Suppliers can approach the issue of delivering new materials to different markets by adopting market entry strategies introduced by Australian Trade Commission on their official web site. Most of these strategies are aimed to help Australian companies to enter foreign markets though they can be also effective for other international companies to enter the market of the Gulf Cooperation Council countries (focusing mainly on Saudi Arabia) and beginning effective cooperation with regard to the energy efficiency strategies.
As “A difficult economic situation of many Arab and South East Asian countries in the last few decades has made labour emigration an attractive option for citizens of these states” (Kapiszewski 3), the building of energy efficient constructions can become a good way of attracting labour force back to the country.
For instance, staff training may be required to make sure that the staff members realise the necessity of changes. Project management strategies can also be required because entering a foreign market resembles work on an independent project. As such, training and motivating staff members, assessing possible risks and taking measures to exclude all potential hazards that may produce negative influence on the project and its outcomes.
Strategies Suggested by the Australian Trade Commission
The first step in entering the foreign market should be a selection of the right strategy. At the same time, this can include a combination of the most appropriate and effective strategies. For instance, it is possible to choose a few strategies from those introduced by the Australian Trade Commission: strategic alliances, merger/acquisition and others.
However, the strategy called ‘Greenfield Site’ (Australian Trade Commission n.pag.) seems to be the most appropriate for Saudi Arabia because it presupposes creation of a new operational area. In this case, delivery and use of energy efficient materials and construction of energy efficient buildings can become a new niche in the market.
Market research is the first step while introducing a new business into the market. It is necessary to conduct a research on possible ways of cooperation with already existing companies that specialise in delivery and construction. At the same time, possibilities of merger, acquisition, strategic alliances, franchising, contracting and licensing, global supply chains (Australian Trade Commission n. pag.), and other important aspects should be taken into account.
As for the energy efficiency market of Saudi Arabia, “Energy conservation measures in building were focus of research in the last two decade in GCC to develop thermal guidelines or codes for building” (Ghaddar 13). This means that Saudi Arabia market may have some basic projects that focus on energy efficiency, though, they may also lack international perspective. In this case, some globalization may be needed to bring the cooperation on such projects into a brand-new level.
Supply with Regard to Demand
Before approaching the market, potential demand should be analysed and evaluated with regard to the climate changes. As suggested by Ghaddar, the countries of Gulf Cooperation Council can use various technologies for energy conservation with regard to rate of consumption and possible sources of energy.
In other words, the environment enables the company that enters this market to operate effectively with regard to alternative sources of energy and delivery of necessary equipment as well as building and construction of energy efficient dwellings. Every strategy applied to this market is sure to be effective because the market is new. However, this fact also makes this market feasible in terms of rivalry and competition that is sure to grow with regard to changing conditions.
Competitive Advantage
As soon as a new company enters this market, the existing firms are sure to introduce changes to become more competitive or, alternatively, they may try cooperation with regard to merger or alliances.
As suggested in the business plan introduced by the Northwest Energy Efficiency Alliance, a few goals should be set and reached in order to enter the market effectively.
Though those strategies were supposed to be implemented in the Northwest regions of the United States of America, the GCC countries can benefit from application of such an approach. In this respect, it is necessary to “build regional market knowledge and capability through education and training” (Northwest Energy Efficiency Alliance 14).
This approach is aimed at attracting labour force regardless of their experience in such domain though this would be beneficial for candidates on high positions. On the other hand, a fresh look on the problem of market entry can be of great importance for a foreign company.
Alternatively, it is possible to build a company from the very beginning in Saudi Arabia or any other country of the GCC and develop cooperative alliances with it later when it would be able to operate in the market independently achieving great results compared to main rivals.
Finally, emerging technologies should be introduced into operation of a new company because this fact provides it with a competitive advantage and enables to operate effectively even in the conditions of great rivalry. A competitive advantage, supply chain management, distribution, product management, pricing, segmentation of the market, and many other aspects should be evaluated before entering the market.
Works Cited
Australian Trade Commission. Market Entry Strategies. 2011. Web.
Ghaddar, Nesreen. Climate Change Research on energy Efficiency in the Arab Region. United Nations Development Programme. 2010. Web.
Kapiszewski, Andrzej. Arab Versus Asian Migrant Workers in the GCC Countries. Department of Economic and Social Affairs. 2006. Web.
Northwest Energy Efficiency Alliance. 2010-2014 Business Plan. 2009. Web.