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International Business and Entrepreneurship Development

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J. International Business and Entrepreneurship Development, Vol. 3, No. 1/2, 2006

Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective Salem M. Al-Ghamdi
Department of Management and Marketing, King Fahd University of Petroleum and Minerals, P.O. Box 667, Dhahran 31261, Saudi Arabia E-mail:

M. Sadiq Sohail*
Department of Management and Marketing, King Fahd University of Petroleum and Minerals, PO Box 210, Dhahran 31261, Saudi Arabia E-mail: E-mail: *Corresponding author
Abstract: This paper analyses the competitive advantages of Saudi Arabia in the global petrochemical industry. Porter’s model is used for this purpose. Saudi Arabia, a leading producer of oil, is also the largest worldwide producer of a number of petrochemical products. Competitiveness in the global market demands an examination of comparative advantages and is the reason why Saudi Arabia is yet to succeed in the global market. This paper is an attempt to analyse the industry and to provide strategic alternatives. Keywords: petrochemical; Porter; Saudi Arabia; strategy. Reference to this paper should be made as follows: Al-Ghamdi, S.M. and Sadiq Sohail, M. (2006) ‘Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective’, Journal for International Business and Entrepreneurship Development, Vol. 3, No. 1/2, pp.4–17. Biographical notes: Salem Al-Ghamdi graduated from Virginia Technology in 1994 with a PhD in Strategic Management. He is an Assistant Dean for Graduate Programs of the College of Industrial Management, King Fahd University of Petroleum and Minerals, Saudi Arabia and is an Associate Professor in the Department of...

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