abdos world

Wednesday, February 08, 2006

In the article "Effect of Danish Boycott Patchy" Roger Harrison & Maha Akeel focus on how the anger of muslims toward the Draws of the prophet Mohammed (Peace be upon him) was translated into the boycotting of the Danish products. Its clear here that diplomatic issues between countries are becoming a main concern to many global and nationwide corporations. These corporations were highly damaged as they lost millions and millions of dollars as a reason of the boycott.

In his Article “not on the structural analysis of industries” porter states that “as the factors creating buyer power change with time or as a result of a company’s strategic decisions, naturally the power of buyers rises or falls. In the article here Saudi Dairy and Foodstuff Companies (SADAFCO) was trying to lower buyers’ power by stating that “its products have nothing to do with Denmark anymore, not even its raw material” and that “company’s nationality is Saudi 100 percent and that all its shareholders, partners and individuals including the founding investors, are citizens of Saudi Arabia and the Gulf. The administration also assures that it does not import or sell any products from Denmark or Norway as all its products are produced in its factories in Jeddah and Dammam and the raw material used in its production lines are from local markets or Gulf or New Zealand” .This attempt by SADAFCO was important because its sales and stock price was continuing to drop; however they should have focused on the buyers that have the least power in order to influence the others as porters mentions in his article.

In addition with regard to “Strategic Resources” I think SADAFCO are using the Core competencies strategy because as Hamel mentions that we should ask our selves what do we know that is unique, valuable to customers and transferable to new opportunities? And that what SADAFCO used to give their customers information’s that could help them understand the nature of the company’s products.

Finally if we look into “customer Interface” as I see it SADAFCO has used Information and Insight to extract insights and give her customers correct information that they have mistakenly absorbed in the past.


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