Internationalization Strategy Of Almarai Company In Saudi Arabia

The study describe,analyze,and develop the internationalization of Almarai according to Uppsala model and network theory,what are the factors and motivations influence on Almarai's internationalization for beginning and integrating internationalization process.The study chose Almarai as a case because of the local restrictions from Saudi government and lack of domestic resources to complete internationalization well.This study applied qualitative research methods by online interview with the marketing manager,and some questions with E-mail response.In addition,the study depends on secondary resources as company's website,brochures,magazines,newspapers,journals,and company annual reports.The study concluded that the Uppsala is important for the beginning of internationalization,and network relationships is important for the advanced stages of internationalization.Almarai began working on neighboring psychic distance countries according to establishment chain stages successively,these following stages because of the similarity in the culture of food and beverage,royal political system,customs and heritage,language,and environmental conditions in the GCCC.Internationalization process of Almarai is an interactive process between knowledge,learning development,experience,market uncertainty,and commitment decisions.Experiential Knowledge considered resources committed to that market to effect on the perceived risk and opportunities,and consequently the better knowledge about market,the more valuable are the resources that lead to stronger commitment to the market.Almarai works in recruiting skilled local employee who work for the same industry in the foreign markets,and works on providing special products and resources to specific markets in order to have market commitment and to discover the opportunities and decrease the risk associated with investment.Almarai applied internal exchange system for rotating the employees in the home market with the employees in the foreign market.Gaining of the market experience and current activities lead to low the risk of entry a new market.International experience and then lead to integrate.The vertical business network relationships such as customers,suppliers,distributers,partners,competitors,and research and development centers can influence on the choice of foreign market and the choice of market entry mode.Finally,There is a significant rule of the morale personality of the founder of Almarai on the building of the network relationships and strengthen of the position.