Report: Evaluating AZMEEL Contracting's Internationalisation Potential

This report assesses the internationalisation readiness of AZMEEL Contracting & Construction Corporation, a Saudi Arabian construction company. It examines the company's background, projects, and strategies, highlighting its experience in various construction fields and its efforts to diversify its business. The report evaluates the company's market potential, considering the competitive landscape in Saudi Arabia and factors to be considered during expansion. It analyzes the strategies used by AZMEEL and the factors that the company should consider while expanding itself to the foreign market. The report concludes that AZMEEL has the readiness to internationalise itself, drawing on its successful project completion and its efforts to meet its client base.

Running head: CRITICAL THINKING
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Introduction
An organisation decides to expand its activities to international markets for many
different reasons including growth, economic of scale, long-term survival, profitability, risk
diversification etc. (Bernard et al., 2018) This process is known as internationalisation. In the
process of doing so, it gets exposed to a range of challenges and new risk factors in terms of
cultural gaps, foreign exchange etc. This paper shall elaborate on assessing the readiness of a
Saudi Arabian organisation named AZMEEL Contracting & Construction Corporation to
internationalise. It is to note that AZMEEL is a small construction company and is very
active in its efforts for diversifying its business. The paper shall be focused on estimating
AZMEEL’s industry market potential.
Discussion
Company Background and its Projects
AZMEEL Contracting & Construction Corporation is a small construction company
based in Saudi Arabia. The firm has skilled workforce with about 300 engineers belonging
from different construction fields. It is actively engaged in diversified construction that is
held all over the eastern province from long time. The company offers a wide range of
services to its customers and have completed variety of megaprojects. Some of these projects
include Mega Housing Projects, Resort Development, Shopping Malls, O set Industrial
Projects Cement Plants etc. ("Azmeel Contracting Company Limited," 2020). It is to note that
all these projects were taken by the company in readiness to start internationalising the
activities of the firm. Apart from this, it has also completed a big project names 17 SABIC
alliances. It is the project that has brought in some big housing projects like that of Saudi
Telecom Company, Saudi Electrical Company etc. It further demonstrates that AZMEEL is

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effectively managing its business for stretching beyond its usual limitations for providing the
best service to its customers.
In the year 2015, the company successfully carried out some industrial projects for
Hyundai SASREF, FLOUR, JESCO and BECHTEL. Through completing these kinds of
projects, AZMEEL have gathered immense knowledge and experience, which further gives it
the confidence of challenging some big international construction companies ("Azmeel
Contracting Company Limited”, 2020). It has even earned the trust of King of Bahrain and
was therefore given the project of building the royal palace. This further has made it gain the
trust of eventual creation of precedence in the field of construction.
Strategies used
From its company profile, it is also clear that AZMEEL is undertaking and
implementing some strategies in its business. For instance, it opens several shows and its
managers strive for coordinating sourcing, manufacturing and business marketing for adding
value to their activities in international market. They are effectively developing their products
of construction as well as their expertise in different buildings and in this way, are targeting
to appeal broader customer segment. This further demonstrates that it has the potential in its
readiness to internationalise itself.
It is to mention that AZMEEL needs to have a skilful configuration of all its activities
across a huge setting. With the same, it also need to ensure successful integration and
coordination within its business operations by means of implementing some common
practices that can help in ensuring the construction activities are effectively been carried out.
With the same, the company website reveals that AZMEEL is also defining the objectives of
different strategies that are used in place or are proposed for the internationalisation of the

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company ("Azmeel Contracting Company Limited”, 2020). It is aimed at adopting different
company attributes that can support its steps towards internationalisation.
It is to note that AZMEEL is aimed at building an international firm in foreign
market. It is planning to focus on foreign market entry strategies like licensing, foreign direct
investment, global sourcing, joint ventures and exporting, as these would help it in
penetrating into the global market successful and competing with the other global giants
within construction industry (Hollender, Zapkau & Schwens, 2017).
The domestic presence and expected impact during internationalisation
The Saudi Arabian construction industry is highly competitive and there are many
large and small construction companies spread region wide (Al-Somali, Gholami & Clegg,
2015). Some of the big players in the industry include Saudi Bin Ladin Group, ABV Rock
Group, AL Shoula Group, Baytur Construction & Contracting, Saudi Oger, TAV
Construction and AI Rajhi Construction (ARC). AZMEEL has successfully managed to
secure its position and build a competitive advantage for being the best in Saudi Arabia. Its
series of successful projects has brought in a ray of hope that it would survive in the foreign
market. Although there would be challenges in term of getting navigation permission, hiring
labours in international border etc., its skilful workforce should strive to capitalise on the fact
that AZMEEL is known to deliver high quality projects for gaining the trust of its customers.
Factors that the company should consider while expansion
While expanding itself to the foreign market, AZMEEL shall first analyse the external
market environment of the chosen country for estimating its own market potential (Fikru,
2014). It should determine and employ all the minute details of approaching strategic
questions so that it could effectively cope up in market sizing (Mayer, Melitz & Ottaviano,

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2014). It can make use of tools like Served Available Market (SAM), Total Available Market
(TAM), and Share of Market (SOM) for assessing the market size for itself. With the same, it
shall determine its approach. It can use the bottom-up or top-down strategies as two key
methods for employing in the situation of internationalisation (Kim, Sting & Loch, 2014). It
can also make use of internet for collecting data about the market and the performance of the
industry in the same. Furthermore, data structuring (topology) can be used for developing
good understanding about the market and gathering the recent trend info.
Conclusion
From the above analysis it is to conclude that AZMEEL Contracting & Construction
Corporation has the readiness to internationalise itself in the foreign markets. It has gained
immense knowledge and experience in the field and has ensured successful completion of a
series of projects since its emergence. With the same, the company has come up with some
new standards if handling their projects for its entire major client base as a step towards its
increase in readiness to internationalise itself.

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References:
Al-Somali, S. A., Gholami, R., & Clegg, B. (2015). A stage-oriented model (SOM) for e-
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Azmeel Contracting Company Limited. (n.d.). Retrieved March 30, 2020, from
https://azmeel-contracting-company-limited.business.site/
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