3. Critically Evaluate the Outside-in Approach to Strategy Formulation.
In this modern world, Information Technology forms the integral part of any kind of business. In the 21st century, countries across the globe have come to rely on complex computer networks that form the infrastructural backbone of even the most basic necessities of life, including electric power grids, global finance, food distribution, medical care, clean drinking water, petroleum production, and most types of communication. The protection of such networks, known as cyber security, is among the highest priorities in the civilized world, alongside planning and operations for major contingencies, including antiterrorism and land warfare. (Al-Saud, 2012:75).In Middle East region, the IT industry is dynamically growing along …show more content…
Bargaining Power of Suppliers
According to Liu because the companies in the online security industry are Research and Development oriented, their suppliers are mainly IC manufacturers, telecommunication service providers and other operational service providers. The suppliers’ bargaining power is low(2009:49).But the political situation in Middle East and the oil rich GCC nations are more concentrating on their internal security. After the Virus attack on Saudi Aramco and Qatar Ras Gas, the government and public entities are more budgeting on online security. This has forced this industry to concentrate more on Research and Development and outsource this service as well.
The conclusion of the Porter five competitive forces strategy is that the Cyber security industry is attractive in GCC region. The competition between rivals within this industry is high. Also recent security threats to highly secured networks proved that the industry has future in this region. The competition will increase between the rivals and threat of new entrants will be high because of the innovative technologies. The Threat of substitutes and bargaining power of suppliers would be relatively low. Since the key technologies behind the Cyber