Description
Saudi Electronic University
College of Administrative and Financial Sciences
E-Commerce Department
Student Name (Group 10):
• Alaa Obaid Abdullah
• Badriah Almakhles
• Asma Alshamrani
• Hussah Altubji
• Abrar Alhadal
Student ID:
• 180082978
• 180143948
• 160205933
• 170166040
• 180077301
Course Title: E-Business Strategies &
Business Models
Course Code: ECOM421
Academic Year/ Semester:
2021-22/Second Semester
Instructor Name:
CRN: 23610
Student Grade:
Grade Level: 8
Saudi Electronic University
College of Administrative and Financial Sciences
ECOM421 – E-Business Strategies & Business Models
Almarai Project Assignment
Contents
Company profile:…………………………………………………………………………………………………………………………. 4
Mission: ………………………………………………………………………………………………………………………………….. 4
Vision:…………………………………………………………………………………………………………………………………….. 4
Organization Structure……………………………………………………………………………………………………………… 4
Business Canvas Model of the company ………………………………………………………………………………………… 4
Partners ………………………………………………………………………………………………………………………………….. 4
Key Activities …………………………………………………………………………………………………………………………… 5
Key Resources …………………………………………………………………………………………………………………………. 5
Key Proposition ……………………………………………………………………………………………………………………….. 5
Customer Relationship ……………………………………………………………………………………………………………… 6
Channels …………………………………………………………………………………………………………………………………. 6
Customer Segment ………………………………………………………………………………………………………………….. 6
Cost structure………………………………………………………………………………………………………………………….. 6
Revenue Streams …………………………………………………………………………………………………………………….. 7
SWOT analysis for Almarai company ……………………………………………………………………………………………… 7
Strength …………………………………………………………………………………………………………………………………. 7
Weakness ……………………………………………………………………………………………………………………………….. 7
Opportunity…………………………………………………………………………………………………………………………….. 8
Threats …………………………………………………………………………………………………………………………………… 8
Core competencies of Almarai: ……………………………………………………………………………………………………… 8
Communication:………………………………………………………………………………………………………………………. 8
Resources management and sustainability: ………………………………………………………………………………… 8
Teamwork and collaboration: ……………………………………………………………………………………………………. 8
Strong asset base and financial powers:……………………………………………………………………………………… 9
Quality products and services: …………………………………………………………………………………………………… 9
Advanced technology level put in place by the company to assist in the production: ………………………. 9
Strategic planning: …………………………………………………………………………………………………………………… 9
Types of Business Model…………………………………………………………………………………………………………….. 10
B2B: ……………………………………………………………………………………………………………………………………… 10
Challenges faced by the company during COVID-19 ………………………………………………………………………. 10
References: ………………………………………………………………………………………………………………………………. 11
Company profile:
Almarai is a Saudi company founded in 1977 that has a leading position in the Middle East.
Almarai is a manufacturer and distributor providing high-quality beverages and notorious food. It
provides dairy products such as fresh milk, Laban, cream Yoghurt as well as different kinds of
juices. Also, Almarai has launched bakery products in 2007 and poultry products in 2009. In
addition, in 2010 the firm enters the infant market by forming a joint venture with Johnson. After
that, in 2014 Almarai introduces its products Nuralac and Nuralac + and took complete control of
the market (“Overview”, 2022).
Mission:
To provide its consumers with high-quality drinks and healthy food daily.
Vision:
To grow the organization’s front-ranking as a trusted option for its drinks and food to get
satisfying consumers daily (“Mission, Vision, Values”, 2022).
Organization Structure
Business Canvas Model of the company
Partners
(Who are the key partners and suppliers to make my business work? What exactly am I requiring
from a partner? What activities do they perform and when?)
•
Supply chain network.
•
Suppliers
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•
Joint ventures
•
Buyers
•
Brokers
Key Activities
(what is the most important thing the company must do for the business model to work?)
•
Production
•
Farming
•
Animal farming
•
Training
Key Resources
(Most important assets to make the business model work?)
•
Finance
•
Animal farm
•
Manpower
•
Huge land space
•
Machines/factory
•
Human Talents/specialists.
•
Supply chain network.
•
Suppliers
Key Proposition
(who is your customer? what are you offering that can solve a problem or provide a need for them?)
My products are tailored for everyone to use regardless of age, gender, or social class. And it is
not just a need it is life essential. I offer;
•
Almarai:
o All milk-based products.
o Made in Saudi farms and factories.
•
L’usine:
o Bread and other baked goods.
5|Page
•
7 days:
o Croissant, cupcake, and other east to grab and go baked goods.
•
Alyoum:
o Organic fresh chicken.
o Produced in Saudi local farms.
Customer Relationship
(How to get customers? how to keep them? how to grow them?)
•
Distributing my products across channels properly.
•
Make sure to provide the best quality available
•
Work on my marketing campaign
•
Create a relationship based on clear communication
Channels
(how will you get to your segment or clients?)
•
Supermarkets
•
Markets
•
Shops
•
Restaurants
•
Coffee shops
•
Hotels
•
Almarai App
Customer Segment
(who are my clients? Archetypes & persona) >> Everybody
•
Males aged 6-80+ who live in the MENA region need to eat or feed their loved ones.
•
Females aged 6-80+ who live in the MENA region need to eat or feed their loved ones.
•
Middle eastern and Muslims who live in foreign countries and looking for Halal options.
Cost structure
(What are is the cost to operate the business model?)
•
What are the most important costs?
6|Page
o Farming, the farm. Machines, human capital, animal capital
•
What are the most expensive resources?
o Animal capital, machines, human capital.
•
What key activity is the most expensive?
o Farming.
•
Variable cost?
•
Fixed cost?
Revenue Streams
(What value are the customer paying for?)
Strategy is very clear for this Revenue Model. Since we have many products, a defined market
segment, and multiple sales points or channels of distribution. And since we provide basic living
essentials with exquisite quality, Direct Sales is our best option.
SWOT analysis for Almarai company
Strength
1. The company is ranked as one of the largest innovative companies.
2. Diversity of offered products
3. Almarai Company is distinguished in the dairy industry and its derivatives and dairy
production.
4. Providing high-quality products that have won many international and local awards,
including the international ISO certificate for quality assurance.
5. The company owns the largest freight fleet in the Middle East.
6. Diversity of offered products.
7. Distinctive and powerful brands
8. Possession of qualified and experienced labor
9. Achieving the concept of sustainability
10. Owning a technical institute for dairy and food DFP
Weakness
1. High cost of tools and equipment
2. Lack of local raw materials such as feed, and heavy dependence on imports.
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Opportunity
1. Increasing demand for milk and its derivatives
2. The possibility of global expansion
Threats
1. Crises facing the region such as COVID-19
2. High production costs
3. New competitors in the market
Core competencies of Almarai:
Communication:
This plays an integral role within the organization since it helps to ensure there is effective
management and coordination among the organizational employees, customers, and/or the
management. This competence has greatly impacted the growth and the development of the
Almarai Company through the creation of a wide market range presence whereby the company
has greatly diversified not only in Saudi Arabia but also it has international presence through
effective communication and coordination process.
Resources management and sustainability:
These are the various strategies and approaches put in place by the Almarai Company to guide
the proper utilization of the available resources to ensure sustainability within the organization.
Therefore, this is one of the greatest core competence that Almarai company has been taking into
proper consideration which has seen greater performance and success (Chiu, Chu & Kuo, 2019).
This thus enhances the company’s sustainability as well as effective use and management of the
company’s available resources.
Teamwork and collaboration:
Teamwork refers to ways in which individual employees combine their efforts to attain the set
organizational objectives while collaboration is whereby employees work collaboratively on a
particular company project. This helps to save on time resources as well as resources wastage since
it provides employees with chances to inquire from others in areas they are not well conversant
with when carrying out the various assigned tasks. Teamwork and collaboration have therefore
been one of Almarai company core competence which has greatly contributed to the strong and
large market presence of the company in the competent market share.
8|Page
Strong asset base and financial powers:
This puts the company in a good position to diversify through different investments. A
company with a strong financial base is in a greater position of coming up with innovations as well
as helping improve performance through employees training. This also helps the company to be
able to cope with the technological advancements which keep o changing now and then (AL
Zubaidi & Nobanee, 2020). This, therefore, has been seen to be also another core competence that
Almarai company has over their competitors which has given the company a chance to remain
competitive in the current competitive market.
Quality products and services:
The high-quality products that are offered by Almarai company have made it remain very
competitive with a very large market presence globally. This is because the company is always in
the position to fulfill the customers’ needs at a high-quality standard service level. Which has since
put the company name at the top of the Saudi Arabian country as well as in the international
market.
Advanced technology level put in place by the company to assist in the production:
Technology keeps on changing and it requires a frequent update as time passes by. Therefore,
Almarai company’s core competence in the current market is technological advancement. This has
greatly contributed to speeding up the production process within the organization. Therefore, this
has greatly contributed to greater customer satisfaction as well as reduction of production errors.
Thus, technological advancement has positively impacted the performance and proper
optimization of resources within the company.
Strategic planning:
There are various strategies put in place by the Almarai company to ensure it remains
competitive and the most preferred company by the customer. Some of the strategic plans put in
place by the company include; – ensuring that the customers are handled in a friendlier way which
has since created customer loyalty, and/or roper market price leadership which always encourages
customers to purchase from the company (Antoniades, Clerides & Xu, 2018).
9|Page
Types of Business Model
B2B:
Business to business organizations provide goods or/and services to other firms to grow, operate
and gain earnings. Almarai is a business to a business company that sells directly its products to
other businesses. For example, Almarai supplies Panda retail company and Aljazeera hypermarket
with beverages and poultry products which they sell directly to individual customers.
Challenges faced by the company during COVID-19
This discussion aims at listing the key challenges that Almarai faced during the COVID19 pandemic as well as discussing its impact on the company. Some of the main challenges include
reduction in clients due to restrictions of travel by the multiple states, increased levies of huge
taxes on those foreigners working in UAE and rise, distribution channels, and rise and fall of
demand for every company (Osland, 2021). All these challenges were linked to the occurrence of
the pandemic that leads to difficulty in accessing clients as well as raw materials. This happened
due to border restrictions of many countries meaning that those weak companies had to close.
Through this, the company had to start normalization of the impact of COVID-19 which resulted
in minimal sales in 2020 in the GCC countries (Osland, 2021). It went ahead and made sure that it
continued exercising cost control on its whole supply chain for it to be able to deliver clients value.
It also developed several scenarios that were to manage the COVID-19 impact resulting in rolling
out plans for the next quarter to make sure that they have a good supply of quality products to its
clients at the same time maintaining good and healthy returns for its shareholders (Osland, 2021).
Through doing so, the company reported a 2% growth performance in Jordan, Egypt, and in all
exports markets across all the products.
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References:
Overview. (2022). Retrieve 16 February 2022, from
http://www.almarai.com/en/corporate/investors/overview/
Mission, Vision, & Values. (2022). Retrieve 16 February 2022, from
http://www.almarai.com/en/corporate/almarai/mission-vision-values/
AL Zubaidi, A., & Nobanee, H. (2020). Performance Analysis of Almarai. Haitham,
Performance Analysis of Almarai (August 16, 2020).
Antoniades, A., Clerides, S., & Xu, M. (2018). Micro-responses to shocks: Pricing, promotion,
and entry. Promotion, and Entry (October 2018).
Chiu, M. C., Chu, C. Y., & Kuo, T. C. (2019). Product service system transition method:
building firm’s core competence of enterprise. International Journal of Production
Research, 57(20), 6452-6472.
Kawshala, H. (2017). Theorizing the concept of core competencies: An integrative model
beyond identification. International Journal of Scientific and Research
Publications, 7(2), 253.
Osland, A. (2021). Saudi Arabia: Almarai and Vision 2030.
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