Difficulties in Postal Industry in Saudi Arabia - Dissertation Example

?RESEARCH PROJECT PROPOSAL FORM (7MG002) DISSERTATION PROPOSAL PROFORMA Aims of the Dissertation: At present, the postal industry in Saudi Arabia is facing different kinds of difficulties. One of the major problems that they are facing is because of advancement in technology and with the introduction of services like email and messengers; the postal services have become very limited. Postal services in Saudi Arabia are used now for sending and receiving of parcels and this has limited the services offered by most of the firms in the postal service industry. With the advancement of technology, different kinds of threats have been faced by firms in the postal service industry and therefore it has become imperative for these firms to modify their services to meet the changing needs of the consumers in Saudi Arabia. These organizations need to attract and reignite the charm of using postal services and therefore they need to come up with some new technology or new service that could meet the needs and demands of the people in the market. Saudi Post, one of the leading postal service firms in Saudi Arabia have identified an opportunity and therefore they have introduced an online shopping portal in Saudi Arabia in order to attract consumers to not only use the services of postal service firms but also to attract consumers towards online shopping. One of the recent development and advancement in the online market place of Saudi Arabia is the introduction of e-mall. The newly introduced e-mall is a first online shopping portal in Saudi Arabia. With the increasing trend of online shopping around the world, e-mall would face several challenges considering the perception and believe of people in Saudi Arabia about the online shopping and this is one of the reasons why this research study would analyze and examine the challenges that e-mall is facing in Saudi Arabia and what kind of challenges it would face in the time to come. However the main aims and objectives of the research study have been mentioned below: To identify different kinds of challenges faced by Saudi Post as they have introduced e-mall. To identify and examine how these challenges have influenced the strategies, approach and planning of Saudi Post in relation to introducing e-mall in Saudi Arabia. To identify and analyze the challenges faced from the perspective of consumers by the introduction of e-mall. To identify how consumers feel about the introduction of e-mall in the market. To examine the reaction of retailers and other organizations that are using or planning to sell their products through e-mall. The researcher would be aiming to answer the following research questions in the dissertation: What kind of challenges Saudi Post have faced as they introduce e-mall? What kind of challenges e-mall would face in attracting traffic to the online market place and whether the perception of people in Saudi Arabia would change regarding online shopping with the introduction of e-mall? How e-mall is beneficial for the retailers and general consumers? 2. Methodologies Research Approach: In order to explore and identify the different challenges and opportunities for the new concept of electronic mall or store by the Saudi post, the researcher will apply both descriptive and explorative research approach. The main aim of the descriptive research approach is to present and describe the current or prevalent situation in reference to the topic under investigation. In reference to this research project, the descriptive approach will allow the researcher to analyze and explain the current situation regarding different shopping trend and consumer preferences. On the other hand the explorative research approach is conducted or applied in order to explore the cause and effect relationship between the important variables and factors. In reference to this research project, the explorative research approach will allow the researcher to explore the relationship between the changing consumer preferences and the future prospects for the concept of the electronic mall and other services being provided by Saudi Post. Research Strategy: The researcher will use the strategy of scientific research in order to fulfill the aim and objectives of the research project. The scientific research is directly related with the deductive research strategy. In this research, the researcher first gather enough amount of data and information regarding the topic under investigation which is then analyzed and investigated in order to come up with thorough and relevant results. The scientific research strategy also make sure that the researcher is unbiased and not related to the research topic or process by any manner in order to maintain the validity and reliability of the research. Research Philosophy: In order to make sure that the researcher is able to come up with more generalized and thorough findings and results, the positivism research philosophy will be used for the research project. Positivism is also related with the scientific research strategy, as it involves collection of different observations and facts, formulization of different theories, and analyzing or evaluating the information gathered on the bases of the theories generated in order to come up with the final results and findings. In reference to this research project, the researcher will first collect the relevant data and then will evaluate and analyze it on the basis of already established theories. Research Method: The researcher will use the mix method research strategy i.e. both quantitative research methods and qualitative research methods will be used by the researcher. In this regard the researcher has selected the questionnaire survey method which will be followed by the focus group discussion. Both of these methods will allow the researcher to gather considerable amount of relevant data in order to accomplish the research objectives. Also, survey research method is most appropriate for the research studies based on explorative and descriptive research approach. Data Collection and Analysis: The researcher will use both primary and secondary sources in order to collect or gather the data required for the research project. The secondary data will be collected through the sources which are already there with the help of the extensive literature review. On the basis of the literature review the researcher will be able to identify important variables and factors. This in turn will facilitate the researcher in the process of formulating the theoretical or conceptual framework. Once the researcher will gather secondary data and will come up with the conceptual framework, in the next phase the researcher will collect the primary data related to the identified variables and will analyze it on the basis of the conceptual framework developed with the help of the secondary data. Ethical Considerations: It is important for the researcher to keep in considerations all the ethical concerns associated with the research project. The researcher will have to make sure that the private and confidential information about the respondents of the survey is not used for any other purpose and is kept safe. 3. Brief Literature Review There has been an increasing trend of users starting to shop online around the world. The proof of consumers accepting e-commerce or online shopping can be identified from the research of Kamaruzaman, Handrich & Sullivan (2010) as they revealed that e-commerce consumer spending has reached a figure of over $10 trillion USD in the year 2010 and this figure was only $0.27 USD. However how people have responded to online shopping varies from one country to another particularly because of some cultural differences and the differences in values, perception and norms. The trend of online shopping is relatively new in Middle East countries like Saudi Arabia, Bahrian, Oman and other Middle East countries however at the moment more and more consumers are realizing how important, convenient and beneficial online shopping can be and this is resulting in increasing the number of users shopping online. Still, the market share of online shoppers from United States and European countries possess the highest shares. 79% of the total revenues of online shopping around the world is generated from United States and European Countries. African and Middle East countries are way behind with a market share of 3% (Kamaruzaman, Handrich & Sullivan, 2010). Saudi Arabia is the largest producer of oil in the World and the Information and Communication Technology (ICT) market place of the country has been growing at a fast pace considering the growth in other Middle East regions (Alfuraih, 2008). However the trend of online shopping has not been growing as indicated by Agamdi (2008). Not only this, organizations operating in the country have not focused a lot to sell their products online and this has been the reason why only 9% of the organizations of Saudi Arabia are giving the facility to the clients to purchase products online (CITC, 2007). There have been different researches conducted in order to analyze the reasons behind slow growth of ecommerce in Saudi Arabia and some of the major reasons that have been identified are; poor infrastructure of Information and Communication Technology (ICT) in Saudi Arabia, people do not really trust online retailers and firms in Saudi Arabia and therefore they prefer buying from traditional channels rather than online medium, privacy issues, perception of people regarding online shopping, cultural issues, lack of sufficient rules and regulations related to online shopping, and lack of laws to protect the rights of the parties involved in ecommerce transaction (Albadr 2003; Aladwani 2003; Al-Solbi and Mayhew 2005; CITC 2006; Alfuraih 2008; Agamdi 2008; Alrawi and Sabry 2009). The government of Saudi Arabia has taken several steps and it has been focusing on improving the infrastructure and facilities provided to the general public related to ICT and the government has motivated different organizations to adopt latest technology (Al-Tawil, Sait and Hussain 2003). Majed Anzan who holds the position of director of postal operations and supervisor of the e-market, also has confirmed the fact that the ecommerce transaction in Saudi Arabia has been growing with the passage of time and one of the reasons for this is the increasing number of internet users. Aznan claimed that the almost 5 million online transactions have occurred in the country in the year 2009 only (Post & Parcel, 2010). Aznan has also added the fact that online shopping is beneficial for consumers and for people living in Saudi Arabia; it would be valuable as well. Some of the major advantages that online shopping would provide to Saudi Arabia include lower costs, more sales for firms in the country, improving the economic development of the country, improving the product knowledge and people would be more aware about the latest products introduced in the market (Post & Parcel, 2010). 4. Resources/Data Access In order to accomplish and answer the research questions of the dissertation, the researcher might need or have access to certain information that could be sensitive for the organization and because of this reason; the researcher would need to keep the information related to the company and employees. The researcher would also focus and analyze the findings of different researchers conducted related to online shopping and behavior of consumers particularly consumers in Saudi Arabia. In order to collect information through primary source of data collection like questionnaires and interviews, the researcher would be keeping the name and other details of the persons answering the questionnaire and participating in interviews confidential. Any other information that might be required by the researcher to analyze the topic or information, then different books and published journal articles will be referred however the information would be sourced accordingly so that there are no copyright issues. The analysis of the dissertation would include the qualitative and quantitative. Analysis using both quantitative and qualitative methods will be done and this would give the researcher a better understanding of the research topic and the aims and objectives of the dissertation would be achieved in a better way as the researcher would have better understanding of the topic and thus, the analysis and findings would be more reliable and valid. 5. Timing Mileposts Steps Description Due date 1 Week -1-2: Area of interest identified 2 Weeks 3-4: Topic selected/form submitted 3 Weeks 4-5: Topic refined to develop dissertation proposal 4 Weeks 5-8: Proposal written and submitted 5 Stage 1: Chapters 1-3 completed 6 Stage 2: Collection of data and information 7 Stage 3: Chap 4 (Results, Analysis and Discussion and Chapter 5 (Conclusions, Implications and recomendations) 8 Stage 4: Writing up 9 Stage 5: Final project draft prepared 10 Submission of Project List of References Agamdi, A. (2008), 'e-Commerce Implementation Challenges and Success Factors in the Kingdom of Saudi Arabia', paper presented to 19th National Computer Conference: the digital economy and ICT industry, Riyadh. Available at [Accessed 5 May, 2012] Aladwani, A. M. (2003), 'Key Internet characteristics and e-commerce issues in Arab countries', Information and Management, vol. 16, no. 1, pp. 9-20. Aladwani, A. M. (2003), 'Key Internet characteristics and e-commerce issues in Arab countries', Information and Management, vol. 16, no. 1, pp. 9-20. Albadr, B. H. (2003), 'E-commerce', Science and Technology, no. 65, pp. 14-9 (Arabic source) Alfuraih, S. (2008), 'E-commerce and E-commerce Fraud in Saudi Arabia: A Case Study', 2nd International Conference on Information Security and Assurance Busan, Korea, pp. 176-80 Al-Ghamdi, R., Drew, S., Al-Faraj, O. (2011). ‘Issues Influencing Saudi Customers’ Decisions to Purchase from Online Retailers in the KSA : A Qualitative Analysis’, European Journal of Scientific Research, vol. 55, no. 4, pp. 580- 593. Alrawi, K. W. & Sabry, K. A. (2009), 'E-commerce evolution: a Gulf region review', International journal Business Information Systems, vol. 4, no. 5, pp. 509-26. Al-Solbi, A .& Mayhew, P. J. (2005), 'Measuring E-Readiness Assessment in Saudi Organisations Preliminary Results From A Survey Study', in I Kushchu & MH Kuscu (eds), From e-government to m-government, Mobile Government Consortium International LLC, Brighton, UK, pp. 467-75. CITC (Communications and Information Technology Commission) 2006, Marketplace of Telecommunications and Information Technology in KSA Communications and Information Technology Commission, Riyadh, (Arabic source). CITC (Communications and Information Technology Commission) 2007, Internet Usage Study in the Kingdom of Saudi Arabia Communications and Information Technology Commission, Riyadh. Kamaruzaman, K.N., Handrich, Y. M. & Sullivan, F. (2010), 'e-Commerce Adoption in Malaysia: Trends, Issues and Opportunities', ICT Strategic Review 2010/11 E-commerce for Global Reach PIKOM (The National ICT Association of Malaysia), Putrajaya, Malaysia, pp. 89-134. Post & Parcel, (2010), Saudi Post plans to launch e-markets in weeks. 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