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Al Jazira: The Genius Inventor Essay

Air conditioning is one of the most crucial appliances in almost all homes and businesses in the Arab world. The Saudi Arabian climate can be characterized as a desert climate, with wide fluctuations in day and night temperatures. The climate in the Kingdom of Saudi Arabia has resulted in the installation of air conditioning in most domestic and commercial buildings. Sales of air conditioner s reach 2.1 million units per year.

The Market

The culture in the Kingdom of Saudi Arabia is luxury-driven. The consumer generally has a large purchasing power and tends to buy expensive things. In recent years, the culture has grown to a more established structure, so that consumers look for the true value and advantage of the products they purchase.

The Right Product for the Macro environment

Al Jazirah was established in 1973, when it became the first factory of its kind in the Arab world to produce evaporative coolers under the Al Jazirah brand. Today, Al Jazirah evaporative coolers are number one in the world. Al Jazairah manufactures the coolers at five factories (four in Saudi Arabic plus one in Sudan) and distributes them via 30 showrooms located across Saudi Arabi, wholesalers, and agent network. The company delivers a product that is perfect for the surrounding environment. The evaporative cooler represents a technological invention and overcomes all the aspects that made previous air conditioning solutions less desirable to the consumer. One of the biggest advantages of Al Jazirah evaporative coolers is their electricity-saving energy, but Al Jazirah has managed to escalate the energy saving to 80 percent. A further benefit is the purification of air from dust and other particles, which created a cleaner environment for the user.

Success

Al Jazirah’s evaporative coolers are widely available to the market in a wide portfolio of brands that meet different needs. Its operations have grown beyond its home town to 18 countries worldwide. Al Jazirah’s focus now is on the manufacture of coolers in Sudan for the local market there.

Discussion Questions

1. What are the factors in the macro environment that triggered the need for evaporative coolers in the Kingdom of Saudi Arabia?

2. How did Al Jazirah capitalize on these factors?

3. What would be the best company policy: to integrate with regular air conditioners or to compete with them?

4. Based on analysis of the region’s macroenvironment, which countries do you think Al Jazirah should target? Why?

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