Case Study of Essential Security Saudi Arabia

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Executive Summary
Saudi Arabia is a growing market in the CCTV sector. This report will elaborate on
the market using a case study of Essential Security. A SWOT analysis of the company is
included which will further help to explain how an emerging company can establish itself in
the CCTV market of Saudi Arabia.

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Table of Contents
Introduction....................................................................................................................4
Discussion......................................................................................................................4
Name of the organization and the product.................................................................4
Mission and Objectives..............................................................................................4
Scan and assess the external environment to determine the strategic factors that
pose opportunities and threats................................................................................................4
Opportunities..........................................................................................................4
Threats....................................................................................................................5
Scan and assess the internal corporate environment to determine the strategic
factors that are Strengths (especially core competencies) and Weaknesses..........................5
Strengths.................................................................................................................5
Weakness................................................................................................................5
Analyze strategic (SWOT) factors.............................................................................6
Problem Areas Pinpointed......................................................................................6
Review and Revision of the corporate mission and objectives..............................6
Generate, evaluate, and select the best alternative strategy in light of the analysis
conducted...............................................................................................................................7
State how you are going to implement selected strategies via programs, budgets,
and procedures.......................................................................................................................7

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State how you are going to evaluate implemented strategies via feedback systems,
and the control of activities to ensure their minimum deviation from plans.........................7
Conclusion......................................................................................................................7
Reference List:...............................................................................................................8

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Introduction
Saudi Arabia is an emerging market in the field of Closed-Circuit Television (CCTV).
This report is about Essential Security, an emerging brand in the field of CCTV security. The
report includes a SWOT analysis of Essential Security, a CCTV installation company and
alternative strategies for the market threats from competitors, like Abr Aman AFSTS.
Discussion
Name of the organization and the product
The name of the organization is Essential Security and the service is CCTV
installation (Garris 2016).
Mission and Objectives
The mission of Essential Security is to provide the people of Saudi Arabia with cost
efficient video surveillance equipment.
The objectives are:
 To help customers feel safe in their homes and workplace.
 To build excellent client-company relationship (Tichindelean 2015).
 To make Essential Security a brand name.
Scan and assess the external environment to determine the strategic factors that pose
opportunities and threats
Opportunities
The CCTV market of Saudi Arabia has been forecasted to grow at 29% from 2014 to
2019 (Saudigazette 2017). The demand for CCTVs has risen due to the increase in economic
growth rate, increase in infrastructural development and development on sectors like
healthcare, military and other core sectors. Security requirements in key cities like Riyadh,

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Makkah and Madinah and huge infrastructural projects like the Riyadh Metro project along
with increased tourism has boosted the market of CCTV. IP based CCTV are more in demand
over analog CCTV, as the former can be used for applications like mobile video surveillance.
(Baker 2013)
Threats
Competitors like Abr Aman AFSTS is a major threat to Essential Security. These
companies already handle most of the major CCTV projects in the Saudi Arabia market. A
new company like Essential Security has to reduce its profit margin largely to compete with
its competitors but then the revenue generated will be low and business expansion will be
decreased
Scan and assess the internal corporate environment to determine the strategic factors
that are Strengths (especially core competencies) and Weaknesses
Strengths
Essential Security has the best sales and marketing team in all of Saudi Arabia,
trained to handle any CCTV requirement. The in depth market research report created by this
team has helped Essential Security to enter the market with ease. This company also
specializes in IP based CCTV services, which is the main demand due to its usefulness in
recent times (Park, Ra and Kim 2015).
Weakness
. Essential Security is reliant on CCTV manufacturers like Bosch, Hikvision and Axis
Communication. A stable relationship is necessary with these manufacturers to obtain the
necessary equipment at the lowest price possible.

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Strengths Weakness Opportunities Threats
 Best sales and
marketing
team trained to
handle any
CCTV
requirement.
 Specialization
in IP based
CCTV
services,
which is the
major demand.
 CCTV
installation
service is fully
reliant on
supply from
CCTV
manufacturers
 The CCTV
market is
Saudi Arabia
is forecasted
to grow at
29% due to
the huge
demand of
CCTV
security in the
emerging
 Competitors
like Abr Aman
AFSTS who
already has a
good hold in
the CCTV
market.
 Low profit
margin to
ensure
competitiveness
and thus low
revenue
generation.
Table 1: SWOT Analysis of Essential Security
(Source: Created by Author)
Analyze strategic (SWOT) factors
Problem Areas Pinpointed
 The company suffers from low profit margin with respect to other companies offering
the same service in order to remain competitiveness.
 Essential Security is dependent on CCTV manufacturers. Manufacturers can increase
the price of products and this will in turn affect the price of CCTV that Essential
Security quotes to its customers. The company has thus two options either increase
the price proportionately or decrease the profit margin even further.
Review and Revision of the corporate mission and objectives
The corporate mission and objectives of Essential Security will remain the same
despite of all the odds. One addition to the objectives would be to maintain excellent
relationship with the CCTV manufacturers.

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Generate, evaluate, and select the best alternative strategy in light of the analysis
conducted
The best alternative strategy would be to buy shares of any low risk high reward
CCTV manufacturer (Pandey, Chaubey and Tripathi 2017). This would help Essential
Security to regulate the cost of CCTV equipment and thus the customer cost.
State how you are going to implement selected strategies via programs, budgets, and
procedures
An innovative business model could be generated, which would sell the CCTV
cameras at a cheap price but increase the price of the accompanying equipment. This business
model would generate a huge amount of revenue.
State how you are going to evaluate implemented strategies via feedback systems, and
the control of activities to ensure their minimum deviation from plans
The implemented strategy can be evaluated with feedback through Social Media,
which is used by almost all the Internet users of Saudi Arabia.
Conclusion
Thus, it can be concluded from the report that Essential Security will be able to utilize
the CCTV market of Saudi Arabia, as it is one of the largest growing market for CCTV in the
Middle Eastern countries.

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Reference List:
Baker, S., 2013. IP-based technology–the future of the security industry. Network Security,
2013(10), pp.14-17.
Garris, M.D., Garris, M.D., Laamanen, M.T., Russell, C.S. and Nadel, L.D., 2016.
Recommendation: Closed Circuit Television (CCTV) Digital Video Export Profile Level 0.
US Department of Commerce, National Institute of Standards and Technology.
Pandey, S., Chaubey, D.S. and Tripathi, D.M., 2017. Financial Accounting Information and
Its Impact on Investment Decision in Equities. Management Convergence, 7(2).
Park, K.H., Ra, I.K. and Kim, C.S., 2015. Study on the Vulnerability Level of Physical
Security And Application of the IP-Based Devices. International Journal of Smart Home,
9(10), pp.63-68.
Saudigazette, 2017. Saudi CCTV market to grow 23% by 2019. [online] Available at:
http://saudigazette.com.sa/article/90080/Saudi-CCTV-market-to-grow-23-by-2019 [Accessed
24 Nov. 2017].
Tichindelean, M., 2015. Relationship Marketing-A Client Relationship Lifecycle Perspective-
Theoretical Considerations On The Client Regaining Phase. Revista Economica, 67(5),
pp.116-124.