Al Jazirah: The Genius Inventor THE HOT WEATHER (......) The Saudi Arabian climate can be characterized as a desert climate, with wide fluctuations in day and night temperatures. The climate is typified by high temperatures in the summer, often rising to 45 degrees Celsius or more, while in spring and autumn, the average temperature is around 29 degrees Celsius. (....) 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 conditioners reach 2.1 million units per year. Air conditioners are installed in every new building. (..........) 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. Another new trend in the culture, which is still in development, is environmental and energy consciousness. With energy at a low cost, consumers tended to use it at high levels. Now, through government and corporate efforts, consumers are being made aware of the impact of high energy consumption on world prices and the environment. Another characteristic of the culture is the eagerness to acquire new technologies and to become early adopters of the world's latest trends, hence consumers like to buy high-end products such as the latest mobile phones, laptops, and cars. THE RIGHT PRODUCT FOR THE MACROENVIRONMENT 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 Jazirah manufactures the coolers at five factories (four in Saudi Arabia plus one in Sudan) and distributes them via 30 showrooms located across Saudi Arabia, wholesalers, and an 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. It is odor freethe first coolers to be invented had a moldy odor, so much so that they were called swamp coolers in the United Statesand quieter than other models, thanks to a special engine. With the outer casing made of plastic or an anti-rust metal, the life of the product is extended. Durability is also ensured through the cooling pads, which are made of aspen or cellulose so that salt residuals generated from the evaporating water can be rinsed off. One of the biggest advantages of Al Jazirah evaporative coolers is their electricity-saving capabilities. Evaporative coolers, generally, are good at saving energy, but Al Jazirah has managed to escalate that energy saving to 80 percent. A further benefit is the purification of air from dust and other particles, which creates a cleaner environment for the user. In 2010, Al Jazirah won the award for the best innovation to the market presented by INNOVABIA. In 2011, Al Jazirah secured the 'Number one client and the best evaporative coolers portfolio award' by NIDEC Corporation -owner of the multinational brands EMERSON & US MOTORS. Al Jazirah's marketing focuses on matching the consumers' heritage and their culture. All marketing communication is centered on the consumer's daily life, for example, highlighting their outdoor exercises, their atmosphere, and their overall life style. This puts the air conditioning product very close to the consumers' hearts. SUCCESS Al Jazirah's evaporative coolers are widely available to the market in a wide portfolio of brands that meet different needs. The company has a 60 percent market share of all evaporative coolers sold in the Kingdom of Saudi Arabia. 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. Questions 1. Define the macro-environment and identify its components. 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. Explain SWOT analysis. Develop an actual SWOT analysis to study the environment of Al Jazirah company. 4. Identify and explain the different types of competition. What would be the best company policy: to integrate with regular air conditioners or to compete with them