Topic: multinational jewelry in the middle east
The purpose of this proposal is to ascertain the effectiveness of strategy of multinational jewelry in Middle East. It will further investigate whether or not the performance of these companies is influenced by their growth strategy. It will investigate the taste and preferences of the people of Middle East towards jewelry. This paper seeks to find what kind of business models and strategies multinational jewelry adapt in Middle East, the kind of growth strategies pursued by these companies, whether these multinational companies adapt to the culture in the Middle East and what is the connection between the process of adaptation with sales maximization and the image of these companies to residents of Middle East (Ward, 2005).
To meet these tasks and arrive at the objectives, the case of company strategic models and expansion strategy will be looked upon in the introduction. In the second part the customers from Middle East will be analyzed and analysis will be made on consumer satisfaction with the jewelry offered by these companies and Arab consumer behavior in buying jewelry. The findings pertaining the business models and growth strategies of international jewelry in the Middle East practiced are that all of them are related with Porter’s generic strategies and globalization and diversification though there is no unique preference by these multinational jewelry to any of the strategic elements. The proposal’s findings are that multinational jewelry wants to maximize their sales as well as keep their brand image international. These companies value their customers and have come up with product that suit customers with various purchasing powers.
Jewelry is part of human civilization since time in memorial. In Middle East countries jewelry is used as a symbol for ceremonies such as weddings, engagements and various anniversaries. Jewelry is also used as a symbol for communication and a symbol for identity coupled with individualism. Multinational jewelry companies in Middle East have changed and shown growth over the last decade due to increased customer loyalty to jewelry (Walker, 2003). The international jewelry and watches has indicated total revenue of $81567 in 2012 in Middle East market. Multinational jewelry companies hold only 49% of the market. This is an encouragement to small jewelry retailers in Middle East stores. The sales of jewelry are dependent on consumer income. Hence small jewelry are able to compete with multinational jewelry companies as the determinant of sales in jewelry market is not sales but rather the brand image. Therefore, multinational companies in Middle East have seen the need keep their brand name international.
As mentioned earlier the purpose for this paper is to analyze international jewelry companies and their growth strategies as well as customer satisfaction in Middle East in order to draw conclusion on whether the business model and strategic decisions influence the profitability of these companies and the brand image of their products. The questions that will be answered are: