Part c
Information about the declining market of automobiles in Saudi Arabia seems not be enough to guide future research. There exists an information gap between the current trends and changes in the market, especially for the BMW. Previous studies, however have identified the trends which are bound to shape the automobile market in the near future. Adoption of IT in distribution is seen as one of the major factors to impact on the sale and increased revenues from these automobiles. Effective placement is seen as strength guiding the success market dominance by the automobiles dealers. Large family sizes in the country are seen to trigger the demand for SUVs which accommodate the large family sizes. However, the youthful population tend to drive the high demand witnessed for the small classy cars. The high affluence level is the Saudi Arabian market drives their demand for the luxury vehicles. The increase in GDP per head, in the country promote the market for the automobiles. The increased public spending on luxurious live styles acts as the main driver of the market sales of the automobiles. Saudi Arabia is seen as the leading market for transport vehicle in the GCC region. Bayerische Motoren Werke AG (BMW), however is seen to be part of the key players in the supply of these vehicles to the market. There is no clear indication of how specific automobiles brand perform in this region. Information on factors driving the market for the BMW however seems unclear and this creates a knowledge gap offering room for more research. In conclusion, the information about the market research of BMW car brand is not readily available for cross referencing. The information which exist doesn’t give an analysis of the Saudi market for the brand but appears general for the entire automobile industry. Research on operational hardships facing the company at the middle east market have not been extensively undertaken. The automobile market analysis pertaining the operational environment for brand fail to materialize. The researcher will adopt use of primary data for this study. The study ought to bridge the knowledge gap existing in the market about the market performance of BMW brand in the Saudi market. The existing information fails to clearly and categorically address this issue. The secondary data sources available also seems to have outdated information, some having been published sometime back. The dynamism nature of the operation market causes drastic changes to the operational conditions and therefore affecting a brand’s marketing activities. Basing a study on this information therefore would be misleading. The secondary data sources presented do not give the market conditions as per now. These data sources took time between the period of data collection and presentation. During this period the market factors were not dominant and several changes affecting the operational conditions had occurred. Due to this even at the actual time of presentation the information lacked some essentials about the market operations and conditions. To achieve accurate information on this matter therefore primary data approach seems the best. The data collected from the primary sources will provide up to date information which will validate the finding from this research. The use of primary data will enable the researcher to strategically and properly design his/her data collection tools to fit the research and provide the relevant information. Primary data collection will also guide the presentation process and ensure that the information presented converges with the current situation in the operation environment. The primary data source will help avoid transferring one study errors to the current study. The study assumptions will also be based on the current study but not on another study whose content is hard to validate.
Part F
Saudi Arabian vehicle market in the recent past has suffered a blow due to the law discriminating women from owning and driving a car. The law has changed and this barn has been lifted and therefore the women can own and drive within the country. Due to this, the demand for vehicles in the middle east countries and especially Saudi Arabia has increased gradually. Saudi Arabia serves as the largest market for the automobiles in the GCC region, the market heavily depends on importation to meet the high demand. Saudi Arabia has ventured to car manufacturing industry; scholars argue that this will affect the market for other automobile brands operating in the country. Saudi Arabia has not heavily ventured in the car manufacturing industry for this reason therefore major portion of vehicles demand is solved through importation. Prices of the oil products have been seen to impact on the demand of the automobiles product in Saudi Arabia. The Saudi Arabians have a high spending habit, this is because of their high affluence level and their increased purchasing power. The healthy financing environment as a result of a healthy banking sector influences the accessibility of finances for the manufacturers as well as the customers. Products manufactured should fit the terrains of the target market to ensure that they effectively solved the market needs of the middle east country. The automobile companies are venturing to sale of second hand cars which is currently the emerging trend in the market. Effectiveness in the distribution of the spare part and their availability affects the customer’s choice on which brand to purchase from. High cost associated with acquisition of the spare parts demotivates the market making it choose an alternative. BMW reportedly is part of the key players in the Saudi Arabia automobile market, their successful operations has been boosted by the brand acceptance in the country. In 2015 the brand broke the record on the number of cars sold to the Saudi’s market. Favorable market conditions such as invitation of investors by the government to venture in the automobile industry has highly influenced the success of the brand within the country. Lack of enough public transportation means influences the purchase of light vehicles in Saudi since it is part of the basic needs. Heavy investment in the infrastructure in the middle east countries promotes the market for the auto mobiles, this is because the automobile dealers are no longer worried about the terrain of the countries. The infrastructural development promotes the production of even better models for the industry. Ineffective distribution methods affect the market share of the product at the market, when the product cannot the intended market in time there will be loss in the market share expansion. Understanding of customer need and serving them effectively leads to an expansion in the market share. Existences of alternatives for the customers within Saudi Arabia as the country ventures in the automobile industry, reduces the market share for the organization. The operation environment has gradually changed in Saudi Arabia, the current change affecting the automobile industry is the escalating crude oil prices in the country. These have led to an increased level of inflation, and therefore making the BMW luxury cars more expensive and almost unaffordable to the local market. Ineffective strategic approaches by the firm as to how to survive in the changing Saudi’s operational market, has seen the firm remain resistant to the changing environment which in return affected its market share. Changing market needs especially the Saudi’s youth may attribute to declining sales.