Strategic Analysis: Business Level Strategies in Kuwait's Market

This essay provides an analysis of business-level strategies applicable to Kuwait, considering its economic environment, political factors, and social issues. It discusses the importance of diversifying the economy, attracting foreign direct investment, and addressing social challenges related to expatriate workers. The analysis highlights opportunities for businesses, such as the privatization law and the absence of income taxes, while emphasizing the need for companies to develop competitive advantages through innovation, cost leadership, and customer experience. The essay further explores strategic moves for creating sustainable competitive advantages, including collaboration with suppliers, partnerships, and a focus on customer loyalty, ultimately aiming to assist organizations in becoming market leaders in Kuwait.

Running head: ANALYSIS OF BUSINESS LEVEL STRATEGIES
ANALYSIS OF BUSINESS LEVEL STRATEGIES
Name of the Student
Name of the University
Author Note

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ANALYSIS OF BUSINESS LEVEL STRATEGIES
Answer to Question 1
Kuwait is a Middle Eastern country which shares its borders with countries like Iraq
and Saudi Arabia. The major natural resource that helps in money generation in the country is
oil. The country received its freedom in the year 2011 from the external forces. Kuwait is also
considered to be the only in the entire world which does not have any supply from the natural
water. The business organizations which are planning to start their operations in the country
need to consider various external factors that can affect the revenues and profitability. The
country has faced huge political disturbances in the year 2011 when it was under the
government of Iraq. The liberalized economy has been created in the country in the year 2011
(Biygautane, Hodge and Gerber 2018).
The vibrancy of the economy is lower as compared to its neighbouring countries. The
economy of Kuwait was based on the exports of pearls and hides in the 1940s. The
government thereby needs to make more efforts to diversify the economy so that rational
decisions can be made by the organizations which operate in the country. The economy of
Kuwait is going through rough phase in the recent times which has led to the lack of foreign
direct investment in the country. The surplus GDP of the country has reduced in the recent
years which is expected to improve and further grow in the coming years. Kuwait has many
expatriates from different countries who are present in the country to improve their standard
of living. Kuwait is known to attract labour from all over the world (Adegbite et al. 2018).
The local citizens of Kuwait face some major social issues due to the entry of
immense amount of people from the other countries of the world. This has further created
pressure on the government of Kuwait to maintain these workers in an effective manner. The
technological investments that are made by the organizations in Kuwait are supported by the
Central Bank of Kuwait. The oil mining based projects are thereby supported in an effective

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manner by the government of the country itself without taking any aid from the foreign
countries (Abdulla, Naser and Saeid 2014). The oil mining and other major industries have
also affected the environmental situation in Kuwait. The pollution levels have been increased
due to the high levels of oil spills in the process of oil export. The most important law that
has been enforced in the country is based on the policy of not collecting any taxes on incomes
of people. The other laws related to the operations of an organization in Kuwait are however
quite strict in nature which need to be followed by the domestic and international
organizations as well (Adegbite et al. 2018).
The performance of Kuwaiti economy has been quite good in the current years. This
improvement has mainly taken place after the year 2011 when the government had taken
some important steps to develop a free economy. The organizations which wish to start their
operations in the country thereby need to take into consideration the different issues that have
already occurred in Kuwait previously. The development of the Kuwaiti economy has taken
place in the recent time after 2011. The companies that operate in the country mainly tend to
expand their business opportunities for gaining more profits (Davcik and Sharma 2016).
The economy of Kuwait is in the process of diversification and this further leads to
the increase of business opportunities for the organizations which wish to start their
operations in this country. The company needs to possess high levels of financial resources
and capabilities which can help them in setting up the business based operations. The
privatisation law that has been implemented by the Kuwaiti government is an opportunity for
the organizations to enter the market and create a profitable position as well. The companies
need to formulate policies in such a manner which will help them to operate in Kuwait in an
easier manner. The capital that is possessed by the companies need to be high as it will help
in the recruitment process (Albrecht et al. 2015).

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The organizations can include expatriates who can increase the innovation levels. The
operations of the companies can also be improved with the help of people who belong to
different parts of the world. The reforms that have been made in the labour laws of the
country can be helpful for the employees to enhance their career growth. The organizations
can also create competitive advantage with the help of different and diverse types of products
and services. The differentiation of services and products can be an important part of the
competitive advantage that can be gained by the companies. The tax based laws in the
country can be helpful for the revenues and profitability of the companies. The organizations
can thereby gain huge revenues due to the absence of income taxes. The major capabilities
that the organizations need to be successful in the competitive market are based on the
strategies that are formed by them (Sikora et al. 2016).
The strategies of the companies can be an important part of the success in comparison
with the other domestic and international organizations which already have their operations.
The capabilities of the companies also include the brand names that have gained by them in
the market in an effective manner. The core competencies that are important for operating in
the country are based on the strengths and weaknesses that have been gained by them. The
companies also need to focus on the regeneration of resources and further building the
competencies (Ahmad, Bosua and Scheepers 2014). This internal resources of the
organization can be updated according to the changes that have taken place in the external
environment. The human resources of the company are another major factor that can help in
the successful operations in Kuwait. The emerging market of the country can be helpful in
creating a competitive position for the company in its industry of operations. Kuwait has
thereby become a welcoming and diverse economy which has helped in the formation of the
competitive advantages of the company which operates in the country (Denrell and Powell
2016).

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ANALYSIS OF BUSINESS LEVEL STRATEGIES
Answer to Question 2
The organizations can make many strategic moves for the purpose of creating
competitive advantage which can be sustainable in nature. The main aim in this case is to
form a difference which can be important for the customers. The strategy of leadership can be
created by the development of effective leadership in the different factors like, quality, cost,
customer experience and innovation. The information and knowledge based strategies of the
company need to be modified which can help in the formation of sustainable competitive
advantage. The lowering of costs based on the operations of the company and the prices that
are offered to the customers can also prove to be an important factor for creating competitive
advantage. The organization thereby needs to make different competitive moves so that the
costs can be reduced (Saeidi et al. 2015).
The collaboration with the suppliers who produce the raw materials to the company
are quite important for the creation of an advantage in the industry. Innovation is another
strategy that can help the company to become competitive in the market. The products and
services that are offered to the consumers can help the company to create an advantage over
the competitors in Kuwait. The innovative features are able to provide highest levels of
advantage as the competitors are not always able to provide the substitutes to consumers.
Another strategy that can be significant by the company to create competitive advantage is
the partnership (Wagner III and Hollenbeck 2014).
The partners in the country can assist the company to innovate the operations and the
products as well. The operations of the company need to be merged with the partners so that
the supply chain can become effective as well. The efficient supply chain can be helpful in
creating barriers for the entry of new organizations in the industry. The experience that is
provided by the company to the customers is important in creating an important position and

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brand value in the industry. The loyalty of customers acts as a sustainable competitive
advantage for the organization in the industry in which it operates (Kaleka and Morgan
2017). The company thereby needs to invest huge amounts in the customer based research,
the quality of the customer experience, sales channels. The customer based information also
needs to be of high levels so that it can be used by the company to create the services and
products that are desired by them. The company thereby needs to create competitive
advantage in the industry so that the customers are attracted towards its products and
services. The competition that is provided by the other organizations in the industry can be
faced by the company in an efficient and effective manner. The organization can also become
the market leader with the help of sustainability in the various strategies and steps that are
taken by the management (Jones, Harrison and Felps 2018).

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