Fruit Processing and Confectionery Market in Oman - Coursework Example

Fruit processing and confectionery market in Oman Contents Contents 2 Introduction 3 Discussion 3 PESTEL 3 Major competitors 4 Company expansion strategy 5 Potential Challenges 6 Product life cycle 7 Conclusion 8 References 9 Introduction Main goal of the report is to analyze the Fruit processing and confectionery market in Oman and to give an outline to Muscat Fruit Processing Ltd for managing competitions in the market and achieve expansion of their business. Here in this research all the data which are going to be used are secondary in nature. PESTEL analysis method and Ansoff matrix would be used for conducting the research. The report will be structured in a step by step fashion starting from the PESETAL analysis to life cycle. At the end of the report one brief conclusion would be drawn on the basis of the research. In the different step of the report different aspects would be discussed and analyzed. Discussion PESTEL Monarchy is the political system of Oman. It is a family monarchy. Freedom of speech in the country is limited. All the powers lie with the Monarch of the country. The country has no constitution. The country has appointed cabinet where representative are from different part of the country (Frederic, Agnes and John, 2011, pp. 134-137). Economy of Oman is very much over dependent on oil. Oil resources of the country are reducing and the country is trying to reduce its economical dependency on oil. The country’s economy is growing steadily (Reuvid, 2012, pp. 123-127). Socio-cultural root of the country is heavily related with Islamic religion. Arabic is the main language used by Omanis for communication and interaction. In terms urbanization and architecture the country is very contemporary (Hutt and Speh, 2012, pp. 56-65). Dominant cultural groups in Oman are Ibadi and Arab. Technological environment of Oman has improved a lot in last few years. Number of technology providers has increased. Techno logical infrastructure also increased a lot. Half of the people of the country can access the internet. The country is having a vast telephone network throughout the country (Jenster, Hayes and Smith, 2005, pp. 45-52). The environment of Oman is also having different aspects. The country is having a large coastal belt, Desert and mountains on the northern part of the country as well. The country is having valleys and Peninsula also. Weather of the country is extreme in nature (Navarro, P. 2006, pp. 201-205). The legal system of the country is mainly dependent on Muslim Sharia law. Some influence of British common law is also there. There are local civil courts in the country administered by local government. Supreme Court of Oman is the highest court of the country (McLoughlin and Aaker, 2010, pp. 78-85). Major competitors List of the major competitors in the Oman fruit processing industry and confectionary industry are discussed below. This industry is having fierce competitions (Frank, Geoffrey and Philip, 2013, pp. 90-98). Omzest is a major competitor in the fruit processing industry in Oman. Activities of the farm involve production of Fresh Milk, Laban, Yoghurt and Fresh Juices using modern technologies of production (Rebecca and Elizabeth, 2009, pp. 71-79). The Company has its own facilities of trucks with refrigerater which takes the fresh products each and every day reaches the shops and establishments in the different part of the country in the morning. Sales depots with cold stores facilities are there in the Capital for distributing fresh products to Muscat and in other areas. It is a very prominent player in Oman fruit processing and confectionary industry. Ali Shaihani Group of Industries is also a major competitor in the food and beverages industries in the Sultanate of Oman. It is also the market leaders in this segment across the Gulf region. The company is enjoying market leadership over last 20 years. The company is related with food confectionary and beverages. Al Mudhish is also major competitors in the Oman Market. Main success factor of Al Mudhish is the enterprising spirit backed up with continuous innovative concepts of the company. The company is having direct backing from the sultanate of Oman as the there was direct intervention from the Sultanate of Oman during the time of inception. The company is having wider range of products line. Company expansion strategy Market development strategy I would use for the expansion of the business. In this strategy the company would expand its business into different new market and initially products are going to be same. As the product of the Muscat Fruit Processing Ltd (MFP) is very well reputed in nature and having a demand in Muscat market the company can use that reputation and develop new market for expanding their new business. In this strategy risk is medium in nature. Here the company is having very well known products just they have to find the proper market. The company must research very well for finding new markets for expanding its business. The company must find new distribution channel for developing new market. With the help of this strategy the company can get a huge base of new customers. The market size of Muscat is limited and the market is pretty saturated in nature. If the company has to increase its market share it has to develop new markets in other areas of Oman or outside the country. This expansion strategy involves vey limited risk for the company. This much of risk Muscat Fruit Processing Ltd (MFP) can take for their expansion purpose. This strategy is suitable for the organization because it would open a window of big potential market for the company. The company can open new shops and establishments for the new market and satisfy the demand of customers in that market. As the products are reputed so the company would need less effort to promote its products in new market. Potential Challenges There are some potential challenges that company can face during the time of expansion. Those challenges are discussed below. Finding a new market can be a potential challenge for the company. It is very difficult for Muscat Fruit Processing Ltd (MFP) to find a proper market for its expansion. It is not very easy to get the idea about any particular market. One product which is very successful in Muscat market may not be very successful in other market. Identification of the proper market is a serious challenge for the company. Finding suitable suppliers in the new market is also a very serious challenge for Muscat Fruit Processing Ltd (MFP) in new market. In case Suppliers of the new market are not proper then it can affect the quality of the product directly which would be detrimental for the company. Distribution of products in the new market can also be a potential challenge for Muscat Fruit Processing Ltd (MFP). Uninterrupted distribution system is very important for earning revenue. Issues with distribution systems can break the flow of distribution. Market expansion strategy needs lots of investments for making new establishments in new markets. Investment and source of money can be a potential challenge for Muscat Fruit Processing Ltd (MFP). Competitions from the local players in the new market can be a potential problem for Muscat Fruit Processing Ltd (MFP). All the competitors would have ready market but the company has to start form the starch in that new market (Marshall, 2006, pp. 89-97). Product life cycle Fruit cake is a date food product. This section of the research would discuss different stages of product life cycle of the product. Introduction stage of the product life cycle for fruit cake is most expensive as the new product would be launched. The market size of the product is very small and limited. In this stage sales of the fruit cake is low. Cost of promotion and marketing is high at this stage (John, 2007, pp. 23-28). The growth stage of product life cycle witnesses great growth in terms of sales and profits. This stage of product life cycle the company experiences economy of scale in production. In this stage more money are invested for the promotional purpose to fully exploit the growth stage (Sameer and William, 2006, pp. 115-120). In this stage of product life cycle the company wants to maintain the market share and tries to build on that existing market share. This the most competitive stage of product life cycle for fruit cake. Product modification and improvements are done in this stage. Investment in marketing is less in this stage (Jörg, Serge and Engelbert, 2008, pp. 87-91) In decline stage market of the fruit cake would shrink. Market of fruit cake is saturated. This stage is inevitable. In this stage company may earn profit from different cost cutting measures in terms of production. This the last stage of the product life cycle of fruit cake (Antti and Anselmi, 2005, pp. 67-75). Conclusion The research is showing that Oman market is very competitive in nature. Muscat Fruit Processing Ltd (MFP) must come up with market expansion strategy to expand its business. It needs extensive research from the company to select right market for expansion. Business expansion needs lots of investments. Muscat Fruit Processing Ltd (MFP) must invest in money very intelligently for sustainable competitive advantage. References Antti, S. and Anselmi, I. 2005. Product Lifecycle Management. Geneva: Springer. Frank, G., Geoffrey J. D. H. and Philip, M. 2013. Handbook of Industry Studies and Economic Geography. London: Edward Elgar Publishing. Frederic, P. M., Agnes F. V. and John, M. 2011. Pest Analysis. London: VDM Publishing. Grieves, M. 2006. Product Lifecycle Mgmt. New Delhi: Tata McGraw-Hill Education. Hutt, M. D. and Speh, T. W. 2012. Business Marketing Management: B2b. New York: Cengage Learning. Jenster, P. V., Hayes, H. M. and Smith, D. E. 2005. Managing Business Marketing & Sales: An International Perspective. Copenhagen: Copenhagen Business School Press DK. John, S. 2007. Global Product: Strategy, Product Lifecycle Management and the Billion Customer Question. Geneva: Springer. Jörg, N., Serge, T. and Engelbert, W. 2008. Design of Sustainable Product Life Cycles. . Geneva: Springer. Marshall, C. 2006. World and Its Peoples. New York: Marshall Cavendish. McLoughlin, D. and Aaker, D. A. 2010. Strategic Market Management: Global Perspectives. Madrid: John Wiley & Sons. Navarro, P. 2006. The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage. New York: Pearson Prentice Hall. Rebecca, L. T. and Elizabeth, F. 2009. Culture and Customs of the Arab Gulf States. New York: ABC-CLIO. Reuvid, J. 2012. Managing Business Risk: A Practical Guide to Protecting Your Business. New York: Kogan Page Publishers. Sameer, K. and William A. K. 2006. Managing Product Life Cycle in a Supply Chain: Context: A Prescription Based on Empirical Research. Geneva: Springer. Stark, J. 2011. Product Lifecycle Management: 21st Century Paradigm for Product Realization. Geneva: Springer. Read More