Feasibility study of cell-phone store in Riyadh,KSA Essay

Feasibility study of cell-phone store in Riyadh,KSA - Essay Example One such small enterprise that embraced this opportunity is KSA, a cell phone store, which operates in Saudi Arabia’s capital city, Riyadh. The cell phone store has continued to grow over the years, with rates almost equivalent to cell phones’ evolution. However, this enterprise is not exempt from external pressures, which affect virtually all business in Riyadh, among other places in Saudi Arabia. These external influences constitute the Saudi Arabian business environment, and they include aspects such as political, economic, social, technological, environmental, and legal considerations. In technical business terms these business environment elements make up a model referred to as PESTEL framework. With the remarkable evolution of cell phones in Saudi Arabia, KSA has to evolve in a similar trend, in order to conform to the surrounding environment and adapt to the ever changing business trends. Critically evaluating its external environment and taking proper measures t o exploit available opportunities while overcoming challenges encountered; will enable KSA to benefit extensively from the constantly growing demand for up-to-date mobile phones. Additionally, strategies made after extensively considering external business factors, will enable KSA to extend its operations beyond Riyadh, to rural townships that do not have direct access to stores where they can purchase trendy mobile phones (Latham and Watkins, 2010, p.6). Riyadh Business Overview It is important to make note of the fact that use of mobile phones, not only in Riyadh, Saudi Arabia, but also in the entire world has grown tremendously. Cellular phones are currently considered to be a crucial part of people’s social, as well as, business lives. Being an integral part of a person’s life implies that people have to buy phones thus guaranteeing constant business opportunities for establishments like KSA. For specificity, however, it is noteworthy to mention that, Saudi Arabia is currently ranked number one in terms of market size and fast growth, in the Middle East region. This ranking particularly focuses on the Kingdom’s demand for electronics and since Riyadh, is the Kingdom’s Capital city; businesses here are bound to benefit from this remarkable growth. Additionally Riyadh provides diverse opportunities in virtually every chief economic sector, thus offering individuals a suitable platform to benefit from Saudi Arabia’s strong economy which gains significantly from religious tourism and oil investments. Riyadh has excellent infrastructure, and since the Kingdom’s economy is largely diversified through sale of processed foodstuffs, petroleum products, and diversified agricultural practices; the city is undoubtedly a hub for foreign investors thus creating additional development opportunities for the small businesses. Further, Riyadh hosts numerous international business expos and shows, providing the small businesses with an opportunity to showcase their products, hence increasing