Executive Summary
Owners of emerging businesses need to be aware of the existing factors that have the potential to influence performance. This paper describes a new idea aimed at supplying homeowners with mobile gas stations. The demand for oil and petroleum has been increasing steadily in Saudi Arabia. Being a petroleum-driven economy, the discussion below explains why the proposed firm will have increased chances of succeeding. The SWOT Analysis presented below outlines the unique strengths and opportunities that can support organizational performance. The entrepreneurs can monitor the possible threats and existing weaknesses and utilize superior measures to address them. Such strategies will make it easier for the firm to achieve its business aims.
Mobile Gas Station
Fuel remains one of the important resources for supporting different sectors of the economy, such as transport, manufacturing, and tourism. The current model is that owners of vehicles and drivers have to visit gas stations to refill. This system meets the needs of many citizens in Saudi Arabia and across the globe. The proposed business seeks to change this practice by ensuring that customers can refill their cars and trucks at the comfort of their homes (Kotler & Armstrong, 2017). The mobile station will be designed in such a way that it is easy to use and provides different quantities of petrol, diesel, bioethanol, and kerosene depending on the owner’s needs. Individuals and organizations can customize such stations depending on their expectations, space availability, and anticipated goals.
Business Vision
This new business is revolutionary in nature because it seeks to meet the demands of every customer at the doorstep. Since Saudi Arabia is a leading producer and exporter of crude oil, the proposed idea will ensure that local consumers of petroleum and gas achieve their aims much faster. The vision of this organization is to introduce the concept to the people of Saudi Arabia and eventually maximize coverage across the nation (Bradshaw et al., 2019). The achievement will make it easier for the business to attract more customers continuously. The final outcome is that the company will become more profitable and empower all gas users to pursue their aims diligently.
Business Mission
The first mission or objective is to cover the western region of Saudi Arabia within the first year. This area has many gas stations that might maximize the demand for the proposed business idea. The second one is to focus on the eastern and central provinces to meet the needs of the people within the next three years. Finally, the firm’s managers will identify emerging ideas and technologies and make them part of their business model in an effort to improve the experiences, gains, and outcomes of the targeted customers (Kotler & Armstrong, 2017). These achievements will eventually make this new business venture successful and competitive in the Saudi Arabian gas sector.
Situation Analysis and Market Review
Petroleum is a major product that has remained the heartbeat of the Saudi Arabian economy. According to Bradshaw et al. (2019), oil is the primary source of government income and it accounts for over 90 percent of this nation’s exports. Bradshaw et al. (2019) also observe that the industry presents around 44 percent of the nation’s gross domestic product (GDP). Its per capita GDP in 2019 stood at 20,700 US dollars (Bradshaw et al., 2019). From this analysis, it is agreeable that the proposed new business has the potential to record positive results within a year.
The increasing use of automobiles in Saudi Arabia is a new development that has led to the construction of additional gas stations. For instance, the western regions of this country are saturated due to the presence of users of gas and other related products. The changing dynamics in the economy are also encouraging Saudi Arabians to consider new ways of saving time and pursuing their professional goals diligently. Companies and emerging firms rely on the use of trucks or personal cars to pursue their aims (Kotler & Armstrong, 2017). The proposed business concept is capable of meeting these emerging demands while at the same time capitalizing on the existing incentives and economic performance to succeed.
SWOT Analysis
Business leaders need to examine the internal and external business environments in an attempt to make informed strategic plans. A detailed analysis of some of the existing or predicted factors can guide such managers to overcome potential challenges in the future and implement evidence-based measures to achieve the intended business aims (Seo & Lee, 2019). The SWOT Analysis presented below describes the issues and concerns that remain crucial for this small firm.
Strengths
The proposed business is supported by the powerful and practical mission and vision statements that have the potential to take it to the next level.
The owners have numerous skills in the field of business management. Such competencies will inform superior procedures and initiatives for making the firm competitive.
The entrepreneurs are aware of various marketing principles and theories that have worked effectively in different companies to deliver desirable goals (Bradshaw et al., 2019). The adoption and implementation of these concepts will guide the owners to identify potential regions that can add value to this business and make it more profitable.
A detailed business plan will guide the entire investment process. This strategy will maximize the level of preparedness and guide the stakeholders to present their insights that can make the firm more profitable (Seo & Lee, 2019).
The presence of adequate resources means that the business venture will be executed swiftly and efficiently. For instance, the available funds, technological systems, and human resources will support the initial stages of the firm and eventually make it successful (Janković et al., 2016).
The proposed plan has a contingency plan that will guide the owners to be prepared for unpredictable challenges and implement the necessary measures to maximize performance.
Weaknesses
The move to launch a new business concept might become counterproductive because some customers tend to be skeptical. This outcome will affect the level of performance and profitability of the new venture.
Currently, the key aspects and attributes of this proposed company can only be studied on paper. This fact explains why the level of optimism needs to remain low since there are potential barriers and uncertainties that have the potential to affect the startup phases and make it impossible for the firm to achieve the intended goals.
The experiences, skills, competencies, and philosophies of the identified workers and owners of the business are yet to be tested or put into practice. This gap means that this company might be unable to succeed if such stakeholders are incapable of providing high-quality services and support to the anticipated customers.
Opportunities
The economy of Saudi Arabia is driven by petroleum and gas products. These resources will form the backbone of the proposed business and make it easier for the leaders to achieve their goals within the outlined period.
Saudi Arabia has been characterized by a stable political system (Bradshaw et al., 2019). This development has continued to support the level of economic performance, thereby making it easier for emerging companies to thrive.
The increasing number of Saudi Arabians with cars and in need of gas services is a new chance for this firm to start and succeed within the first year.
Emerging technologies have resulted in innovative ideas and systems that are revolutionizing different sectors of the economy. The owners of this firm will consider such resources and adapt them to maximize their outcomes.
Threats
The petroleum and gas industry remains competitive due to the presence of multinational and local companies operating in the country (Seo & Lee, 2019). Such organizations are known to provide quality gas products that resonate with the needs of the citizens.
The proposed business venture is a new concept that might take long before getting the appreciation and support of different potential clients.
Some people might ignore the idea due to the safety and fire concerns associated with petroleum products.
Conclusion
The above report has presented a strong case for starting a new mobile gas station. The Saudi Arabian economic statistics reveal that the business has higher chances of recording positive results in this market. The above SWOT Analysis has explained how and why the company’s strengths combined with the existing opportunities have the potential to deliver positive results. A consideration of the potential weaknesses and threats will be an evidence-based strategy to ensure that this company achieves its objectives.
References
Bradshaw, M., de Graaf, T. V., & Connolly, R. (2019). Preparing for the new oil order? Saudi Arabia and Russia. Energy Strategy Reviews, 26, 100374-100395. Web.
Janković, M., Mihajlović, M., & Cvetković, T. (2016). Influence of external factors on business of companies in Serbia. Ekonomika, 62(4), 31-38. Web.
Kotler, P., & Armstrong, G. (2017). Principles of marketing (17th ed.). London: Pearson Education.
Seo, Y. W., & Lee, Y. H. (2019). Effects of internal and external factors on business performance of start-ups in South Korea: The engine of new market dynamics. International Journal of Engineering Business Management, 11. Web.