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Al Rawabi Dairy Company
Al Rawabi Dairy Company
Student ID:
Course:
Date:
Table of Contents
History of Company:...................................................................................................................................3
Where it is founded:....................................................................................................................................3
Vision, Mission, Goals and Objectives:.......................................................................................................3
1. Evaluating whether the firm has a competitive advantage, competitive parity, or competitive
disadvantage:..............................................................................................................................................4
Pestle Analysis:........................................................................................................................................4
2. Comparing the firm with its nearest competitor and measuring those factors against industry
averages nationally or internationally:........................................................................................................6
Farms, Dina:.............................................................................................................................................6
Faragalla Food Industry:..........................................................................................................................6
Collecting Milk:........................................................................................................................................6
Milk Processing and Packing:...................................................................................................................6
Quality Assurance:...................................................................................................................................7
3. Providing strategic alternatives to the focal firm to gain or sustain competitive advantage:..............7
Porter’s Five Forces Analysis:..................................................................................................................7
Recommendations:.....................................................................................................................................8
Conclusion:..................................................................................................................................................9
References.................................................................................................................................................10
Al Rawabi Dairy Company
History of Company:
Al Rawabi Dairy Company is a main diary and juice association in the UAE, offering an assorted
scope of items including milk, yogurt, juices, and other valuable things. The association started
its excursion in 1989 on the residence in the core of Dubai's desert in Al Khawaneej, as a feature
of the UAE's inheritance and one of the country's driving Dairy and Juice associations. The
organization started as a dairy farm with 600 imported cows and an objective of turning into a
market chief in new dairy and juice items. An honor winning UAE-based association, the
organization serves more than 1.5 million clients consistently, and the association will commend
its 30th commemoration in 2021 (Terenzi, 2014). As a significant dairy maker in the UAE, the
organization rushed to acquaint valuable dairy items with the market. It additionally means to
send off an innocuous to the environment biogas plant not long from now. Since the wellbeing of
the country is extremely critical to organization, it guarantees that the items are generally new
and loaded with health advantages.
Where it is founded:
Al Rawabi’s new items can be found in over 13,500 stores across the UAE, while its long-life
items are consistently transported further abroad to nations such as Iraq and Nigeria, with plans
in the works to acquire them to customers in other countries. More recently, the organisation has
become particularly well-known for its creation of various useful, health-related items, and Al
Rawabi remains the only player in the field to create such a wide range of these items. Al
Rawabi's commitment to development extends far beyond the items it manufactures, exemplified
by its use of innovation and robotization in the way it monitors the health of its cows and
operates its offices (Budiraharjo, 2021). Al Rawabi has seen genuinely predictable examples of
development in the most recent quite a while, and this has continued into the first half year of
2020, with deals up by around 20%.
Pestle Analysis:
Political factors:
The dairy industry is under pressure from the government to reduce the expenses associated with
cow homesteading, and one potential solution is to increase the number of camel ranches. The
problem is that what is happening has a negative influence on the surrounding environment and
producing neighboring cows can help to solve this problem. Regardless, the neighboring
government and banks are being called on to assist locally claimed groups.
Financial Factors:
The UAE is a country with strong monetary development, with a per capita wage of $34,000 and
a total GDP of $159 billion. Oil is the primary foundation of the economy, accounting for over
75 percent of total GDP. Farming commitments, including dairy products, account for only 3%
to 4% of absolute GDP. Climate and other regular variables make it difficult for the dairy
industry in the nation to develop (Ghosh, 2017). Running a dairy business in the UAE requires a
significant investment due to the extreme heat and scarcity of water.
Social Factors:
The Arab community strives to maintain its own customs, culture, and values in all aspects of its
presence, which has a significant influence on Al Rawabi. The following opinions have a
negative impact on the organisation:
Mechanical Factors:
Innovation has a significant role in the evolution of the cutting-edge UAE. Each of the country's
emirates, notably Dubai, has made considerable technological improvements. In the dairy
business, innovation is critical because it enables dairy producers to significantly increase
production limits without seriously compromising product quality. The employment of
crossbreeding innovation, advanced ways of milk obtaining, and refreshing inoculation tactics
has increased the usefulness of cows enormously.
Legal Factors:
The UAE's legal framework is very strong; it might be claimed that strong disciplines prevent
any legislation from being violated. To deal with the rise in the country's exchange and venture
rates, the government designated the UAE as a streamlined commerce zone with a high level of
security in place to prevent illegal competition among dairy sector operators (Steeneveld, 2014).
To protect local groups, the government also monitors the exchange and economic activities of
foreign financial donors.
Climate Variables:
Collecting Milk:
The collecting of milk from ranches is the very first stage of the value chain. This also
necessitates such supporting exercises as preparing the animals for the system, gathering a
diverse range of animals from providers, providing appropriate food to the animals,
administering the expected treatment and antibody, washing the animals, and maintaining the
ideal level of cleanliness in the ranch region. The proper consideration for every one of the
documented components, as well as the inventive gear in the residences, enable Al Rawabi to
perform drain assortment legitimately.
Quality Assurance:
The item's nature is Al Rawabi's primary competitive advantage in the market. This improved
quality assists the company in establishing and maintaining its position as a market leader in the
dairy industry. Al Rawabi maintains a high level of value at each stage of the creation
engagement.
Organizations in the dairy business rely heavily on suppliers of high-quality cows, steers food,
vaccines and prescriptions for steers, various farm gear, and bundling materials. In this business,
the supplier power is comparable to the maker power. It makes sense given that the bulk of UAE
organizations’ providers are global corporations (MC, 2017).
Numerous local and foreign companies compete in the market to provide high-quality dairy
products to customers and meet the high demand for them in the UAE. The dairy producers have
both corporate and individual customers, although retail organizations are the primary outlets for
their products. There are approximately 50,000 dairy merchants in the UAE's seven emirates, and
these retailers have strong bargaining power over the manufacturers and suppliers.
The raw components are imported from outside, therefore establishing another dairy factory
incurs enormous costs. Aside from the start-up expenses, there were a few other factors that
made this market difficult for new entrants. Client loyalty to a single business is particularly
strong, since clients would rather not jeopardize hygiene. Another obstacle to new entrants is the
intense competition among existing enterprises, which creates perilous conditions for new
organizations to enter the dairy industry.
Substitute Risks:
There are no real dairy alternatives since animal protein is exceptional and difficult to replicate.
While sodas and espressos may be substituted by organic food beverages, milk, Laban,
yoghurt, and spread have no replacements, making the dairy business unique among remaining
UAE companies in this regard (Zavorokhina, 2021). Dairy things are appealing all around the
world since they provide natural protein and other nutrients that no other item can easily replace.
In the Al-worth Rawabi's chain, there is a company that makes milk and other milk products
such as Laban and yoghurt. The group now has over 6,000 cows in its pastures. As a result, Al-
worth Rawabi's chain is divided into three distinct locations. Each area has a variety of exercises,
all of which are aimed at adding business value to the organization's creativity engagement.
Recommendations:
Following are the recommendations:
Al Rawabi should lower the item cost by implementing a clever strategy for ongoing and
appropriating portions.
Because dairy products are beneficial to children, it should support IMC's aim to educate
people on food respect in relation to its products.
It should encourage a group to prepare dairy ranchers and other representatives in the
area of extraordinarily beneficial kinds and animal care.
The organisation should implement high reproduction technology in the ranch to increase
creation cost viability.
Conclusion:
Al Rawabi Diaries was discovered to be one of the leading dairy businesses in the United Arab
Emirates for this circumstance analysis. This study has identified Al Rawabi Company's
significant challenges. These include the principles that combat additional speculation,
extravagant item costs, ecological limitations, a lack of preparation for dairy ranchers, the
possibility of animal illnesses, expensive working expenditures, a decrease in market
competition, and so on. Simultaneously, this research has provided particular suggestions to Al
Rawabi Company in order for it to go to appropriate lengths and overcome the important
challenges it confronts on the lookout (Grandinetti, 2015). This study has also highlighted the
organization's essential attributes, which include its assets, pressing, notoriety, market expansion,
administration, experience, and loyal clients. Al Rawabi's approaches are all centered on client
direction in order to achieve client dependability via high quality. As a result, in order to gain
more advantage from online transactions, Al Rawabi should encourage a wide range of full
lobbies for private companies.
References
Altwaijri, F. b. (2017). The reality of the implementation of strategic management among the
principals of the schools of the Education Bureau in Al Rawabi In Riyadh. Al Rawabi In
Riyadh.
Grandinetti, T. (2015). The Palestinian Middle Class in Rawabi. Alternatives: Global, Local,
Political, 63-78.
Terenzi, A. (2014). Urban & Spatial Development in Glocal Palestine: The Case of Rawabi.
Journal of Engineering and Architecture.