Jarir Bookstore Analysis Project

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Executive summary

Jarir Bookstore is the leading distributor of stationery and electronics in the Middle East region. The firm was established in 1979, as a family business. The firm has experienced a consistent growth over the past decades. It is now the leading retail store for books and electronics. At its inception, the retail store had specialized in selling stationery only. The two entrepreneurs had a vision of coming up with a company that would be able to fulfill their dream of becoming the stationery store of choice in this region. As the entrepreneurs progressed, it was apparent that the level of competition was very stiff. There were other companies producing similar products in the same market. Some of these firms had a stronger financial base and a good reputation in the market. These challenges faced the firm at the initial stages. The management team of this firm realized that it could not avoid competition. It was evident that it had to embrace competition. It had to come up with a mechanism that would help it be seen as an attractive firm in a highly competitive market.

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The management of this firm adopted the emerging technologies in the industry. It also introduced management strategies whereby employees felt responsible for every action they made. The management ensured that employees were given freedom to give their opinion on how the firm could be managed. This strategy paid off because the firm was able to fight with other market competitors. According to the financial audits by Delloite and Touche, this firm has come out strongly as a force in this industry. It currently has 26 stores in Saudi Arabia, two stores in Qatar, one in the United Arab Emirates, and another in Kuwait. According to the chief executive officer of this firm, Abdulkarim Al-Agil, the firm is planning to open about 10 new stores in this region in a span of two years


Background to the Study

The world is increasingly becoming competitive. Firms are faced with difficult a situation of having to deal with the dynamics of the corporate world. The emerging technologies and environmental concerns are some of the factors that corporate bodies have to deal with in order to ensure smooth operations. The management units in the current society must be able to handle two most important factors in the current dynamic world. The first factor is the emerging technologies. The emerging technologies have the capacity to make or break a firm, especially in the retail sector. Not all emerging technologies are important to an organization. Some are very important while others are completely irrelevant. This is one fact that the management of Jarir has come to appreciate.

Understanding the emerging technologies would help a firm gain a competitive edge over in the increasingly competitive market. This has seen most firms come with various projects that are geared towards achieving specific goals in their respective sectors. The second factor is environmental conservation. As technology continues to improve life, our environment is increasingly under threat of destruction. Emerging technologies continue to pose more threats to the environment. Various agencies have come out strongly to oppose the emerging technologies. Some of them have openly attacked a number of leading firms in the world. Attack from such agencies can be very dangerous because it would generate negative publicity for the firm. For this reason, firms have tried to be at peace with these agencies to be seen as champions of a clean world.

Jarir Bookstore operates in this kind of environment. There is increased pressure from various quarters and this firm has to meet their demands. The management of this firm should develop marketing strategies that would enable it to operate efficiently. The firm must therefore turn to marketing strategies in order to be competitive in the market.


The history of Jarir Bookstore can be traced back to 1979. Al-Agil brothers had a vision of establishing a stationery shop that would serve the locals in Riyadh city. This decision was reached when the two brothers realized that the city had very few bookstores. They realized that the locals were struggling to access books and other relevant stationeries. After a simple market research, the two identified a location for the shop in Jarir Street in Malaz, Riyadh city. The position was good because the street was always busy and was frequented by many parents who were purchasing such items as school uniform. The society was also encouraging parents to take their children to school. The call for parents to take their children to school was supported by the government, which was heavily investing in the education sector in the country.

The store specialized in the supply of school and office products to meet the rising demand for these items. It was operating as a single store that was managed by the two brothers. The two entrepreneurs focused on offering quality products to customers whenever they needed them. The business grew slowly in the first two years, but in the third year, there was a general leap in the economy of the country. This firm expanded and opened other stores in various other locations. The wake of the twenty first century found this firm when it had developed deep roots in this industry. The firm currently stocks all office equipments, stationery, and electronics.

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Corporate structure

Jarir Bookshop started as a small family business, which operated in Riyadh region. The firm had a simple management structure, which was owned by the two brothers only. However, the two entrepreneurs had a strong vision to see the firm expand its operations. The two entrepreneurs shared the leadership responsibilities of the firm. The number of employees was relatively small and there was no need to have a conventional corporate structure. The management used simple strategies to control the operations in the firm. As the firm expanded, the management realized that there was a need to have a clear management structure. The number of employees was on the rise as the firm increased the number of its outlets in various cities in the Kingdom of Saudi Arabia. The management realized that there was need to have a centralized management system that would enable it run its operations with the least effort ever.

The corporate management structure of this firm was a systematic process that did not come into place suddenly. The management started by having regional heads in the branches it had opened. The management also employed a legal counsel who could represent the top management in court in case of their absence. The firm currently has a very complex management structure. The owners have realized that the best way to manage the corporate world is to come up with a corporate structure that would enhance functionality of the firm. The figure below shows corporate governance model for this firm.

Corporate Governance Model

Corporate Governance Model

Competitive advantage

Jarir faces a serious competition in the local market from various other firms operating in this industry. The management is forced to come up with mechanisms through which it could attract customers. The management realized that the Saudi nationals value ethics. It has therefore come up with two main strategies to manage market competition. The management has an ethics and employee management department, which is one of the strategies of gaining competitive advantage. Ethics, morality, and law are some of the ingredients in a business set up that a firm cannot assume its importance. A business unit has responsibilities that it has to fulfill in order to be seen as a firm that respects morality. These include economic, legal, ethical, and discretionary measures. The firm has an economic responsibility to its owners. Jarir Bookshop has been very responsible to its shareholders. The firm has been very successful in its operations, making shareholders have good value for their investment. Legally, this firm respects laws and regulations that are put in place to protect the business environment. It has been keen to ensure that it adheres to the set laws on the quality of electronics it stocks. As a way of protecting the environment, the firm has reduced the amount of plastic wrappers in its stores. It has also been a champion of a clean green environment in Saudi Arabia.

There has been a call for the world’s major manufacturers and distributors to cut down the emission of greenhouse gases. It is only a few firms, Jarir Bookshop being among them, which have taken a positive reaction to this call. It recently launched a corporate social responsibility policy to help clean the environment in selected cities around the Kingdom of Saudi Arabia. It has also sponsored planting of trees in various regions in the country, especially in major cities such as Riyadh, Jeddah, and Mecca. It has endeavored to employ the locals in various locations where it operates. This is to ensure that it is responsible to the societal members as much as possible. The firm has maintained morality and ethics among its employees. It has encouraged ethical behavior among its workforce, by defining specific code of conducts for all employees.

This way, its employees are able to assess their behavior and determine whether their actions are consistent to company expectations and principles. The company has respects the whistleblowers’ role. According to the report by Delloite, the management respects the rights of employees and takes their opinions seriously, irrespective of their positions in the firm. Management has always factored in the opinions of employees because it believes that they are the engine of the firm. This is a utilitarian approach to ethics where actions are judged through consequences. The firm respects individual rights irrespective of the position held. Justice and fairness is one other guiding principle that has been relevant to the firm’s current success.

Building a Good Strategy Execution, People, and Capability Structure

Strategy can only be beneficial if it is implemented properly. Employees are charged with the responsibility of executing the company strategies. In this regard, they should always be consulted before designing them. Some pertinent issues that must be determined in the implementation process include determination of what is to be done, who to do which task, and how the entire team would work as a unit in the process of achieving its goals. In its mission statement, Jarir Bookshop is very clear on what is to be done. It says that the firm is determined to customer satisfaction by availing products that meet and exceed customer expectations. On who should be responsible for the implementation, the firm has a workforce that is specialized in various duties. This ensures that there is no overlap of duties. This has ensured that the firm is run in a very smooth manner. In an attempt to ensure that all its employees work as a team, the firm has ensured that all workers master the vision of the firm so that in their respective tasks, they know where the firm aims to be in the near future. They would appreciate the fact that they are work as a team towards the same direction, with each member of the team having a specific role to play.

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Managing Internal Operations for Good Strategy Execution

Internal operations should be managed if a firm expects to execute operates productively. One aspect of managing internal operations is through integration of managers. Jarir Bookshop has been able to create a pool of flexible managers who not only have deep knowledge of the firm, but also the ability to work with cross-functional teams. The managers are willing to work independently and have sufficient knowledge on cultural and emotional diversity as regards to organizational workers. This team has seen Jarir Bookshop attract talented employees for they know that the company will take care of them. Another important issue is the staffing strategy.

This industry is very competitive. As such, it requires employees who are dynamic, creative, and very knowledgeable in their respective postings. In the current competitive world, this firm can only afford to hire the best if it hopes to beat its rivals who are giving it stiff competition in this industry. The employees have also been made to appreciate corporate culture as one of the most important qualities of success in the corporate world. Under very rare occasions, Jarir Bookshop has considered downsizing its employee in order to cut the cost of production.

Managing Good Corporate Culture and Leadership for excellent Strategy Execution

Jarir is an international firm that operates in many countries. It encounters different corporate cultures in different countries where it operates. In order to ensure harmony in its operations, it has employed assimilation of different cultures into its system. Some of the cultures have also been integrated into its system just to ensure that it has a rich cultural background that can be implemented by every member of the organization. It has been the culture of this firm that cultural integration starts with the management. The management should develop a deep understanding of each culture in order to be integrated into the system. This would enable the top management to lead other employees in understanding and implementing it.

Jarir Bookshop Marketing Methods and Strategies

It is very important for a firm to understand its strategies clearly. The first step is always strategy formulation. The firm should then move to the implementation strategy before coming up with evaluation and control procedures. Jarir Bookshop is one of the current success stories in a group of companies in Saudi Arabia that have managed to be successful in the face of increasingly competitive environment. This is attributed to its strategies that have helped it manage the competition in the stationery industry. The world is being transformed with the emerging technologies. One of the defining technologies that are transforming the world into a global village is the communication technology. The phones and the internet have made communication very easy.

An additional means of long distance communication is the internet with the help of computers. This has seen many firms expand their operations to regions beyond their borders. As such, there has been a huge competition in this industry, making some of the firms to run away. Jarir Bookshop has employed a series of strategies, as discussed below, to ensure that it remains relevant in this market. The strategies are very important because in such a market, any slip-up may lead to automatic fall of the firm. Therefore, every step must be calculated very keenly. The current world market is very competitive. Scholars note that this competition is not only created by the fact that there are several firms producing the same products, but also the fact that customers are more informed. The current customers are very knowledgeable and know exactly what they want. They have the knowledge of where to get that which they need and at what price. They know the available alternatives and this makes them more demanding. As such, turning these individuals into loyal customers is not easy. It forces a firm to develop a strategy that would enable it remain relevant in the market

The International Marketing Campaigns of Jarir Bookshop

Firms are forced to find a way of making their products. This means that they design their services in a way that would be appealing to the market. Most firms that are emerging in the current market are coming up with products that are already available in the market. Their presence in the market causes saturation in the products they offer, making customers very choosy. In the current market, customers are very demanding. Firms are constantly under pressure to perform exceedingly well in order to manage the competition in the market. Firms face a lot of pressure from suppliers. The cost of stationery is constantly on the rise. The bookshops in this country have no otherwise but to pay the increased price of products. The cost of maintaining the facility is also high. This increases the cost of delivering products to the customer. The firm will also need to improve the quality of products in order to ensure that it outmuscles other competitors. When the product is delivered to customers, they would demand reduced prices simply because they have other alternatives. This would force the firm to find a way of generating profits in such a harsh environment.

Jarir Bookshop has come to realize that it has to develop means through which it could develop promotional campaigns for its products in the global market. Jarir Bookshop has developed a brand in the local market and the entire region of Middle East. The region appreciates the fact that this company offers some of the best stationery products, including electronic products such as the iPad and laptops in the region. However, there is a very strong competition from other regional firms, which are posing threats to this firm. It forces the firm to come up with strategies which can enable it attract customers in the region. Regionally, this firm has positioned itself as a company that takes care of the interests of its customers, majority of whom are students. One of the leading concerns of most students is to have academic tools that are precise and easy to use. This is because some students undertaking complex courses such as engineering and architectural studies rely on this precision. They therefore want tools that have the capacity to fulfill their desires in the best way possible. It has therefore propositioned itself as a store that meets the demands of students at all levels in the education system.

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This market proposition has seen it win trust of the local market. This firm has also made concerted effort to attract customers from other nations. In order to reach out to customers, this firm has tried to use both the social media and mass media to communicate its message. Locally, the firm has actively engaged in promotional campaigns in the mass media. It has developed television commercials that help it reach the local market. The social media has been vital in reaching out to the regional community. The YouTube has helped this firm in airing its television commercials to the regional community. The Facebook and Tweeter have also been very vital in reaching out to customers in the regional market.

Factors and Strategies Considered

This firm uses various competitive strategies in the market in order to manage competition that is very rife in this industry. First, the firm has employed two of the porter’s competitive strategies of low cost and differentiation. The management of Jarir Bookshop has made a concerted effort to ensure that the cost of delivering its services is kept at the lowest rate possible. This is the main factor that has helped the firm increase its profitability. Another factor that the management has been keen on is the need to differentiate its products from others in the market. The timing tactic of this firm in launching new products has also been superb. This firm always comes with a new product at such times that the market feels that they need a better product to serve their current needs. It has introduced some of the most current electronic products in its stores to meet the needs of the market. This has seen their products receive huge acceptance in various markets when introduced. The firm has also been keen to employ cooperation strategy whenever needed. This firm has resolved to form alliance with various manufacturers of the products it sells to increase its competitive edge in the market. This strategic alliance saw it gain market share both in the home markets and abroad.

This firm has also been able to implement Porters five forces.

To tackle the threat of new competition, the firm has been keen on stocking new products, such as the iPads to rival those of new competitors. To manage the threat of substitute products, Jarir Bookshop has developed a variety of products targeted at different market categories in order to bring on board as many customers as possible. To increase its bargaining power with the consumers, it has continued to produce high-end services with qualities that make it easy for customers to appreciate its high prices. To increase its bargaining power with suppliers, it has created a scenario where it is a single buyer with various sellers. This makes it able to dictate the terms of buying products. To counter the intensity of competition, it has been able to acquire a special niche in this market, rendering its competitors irrelevant as their products are turned into mere substitutes of this company’s products.

Financial performance

Jarir Bookshop has experienced growth in its capital following a prolonged positive performance in its various products. This growth motivated the firm to open various branches in markets outside the borders of Saudi Arabia. A report by Delloite & Touche shows that this firm has had a consistent increase in its capital base over the last ten years. This auditing company attributes this growth to the increased branches of the firm in the region and a positive business environment in this region. It is clear from the above analysis that the firm has increased its total assert in the past one year. It is a clear demonstration that the firm has had a positive financial growth.

Marketing strategies

Customer satisfaction is one of the most important tasks that the marketing department of this firm has been keen to improve. In the stationery industry, one of the most important factors that would determine success or failure of a firm is its ability to satisfy customers. Most customers buying these products are repeat customers. They are customers who made the purchase of the product before and were pleased. Most customers of this company are parents and students at various academic levels. These people have no choice but to have regular purchase of these products.

When a customer makes a purchase of a given product, a certain level of satisfaction is always expected. The expectation can be under met, a fact that would lead to dissatisfaction of the customer. The expectation can be met, and this would make the customer be satisfied. In some cases, the service offered may be beyond the expectation of the customer. Such a customer will be thrilled. Most firms always struggle to make their customers thrilled. They always try to create an environment where their customers are able to appreciate the services they get from the firm. Jarir Bookshop has come to the realization that the market is very competitive. The management has therefore embarked on strategies that would make its products thrilling to customers. This has taken a lot of effort to realize. However, the result has been very pleasant. Most customers who make purchase of the firm’s products are customers who either had previously bought items from the store or are referrals from those who had used the store before. This has seen the firm develop a formidable customer base that is very loyal to the brand. The management of Jarir Bookshop has consistently been adding value to its products in order to increase customer satisfaction.

Corporate Strategy Used by Emirates for Diversification and Multi-business

It is risky for a large business unit to specialize in a single area of production. It is important that a firm develop different products that can cushion it in case one of the lines is experiencing a dry spell. Jarir Bookshop started as a bookstore. However, as time went by, this firm realized the importance of diversifying its products. Taking research and development as one of the important aspects of the firm, Jarir Bookshop has managed to develop new products in the market, extending its line of production. The firm currently has a series of products targeting various markets. Some of these products include different categories of stationery, the electronic products, and other related school materials. This has enabled this firm to operate as a multi-business firm. This way, it is able to reap maximally from one line in case the other experiences a low season. In its early year, it entered into a partnership with various suppliers to ensure diversification of products. This resulted to huge profits, though some partnerships are yet to get deep rooting.

The Impact of Huge Marketing in Attracting More Customers in the Region

Marketing has become a core strategic role of every organization in the current market. Organizations have come to realize that the only way to attract customers in the market is to develop appealing communications. This has seen firms develop strategies that can allow them to create competitive advantage in the market. According to a report from some analysts, the world market is very competitive. Customers are well informed. They know what they want, the quality that they should be getting, and the alternative places where the product can be found. Because of this, they are very choosy. They always strictly demand for the product they need at very low prices. A firm must therefore develop a communication strategy that will attract the attention of customers and convince them that the price set is the fairest in the market.

The marketing strategies of Jarir Bookshop in the regional market have had huge impact on the firm. The firm has been making an effort to appeal to the regional market to consume its goods. The firm has been particularly keen to advertise itself as one of the fairest bookstores in the region. This has seen customers prefer its products because of the need for fair pricing. The firm has also positioned itself as the leading regional bookstore in offering quality services to customers. This has seen many customers prefer it to other bookstores when making purchase of stationery. The firm has used both the mass and social media in reaching out to customers. The move has seen it remain as the regional market leader in this industry.

SWOT Analysis

SWOT analysis is one of the important tools that are very popular in analyzing a company. It helps in analyzing firms based on the existing internal and external factors. SWOT analysis would be very valuable in analyzing Jarir. In order to understand the performance of the firm in this competitive market, a SWOT analysis would be appropriate. It would help bring more insight to the opportunities and threats that this firm would face in the external environment. It would also help in understanding the strengths and weaknesses that the firm faces. The strength of this firm that would translate to increased profitability is a positive image in the market due to its environmentally friendly projects. The world is increasingly becoming sensitive on the impact of various business units on environment. The concern is emanating from the fact that it has been confirmed beyond any reasonable doubt that various Multinational Corporations are polluting the environment at a very high rate. Various environmental conservation projects are expected to give this company a different image in the market.

This company will be seen as a firm that is smarter in its environmental strategy. The market will be convinced that this company is not just interested in making profits, but also turning the society into a better place. The firm will easily attract additional customers who are determined to make a positive difference in society. This is because they will view the firm as one that helps in conserving the environment. They will consider the purchase of the firm’s product as part of environmental conservation. Because of this, the firm will develop a strong base of loyal customers. This firm may also take this advantage to reach out to the international markets. The project would give this company a moral right to claim that it is a champion of a clean environment in the entire world. The firm has a team of dedicated and qualified staff who are able to front all the interests of the firm, both in the local and regional markets. This team also manages all the material resources that are allocated to it in order to achieve the best results for the firm.

Despite the above strengths, this firm has some weakness. The first weakness that this firm has is the financial challenge. The initiative of managing the environment is very challenging financially. It would cost this firm large sum of money. If wishes to sustain such projects over the years, it should dig deeper to operate in this market. The members of this firm expect to work in collaboration with other firms in order to clean the environment. The team may not have the capacity to get rid of environment wastes, unless it is supported by other agencies in the local society. The local government must be convinced to participate in such projects actively. Other environmental agencies would also be invited to take part in the elimination of such wastes as plastic materials. The fact that such projects would entail partnerships with other firms means the success of the entire process may be jeopardized. Success would be pegged on how determined the other partners are in fulfilling their duties.

The firm has a number of opportunities in the external environment. In the local market, this firm has managed to build a large base of loyal customers, especially in the cities of Riyadh and Jeddah. The government of Saudi Arabia has strongly appreciated the move of this firm to help improve the environment, a fact that has earned it a large base of customers. The Saudi government has maintained a very stable political environment. This means that the business environment is free from any political unrest, which may disrupt normal business operations in the market. This has created a business environment that is very peaceful to various firms in the country. The firm enjoys an economic growth in this region, which has increased the purchasing power of consumers. This increased purchasing power has helped the firm to increase its operations to regions beyond its borders. The emerging technologies have also helped Jarir in its operational strategies. The firm has adapted the emerging technologies in its operations, a fact that has helped it increase its efficiency.

This firm faces a number of threats in its operations. Threats may not be predictable in this industry, though the firm may try to reduce the possibility of their occurrence. The first threat that this firm faces is price wars in the market. The local firms may notice the strategy of the firm, which is related to charging lesser prices for its products, especially to those consumers who have shown commitment to combat environmental degradation. There is a possibility that the competitors may consider this strategy that this firm uses to charge cheap prices for its products. The impact of this is that the competitor may respond by equally lowering its prices in the market. Such price wars are always dangerous to the prosperity of a business. The initiative may fail to make any serious sense. However, this threat has been minimized by introducing other responsibilities of the project and the invitation of the whole society to participate.

Jarir Bookshop faces the threat from the emerging technologies. The emerging technologies are beneficial to the firm. However, they can pose serious challenges to the firm if the firm fails to select the appropriate technology to apply. Applying a wrong technology may cause serious consequences to the firm. Late application of the emerging technologies may also render such a firm less competitive in the market.


Jarir Bookstore has managed to withstand the market competition that has forced various other firms out of the market. The firm has been operating in a very competitive market in Saudi Arabia where other firms have similar products. The management of this firm has come to realize that the best way to beat the market competition is to come up with strategies that can help it become unique in the market. The management has embraced the spirit of competition in the market. It has also come to realize that employees are very important in the determination of success for the firm. However, the firm can improve its efficiency if it considers the following recommendations.


  • The management should embrace the emerging trends in the market. It should use the emerging technologies such as the social media marketing to reach out to the customers.
  • The management should increase the number of young innovative employees who can help the firm manage the emerging technologies.
  • The management should increase its corporate social responsibility, especially on environment in order to improve its public image.
  • The firm should consider increasing its partnership with suppliers to ensure that it constantly receives stock.
  • The management should ensure that employees are constantly motivated in their various duties in the firm.
  • Market segmentation: Dell should conduct a massive market research and then segment its market according to various demographical factors.
  • After a successful segmentation of the market, this firm should then consider market segments that it can meet its needs in the best way. It should then target them with appropriate products.
  • The firm should then develop marketing communication strategies that would best meet the target market selected.
  • Social media marketing should be heavily used when the target market include the youth.

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