Global Expansion of Saudi Steel Company | Assignment

Running head: GLOBAL EXPANSION OF SAUDI STEEL COMPANY
GLOBAL EXPANSION OF SAUDI STEEL COMPANY
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Name of the University
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GLOBAL EXPANSION OF SAUDI STEEL COMPANY1
Answer 1:
When a company thinks of going global, there are certain variables that the company
needs to analyse in order to expand its business. The first variable is to analyse the demand in the
market. It is important for a company to set goals according to the demands of the market where
the company is going to extend its business. The second variable that the company needs to
consider is understanding the local regulations as well as the cultural preferences of the countries
where it is going to expand. The third variable is building a local network when entering the new
market. The company has to build a team of partners and distributors in the countries and
develop trust in order to flourish their business (Haider et al., 2017). The Saudi Telecom
Company has to study the countries preferences and make a thorough plan before expanding its
business globally.
Answer 2:
Before entering a global market, the companies should take the following four steps. The
first step is to develop a game plan and get to know the fastest growth in online markets. It is
important to build an online presence, as it is a low risk to analyse the new market. The second
step is to extend the reach of supply chain. The company needs to grow quickly and respond to
the needs and demand of the consumers. These should be done while reducing the risk and
lowering the fixed costs (Holmes Jr. et al., 2018). Saudi telecom Company should establish an
overseas partner wherein they would help them with overcoming the potential risks. The third
step is to leverage a business partner expertise. Customs duty, red tape, local bureaucracy are the
aspects that the company has to consider while moving forward. The last step is to use the
technologies for control and the visibility of stock. The Telecom Company should provide basic
customer services online to make the lives of the consumers easier.