Topic > Competitive Analysis in Saudi Arabia's Transportation Sector

IndexIntroductionPrimary and Secondary CompetitorsCompetitive Strength AssessmentFive Forces of Competition AnalysisThe Threat of New EntrantsBargaining Power of SuppliersBargaining Power of BuyersThreat of SubstitutesCompetitive RivalryBarriers to Market EntryConclusionReferencesIntroductionSaudi Arabia Saudi is the largest nation in the Middle East with an area spanning approximately 2.2 million square kilometers. The Kingdom of Saudi Arabia is considered one of the countries with the highest GDP in the Middle East. The country has seen significant growth in most of its sectors where the transportation sector is one of the sectors currently performing well. The country's investments in roads, railways, pedestrian paths and other infrastructure systems have facilitated growth and development in the transportation sector. As a result, there is a certain level of efficiency in the use of transportation modes and systems such as electric vehicles, bicycles, scooters and bicycles in Saudi Arabia. Therefore, there is the presence of competition in the transportation sector in the country. Therefore, the electric scooter industry will face some rivalry when it enters the market. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Primary and Secondary Competitors Rental bicycles are one of the main competitors in the scooter industry. In the recent past, people have started using bicycles to travel to and from different places. But people cycle when commuting short distances because excessive cycling is associated with exhaustion. Businessmen have started offering bicycles for rent where people pay when they want to use them. Cycling is thriving in major cities. In Jeddah, Jeddawish is an example of a company that rents bicycles to customers for use within the city (Arab News, 2019). The company looks forward to offering its bicycle services to almost every part of the city as it expands across the nation. Therefore, the electric scooter industry will face stiff competition as it competes with such companies in acquiring customers. Furthermore, as Jedadawish and other bicycle businesses expand into other parts of the city identified as potential for scooters, such as at the beach and near universities, the electric scooter sector is likely to face significant rivalry. It is also important to note the fact that cycling is associated with some physical activity: it is very likely that customers prefer cycling to using electric scooters. Uber and Careem are companies that will act as secondary competitors to the use of electric scooters. scooter in Jeddah, Saudi Arabia. Uber and Careem represent a company that offers taxi services by moving people from one destination to another but covering short distances. They have applications that people use to locate available cars at any time of the day. Companies use many strategies to gain greater market share in the transportation industry. The use of low prices is one of the strategies used by rival companies where many people can afford the costs. The companies also lay emphasis on passenger comfort and a person can use an Uber or Careem car as an individual without being disturbed by other passengers as is the case with public vehicles. Therefore, the scooter industry is likely to face rivalry from companies due to the lack of comfort and safety when it comes to ridingalone in the first. The idea of ​​pricing is also likely to bring with it the issue of competition, but it will depend on how much the electric scooter business charges for its services. Competitive Strength Assessment I selected the first competitive strength assessment method because it considers all factors and gives them equal weight for the analysis. Furthermore, I have selected all the factors listed in the worksheet since they are also the determinants of the growth of companies in a market (Harvard Business Review, (2008). Therefore, they will also apply to the electric scooter business as it starts and grows in the market As mentioned above, the main competitors in the electric scooter industry are Uber/Careem and rental bikes. These businesses appear to have a certain level of strength in terms of image reputation based on the fact that they have been in business for a long time. these companies also have relatively greater strength in terms of quality performance as many people have tested them and ascertained their effectiveness. Furthermore, they do not have high manufacturing capabilities or strengths in new product innovation. Even financial position and relative liquidity are low for competitors because they do not require high operating and maintenance capital. But the customer service is relatively high for the competing company. The completed worksheet is attached as a different file along with this document. The electric scooter business will be unique in the sense that it will be associated with new ones. product innovation. After the launch of the plan, the company will offer new and innovative products to the market, thus showing a high level of product innovation. It is also evident that the company will have a high customer service capability. This strength will be demonstrated by the friendly interaction between the customer and the company representative when renting a scooter. Next, the customer simply needs to press the button to move and stop the machine with minimal balancing ability. Analysis of the Five Forces of Competition The Threat of New Competitors The transportation sector in Saudi Arabia is highly controlled by various regulations that limit the unwanted entry of new businesses. The government is a source of regulatory bodies that control the transportation sector. The government of Saudi Arabia establishes some regulations as acceptable codes based on honesty, respect and integrity, and companies that do not comply with the regulations are eliminated from the transportation sector. Additionally, the country created the Saudi Public Transport Co. (SAPTCO) which controls almost the entire industry. SAPTCO develops and enforces licensing regulations and ensures that transport companies operate within their mandates. Therefore, the management of the electric scooter industry will most likely not face major threats, but will have to demonstrate its ability to meet the requirements of regulatory bodies in the transportation sector. Bargaining Power of Suppliers As mentioned above, the company will source electric scooters from China. Therefore, China will serve as the main supplier of the products, the electric scooters used in the industry. However, electric scooters are also produced in countries such as the UK and Germany through the companies AJ Stevens & Co. Ltd and BMW Motorra. However, China is considered the leading manufacturer and supplier of products globally. Therefore, I think China may have relatively higher bargaining power which could push it to increase prices, thus negatively impacting the business. Bargaining Power of Buyers In the electric scooter industry, scooter riders will act as the main buyers. However, to this8