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Conducting business in Saudi Arabia

Company summary

The Riyadh Fitness Center is a 24 hour fitness centre that aims to offer a great deal of products and workout facility that will meet the religious and cultural requirements of the people of Saudi Arabia. Most of the clients that we hope to have in Saudi Arabia are both men and women who wish to work into a fitness centre which will offer them a clean and safe environment that takes into consideration the client’s cultural, religious and social welfare. It will be located right at the heart of the city of Riyadh and we hope to give our customers proper services

Objectives of the company

  • To expand corporate fitness education and physical health related matters
  • Create working relationships with our clients within the city of Riyadh
  • Provide wellness strategies and programs in accordance to the Muslim faith
  • To provide our employees with the education tools needed to promote a healthy lifestyle.

The keys to success for Riyadh Fitness centre will be raising productivity and maximize profits. The company is aiming to create an environment for our members to in order for them to receive high quality service and products. Being a professional organization that endeavors to ensure that our employees are motivated, we shall be able to provide a good working environment with one another. (Learn how to start your own fitness centre, 2007)

Products and services

The company hopes to provide a range of products and services to its clients which include two fitness facilities one for men and the other for the women. The three categories of the fitness products that we shall provide are; home use fitness equipment which include treadmills, stair-climbers, recumbent bikes etc, fitness equipment which include high quality sports garments and nutritional supplements that are intended to give the clients the necessary healthy support such as vitamins and protein supported supplements.

These products are imported from the best companies in the world that manufacture high quality equipment for use. For the section of services, the company has categorized them into two and these are sports and wellness. Those services that relate to sports include; a swimming pool, tennis court and a state-of the art gym. For the wellness, the fitness centre offers; sauna ((both a Finnish sauna and a Turkish hammam), massage for both men and women, yoga, pilates, a spa and aerobics classes which are conducted by experienced and skilled instructors. (Fitness centre industry information, 2007)

Opportunity analysis

Preliminary market research has indicated that 52% of the women and 66% of the men in Saudi Arabia are either suffering from obesity or overweight. This will provide an opportunity for the company to utilize this as a marketing strategy in order to educate the public that it is only through physical fitness that they can keep their bodies health. In addition, the Saudi government has also recently responded positively to the above statistics and it is currently conducting a massive campaign that is aimed at informing the public on the consequences of not engaging on physical fitness.

Since majority of the fitness centers that are currently available here are run in hotels where the rich only can access them, we shall be able to meet the needs of the poor by providing an independent facility that is low cost compliant. In addition, we shall also be able to employ employees who are familiar with the Arabic language and that communication problems will not be an impediment (Learn how to start your own fitness centre, 2007)

Religious considerations

Religion is a system of shared beliefs and rituals concerned with the sphere of the sacred or the supernatural and it usually affects the way of carrying out business and especially foreigners not the natives of the country. For this case, being in country such as Saudi Arabia will imply that we observe certain religious protocols before we embark on conducting the business there. In some countries where multinational companies have disobeyed the religious beliefs of their host countries, the result has been harsh.

Considering that Islam is a strong religion that does not entertain contravention of their understanding especially by non-Muslims, the situation is quite delicate and hence, religion is another cultural aspect that forms a central core of marketing policy in Saudi. According to latest research, ethical systems consist of moral principles are greatly affected by religious teachings which ultimately affect business dealings and especially those regarding physical fitness (Fletcher & Brown, 2005)

Saudi Arabia is one country that has a huge population of Muslims and for this reason for us to conduct the business effectively in Saudi Arabia; we must be able to understand the cultural and religious perspectives that are upheld in the country. We have in the past various incidences of religious prosecution of individuals who are believed to have contravened the Islamic law and practices. Islam considers physical fitness a basic need for the human body as long as it is no done against the usual norms of the faith.

In order to address issues of gender which the main factor is as mentioned in the Quran. In this case, we shall have separate gyms and facilities for each gender. Our approaches and strategy will mostly slant on the way the religion here addresses physical fitness. In addition, we shall be able to mostly employ the youth and qualified locals who may be trained elsewhere or any other foreign instructor.

The male instructors will be assigned to male gyms while female instructors will also be in charge of the female rooms. To add on that, changing rooms will be strategically placed for both men and women in order to keep them humble time in order to adjust their dressing accordingly.

The clothing materials and other garments that will be sold by the company will also not be very provocative in that it will only be suitable for exercises and other physical practice or even for games/sports. (Fitness centre industry information, 2007)

Marketing 

Communication is a very important tool in any set up. It is even more important in the business world. For a business organization to be successful, the manager has to use very effective communication strategies. This is in relation to every person in the organization. The business environment calls for a high level of effectiveness in the communication. When communication is rightly used in an organization it can motivate the employees.

However when it is wrongly used it will always demoralize the workers. Of course this demoralization affects their effectiveness hence leading to losses in the organization. But in order to contain any kind of, misconception, we shall be able to commit ourselves to provide our members with highly qualified trainers and staff especially for those in the gym. (Fletcher & Brown, 2005)

Contingency plans are important aspects of market planning due to the huge number of challenges, threats and opportunities. Since our biggest problem is competition and financial ability to meet our intended programs. Our financial growth will mostly depend on well researched and reliable sales figures. This will however be affected by political, cultural, social and environmental challenges such as weather.

What our first will incorporate will be to look for sponsorships for the inter-institution competitions and other health competitions such as the beauty contests. We shall rely mostly on direct sales and website sales in order to meet costs for running the company’s operations in the city. With proper inventory as collateral and excellent credit facilities, we hope to succeed against all odds. (Fitness centre industry information, 2007)

The fitness centre will serve the city of Riyadh and other nearby areas which may not have been having a workout facility in their neighborhood. The business will be based on two basic principles; health citizens are usually more productive and it is less costly to prevent manageable illnesses through keeping the body fit rather than waiting until one is placed under medication. At Riyadh fitness centre, there is corporate shared responsibility in which the company ties health care issues with worker productivity.

That is why we hope to achieve an increased amount of reduced health care crisis within the first three years for our clients. Previous  research in the country has indicates that Saudi women have a willingness to dedicate themselves to a healthier lifestyle if given the opportunity to work out in a safe environment such as the one we are providing.  We will also commit ourselves to the authorities in Riyadh and especially the central Saudi government by paying taxes. (Learn how to start your own fitness centre, 2007)

Conclusion

Riyadh Fitness Centre can conduct its business effectively in Riyadh especially with proper marketing and promotional strategies. The company aims to incorporate cultural/religious issues in its quest for better physical health lifestyle. In order to remain competitive, we shall be able to cut a competitive edge through diversity of services and products, high quality services and other customer loyalty programs within the propinquity of the company.

Reference

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Fitness centre industry information (2007):  retrieved from www.hoovers.com accessed on 4th October, 2007

Fletcher, R & Brown, L. (2005): International marketing: an Asia-Pacific perspective, 3rd edition, Pearson prentice hall, French’s Forest

Knight, F (2007). The Ethics of Business Competition and Other Essays. Univ. of Chicago Press.

Lovelock, J. (2006): Services Marketing, People, Technology, And Strategy:
New York, Prentice Hall

Learn how to start your own fitness centre (2007):  retrieved from www.fitnesscenterowner.com  accessed on 4th October, 2007

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