Industry and Environmental Analysis of Kuwait †MyAssignmenthelp.com

Question: Discuss about the Industry and Environmental Analysis of Kuwait. Answer: The Internet is responsible for the creation of several new industries like online auctions as well as the digital marketplace. The greatest and most noteworthy effect of the internet lies in its capacity to cause the reconfiguration of the existing industries which had been controlled by high costs for the communication, gathering of information, or the accomplishment of transactions. There have been certain trends regarding the influence of the internet on each of the five forces, shaping the structure of an industry. Michael Porter stated that in any particular industry, whether it is domestic or international or produces a product or a service, the rules of competition are embodied in five competitive forces: the entry of new competitors, the threat of substitutes, the bargaining power of suppliers and rivalry among existing competitors. The entry of new competitors: Digital business is undoubtedly responsible for the type of the competition in the market. It is not just the conventional industry competitors which need to be considered but importance also needs to be given to the new entrants outside the industry who are capable of new and digitally based models and proposals for the required values. It has been seen that technological start-ups as well as huge companies have envisioned and also created a new business model from the base stage which has been powered by a innovative platform ecosystem for business of a digital nature. The leveraging of familiar and also social, mobile, cloud technologies as well as analytics are not enough. Valuable inputs are being made in terms of intelligent automation, The Internet of Things and also the topic of cyber security. This is basically done to additional improve value proposition of their appropriate platform (Gackenbach 2011). The new entrants to the business and the existing digital situation can move in easily in Case the traditional barriers to entry are lowered. A digitally based business model needs much less amount of capital and has the possibility of bringing the large economies of scale as suitable examples. The threat of substitutes: Threat of products and services are some of the top factors which are necessary and are to be considered under the substitutes of the digital industry. The digital business can happen in either a purely digital substitute or a substitute which of hybrid nature. There are extremes to this particular situation. Either the services are wrapped around a physical product or some other sort of extreme which has several examples. The industrial internet is another extreme in the particular line which can cause any sort of threat. Household automation and personal fitness products also comprise an extreme. The threat of substitutes is considered to be high in major cases in view of the many existent industries which is due to the reason that the switching costs are small and buyer prosperity to the substitutes is also high. The inclination to switch from the traditional model is high due to the consumer wait times for the taxis and the lack of visibility or so on. The long term stream of revenue is considered with reference to the digital services and sale of specific products. The bargaining power of buyers: The most important of the five forces influencing the industry competitors is actually the bargaining power of the buyers. It is the strongest of the five forces because the largest and most impactful driver of the digital business arises as a result of requirements and the potential of the consumers and the customers themselves. The bargaining power in this particular case shows a set of new expectations for the customers and the customer experience of a digital nature and it necessitates the recurrent innovation of the corporate nature and business models procedures, operations and the services of the scenario. At present the customers have much more power of bargaining which is due to the ready access to the internet and the information, ideas from social sources, the low costs of switching and the digital channels, sensitivity of price, access to the substitute products and services along with the greater ease with which they are used a also the convenience and also the increased competitiveness of the industry as a result of the other impacting forces (Dewan, Ganley and Kraemer 2010). The bargaining power of suppliers: Suppliers have the authority of either slowing down or accelerating the implementation of a digitally based business or how it influences the entire circumstances The people pursuing the digital models themselves for example the utilization of the APIs in order to streamline their ability to create new partnerships and themanagement of the existing ones in help in the acceleration of their chosen models themselves. Examples which can be considered in this particular regard are the digital and sharing economy in which the suppliers and the other constituents work in order to make sure that the business model and the innovations in the process still adhere to those rules which have been established, concerning the privacy, security and the safety. This is a optimistic and required development as it can help in keeping new models honest along with the bargaining power of the buyers (Palacios-Marqus, Soto-Acosta and Merig 2015). The rivalry among the existing competitors: It has been seen that the present competitors are all looking at digital businesses who are trying to understand the existing disruptions which are occurring and the preparation of their responses. It is seen that the comparative low cost of the digital business models help in the reduction of the entry and the exit barriers. The rivalry among the competitors are often in play and in the recent times the digital business has caused much of a stir which needs to be studied and understood. Overall in the preparation of several business initiatives, the five forces framework can be a suitable way in which the various facts impacting the digital business can be considered. It is necessary to understand how the factors react. In combination to the usual factors the new aspects affecting the industry are to be properly studied and understood. Kuwait does not possess SME development strategy and programme and also the corresponding institutionalization of support. The policies as well as the regulations shaping the particular sector are spread over numerous ministries and agencies. In addition to this the provision of services is cracked as well as inept. There is the lack of a central body which might synchronize several support activities. Otherwise in the Gulf region, several countries exist which have been able to address severe deficiencies in the past time by the establishment of a centralized body in charge of the promotion of SMEs. SMEs have been found to be suffering due to the limitations in the available reserves, specifically in the areas of training, business information and marketing. Training is not given proper importance. It needs to be targeted properly and information services need to be properly provided. Training needs to be targeted so that the information services are not scattered. There is the prob lem of proper counselling, or crucial advice which can help the enterprises grow. There needs to be proper awareness regarding the profit of external assistance by the provision of information on present services as well as providers (Elali and Al-Yacoub 2016). Potential entrepreneurs need to be interested and motivated towards their business which they are desirable of establishing. They need to be aware of available options and the option which are the most striking to them. Being uncovered to the entrepreneurial roles is a favourable factor as this helps in gaining suitable knowledge on entrepreneurship. They also need to come into contact which a range of opportunity factors. These include the access to suitable information on a variety of business ideas, counselling as well as capitalistic ideas and support. The aspiring entrepreneurs also need to have technical skills, business andmanagement skills which can either be gained through education and experience or through the expertise and experience of other individuals (Al-Najem et al. 2013). In the absence of proper motivation, notable entrepreneurs will not be able to perform any action towards the starting of any business. In case they are enthused to take proper action they need to be exposed to the vast range of opportunities available. Therefore there needs to be proper awareness of entrepreneurship as an attractive option for employment, also the profile availability of successful role models and changed attitudes towards the development of business. There also need to be enhanced opportunities for learning, in order to help aspiring people to learn to become successful entrepreneurs. There needs to be the start of a proper business by the entrepreneurship orientation, education and instruction. In addition to this there needs to be proper support services in order to make entrepreneurial learning training available to all and also the presence of small business counselling opportunities. At present in Kuwait, the entrepreneurship levels are low while the unemployment of youth is high. The country is not being able to generate suitable opportunities for start-ups and therefore there needs to be a proper awareness regarding entrepreneurship. Thus the objective in the long run is to create a much suitable climate of entrepreneurship that helps in the acceleration of the rate of start-up business. References Al-Najem, M., Dhakal, H., Labib, A. and Bennett, N., 2013. Lean readiness level within Kuwaiti manufacturing industries.International Journal of Lean Six Sigma,4(3), pp.280-320. Chang, Y.S., Kim, J.A. and Kim, Y., 2017. Convergence Analysis of the Entrepreneurship Start-Up Barriers. DeNardis, L., 2012. Hidden levers of Internet control: An infrastructure-based theory of Internet governance.Information, Communication Society,15(5), pp.720-738. Dewan, S., Ganley, D. and Kraemer, K.L., 2010. Complementarities in the diffusion of personal computers and the Internet: Implications for the global digital divide.Information Systems Research,21(4), pp.925-940. Elali, W. and Al-Yacoub, B., 2016. Factors affecting entrepreneurial intentions among Kuwaitis.World Journal of Entrepreneurship,Management and Sustainable Development,12(1), pp.18-34. Gackenbach, J. ed., 2011.Psychology and the Internet: Intrapersonal, interpersonal, and transpersonal implications. Academic Press. Palacios-Marqus, D., Soto-Acosta, P. and Merig, J.M., 2015. Analyzing the effects of technological, organizational and competition factors on Web knowledge exchange in SMEs.Telematics and Informatics,32(1), pp.23-32.