International finance Research Paper Example | Topics and Well Written Essays - 3000 words

International finance - Research Paper Example Additionally, the company was ranked number two in manufacture of quality skincare products and was awarded Quality System Certification in 2002 by the Saudi Arabia government, making it one of the most renowned cosmetic companies in Middle East. Thus, this paper will delve into a marketing plan of Saudis Cosmetic Company as it tries to enter London, United Kingdom. Southwest Airlines is a service industry in Tunisia that aims at offering its customers with distinctive air transport services. The company started in 1969 in Tunis Tunisia, with an aim of providing its customers with air transport at a lower cost and an effective one for that matter. Eventually, the company adopted a strategy that seeks to provide its diverse customers with added value by making sure that the services exceed the price paid by the customer as well as what the customer expects to pay for the services. The company believes that creating value is one of the crucial activities the firm would take to attain a competitive edge. Even though the company started with purchasing products that were diesel powered, it has managed to replace its components and equipments with modern equipment, which are environmentally friendly, at a reduced cost. More so, it has managed to come up with more innovative products in the new airport lounges and the business class products. The company has also managed to come up with a number of trained personnel who take care of the children while their parents are in the â€Å"business class.† This new experience within the industry creates an added value for the customers. Mode of market entry. According to Li & Fung Research centre (2007), the emergence of foreign cosmetic firms in Saudi Arabia has led to a decrease of Saudis Cosmetic Company’s market share from 18.99% in 2001 to 9% in 2003. And even though the company targets middle and low-income earners, living in rural and lower-tier cities in 2006, its sales revenue dropped significantly to $ 43.7 million. As a result, Guangzhou Wuyi, a Chinese cosmetic company, purchased it in 2006, hoping that Saudis Cosmetic Company stands a good position in providing viable means for local market penetration through various distribution channels, as well as through brand equity. The Saudi cosmetic retail sales have been on an upward trend from 2006 to 2007, as evidenced by last year’s unprecedented sales reaching 1 million Dollars and growth of 16.0%. As a result, Saudi Arabia is considered as the fastest growing cosmetic market in the globe, eliciting foreign cosmetic investors in the market. The success of this company has been attributable to a number of factors, which include an increase in social-economic status, presence of women in cosmetic workforce, influence from western culture, and government’s promotion to local consumption in a bid to enhance the economy of the nation (Alon, 2003, p. 164). In today’s market, the Saudis Cosmetic Company faces stiff competition from a number of foreign companies investing in Saudi Arabia, which include Beijing Dabao Cosmetic Company, Estee Lauder, and Shiseido, among others. The Estee Lauder is on record for having made a sales growth of 40% in 2009, the same year that Saudis Cosmetic Company recorded a decrease in sales growth. It is, therefore, evident that Saudis Cosme