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Market Analysis

Describe about the Business Capstone Project of Argan Oil Company?

Background information about the research paper: Basically, for this research paper, Argan Oil Company is selected in order to fulfil the desired objectives and aims in the context of this research paper. Along with this, it should also be noted down that, this research paper would provide a brief discussion about the selected company, major problems with the organizations, and opportunities available in the global market. At the same time, this paper would also analyze competition analysis in the context of Argan Oil Company. Apart from this, it should also be noted down that, this research paper has wide scope because this research essay is conducted through evaluating secondary sources such as articles, books and online sources (Aaker, Kumar & Day, 2008).

 In the same way, independent research is considered for the fulfilment of associated objectives and aims of this research paper in an effective and appropriate manner. So, it can be said that, this paper has wide scope. Along with this, it is also found that, this research paper would be more valuable, beneficial and effective for the readers, students and researcher in understanding the different aspects such as problem, opportunities and competition in the context of selected organization (Daymon & Holloway, 2010). With the help of this research study, they would be able to apply these concepts in real life in order to fulfil specific objectives and further research effectively (De Raeve, Cools, De Smedt & Bossaer, 2012).

Information about the selected company: Argan Oil Company: Argan Oil Company is an individual from the main organizations in Morocco and works in the generation of argan oil following 1995; it concentrates on both restorative and culinary argan oil. The organization holds numerous national prizes and has been regarded and saluted twice by the Moroccan ruler Mohammed VI. As argan oil has ended up progressively prevalent for nonessential utilize, the organization likewise makes and bundles variousargan based restorative items, which are conveyed in Morocco.

Argan oil is a plant oil created from the parts of the argan tree (Argania spinosa L.) that is endemic to Morocco. In Morocco, argan oil is utilized to plunge bread in at breakfast or to sprinkle on couscous or pasta. Around the world, it is picking up a notoriety both as a fixing in top of the line, individual consideration items and as a heart-solid gourmet item.

Benifits and highlights of Product: In the current time, person is about prepared to proclaim argan oil as the best excellence fixing, period. Individuals are utilizing argan oil for quite a while and have yet to be let down.

Hair: Argan oil is an extraordinary item to quiet crimped finishes, add dampness to dry hair and additionally include a little sparkle. Apply to your hair while it is still soggy for an all over treatment or apply just to your dry closures after your hair is dry.

Scalp: If person is managing dry scalp, apply some argan oil to a cotton ball and touch your scalp with the oil. On the off chance that you do this before bed, you'll give the oil a lot of time to saturate your scalp before you wash your hair in the morning.

Benefits and Features of Product

Face: It may appear to be terrifying to apply immaculate oil to your face, particularly on the off chance that you have finicky skin, yet we have been doing recently that and our skin is totally pivoting. It's smooth, clear and brilliant, all on account of utilizing argan oil as our every day morning cream.

Body: You can utilize argan oil for a full body cream, applying pretty much as you would a body salve or cream. Apply the oil directly after you escape from your shower for best saturating results.

Hands: Argan oil is an awesome oil to use staring you in the face, particularly on your fingernail skin and on your nails in the event that they are inclined to splitting and peeling.

Target Market: Target strategy is related to the selection of potential customers, who are preferred by the company to sell products and services. As per target strategy, it is necessary for the Argan Oil Company to select appropriate customers from the segmented markets to determine and deliver the needs and requirements of a particular segment. Apart from this, on the basis of demographic segmentation, the company can target low and middle income customers for the new brand. On the other hand, it can be suggested that, Argan Oil Company can target the customer in Gulf Region such as Saudi Arabia (Ekström & Brembeck, 2004).

Saudi Arabia Market Size, RSP, US$M, 2009

Saudi Arabia



Beauty & personal care



Colour cosmetics






Hair care



Skin care



UAE market size, RSP, US$M, 2009




Beauty & personal care



Colour cosmetics






Hair care



Skin care



Premium cosmetics – modelled



PESTLE Analysis: Generally, PESTEL analysis can be defined as the analysis of political, economical, social, technological, legal and environmental factors those related to the business. In addition to this, it should also be noted down that, there are external forces that affect the productivity, efficiency, and profitability of the company in the market directly or indirectly. At the same time, it is also observed that, these factors may also influence the strategic decisions as well as business strategies of Argan Oil Company in Saudi Arabia’s cosmetic industry.  On the other hand, it is also found that, there are also known uncontrollable forces that have a significant impact on the business of the organization. For instance, the changing structure of taxes system, trade barriers, different laws and governmental policy that directly or indirectly affects overall functioning of the Argan Oil in the Saudi Arabian market. In concern of external environment analysis of Argan Oil Company, PESTEL analysis is used below to analyze the impact of different factors such as political, economic, social, technological, and legal and environment on the organizational effectiveness in a market (Aaker, Kumar & Day, 2008). Below is the PESTLE analysis for Argan Oil Company in the context of Saudi Arabian market:

Generally, political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Moreover, it is analyzed that, taxation policies, employment laws and business regulation are the forces that may create the issues or challenges for Argan Oil Company in the Saudi Arabia.  But, Saudi Arabia has a stable political condition, so, there is no major threat or issue for Argan Oil Company in the Saudi Arabia (Wymer & Marshment, 2006). On the other hand, the corporate tax system of Saudi Arabia is also more attractive with low corporate and personal income taxes. Moreover, the current labor administration is also efficient and effective in the Saudi Arabia. In the same way, the political stability in Saudi Arabia is quite high that plays a significant role in developing supportive and consistent policies and rules for cosmetic industry. This supportive political environment can help Argan Oil Company to maintain flow in operations due to fair competition and relaxed tax policies and trade tariffs. Hence, it can be said that, tax changes, new laws, trade barriers, demographic change and changes in government policy are the other political factors that may affect the success of the Argan Oil Company in the Saudi Arabia cosmetic sector (Käyrä and Suomikallio, 2012).

PESTLE Analysis

 Economic factors include economic growth, interest rates, exchange rates and the inflation rate. Changes in exchange rates of Saudi Arabia can create economic risks for Argan Oil Company in the Saudi Arabia. Moreover, it should also be noted down that, the economic decline in the Saudi Arabia market can also generate challenges for of Argan Oil Company. On the other hand, it is also analyzed that, the Saudi Arabia has an open economy and it managed its fiscal and monetary policies with low inflation and government finances. For example, strong economic growth of the Saudi Arabia is also higher as compare to other nations of the world. It means there is low degree of economics risks in the country.

Along with this, it has low to moderate interest rates that is a sign of a healthy economy where personal disposable income is increasing. So, current economic condition is favourable for Argan Oil Company. Moreover, recent economic downturn at global level has diminished the performance of several global companies. Ineffectiveness of their operations has greatly reduced their liquidity and wealth leading to significant deduction in their financial performance (Graham & Whiteside, 2007). However, GDP of Saudi Arabia is improving and it is expected that growth rate would increase in coming time. It can increase the purchasing power of customers that can increase the demand of products in cosmetic manufacturing industry (Schmitt, 2011).

Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Social and cultural factors of Saudi Arabia country may influence the business of Argan Oil Company in Saudi Arabia’s cosmetic industry. In addition to this, these factors can affect the needs, tastes, preferences, and attitudes of customers towards new products. Hence, it would be crucial for the cosmetic manufacturing industry to consider life style, social and cultural values in a particular market to meet the expectations of customers (Spurgeon, 2007). Various social and cultural aspects such as life style, life cycle, education level, income level, cultures, beliefs, etc. have a significant impact on the tastes and preferences of a person. Additionally, unequal distribution of income can also affect its business as generally it uses high prices for its products and services. Hence, Saudi Arabia’s cosmetic industry is characterized by the social trends that can affect the demand of Argan Oil Company‘s products as well as services (Moutinho & Chien, 2007).

 As we know that, technology is an important driver of globalization and competitive advantage. In addition to this, it is observed that, there are several competitors of Argan Oil Company in the cosmetic sector that has used advanced technologies. Changes in technology and innovation can also decline the need of customer needs regarding the cosmetic products in the market. Moreover, technological advancements and tools also have a significant impact on the cosmetic market. By using advanced technologies, cosmetic firms can increase the quality of products and services and help to produce innovative products for the global customers. But at the same time, in order to operate these technologies, there would be need of skilled and competent workforce that can increase the cost of business operations and reduce efficiency (Baggio & Cooper, 2008). Finally, it can be said that, the technological policy adopted by the government of Saudi Arabia can also affect the technology related decision taken by the company directly. Hence, by identifying these, the company can use different kinds of technology in order to bring innovation in the company (Korzenny & Korzenny, 2012).

After the current financial downturn, the government of Saudi Arabia has implemented strict rules and regulations in various industries to regulate and control business activities and operations of both public and private companies. Legislative environment is quite strict and included significant rules and regulation for controlling business activities in Saudi Arabia. Legislative environment of Saudi Arabia is also effective to control competitive practices that promotes fair environment for businesses in cosmetic manufacturing industry. Hence, legal factors can affect organization’s cost directly. It is because these factors are directly or indirectly related with the legal environment in which the company operates (Kirby & Marsden, 2006).

Changes in global climate, increase temperature of earth, decline in forest and impacts of natural beauty decline tourism activity in Saudi Arabia can influence the sales, productivity and marketability of Argan Oil Company in the cosmetic industry. Nowadays, environmental impacts of a business are assessed by different stakeholders such as customers, government, local community and suppliers (Spurgeon, 2007).. Business operations of cosmetic have more impact on the environment as it is crucial for cosmetic industry to reduce the negative impact on the environment and consider different environmental concerns including waste disposal, energy consumption, etc. to ensure sustainability of the business. So, it is analyzed that, the alteration in temperature can also affect the company’s financial as well as marketing decision of Agran Oil Company. The main causes behind these are global warming. So, the company must focus on the environmental awareness (Gospe, 2008).

The beauty care products industry has huge impact in the economy. Yet, in the current time, there are a few issues or issue with the corrective business and Argan may confront a few difficulties in the business. For case, bookkeeping to the past improvements, the beatufiers business has never been dependably in such a case. The business is no more retreat verification and is presently headed for despondencies and declinations. Really, the deals in the previous year are moderate moving due to brought down customer spending. Buyers that time then have a tendency to settle for the less costly lines. Additionally, less net revenue, decentralization authoritative structure and reliant on outsider are the real issue with the Argan Oil organizations in the nonessential business that may influence the aggregate achievement of the association (Karunaratne, 2007). On the other hand, it should also be noted down that, global economic crisis, economic downfall, marketing and promotional failure, changes in the market demand etc are the major factors that affect the company and its success in the market directly or indirectly.

In avoiding a potential head-on rivalry, a system of concentrating on unique corners ended up being viable particularly in the battle with the business pioneers. This has been an awesome line of assault received by littler organizations in their challenge with the business sector pioneers. They survive and exist through represent considerable authority in corners, separating the product offerings, and concentrating on business fragment. A potential colossal business has been spotted on men as they record for 50% of grown-up populace that devour one-fifth of nonessential deals (Slawsky & Zafar, 2005).. The disappointment of the business sector pioneers in such open door gives indication to littler organizations regarding what might be the best possible and better way to deal with the business sector. Moreover, the senior resident populace is a huge developing business sector section which ought to be given concentrate as the populace's requirements were not being met (Pomarède, 2011).

Generally, competitor analysis is used as an assessment tool in order to analyze the strengths and weaknesses of current and potential competitors in an effective and proper manner.  Moreover, it is also adopted by Argan Oil companies as a corporate strategy to achieve the competitive advantages. Argan Oil companies have several competitors that affect its markets and its customers in the market. Moreover, in this segment, there are many famous brands available in the global market so the company must be focused on their marketing strategies to attract the customers and improve its position in the high competitive market. In addition, the company should provide the unique, new, quality and high range of products to create its position in the competitive market (Bennett, 2005).  

Despite the clear development of the nonessential business amid the previous four decades, there are presently more than 700 developing corrective organizations contending in the business. Furthermore, there are additionally advertising pioneers that rule the corrective business. Subsequently, it makes firm and heightening rivalry particularly to those littler organizations as business sector pioneers are putting weight on these littler nonessential organizations (Baron, Conway & Warnaby, 2010)


On the basis of above discussion, it can be concluded that, in the cosmetic industry, Argan Oil is one of the famous and most widely used product that helped the companies in improving the overall performance and efficiency in the market. At the same time, it can also be concluded that, in the context of Saudi Arabia, Argan Oil companies should adopt and focus on different significant, innovative and dynamic marketing, business and operational strategies in order to enhance the performance and achieve competitive advantages effectively.


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Baron, S., Conway, T. & Warnaby, G. (2010) Relationship Marketing: A Consumer Experience Approach. USA: SAGE Publications Ltd.

Bennett, B. (2005) The Business Plan. USA:

Blythe, J. (2009) Key Concepts in Marketing. USA: SAGE.

Daymon, C. & Holloway, I. (2010) Qualitative Research Methods in Public Relations and Marketing Communications (2nd ed.). NY: Routledge.

De Raeve, A., Cools, J., De Smedt, M., & Bossaer, H. (2012) Mass Customization, Business Model for the Future of Fashion Industry. In 3rd Global Fashion International Conference (pp. 1-17).

Doole, I. & Lowe, R. (2008) International Marketing Strategy: Analysis, Development and Implementation. USA: Cengage Learning EMEA.

Ekström, K.M. & Brembeck, H. (2004) Elusive Consumption. NY: Berg.

Gospe, M. (2008) Marketing Campaign Development: What Marketing Executives Need to Know about Architecting Global Integrated Marketing Campaigns. USA: Happy About.

Graham & Whiteside, (2007) Major Companies of Asia and Australasia, Volume 4. SAUDI ARABIA : Graham & Whiteside.

Karunaratne, I. M. (2007) 50 is company.USA: Ilica Malkanthi Karunaratne.

Kirby, J. & Marsden, P. (2006) Connected Marketing. SAUDI ARABIA : Elsevier.

Korzenny, F. & Korzenny, B.A. (2012) Hispanic Marketing. NY: Routledge.

Moutinho, L. & Chien, C.S. (2007). Problems in Marketing: Applying Key Concepts and Techniques. USA: SAGE.

Pomarède, V. (2011) The Louvre: All the Paintings. SAUDI ARABIA : Black Dog & Leventhal.

Schmitt, B. (2011) Experience Marketing: Concepts, Frameworks and Consumer Insights. USA: Now Publishers Inc.

Scott, N., Baggio, R. & Cooper, C. (2008) Network Analysis and Tourism: From Theory to Practice. SAUDI ARABIA : Channel View Publications.

Slawsky, J.H. & Zafar, S. (2005) Developing and Managing a Successful Payment Cards Business. USA: Gower Publishing, Ltd.

Spurgeon, C. (2007) Advertising and New Media. NY: Routledge.

Wymer, W.W. & Marshment, J.L. (2006) Current Issues in Political Marketing. NY: Routledge.

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