Report: Benefits of Market Impact on Saudi Arabian Economy

This report analyzes the benefits of market impact on the Saudi Arabian economy. It explores how market forces influence sales quantities, prices, and cost efficiencies. The study highlights the impact of increased demand on sales, the role of quality and reputation in price determination, and how production efficiencies lead to cost reductions. Furthermore, it examines the influence of social and technological factors on productivity, and the importance of ethical and corrective measures in mitigating future costs. The report concludes that market impact provides significant advantages for business growth and economic development in Saudi Arabia, enhancing various aspects of business operations and overall economic well-being. References from various books and journals are also included to support the analysis.

BENEFITS OF
MARKET IMPACT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Benefits of Market impact......................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Economies are widely growing and developing within the world. The impact of the same
can be effectively observed on the market development and demand growth within the market.
The efficiency of a market is derived from the economic and market impact observed upon the
product, services and prices as well (Al-Ghaith, Sanzogni & Sandhu, 2010). The present report
focuses on analysing benefits of market impact on Saudi Arabia.
Benefits of Market impact
The market impact is a common and most prominent economic situations whereby the
effect of one market variable is observed on the other. The market impact has a direct relation
with the market forces, which helps in developing high measures of growth and success for the
economy.
Increased sales quantities due to increased market demand
This is one of the most direct and common effect of the market force. Increase in sales
due to increase of demand is a common economic equation observed within the market. Higher
demand leads to higher sales in the economy for the products and services which are have a
direct impact of the economic forces (Alsajjan & Dennis, 2010). For example high demand for
junk food resulted in increasing outlets of McDonald's, KFC, Pizza hut etc in the country.
Similarly, high demand for oil in international market resulted in increasing supply (sales
quantity) of the product in form of export. It reflects clearly higher market demand resulted in
high supply of product in the market.
Increased prices due to quality and reputation
The impact of quality and reputation is indirect yet effective on the price factors observed
in the economy. Demand for quality in Saudi Arabia has increased significantly which has
subsided the focus from price factor (Rehman & Al-Hadhrami, 2010). Demand for high quality
products and services have forced companies to develop advanced and quality products and
services within the nation. The effect of this has been observed in each and every sector of the
country. Consumer goods such as electronics, camera, computers etc. have reflected a similar
trend. The demand for compact camera has been replaced with quality ascertained branded
products, Demand for quality airline services has also increased within the market which has
resulted companies in coming up with new and innovative services.
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Reductions in costs due to increased efficiencies
The economics of cost is commonly accepted and observed within every market of the
world. Increasing production efficiencies results in effectively covering the fixed cost of the
business thus resulting in overall cost reduction (Srairi, 2010). For example enhancing extracting
efficiency of the companies by developing process of fracking and developing operational
efficiency has resulted the companies in saving overhead costs and attaining high output in
negligible cost increase. The similar impact has been observed in energy department of Saudi
Arabia. Higher efficiency of energy industry by increasing operational efficiency resulted in
reducing the cost of the sector.
Increased productivity
Social and technological factors have a direct impact on increasing the productivity of the
companies and creating an effective impact on business growth and development. The market
impact reflects a similar situation within the market (Sheppard & et.al., 2010). Technological
development and social reforms has resulted in enhancing the productivity and growth of the
business. This clearly represents that developing technological efficiencies results in higher
output along with its effective employees and social reforms results in high employee motivation
which in turn results in high productivity as well (Breyer & Gerlach, 2013). The oil production
sector of Saudi Arabia has enhanced the productivity of the industry by implementing
technological resources and using labour enhancing policies.
Reduced future costs related to environmental cleanup, internal control, and ethics breach
Ethical and corrective measures in the present may result in saving high future costs of
the economy for improving all the losses or destruction made in the economy. Rightful business
actions effective business development measures may help for the same (Alyousef & Abu-Ebid,
2012). If the company spends rightfully in effective disposal of toxic waste presently may save
highly by requiring low investment for government taxes for development even strict legal
actions for unethical behaviour (Ramady, 2010). Case of oil leakage of by British petroleum
revealed a similar case. The unethical behaviour of the company resulted highly in financial and
non financial terms for the business which impacted the sales, profit and brand reputation of the
company.
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CONCLUSION
On the basis of the above study it can be clearly understood that market impact has
effective impact on the business growth and development. It provides significant advantages to
the economy which are highly effective and favourable for the businesses and economic growth
of the companies. In addition to this it has also been analysed that advantages of market impact
enhances every aspect of business growth and development for economic well being developing
productivity.
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REFERENCES
Books and Journals
Al-Ghaith, W., Sanzogni, L., & Sandhu, K. (2010). Factors influencing the adoption and usage
of online services in Saudi Arabia. EJISDC: The Electronic Journal on Information
Systems in Developing Countries. (40). 1.
Alsajjan, B., & Dennis, C. (2010). Internet banking acceptance model: Cross-market
examination. Journal of Business Research. 63(9). 957-963.
Alyousef, Y., & Abu-Ebid, M. (2012). Energy efficiency initiatives for Saudi Arabia on supply
and demand sides. INTECH Open Access Publisher.
Breyer, C., & Gerlach, A. (2013). Global overview on grid‐parity. Progress in photovoltaics:
Research and Applications. 21(1). 121-136.
Ramady, M. A. (2010). The Saudi Arabian economy: Policies, achievements, and challenges.
Springer Science & Business Media.
Rehman, S., & Al-Hadhrami, L. M. (2010). Study of a solar PV–diesel–battery hybrid power
system for a remotely located population near Rafha, Saudi Arabia. Energy. 35(12).
4986-4995.
Sheppard, C., Al-Husiani, M., Al-Jamali, F., Al-Yamani, F., Baldwin, R., Bishop, J., ... & Jones,
D. A. (2010). The Gulf: a young sea in decline. Marine Pollution Bulletin. 60(1). 13-38.
Srairi, S. A. (2010). Cost and profit efficiency of conventional and Islamic banks in GCC
countries. Journal of Productivity Analysis. 34(1). 45-62.
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