Almarai Swot Analysis

Strengths:
1. A market leader in the GCC and the only fresh dairy products
available within the gulf region.
2. A market share of %60 in 2010.
3. Less wastage percentage compared to other competitors of %3
which means less wastage control=more efficiency.
4. Almarai has an effective quality system that is operated by:
a. An integrated supply chain.
b. Marketing and sales expertise.
c. Effective of chilled distribution network.
d. Advanced technologies in farms, processes, and engineering such
as Q-Pulse.
5. Mergers and acquisitions (AlYOUM, LOUSINE, 7-DAYS, ipnc)
Weaknesses:
1. Limited market share in the gulf region.
2. The company is dependent on a single brand name Almarai.
Therefore, in the case of any incident, the company cannot fall back
upon alternative brand to keep selling its products.
Opportunities:
a. In future, the union of the GCC currency will eliminate the cost of
currency exchange.
b. In future, the export and import duties will be reduced or eliminated
which affects the companys revenues positively.

c. The increasing population in the gulf country will affect the sales of
the company in the future.
d. Almarai has new introduced products which gives it an opportunity
to continue growing in revenues.
e. Increased awareness of the health from consumers increase the
consumption of laban, milk, and fruit juices.
f. Low interest rates increase investments in the companys business
lines.
Threats:
1. The subsidies of oil may affect the market of Almarai.
2. The government funding of Almarai may stop at anytime due to the
dependence on the unpredictable on its oil revenue.
3. Expansion of Almarai may affect it indirectly by the risks of the
operations, treasury risk including currency and borrowing risks,
procurement, insurance and litigation.
4. Fresh dairy products have a limited life of six days. Any disruption
of the distribution network could adversely affects the sales.
5. Water shortage in the future may force the company to import from
outside which will affect its profit margin.
6. Risk of coming international competitors.
7. Increased reliance on lower-margin sales to supermarkets.

Our Brands
At Almarai, we stand by our slogan Quality You Can Trust; four
words that exemplify our commitment to quality and ensure that the
satisfaction of our consumers is always achieved. We are especially
proud to own some of the regions best loved brands Almarai, Lusine,
Alyoum and 7Days; brands that have become a valuable part of our
consumers lives. Our consumers trust drives our efforts to continue
to innovate and expand. Almarai strives to provide consumers with a
wide selection of products that cater to their daily needs. Under
Almarai brand, Almarai Company offers a delicious and nutritious
collection of foods and beverages. From fresh and long life dairy
liquids, to a spectrum of fresh yoghurt and desserts, to a variety of
tasty and nutritious processed and natural cheeses and to a selection
of refreshing and healthy juices, each product carries Almarais
signature quality and delicious taste. Lusine and 7Days brands offer
the most delicious and nutritious bakery products from breads to
puffs, croissants and cakes to name a few. Alyoum is Almarai
Companys premium poultry brand that provides consumers with a
wide selection of whole chickens and portion packs.
A Remarkable Story of Quality-built Achievement
Almarai Company was established in 1977 by the Chairman, HH
Prince Sultan bin Mohammed bin Saud Al Kabeer who realized the
potential in transforming the traditional dairy farming in Saudi Arabia
in order to meet the needs of the local market. Today, Almarai is the
worlds largest vertically integrated dairy company and the leading
company in food manufacturing and distribution in the region. It
employs over 22,000 professionals and reaches over 48,000 outlets
across the region daily with an unmatched variety of quality food and
beverages. Throughout its history, Almarai went into different phases
of development, restructuring and reinvestment. In the early nineties
the company moved away from a decentralized manufacturing
structure to a centralized one by establishing the Central Processing
Plant replacing 5 decentralized plants. Expanding from its dairy
products offering, Almarai introduced its range of fresh juices in 1999.
In 2005, Almarai transformed from a privately owned company to a

publicly listed company. The market capitalization of Almarai at the

end of 2011 was SAR 23 billion. To fuel its growth, Almarais focus
was to expand horizontally and vertically by developing its existing
product range and adding more categories. In 2007 the company
entered the bakery business through the acquisition of Western
bakeries. In 2009, Almarai acquired Hail Agricultural Development
Company (HADCO) adding poultry to its portfolio. Today, Alyoum is
Almarais premium poultry brand. Pooling expertise with PepsiCo
formed the International Dairy and Juice Company (IDJ) in 2009
through a joint venture to enable geographic expansion beyond the
GCC. In 2010, Almarai signed a joint venture with Mead Johnson
Nutrition forming the International Paediatric Nutrition Company
(IPNC) which has represented the entry of Almarai into the world of
infant nutrition. Almarai keeps, with all the planned developments, its
commitment to producing only the best and holding true to its bedrock
principle Quality you can trust.