Business Idea-Franchising Essay Example | Topics and Well Written Essays - 750 words

Business Idea-Franchising - Essay Example Basis of Selection Dammam is suitable for travelling. The city is easily accessible through flights from various parts of the world. The city has its own port which is named as King Abdul Aziz Port. There are several attractive places in Dammam which are: The Heritage Village, Sports Center, King Fadhd Park, Half Moon Beach and Alkhleej Makarim. There are many museums such as The Media External Museum, The Regional Al Dammam Museum, The Saudi Museum and Abdullah Al Asmare Museum. Due to this reason, many tourists are attracted towards this city and opening a clothing store will be beneficial in the city to attract these tourists as well as local people. Market Scenario at Saudi Arabia Saudi Arabia has shown positive market growth. Their GDP has been registered as 3.9% in the year 2011 compared to 3% in 2010. Saudi Arabia’s non oil sector plays an important role for the good market condition. The government of Saudi Arabia has planned to spend 155 billion Dollars in the year 20 11 for education and infrastructure purposes. Saudi Arabia is one of the preferred destinations for making investment in Middle East and North Africa. Political stability, great possibility for growth in infrastructure sector, oil reserves and production capability are the major factors of good market condition. Investors will be attracted by government’s impressive policy, over the next five years, which aim to invest 1.3 trillion USD in the non oil sector. It will attract both local as well as foreign investors, who are interested in tapping into country’s market growth (Report Buyer, â€Å"Saudi Arabia Business Forecast Report†). Market Scenario at Dammam Dammam became a part of Kingdom of Saudi Arabia in the year 1932. Dammam remained a remote place until Standard Oil Company of California moved in the city in the year 1935 for searching oil around Dammam area. Dammam’s economy has expanded and created numerous job opportunities as its oil industry ha s been accompanied by massive boom in construction. By the growth of oil-sector, Dammam’s transportation has also improved. The city is served by King Abdul Aziz Port which handles non-oil cargos for eastern and central provinces of the country. The retail market condition at Dammam had developed in the year 2007–2008 and the retail supply had increased by 60%. Dammam represents the third largest market share in retail sector in Saudi Arabia and accounts for 20% (Colliers International, â€Å"Mena Retail Overview†). SWOT Analysis Strengths Since Dammam attract many tourists and as there is only two mega stores in the area, this will create a great opportunity to open clothing store in Dammam. Many of the residents and tourists shop in neighboring Bahrain because of limited number of clothing stores in Dammam. Thus, opening of new clothing store can retain the tourists. China excels in production and export of clothing in the world. China’s clothing indust ry mainly focuses on information, brand and fashion. The price of cotton in Chinese market is also low. Export tax of China on textile clothing is between 0.2% and 0.3% per piece and export taxes are determined by quantities. Therefore, it will be beneficial to import large amount of clothes from China because it can provide good fashionable clothes