Free We Have Done An Industry Analysis Utilize The Model Of Five Forces Developed By Michael Porter. Business Plan Sample
Our feasibility study indicates that outdoor wedding events planning in the Eastern Province of Saudi Arabia is fragmented and receptive to new ventures providing quality services. The popularity of outdoor weddings in Saudi Arabia is high, making the venture more attractive. The industry has not matured, and barriers to entry for new planners are still low. Globally, outdoor lavish weddings are a growing phenomenon, and the industry is worth around $600 billion. Saudi Arabia’s wedding industry is worth billions of dollars and stands out as one of the wealthiest markets globally.
Traditionally weddings are very important in the Saudi culture and Saudi’s spare no expenses to organize grand weddings. Most people are now preferring to hold outdoor weddings which cost a little more. The average wedding budget for a Saudi wedding is 300,000 SAR ($75,000), and the industry is growing at a rate 20 percent per year. According to figures obtained from the Saudi Wedding Fair event, there are around 2 million wedding held in Saudi Arabia every year.
Over the last few years, the Saudi Arabian wedding sector has grown by leaps and bounds and wedding planners have numerous prospects to focus on the kind of weddings they can handle competently. Splendid Events has the chance to offer outdoor wedding planning services for themed and destination weddings. Although there are many ventures offering wedding planning services, profits in the industry are still lucrative, and the profit margins remain favorable. Currently, the average earnings in the industry are between 18 to 20% depending on the specialization of the planner. On average a wedding planner earns between 250,000 SAR ($65,000) and SAR 350,000 SAR ($95,000) annually for their services. Wedding expenses are on the rise, with an increase of 20% recorded from 2002 to date and more Saudi’s are seeking the services of professional planners for their weddings.
The opportunity to start an outdoor planning business in the Eastern Province of Saudi Arabia is without a doubt large and growing every day. Although the number of companies offering wedding planning services has increased in last 5 years as a result of increased demand for professional planners, the rapid increase in the number of outdoor weddings shows that the industry is still growing. According to Saudi Arabia Wedding Fair, there are about 2 million weddings held every year, translating to more than 40,000 weddings every week. Currently, approximately 40% of those weddings are held outdoors. Therefore, there are millions of guests, attending weddings yearly, providing an opportunity for Splendid Events to offer ancillary services targeting these guests.
The size of outdoor weddings is growing by the day, and they are now a serious event and experience. Today, weddings are not events that take place for a few hours; many weddings have expanded to take place over a number of days. Couples are mostly interested in ensuring their friends and relatives have an experience they will not forget in a long time. As such they are willing to spend much money and time to make the event memorable. Therefore, wedding planners have an opportunity not only to provide wedding services but offer other ancillary services that accompany the wedding as well. Opportunities abound to provide pre and post weddings events such as hotel booking, short tours, car hire and other transport services.
The wedding industry is highly dependent on the economic conditions of the country. Should there be a stagnation or recession of the economy, the industry will suffer because weddings are not a necessity. Another weakness is the possible entry of hotels are providers of planning services, providing competition to the traditional wedding planners. There are specialized service providers in the wedding industry, and wedding planners are highly dependent on them. It is a weakness because the quality of the service provided by the other service providers will ultimately affect the quality of services offered by Splendid Events.
Threats of substitutes are medium because couples can choose to plan their wedding on their own by contracting each service provider independently. Another alternative is hotels that offer outdoor wedding venues and related services. The threat of new entrants can be considered as high because of the industry fragmentation thus the conditions are conducive for new entrants. Additionally, the cost of startup for a wedding planning business is not very high, making it easy to start a wedding planning business in Saudi Arabia. Competition among existing wedding planners is high considering the high number of service providers in the industry. Although there is a small number of planners specializing in outdoor weddings. The bargaining powers of customers seeking wedding planning services is medium because they have access to several providers as well as alternatives. However, customers seek to have reputable service providers, and they are willing to pay a slightly higher rate to get the best services. Suppliers bargaining power is also medium because they have numerous wedding planners and other events planners seeking their services. However, the number of suppliers in the industry is high reducing their bargaining power.
Our competitive analysis indicates that although there are many wedding planners in Saudi Arabia, most of them do not offer ancillary services and mostly specialize in a limited number of services such as catering and venue decorations. Most of the competitors are located in Jeddah and Riyadh providing Splendid events with an opportunity to be the dominant player in the eastern province. The only notable competitor located in the eastern province providing outdoor wedding planning services comparable to what Splendid Events is offering is Kart Blanch.Agency. . Our research shows that although customers consider complete wedding planning services to be costly, nevertheless they adjust their budgets accordingly. In the industry lower prices may be frowned upon as they are mostly associated with low-quality services. Splendid events will provide customers with an opportunity to have their outdoor wedding services handled in a professional one-stop shop.
There are several qualities that make a wedding planning business successful. Success in the wedding planning business requires incredible organizational capacity and attention to detail. Trust is the most important quality in the wedding planning business and couple search for a planner who is trustworthy and respected in the industry. Successful wedding planners keep their word and deliver what they promise their clients. People skills is another quality that is required to be successful in the wedding planning business. Wedding planners need to have very good organizational skills because they are required to handle several tasks at a go. Linkages, networking, and partnership, are other components that make a wedding planner successful. Attending wedding fairs that bring together service providers in the industry helps planners to network and created linkages with key service providers. Partnering with major services providers such as hotels and caterers is key to running a successful wedding planning business.
Amtul, S. (2015, February 26). Saudi Arabia's wedding sector is a multi-billion dollar industry. Retrieved from Saudi Gazette: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20150226235056
arabiaweddings.com. (2014). Directory of Wedding Suppliers in Saudi Arabia. Retrieved from Arabia Weddings: http://www.arabiaweddings.com/companies/saudi-arabia?title=&category=18
Mohammad, H. (2012, June 24). The Big Fat Global Wedding Industry. Retrieved from Arabian Gazette: http://www.arabiangazette.com/big-fat-global-wedding-industry/
Pivac, D. Z. (2015, March 1). Wedding Industry Flourishing. Retrieved from BQDoha: http://www.bqdoha.com/2015/03/wedding-industry-flourishing-gcc
saudiweddingfair.com. (2014). A prosperous bridal market tapping multi-billion US$. Retrieved from Saudi Wedding Fair: http://www.saudiweddingfair.com/2015/eng/index.php?option=com_content&view=article&id=63&Itemid=59
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