THE MANAGERIAL ECONOMICS

Running head: MANAGERIAL ECONOMICS
Managerial Economics
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MANAGERIAL ECONOMICS1
Table of Contents
Executive Summary.........................................................................................................................2
Sector Overview in Saudi Arabia....................................................................................................3
Company Overview.........................................................................................................................5
The Demand and Supply Scenario (Growth Reasons)....................................................................7
Market Structure and various players..............................................................................................9
Pros and Cons of the milk-producing industry in Saudi Arabia....................................................11
Conclusion and Recommendations................................................................................................12
Reference List................................................................................................................................15

MANAGERIAL ECONOMICS2
Executive Summary
The aim of the paper is to study the growth of dairy industry in Saudi Arabia. Although, the
country has various sectors, yet the dairy is one of the most unique sectors in Saudi Arabia
because it is an automated industry that has been able to retain huge amounts of profits. Almarai
Company is the most effective company in the industry and that is why an analysis of the firm
has been done.

MANAGERIAL ECONOMICS3
Sector Overview in Saudi Arabia
The economy of Saudi Arabia lies among the top twenty economies in the world. The
country has several sectors that generates huge profits such as oil reserves. Oil serves as the most
effective sector in the country because of its availability of large number of oil refineries and
petroleum reserves. It is the largest exporter of petroleum in the world and generates most of its
income from the oil sector. The dairy sector is one of the largest sector in Saudi Arabia and is
efficient to generate positive profits from its supply in various economies. The country serves as
one of the largest dairy product market in the region of Persian Gulf. The market for dairy
product has been advancing at a faster pace in the economy. It is currently one of the most
successful businesses with positive growth margins. This sector is related to a wide set of
functions that is related to provision of dairy products.
The operations under the dairy sectors are production, consumption, export and import of
goods. The country serves as the home to one of the greatest producers in the area of Persian
Gulf. It is one of the most successful businesses due improvements in the daily product sector.
This sector implemented various key strategies that marked as the sale of the product.
Improvements has been made in packaging by making an attractive look with the indulgence of
social media. The sector uses social media to source the products and attract the customers for
buying the products because these commodities are necessary in everyday life. Moreover, the
sector uses progressive advertising as a tool to drive the growth of the firm.
The dairy industry of Saudi Arabia operated with a small number of few firms that were
scatter over the entire region of Saudi Arabia. With passing time, more firms started entering the
industry due to its growth margin, which increased the mass production and sale of the product.