Almarai Company is a dairy and food processing Saudi multinational company. Prince Sultan Bin Muhammad, Paddy McGuckian, and Alastair McGuckian founded the company in 1977. Today, we’ll discuss the SWOT analysis of Almarai Company; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Almarai Company
- Infant formula
- Poultry items
- Bakeries
- Juices
- Yogurt
- Dairy products Cheese, butter, Milk
Subsidiaries of Almarai Company
- Seama
- Almira
- Evolac
- Nuralac
- Ice Leaf
- One Bean
- Almarai Refresh
- Farm’s Select
- Alyoum
- L’usine
- 7 Days
Statistical facts and figures of Almarai Company
- Annual revenue – 5.22 billion USD (2023)
- Net income – 547.07 million USD (2023)
- Asset net worth – 9.65 billion USD (2023)
Competitors of Almarai Company
- Wafrah
- Unikai Foods PJSC
- Saudia Dairy and Food Stuff
- National Agricultural Development
- Shakes KSA
- SADAFCO
- General Trading
- ANI
- Teo Soon Seng
- Paretto
The SWOT analysis of Almarai Company would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Almarai Company SWOT analysis as a business strategy analysis example company as follows;
Strengths of Almarai Company
Some of the main internal strengths in the Almarai Company SWOT analysis example company as business strategy analysis are as follows;
Large Portfolio
Almarai Company has established a very large product and service portfolio comprising a wide range of food, dairy, and bakery items. The product variety helps the company to target various segments of the customer market and increase its sales and market share.
Vertical Integration
The key advantage to Almarai Company is that it manages and controls the vertical operations ranging from farming, production, supply chain, and distribution. It allows the company to ensure the smooth availability of products and goods for the customers without any disruptions.
Recognized Brand
Almarai Company has been operating its business in the food processing industry for the past 50 years. The company has a long history of serving customers in the Gulf countries market and the brand has earned the trust and confidence of customers.
Market Leadership
Almarai Company has earned a market leadership position in the Middle Eastern and Gulf countries Market with its robust supply chain and distribution network.
Sustainable
Almarai Company has made a strong commitment to environmental sustainability initiatives. It comprises responsible product sourcing, reducing the environmental impact, recycling, and employing renewable sources of energy.
Weaknesses of Almarai Company
Some of the main internal weaknesses in the Almarai Company SWOT analysis example company as business strategy analysis are as follows;
Over-Reliance on Gulf Market
Almarai Company heavily relies on the Gulf and Middle Eastern customer markets as its major sources of revenue and profit stream. In case of a market downturn, high reliance on one market would negatively impact the company’s revenue and profitability.
High Operational Cost
In order to keep up with the quality standards, sustainability initiatives, and regulatory requirements; it increases the company’s operational cost to a great extent. High operational expenses limit its profitability and overall net income. The company can’t increase the retail price to a certain limit, because the customer would switch to other brands.
Limited Portfolio Diversity
Almarai Company also heavily relies on food and bakery items as its major sources of sales and revenue stream. If customer market trends shift toward some other products, then it would greatly impact the company’s revenue and profitability.
Opportunities for Almarai Company
Some of the main available opportunities in the Almarai Company SWOT analysis example company as business strategy analysis are as follows;
Market Expansion
Almarai Company should expand its business and retail distribution operations into the Asian and European customer markets. They hold a great growth potential and it would help the company to increase its revenue and profitability by entering into the new geographical regions and markets.
Tech Development & E-commerce
Almarai Company should invest resources in the technological development of its operations and improving its e-commerce platform. It allows the company to directly approach the end consumers and increase its sales. The technological development would help the company to achieve operational efficiency and decrease costs.
Strategic Alliance & Partnership
Almarai Company should develop strategic alliances and partnerships with other food processing companies in the Gulf, Asian, and European markets. It allows the company to increase its market share by entering new regions and countries.
Portfolio Expansion
Almarai Company should increase its product and service portfolio by launching new value-added service products. It allows the company to target new segments of the customer market and offer its products there.
Threats to Almarai Company
Some of the main potential threats in the Almarai Company SWOT analysis example company as business strategy analysis are as follows;
Competition
The food and bakery processing market has become highly competitive over the years. It poses a great challenge to the Almarai Company to maintain its market share and brand positioning in the highly competitive market.
Disruption in Supply Chain
Various socio-political factors disrupt the supply chain operations of Almarai Company. Ultimately, it causes delays in the retail operations and distribution of final products.
Regulations
Governments and countries have set up strict regulations for food companies to ensure the health and safety of individual customers. Complying with legal standards and regulations increases the operational cost, and decreases the company’s revenue and net income.
Conclusion: Almarai Company SWOT Analysis Example Company |SWOT Analysis of Almarai Company |Business Strategy Analysis
After an in-depth study of the SWOT analysis of Almarai Company; we have realized that Almarai Company is a leading food processing company in the Middle East. If you are learning about Almarai Company SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; and external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
