In Saudi Arabia, the market of electronics and mobile devices is one the raise since more and more people start using smartphones and other devices within the last years. The Middle East and Africa (MEA) region can be characterized by a boom of mobile devices due to their affordability. The review of purchasing trends and spending power shows that the sales of mobile devices are expected to grow in the future years (Figure 1). For the proposed joint venture between Jarir Bookstore and Mobily Telecommunications, the target population is composed of students, people engaged in business, and those who prefer convenient reading and learning options. These customers value the functionality of devices and are ready to purchase them to improve the quality of their lives. The target customers prefer a rapid and easy access to the Internet and trustworthy information. To meet these needs, the proposed product will be superior to the competitors due to its design, price, and functionality.
Currently, the key market competitors are Apple, Samsung, and Huawei, which share the largest market units. The strengths of these competitors refer to their strong position on the global market, as well as an elaborate and recognizable design. However, their weaknesses are associated with a lack of dedicated customer support and low awareness of the local market. The latter can be mentioned as the main competitive advantage of the proposed joint venture since both of the companies are Saudi. The focus on the saudization of the local market and intense customer support will be used to address such weaknesses as a lack of customer recognition and loyalty and possible functionality failures. The future growth of the target market is anticipated as high due to the penetration of mobile devices into the life of the Saudi population. The customers are likely to be surfeit by standard mobile devices, looking for new options that would meet their needs. Therefore, the cooperation of Jarir Bookstore and Mobily Telecommunications can be an effective way to provide customers with the opportunity that is not offered by the competitors.
The electronics and mobile devices market landscape in Saudi Arabia is favorable for the entrance of a new product. Considering that Apple, Samsung, and Huawei cannot ensure the full understanding of the local environment, the proposed joint venture seems to be timely and promising. This market is stable and developing rapidly since mobile devices become more demanded than ever in the identified region. More to the point, customers need new products to extend their opportunities in terms of learning, business, and convenience.
The objectives of the joint venture are to create a new product and gain 30% of the market share within three years. In addition, it is important to create a system of customer care to promptly answer their questions and provide the necessary information. The marketing activities will include studying competitors and customers, designing and manufacturing a new product, setting prices regarding the local market and competitors, product promotion through the official website and social media, and customer service. Each of the activities will be assigned a responsible manager, who will control their implementation. Within six months, the product lifecycle should be developed up to the start of production. After that, the product should be released within one year, and the ultimate goal related to the market share is to be accomplished within three years. The marketing budget is $480,000 for all the activities and costs.