Expansion
Al Maya Group:
Investing Dh40 million in an expansion involving the setting up of eight new supermarkets and at least two fashions retail stores in the next 12 months. This is an aspect of the core-strategy as it was explained by Hamel framework. Therefore they will enter new market in different areas to target new and existing customers in that industry.
Their plan of expansion will be locally and globally to compete with different types of segments. One of their global expansions will be in Poland by fashion retail stores and the first British Home Stores (BHS). They draw the expansion map and position their targeted places on that map. For example they understood the game of product market scope which was mentioned in Hamel framework. Therefore, they did not enter the hypermarket business which reflects the process of competing or not.
Considering porter framework, we can see that the hypermarket can be seen as a new entrant under the five forces, although they’re affecting Al Maya Group profits and market share, Al Maya Group still resisting entering such market since they are still making good profit and maintaining a good market share.
One of their considerations is the high increase of the gasoline prices 30% and it may dramatically increase later on. Therefore some people will shop less if they found out it would cost them a lot to reach that place. Moreover, these shoppers may suffer from parking problems as well. Thus, this concern could be non-market issue that will affect their business indirectly. As a result, from the expansion plan and the increase in oil prices, Al-Maya group will have a competitive advantage be being reachable to the customers everywhere. So they have a value over their competitors by being accessible that will satisfy the customers and give them a reason to visit their stores.
Investing Dh40 million in an expansion involving the setting up of eight new supermarkets and at least two fashions retail stores in the next 12 months. This is an aspect of the core-strategy as it was explained by Hamel framework. Therefore they will enter new market in different areas to target new and existing customers in that industry.
Their plan of expansion will be locally and globally to compete with different types of segments. One of their global expansions will be in Poland by fashion retail stores and the first British Home Stores (BHS). They draw the expansion map and position their targeted places on that map. For example they understood the game of product market scope which was mentioned in Hamel framework. Therefore, they did not enter the hypermarket business which reflects the process of competing or not.
Considering porter framework, we can see that the hypermarket can be seen as a new entrant under the five forces, although they’re affecting Al Maya Group profits and market share, Al Maya Group still resisting entering such market since they are still making good profit and maintaining a good market share.
One of their considerations is the high increase of the gasoline prices 30% and it may dramatically increase later on. Therefore some people will shop less if they found out it would cost them a lot to reach that place. Moreover, these shoppers may suffer from parking problems as well. Thus, this concern could be non-market issue that will affect their business indirectly. As a result, from the expansion plan and the increase in oil prices, Al-Maya group will have a competitive advantage be being reachable to the customers everywhere. So they have a value over their competitors by being accessible that will satisfy the customers and give them a reason to visit their stores.
posted by Hassan at 4:36 PM
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