The decision to enter into a direct foreign investment was made on the basis that the Wilson Corporation wanted to maintain controlling interest over operations, avoid transport costs and trade restrictions. This also allo

The Central Region contains high level of retailers, restaurants, and hotels and has a continually high growth rate (U.S. Saudi Arabian Business 1-6). Furthermore this region contains the capital of Riyadh which attracts many international investors. Lastly, this region is densely populated with high household incomes, which tend to have enormous purchasing power (1-6).

In order to accomplish this task with approved Saudi Arabian government support, a joint venture with Aramex was inevitably the best avenue. Saudi government tends to favorably look upon a joint venture with Saudi companies because it creates jobs and lures additional foreign investment. Some of the incentives include: tax holidays for ten years, custom tax exemption, low price electricity and natural resources, duty free capital equipment and most importantly government assistance in obtaining information and statistical data needed for this project (Dept. of Commerce 1-8). In addition to preferential treatment, Saudi government under a joint

When it comes to the legal terms of this joint venture there are several issues that need to be addressed. The labor force in Saudi Arabia have strict guidelines to follow including the percentage of employees that our company must have in order to break ground there. 75% of our employment must be Saudi Nationals or if 75% is unavailable, then we must meet the minimum of 5%(U.S. Department of Commerce 5). The Saudi Government must also license our company for twenty-five years. Our trademark is protected for up to 10 years.

Wilson Marketing team has decided to packaged water in sizes of 16oz, 20oz, and 1 gallon plastic bottles. Saudi Arabia marketing research has shown that the public is very receptive to bright labels and Arab and English language (Dept. of Commerce 12-14). Our bottles will contain desalinated water and will display our mission statement, brand name and nutritional data. Wilson plastic bottles will have a bluish tint with a sky blue label. Wilson marketing team has assured the Wilson brothers that this is the most appealing color to Saudi consumers.

Wilson Corp and Aramex marketing department have decided that initial target market will be the Eastern and Central Regions, which make up half of Saudi Arabia?s major city populations (Council of Saudi Chambers 1-5). Cities in Eastern Province are centrally located near the Red Sea where the Myraj desalination plant will be built. The Eastern Province has an established modern infrastructure capable of handling the demands of the Myraj project (1-5). Also, over 45% of industrialized business are centrally located and many railroads are being built that will further enhance our distribution networks (Dept. of Commerce 11).

Some topics in this essay:
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