Pestle analysis of saudi arabia - Essay Example

PESTLE Analysis of Saudi Arabia Political Factors The political environment in Saudi Arabia is highly controlled and regulated. The monarchy has made the industrial operations quite conservative and inward looking. There is a council of ministers and consultative council but there are no political parties (Background Note 2011). Hence, the monarch is not very accountable for his actions. Oil and petroleum industry are the major contributors to Saudi Arabia’s GDP. Therefore, industries such as publishing books are highly neglected.

The universities are also government controlled and red tape is a barrier in many strategic decisions. 2. Economic Factors Oil is the major driver of Saudi Arabia’s economy. Saudi Arabia has the largest oil reserves in the world. Other industries enjoy more or less a secondary status. Five year plans are being developed by the Council of ministers for efficient economic operations. The country is a key OPEC member and enjoys an international clout. The benefits of this esteemed status trickles trickle down to other sectors as well (Background Note 2011). 3. Social Factors The residents of the country are highly conservative.

The literacy rate is close to 80% which is quite decent. People are fond of reading and such an initiative to convert manual books into audio and online books would be a big hit. But the internet penetration in the country is only moderate and may act as a roadblock. 4. Technological Factors Internet has brought about a change in the global lifestyles, working styles and daily business operations. Saudi Arabia is not an exception. Places such as Dubai are one of the most technology savvy regions in the world.

This has promoted use of audio and online e-books for reading. People regularly use internet to obtain and exchange knowledge. 5. Environmental Factors The environmental factors play a great role in Saudi Arabia’s policy decisions. The concerns of global warming are prevalent here especially in wake of relatively low prices of oil and hence more chances of wastage. Similarly, there is a drive to save paper. Hence, several institutes and organizations are initiating programmes to move towards being green.

Hence, paper based books are being replaced by online and audio books. 6. Legal Factors The government is coming up with several laws for green practices. The institutes and organizations following these practices are given advantages of carbon credits. This is in line with western countries. Therefore, a shift from manual to online books can attract appreciation as well as monetary benefits. However, there could be concerns over copyright issues in converting the books. Therefore, King Abdulaziz University has to be cognizant of these matters before taking any decision.

References Country Analysis Report – Saudi Arabia: In depth PESTLE insights 2010, Available online from companies and markets.com Background Note-Saudi Arabia 2011, Available online from