In 2011-2012 Aljazeera food company decide to enter the fast growing (20-30%) sn
ID: 1131095 • Letter: I
Question
In 2011-2012 Aljazeera food company decide to enter the fast growing (20-30%) snack segment. It had only one national competitor- WestGulfCompany. After a year it’s a wafer snack brand-Amego, reached 20% market share across the country. The wafer snack is estimate to be 50 million dollars, the company could take the advantage of its existing distributing network and also source potatoes from farm easily. Before Aljazeera could enter the market across functional team made a customer survey trough a market research group of 10 mean cities of the country to know about the snake of eating habits of people. The results show that the customers within the age 14-24 were the pest target group. Advertising in this category was very big. Aljazeera Company spent nearly 7 million dollars on advertisement and used all possible media – print and electronic and also creation its own website.
1- what are the strengths for Aljazeera company?
2- How would you explain Aljazeera’s success story?
3- if you were an executive of - West Gulf Company, how would you analysis the competitive challenge made by Aljazeera company? You may use porter five forces to analyze these challenges?
In 2011-2012 Aljazeera food company decide to enter the fast growing (20-30%) snack segment. It had only one national competitor- WestGulfCompany. After a year it’s a wafer snack brand-Amego, reached 20% market share across the country. The wafer snack is estimate to be 50 million dollars, the company could take the advantage of its existing distributing network and also source potatoes from farm easily. Before Aljazeera could enter the market across functional team made a customer survey trough a market research group of 10 mean cities of the country to know about the snake of eating habits of people. The results show that the customers within the age 14-24 were the pest target group. Advertising in this category was very big. Aljazeera Company spent nearly 7 million dollars on advertisement and used all possible media – print and electronic and also creation its own website.
1- what are the strengths for Aljazeera company?
2- How would you explain Aljazeera’s success story?
3- if you were an executive of - West Gulf Company, how would you analysis the competitive challenge made by Aljazeera company? You may use porter five forces to analyze these challenges?
In 2011-2012 Aljazeera food company decide to enter the fast growing (20-30%) snack segment. It had only one national competitor- WestGulfCompany. After a year it’s a wafer snack brand-Amego, reached 20% market share across the country. The wafer snack is estimate to be 50 million dollars, the company could take the advantage of its existing distributing network and also source potatoes from farm easily. Before Aljazeera could enter the market across functional team made a customer survey trough a market research group of 10 mean cities of the country to know about the snake of eating habits of people. The results show that the customers within the age 14-24 were the pest target group. Advertising in this category was very big. Aljazeera Company spent nearly 7 million dollars on advertisement and used all possible media – print and electronic and also creation its own website.
1- what are the strengths for Aljazeera company?
2- How would you explain Aljazeera’s success story?
3- if you were an executive of - West Gulf Company, how would you analysis the competitive challenge made by Aljazeera company? You may use porter five forces to analyze these challenges?
Explanation / Answer
1). The company made full preparation before coming to the market it knew about its strength its weakness its competitiors and their ability to how much they could stand before it or the vice vers.
The Aljazeera performed a full survey of the major cities and tried to evaluate whether it was good to launch the product in the market or it was not, fortunately it found out that tjere were significant amount of customers into the market who were ready to purchase the product through the survey it performed.
Aljazeera used all means of possible media for the purpose of advertisements so that people should come to know about its product. It additionally created its own website so that people could easily reach it.
These were some strenghts and good steps taken by Aljazeera.
2). As Aljazeera was well aware of the fact the there is only one leading snack manufacturing comapny across the globe which could stand infront of it thus this seemed to be a positive side to the Aljazeera as there was not something to be worrying about the tough market competition by a number of producers but one.
it was very much convinient for the company to take advantage of the distributive network and the source(potato farm) and thus this too was not the matter of concern fot the company.
since the company has performed a survey in the market for the similar product and found that new generation was attracted to the product like that and fortunately a large mass of people fall in the described age group(i.e 14yr-24yr) thus it has found a good mass of customer who can easily purchase its product.
Fortunately the market was not much handfull of snack producers infact there was only one leading producer of the similar product and the customers were constrained to the available options and were bounded to go and purchase the product of that kind and since the market share of the product was good that showed the positive feed-back of customers towards the product thus Aljazeera didnt even fear for the substitute of the product much.
Aljazeera knew that there were not much competition in the market and thus tried to foothold itself into the maket there could have been small producers of the similar product but that was not a matter of concern for the company as the only large compaanies were going to affect and distract its customers in significant number. Thus it had a very less chance that someone else could come into the market to compete it.
Thus going through all these tests and overcoming all the hurdles Aljazeera managed to foothold its product into the maket and captured the market significantly in a very less time these were very good move of the company which lead it to succeed.
3). If i were the executive of WEST GULF few tasks performed by me would be:
i). Competitive rivalry:
i woud look at the number and strength of my competitor and how does the quality of their products and services compare with mine.
ii). Supplier power:
i would enquire about the source of the raw materials from where the Aljazeera purchased and how many potential suppliers does it have, i would see how unique is the product or service that it provides.
iii). Buyer power:
When we deal with only a few savvy customers, they have more power, but our power increases if ywe have many customers. Thus i will see how strong is Aljazeera in terms of customers.
iv). Substitution:
i would see how many possible substitue of snacks could be given to customers and what sort of snacks is the Aljazeera providing.
v). New Entry:
I would see if there could be any possibility of new competitor into the market which could affect the Aljazeera significantly or how could i lure the customers by cuting down the rates by some possible means of my product.
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