Wednesday, February 08, 2006
Effect of Danish Boycott Patchy
Public anger in the Islamic world, in general, has been attributed to the disrespectful act of a Danish and Norwayan Magazine and newspaper cartoons. It was a mistake that they are now admitting, after the losses these two countries incurried and will continue to incuss if they did not take a serious action. The Islamic world count for a huge percentage of the global economy; which is one of the largest consuming market for European and westren products and services. Boycotting dilemma occurs in the Middle East and all of the Islamic countries and KSA is no exception.
The boycotting effect is indirectly killing and forcing companies, if not economies as a whole, to collapse and go down. The decrease in sales of Saudi diary companies is not only attributed to the association the public have between the diary products and Denmark, but als to the fact "the majority of the poplutaion is conservative." Therefore, boycotting will have a greater effect.
The Danish and Norwayan administrations are facing a challenging situation. Most of their products are being boycotted. They should not neglect the fact that boycotting has played an important role in the year 2001 and 2002, when the Arab world started boycotting USA and UK products due to the war of Iraq and Palestinian/Israili Situation, which caused losses in Billions of Dollars to both countries. They should not neglect the importance of the "Buyer Power" and its great effect on the purchasing in general. Buyers now are not welling to buy these products that have Danish and Norwayan origins, and if it continues to happen, greater losses will cause the economies to go under severe conditions and, at the end, will cause losses in jobs and increase in unemplyement rates in both countries.
Unless they provide a suffecient prove that this will not happen in the future or anytime under the cover of "freedom of expresseion" or "freedom of speech and media," Muslims will continue to cause these losses for both economies. But even though, it needs a very long time for Muslims to forget what has happen, which may last for a decade; some people claim.
Regarding Saudi Diary Corporations, they should now play a very important role in the society of teaching them the facts about the company and being more transparent. Also, they should place enough advertisements in the local newspapers to "save the face" and to show goodwill for the society.
Relationship dynamic which refers to "the nature of interaction between the producer and the consumer" is very direct in this case. They have responded to the requests of the customers, removed some Danish products, however, they need to do more than that.
Humaid Al-Shamsi
AUS-- MGT-- 406
Section 1 ID # 2987