-2000) as well as quality citation of Saudi Arabian Standards Organization (SASO) (The Evening Standard, 2006).
The analysis of e-enabled perspectives for the company is focused on the present achievements of SCC, its current policy of expansion on foreign markets and realization of its annual aim. In fact, there are a lot of factors to implement and fulfill the main goals of the company due to the stability of investment, exceeding the outer boarders by signing several agreements to export the production of the company. At the very beginning of company creation the only way of trading touched upon only direct sales. Today the activity of SCC is leading to perform customers with trading in new technicall and practically approved way, be means of e-business.
Again realizing the fact, that Saudi Ceramics is directly specialized on producing porcelain tiles, sanitary ware, and ceramic markers for roads and even water heaters the aspect of its detention and promotion in this market sector presents great fundamentals for the ulterior growth of financials and economical stability for the company, as such background prevents investors and interested people to support and use the products made by SCC.
The other goal for the company is to expand the number of plants represented abroad. This aspect should be recognized as of joining to the process of globalization of Saudi economy. Being a part of such process will lead then to the reduction of expenditure item in case of transportation and human resources usage. As it is concerned, south-eastern part of Asia is specified on the wide policy of paying lower wages then it is in the Middle East, that is why it is vital for Saudi Ceramics along with the policy of entering foreign markets to make efforts in reclaiming new areas, so that to reach the buyers of its production faster. Providing e-business initiatives encompasses the urge of the company to operate with the help of progressive means.
Being at the stage of further development the official web site since the year 2007 have already promoted the company within either ordinary people or potential distributers and customers. It is not out of place to mention that main strategies of the company are presented on it verbally and with the help of visual aids.
Working out the ability of the company to take part in the e-commerce and realizing the role of SCC in assurance of high quality of its products and services does not discredit the high-end position of Saudi Ceramics in domestic relations and in the world arena as well.
Reference list
Soliman, K & Affisco, JF ‘Business Process Management Journal’; Emerald Group Publishing, 2006.
Chandler, B ‘Quick on the Draw; October Events: Art Explodes across the Capital – It’s Time to Get Creative’; The Evening Standard (London, England), 2006.
Albrecht , E & Jelassi, T ‘STRATEGIES FOR E-BUSINESS: CONCEPTS AND CASES’; Pearson Education, 2008.
The Construction and Hardware Sector in the Kingdom of Saudi Arabia. Web.
Statistics on Building and Construction. Web.
Schneider, G. (2008) Electronic Commerce. 8th Edition. Course Technology.