Souq.com is an English-Arabic language e-commerce platform, the Middle East's online marketplace (Souq.com, about). Usually known as the Amazon or eBay of the Middle East. It is one of the largest e-commerce platform in the middle east and north Africa region, (the Amazon of the Middle Eas).
Souq.com connect people and products opening up a world of possibility. From bracelets and backpacks to tablets and toy cars, gives you access to everything you need and want. Its range is unparalleled, and our prices unbeatable (about Souq.com). It attracts over 24 million unique visits per month and is fast growing as more consumers shop online, (the Amazon of the Middle East).
In 2011 Souq.com changed its model to an online shopping site similar to Amazon with a marketplace and retail items for sale on its platform. As of 2014, Souq.com had raised $150 million, the largest amount raised by any internet-based business in the Middle East, (ArabianBusiness.com).
Souq.com is driven by smart technology, everything it does is designed to put the power directly in your hands, giving the consumers the freedom to shop however, whenever and wherever they like. Delivering to the United Arab Emirates, Saudi Arabia, Kuwait, Egypt, Bahrain, Oman, and Qatar. It has semi-automated modern fulfillment centers in the United Arab Emirates, Saudi Arabia, Kuwait, and Egypt, measuring a total of 35,000 square meters.
Souq.com is the largest online retail and marketplace platform in the Arab world, featuring more than 1.5 million products across 31 categories such as consumer electronics, fashion, health and beauty, household goods, and baby
Souq.com employs around 2,500 employees in engineering, retail, customer support, fulfillment and last mile delivery sections, (Dubai-Based E-Commerce Site).
Today, Souq.com attracts over 45 million visits per month, with localized operations in the KSA, UAE and Egypt.
Souq.com offers a convenient and safe online shopping experience with secure online payments, option to pay cash on delivery and free returns
This is Souq.com ' the power is in your hands.
The objective of this report is to explain in details ten key points that will assist Souq.com to enter in US online market. They cover, however, some of the major issues and risks that an investor must assess before starting a US venture.
Taking into consideration that US market is very competitive and demographically various levels are already existing. It will assess Souq.com for smooth launching its marketing operation in United States. Also, will assist to explore the economic opportunities. And then, provide recommendations on the best approaches to use electronic commerce philosophy during operation to increase productivity and profitability.
The United States market is one the world's most attractive markets for foreign companies to establish operations. International companies seeking to operate in the United States face significant challenges given the multiple layers of taxation. The choice of entity and manner of business operations can have a significant effect on the level and scope of U.S. taxes. International tax treaties often have a significant impact, (CST Tax Advisors, US Market Entry 2015).
Although United States demographically is big and has very competitive firms, but it also has opportunity of multi international firms to enter.
The US markets are strong and attractive to international business people. However, there are hurdles and challenges to entering the US market and setting up a business foundation to lead to success, (CST Tax Advisors, US Market Entry 2015).
Souq.com need to select a state that has little of state-level corporate tax. Such as Nevada, Wyoming, Montana, and South Dakota are often popular choices for this reason. There are other considerations when selecting a state such as the availability of a skilled workforce, business regulations, and minimum wages. Companies also often take advantage of Delaware's state tax regulations to minimize their tax burden, (CST Tax Advisors, US Market Entry 2015).
With a weak dollar and many strong foreign currencies, investors from around the globe (both individuals and institutional) are interested in taking a look at the U.S. market.
After all, the U.S. market is still one of the largest and most homogeneous markets in the world. It is composed of an ever consuming public, speaking a single language, and the country has a relatively business friendly legal framework. So why not set up a business venture in the US right away? There are a lot of opportunities: from starting up a branch operation, to joint venturing with US partners and buying existing American companies, (Anastasius Efstratiades 2008).
However, the investment opportunities in the United States do not come without risks. As in any business transaction, a favorable financial climate (such as a favorable exchange rate) is only part of the story. Unless one reviews carefully all the aspects of the transaction and all potential risks, what seems like a great opportunity can end up becoming a financial disaster, (Anastasius Efstratiades 2008).
Research key points:
1. Explain how you will implement the virtual management?
Virtual management is the supervision of teams that involve in dispersed work groups, that rarely meet face to face. Virtual manager need to be skilled and professional to use all tools that help to carry out his duty, such as:
' Leading from distance.
' Find the right people to work with.
' Create a professional work environment.
' Avoid work hours overlap.
' Communicate with team effectively.
' Resolving conflicts.
' Respond to high risk events.
' phone calls meeting,
2. How you will manage the team in US which is culturally, politically, and economically different from your country?
They need good communication skills, workers should have strong communication skills, as part of this, they should be comfortable with Internet technologies. Have a strong communications strategy, especially important if your team members speak different languages. Culture is everything we see around us. It is how we act, what we think, and what we believe. It is the words we use, the food we eat, and the clothes we wear.
3. How the virtual teams will work together?
Virtual teams can be communicated electronically. Virtual teams are made possible by a proliferation of fiber optic technology that has significantly increased the scope of off-site communication. Virtual teams require new ways of working across boundaries through systems, processes, technology, and people, which requires effective leadership.
4. What tools are they using?
' Telephone, the simplest and most logical medium.
' Email, probably the most used, yet least rich medium.
' Online Meetings, with the recent economic hardships, online meetings have become much more commonplace than they were in the past.
5. What are the advantages of using virtual?
' Cost savings, one of the biggest advantage in using virtual team that's enjoyed by an organization is cost savings.
' Leverage Global Talent, virtual Teams allows organizations to look for talent beyond their country of origin.
' Increased Productivity & Higher Profits, members of virtual teams tend to have higher focus on the task at hand. As a practice virtual team supports flatter organization structure.
6. What are some disadvantages they have and how they can overcome them?
' Cost of Technology, no one tool can provide the complete support. The cost associated with these installation and maintenance tools is little on the higher side.
' Conflicts, Lack of Trust & Collaboration, the cultural differences between the members of virtual teams gives rise to number of conflicts.
' Social Isolation, many members of virtual teams are adversely affected by the lack of physical interactions.
7. Explain how you will manage meetings between the teams in US and gulf in terms of time, place and language?
Virtual offices and meeting rooms are of the most used to manage meetings online. Virtual office is invaluable to business when working from different countries.
8. As a manager how you will manage the outsourced projects?
Outsourcing is directed toward a corporation's non-essential capabilities while it maintains a close focus on what makes them strong in commercial and government worlds. This new approach presents a rising demand for project managers who have strong, proven project procurement skills, (It Business Edge, How to Manage Outsourced Projects).
9. How would you solve a problem between two workers?
To solve problems effectively, focus on the situations, issue, or behavior, not on the person. By balancing the two fundamental components of problem solving process: process and people. The process side of problem solving involves following logical steps that guide a group toward a solution and applying specialized skills, and techniques at each step of that process. The people side of problem solving involves demonstrating a set of basic principle and timeless guidelines for workplace interactions that promote a problem solving culture.
10. What is your advice to the team for improvement?
Employees engagement is one of improvement. While virtually engagement been conducted at the individual level, practitioners have asserted that organizational engagement may be one way that organizations are able to impact performance at the firm level. To increase understanding regarding the role that employee engagement plays beyond the individual level of analysis, by developing collective engagement, (Academy of Management, heritage).
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