Saudi Aramco: The Global Oil Giant with 98% Govt. Ownership - Free Paper Sample

Introduction

Saudi Aramco is a Saudi Arabian oil multinational with its headquarters in Dhahran, Saudi Arabia. The company, Saudi Aramco, was formerly known as Arabian-American Oil Company and is identified as one of the successful business entities in terms of its operations and revenue in Saudi Arabia and globally (Saudi Aramco, 2020). Notably, while the company encourages investor options, the government of the Kingdom of Saudi Arabia owns more than 98 percent of the company's shares (Saudi Aramco, 2020). Ideally, Saudi Aramco is owned by the Saudi Arabian government, considering the number of shares it owns in the company.

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Describe the Organization’s Products/Services

Saudi Aramco specializes in large-scale oil and natural gas production. The company specializes in oil production owing to its large crude oil deposits amounting to over 27 billion barrels (Saudi Aramco, 2020). Specifically, Saudi Aramco owns the second-largest oil deposits globally, and it is the largest daily producer globally.

Describe the organization’s strategy (how does it create value)

As a multinational corporation, market segmentation is one of the primary strategies embraced and implemented by Saudi Aramco. The company identifies profitable geographical locations based on their oil and natural gas consumption rates through market segmentation. Upon identifying profitable geographical locations, Saudi Aramco, through its marketing department, partners with relevant organizations to monitor the consumption rate and trends while facilitating constant supply based on demand (Saudi Aramco, 2020). Also, the company widens its investment scope, an aspect that further contributes to its overall growth and market relevance. Notably, market segmentation is an essential component in Saudi Aramco's operations and strategies, particularly because through the market and consumer approach, the company identifies the market gaps, thus improving its consumer relations while continuously improving and tailoring its goods to the consumer needs and demands (Saudi Aramco, 2020). Also, Saudi Aramco uses technology and innovation as one of its strategies. Particularly, the company uses its innovative culture to continually develop new ways of interacting with its consumer base and, more importantly, improve its products and services.

How does Saudi Vision 2030 impact the organization’s strategy? Be specific.

Saudi Arabia's vision for 2030 is best described as a profound move and determination of the country to reduce its dependence on oil and oil-related products and, consequently, diversity in its economy (Alexander, 2020). The country also seeks to improve its infrastructure by developing educational institutions, health facilities, recreation, and tourism, among others. Concisely, Saudi Arabia's Vision 2030 aims to reinforce its operations and position in global business by diversifying its economic and investment opportunities (Alexander, 2020). Besides, the country is committed to restructuring its global economy by increasing non-oil international trade while promoting a softer and more secular perception of its Kingdom.

Therefore, while Saudi Aramco is committed to offering a robust consumer experience through improved services and products, its field of operations contrasts with the country’s goals and determination (Alexander, 2020). In other words, despite the adoption of sound and competitive strategies to improve its operations and competitiveness in a global stand, the country’s Vision 2030 discourages further strategic innovation at Saudi Aramco chiefly because of the country’s commitment to increasing non-oil international trade and diversifying its economy from oil-related ventures (Alexander, 2020).

How does the organization’s strategies support Saudi Vision 2030?

Although Saudi Aramco is not part of the country’s Vision 2030, its strategies are functional and relevant to any business in Saudi Arabia. As mentioned earlier, Saudi Aramco has embraced market segmentation and innovative culture as its primary strategies over the years. The company’s strategies support the country’s vision for 2030 specifically by encouraging innovation and technology while identifying profitable ventures that align with the country’s goals and determinations (Alexander, 2020).

References

Alexander. (2020). Saudi Arabia's Vision 2030: key points. Arab-bankers.co.uk. Retrieved 3 September 2020, from https://arab-bankers.co.uk/posts/view/458/Saudi-Arabia-s-Vision-2030-key-points.

Saudi Aramco. (2020). Saudi Aramco- Contacts and frequently asked questions. Aramco.com. Retrieved 3 September 2020, from https://www.aramco.com/en/investors/financial-news/ir-contacts.