Al-Futtaim Company

Al-Futtaim Company

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Introduction

Al-Futtaim Company is a retail conglomerate, with its basis in Dubai. The group was founded are realized its quick expansion having a combined commercial and industrial organization. The Company has various operations departments, including electronics, real estate, insurance, and industries (Sammut‐Bonnici & Galea, 2015). The Gross Domestic Product of the United Arabs is contributed by almost twelve percent of both wholesale and retail operations. Thus, when there is a failure or an improvement in the economy of United Arabs, assessment can be done via wholesale and retail activities. This discussion will focus on the SWOT analysis of Al-Futtaim Company, application of the B.C.G. matrix to the organization, application of Ansoff matric, and the expansion strategy.

SWOT analysis

When performing the SWOT analysis of an organization, there are various elements considered. These aspects of SWOT analysis are strengths, weaknesses, threats, and opportunities.

Checklist for Evaluating Strengths/Weaknesses Analysis

The above table has explained the S.W.O.T. analysis of the Al-Futtaim Company. The major strength reveals aspects that define the Company’s ability to run effectively (Yan, Xia & Bao, 2015). The minor and major weaknesses cover the weaknesses part of the S.W.O.T. analysis. Other parts like the threat and opportunities are covered by sections like major weaknesses and neutral, respectively. The neutral sector is regarded as an opportunity because it can work on that stance to make it better and run on major strength columns. Thus, the neutral part is a potential strength or weakness depending on how the organization would approach the matter, accordingly. Most organizations evaluate their operations based on the results from S.W.O.T. analysis. Companies have the urge to perform to their best. Thus, when weaknesses exceed strength, a more strategic plan should be established.

B.C.G. Matrix

Both market share and growth rate data are collected by organizations on their units and products to establish a B.C.G. matrix. Four boxes include the market share and growth rate, divided into smaller units. There are both high and low market share and high and low growth rates. The top-left part represents the high market share and stands for stars (Whitehead, 2015). The right square on the top represents question marks, while the bottom left represents cash cows. Finally, dogs represent the bottom right part of the square. The four parts would be explained in detail regarding Al-Futtaim Company.

Stars: Al-Futtaim Company falls in the start category due to its market share. The organization has a market share as its major strength, accordingly. Though not a monopolistic organization, the art of attracting its customers to buy its goods and services is unique, thus having an increased number of loyal customers (Whitehead, 2015). Thus, the revenue realized by the organization is huge enough to run it accordingly. Hence, the organization can be categorized in the star square.

Cash cows. From the S.W.O.T. analysis table, some aspects show the weaknesses of the organization. For example, the effectiveness of the employees is lower, making it a weakness. Thus, Al-Futtaim Company cannot be in a cash cow category because it generates enough money (Whitehead, 2015). Cash cows in the market produce more money than they have, for satisfaction. The organization can work on its neutral stances to increase its production levels.

Dogs: The growth rate of Al-Futtaim Company is high; thus, its market share is robust. Hence, Al-Futtaim Company cannot be categorized under the dogs square. Despite the organization’s weaknesses, it has made efforts to ensure that its operations run effectively (Whitehead, 2015). The effectiveness of the operations is realized through the amount of revenue realized. Al-Futtaim Company has more revenues than its input, thus rating it as an underdog is tarnishing its name.

Question marks: The elevated growth potential with reduced market share make the organization potential and ready to grow. Al-Futtaim Company has neutral points that can be used as high growth potential parts (Whitehead, 2015). These points, when worked on, can convert into profitable aspects. Thus, as the square’s name “question marks,” there are gaps that need to be filled. The lower market share must be elevated to realize the organization in the best position in the market.

Ansoff Matrix

The product and market growth matrix are discussed under the Ansoff matrix. The Ansoff matrix helps an organization realize its growth in products and markets. The age of either the product or the market determines the product and market growth, respectively. The Ansoff matrix can also describe Al-Futtaim Company (Ramphul, 2015). The S.W.O.T. analysis table has a full description of how the products and the market perform. For example, one of its strengths is from the market share. Thus, it means the organization works well with both new and existing products in realizing the final results. The four alternative marketing plans that Ansoff matrix has are market penetration, product development, market diversification, and market development.

Market penetration

Market penetration explains the use of existing products. The products can be advanced too. Al-Futtaim Company has the best market penetration. The organization realizes its market penetration through the promotion strategy it has accordingly (Ramphul, 2015). Advertising is the best promotion method that Al-Futtaim Company uses to get through its market to beat its competitors.

Product development

Product development includes new products. Challenge is thrown to Al-Futtaim Company to face its competitors is assessing the new products. Assessment of the organization’s new products must be from scratch to ensure it builds its connection with loyal customers (Ramphul, 2015). Customers must be informed of the new product and why it must prevail in the market. Developing the product takes time, and this is a challenge to Al-Futtaim Company since the cooperation amongst its employees is not compatible.

Market development

In market development, organizations venture into new geographical regions and focus on making their basis for running their businesses. Al-Futtaim Company is good at developing its market since it has good promotion strategies (Ramphul, 2015). Though, one of its weaknesses, developing the market by Al-Futtaim organization has a forward projection. Unity prevails when it comes to trying to assess the best channel in developing the market, accordingly.

Diversification

Diversification entails the inclusion of various aspects that help in the development of the organization. In diversification, all applicable elements that can bring positive changes to the organization are considered (Ramphul, 2015). Al-Futtaim Company has various departments, mostly dealing in one-line production, forming its diversification, accordingly. New products are sold by Al-Futtaim in new markets, explaining the threshold of diversification. Market development is realized if diversification is positive. Also, diversification will fail if the required properties are not considered.

Growth Expansion strategy suggestions

Al-Futtaim Company is at the edge of growth when it manipulates its neutral stances into useful ones accordingly. Various growth expansion strategies might be part of my suggestions for the organization. Some of these strategies include dropbox, Harry’s, slack zigzag approach, and in-person outreach (Gurianova & Mechtcheriakova, 2015). All these strategies aim at enabling the organization to realize a newer market. The products must be of a higher quality for growth to be realized. Also, the organization’s services should be diversified to include the most aspect of the market. These elements are further explained.

Dropbox comes with various merits for the organization as an option of expansion. The first option is someone trying the product. Through dropbox, the customers would have access to the new and existing products and give feedback. The organization would use the feedback to expand its operations. The valuable incentive is also offered to have the product shared with others, accordingly (Gurianova & Mechtcheriakova, 2015). Other aspects that come with dropbox are there is a share of the network. The shared network helps in selling the product, thus realizing new and loyal customers. In Harry’s strategy, milestone referrals are executed. Referrals of the product from Al-Futtaim Company, under Harry’s expansion method, help realize high-quality products. The organization gets referred to customers who are used to better products. Also, due to the positive image sold by the organization, they are given a second chance to work on the quality of their products.

Slack includes word-of-moth. The online platform has included organizations in managing their communication. Al-Futtaim Company would be at its better position when it deals with slack measures to expand its services accordingly. The zigzag strategy enables an organization to stand out in the market place. Al-Futtaim Company would improve under the zigzag design. The organization should use various online platforms to realize its potential customers. The current world has a lot of people over the internet. Using the internet to sell products would be the easiest method of achieving the organization (Gurianova & Mechtcheriakova, 2015). In-person outreach is the last extension method my sentiments would propose for Al-Futtaim Company. Tinder is one of the online platforms that offer in-person services. Al-Futtaim Company can get its target group from the online platform because it would be facing. Thus, the organization of transportation of goods and services from the organization to the target group becomes convenient and precise. The organization must focus in winning in all environments.

References

Gurianova, E., & Mechtcheriakova, S. (2015). Design of organizational structures of management according to strategy of development of the enterprises. Procedia Economics and Finance, 24, 395-401.

Ramphul, M. N. (2015). Using the Ansoff Matrix to develop strategies for tertiary education in Mauritius. University of Technology, Mauritius.

Sammut‐Bonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of Management, 1-8.

Whitehead, J. (2015). BCG (Growth Share) Matrix. Wiley Encyclopedia of Management, 1-2.

Yan, J., Xia, F., & Bao, H. X. (2015). Strategic planning framework for land consolidation in China: A top-level design based on SWOT analysis. Habitat International, 48, 46-54.