AZMEEL’S READINESS TO INTERNATIONALIZE

The question to the writer was, Critical thinking

Choose a company within Saudi Arabia and assess its readiness to

internationalize. Do not utilize companies that already have an

international presence, though can currently have a regional presence.

Explain the methods you would use to estimate industry market

potential as well as any data sources you might use for sampling.

Introduction

The Azmeel Contracting Company Limited is a construction company in Saudi Arabia. It

is a home company for other Azmeel Group Companies which are engaging actively in

diversifying construction which has been taking place over the eastern province. The company

has a skilled workforce which includes more than 300 engineers from different fields in

construction.

The workforce is composed of a robust technical workforce which is intertwined with

departmental coordination. Research from the company shows that this property of the company

has played a critical role in yielding a successful series of projects. It is essential to note that

Azmeel has come up with new standards of handling their assignments to all of their renown

clients as a step of its readiness to internationalize. Some of these clients include the Royal

Commission, SABIC Aliates, Saudi Telecom, and SCECO, King Fahad Causeway Authority,

H.R.H. King of Bahrain and Dammam and Eastern Province Cement Company amongst other

investors and private clients just mentioning in a few.

Organizational Profile
AZMEEL’S READINESS TO INTERNATIONALIZE 2

Azmeel Contracting Company Limited has a wide range of companies. Indeed, research

shows that the company has taken a step in contributing its professional skills by successfully

undertaking a variety of megaprojects as a target to internationalize its activities. These projects

include Commercial Projects, Mega Housing Projects, Shopping Malls, O set Industrial Projects

Cement Plants, Chemical - Industrial Projects, Ware Houses and Resort\Development just

mentioning a few ("Azmeel Contracting Company Limited," n.d.).

The company is also conducting serious endeavors something which has made it execute

some critical projects like the 17 SABIC alliances. The management of the company is driving

this step both inside and outside the reach of the company. Notably, this is a project which has

brought about main housing projects for the Saudi Telecom Company, SABIC and as well as

Saudi Electrical Company.

However, it is important to note that the overall experience gathered by this company has

given the company the confidence to challenge some giant European companies hence making it

earn the trust of King of Bahrain (His Majesty). Due to this, the company was awarded a major

project of building the royal palace ("Azmeel Contracting Company Limited," n.d.). The

corporation has earned the confidence has gained the confidence to internationalize by executing

and constructing the sites for constructing the royal palace something which has made it receive

the faith and trust of eventual creation of precedence in the construction field. In connection to

this, Azmeel Contracting Company Limited has become one of the major contractors to take part

in the SABIC & the Royal Commission something which is proving the potential of the company

to infiltrate the global market in the construction industry.

AZMEEL’S READINESS TO INTERNATIONALIZE 3

The azmeel company is on the process of successfully carrying out industrial projects for

JESCO, FLOUR, BECHTEL and Hyundai SASREF just mentioning a few. Notably, research

shows that this construction company is also undertaking and implementing some critical

strategies which not only depict but also describe the potential of the company in its readiness to

internationalize. For instance, the industry is opening shows whereby its managers are striving to

coordinate sourcing, marketing, manufacturing and adding the value of their activities

internationally (Kelly, 2015).

However, managers are also adopting organization-wide common processes and

standards. Moreover, they are also frequently seeking to develop their construction products and

expertise something which is targeting to appeal and ensure the broadcasting of broad customer

base across the globe. Indeed, the strategies and efforts of organizing the activities and services

of the firm to achieve a global scale is a challenging activity for the management of the firm.

The firm is requiring a skillful configuration of activities across a vast setting,

coordinating and integrating the operations and ensuring the successful implementation of

various common practices to make sure that the construction activities are carried out effectively

(Buckley, 2016). In connection to this, Azmeel Contracting Company Limited is on the process

of defining the role of different strategies which the company has proposed and implemented for

internalizing the organization. Besides, the company is also targeting the adoption of varying

company attributes which are supporting the steps of the company and its endeavors.

With these efforts, the company is dreaming of building an international firm

successfully. It is because these strategies are taking the company to the next level by focusing

on foreign market entry strategies. It is something which will enable the company to penetrate
AZMEEL’S READINESS TO INTERNATIONALIZE 4

the international market successfully and compete favorably with other giant global construction

companies. Some of these strategies include exporting, global sourcing, licensing, foreign direct

investment and also joining joint ventures.

Defining the market is one of the core methods of estimating the market potential of a

firm. In this case, the firm will have to determine and employ the necessary details of

approaching the strategic questions so that it can cope adequately in its market sizing. The

company should not stray from its determined definition of its market on the process of

collecting data. Served Available Market (SAM), Total Available Market (TAM), and Share of

Market (SOM) can be employed to view the market size for the company. Secondly, the

company should also determine its approach (Romelaer & Beddi, 2015). The bottom-up or the

top-down strategies are the two primary methods which can be employed in this case. Research

also indicates that selecting sources is the other strategy which can be applied by Azmeel to

determine its market potential. In this case, the company should choose an approach which

dictates the necessary sources of estimating the market size of the company. The desk research

(secondary research) is the commonly employed strategy in searching the existing data.

Notably, the web is a good source of collecting data because it is accessed fast, efficiently

and with little or no cost. Moreover, the data structuring (topology) which develops a further

understanding of the market is a critical way of gathering trend information which at most times

is represented in as qualitative data (Forsgren, 2018). Data analysis is another method which can

be employed by Azmeel to estimate the potential market. Notably, developing multiple estimates

which use different sources or approaches (triangulation) are essential in this case. Research
AZMEEL’S READINESS TO INTERNATIONALIZE 5

shows that the use of triangulation increases confidence in market estimates (Cavusgil et al.

2015)

In this case, it is critical to note that mistakes or common pitfalls are capable of starting

when gathering data or market share from non-reputable sources is not used. Amongst other data

sources, Azmeel can use the Global Building Stock Database when sampling and implementing

its proposed strategies to estimating its industry market potential so that it internationalizes more

effectively and efficiently.

In conclusion, most companies in construction understand the concept of market

potential, but they do not take the necessary strategies to accomplish it. As a result, many of

these companies are stuck when establishing the boundaries or during the definition of markets

before analyzing the data and its implications on the market research they conduct. Determining

the size of the market in Azmeel Contracting Company Limited is an answer to the various

critical strategic questions which can solve many puzzles on the level of investments of the

business not forgetting to mention its target of printable growth.

Estimating the market potential of the company will play a critical role in understanding

the possibility of its market opportunities when it comes to value and ratio thus being pertinent to

market decisions and business strategy which will propel the firm towards internationalize. Since

the company is not only willing, but it is also determined to broaden, the managers of the firm

and its management board are supposed to cooperate in responding (simultaneously) to diverse

specific conditions and needs which characterize the individual locations where it should take its

business operations.
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References

Azmeel Contracting Company Limited. (n.d.). Retrieved March 12, 2019, from https://azmeel-

contracting-company-limited.business.site/

Buckley, P. J. (2016). The contribution of internalisation theory to international business: New

realities and unanswered questions. Journal of World Business, 51(1), 74-82.

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.

(2014). International business. Pearson Australia.

Forsgren, M. (2018). The development of international business: A narrative of theory and

practice.

Kelly, N. (2015, March 6). 7 Traits of Companies on the Fast Track to International Growth.

Retrieved March 12, 2019, from https://hbr.org/2015/03/7-traits-of-companies-on-

thefast-track-to-international-growth

Romelaer, P., & Beddi, H. (2015). Strategy and Structure in International Multi-Business

Groups: Looking beyond Global Integration—Local

Responsiveness. International Studies of Management & Organization, 45(4), 359-378.

this is an interesting discussion of Azmeel Contracting's readiness to internationalize. You discussed

factors that a company should consider when making such a decision well, and provided some

introductory material about the company itself and its recent successes in competing with established

international companies. I would have liked to see a stronger description of the company's existing
AZMEEL’S READINESS TO INTERNATIONALIZE 7

regional/international presence, as well as a stronger case as to what strengths it can bring to

international construction. This is a field that is typically dominated by domestic companies who can

navigate permits, hire local labor force, etc., and it is difficult for a construction company to establish a

multinational presence, unless it has a specialty that distinguishes it from local companies. 66/100