CASE : SADAFCO
What are the strategies and business models of SADAFCO and the MNCs?
SADAFCO in accordance to other MNC:s managed to diversify their business in order to maintain and possibly also strengthen their position within their industry. SADAFCO went from initially being a milk producer to becoming a producer of other food products that had a similar production process as their milk production. They managed to successfully take advantage of synergy effects and scale economies and did so by reallocating production. The diversification strategy was a respond to a decline in the milk market. SASAFCO, already being an established actor on the food market did not want to loose momentum. On the contrary they wanted to become the number one supplier of food in within their segment in the Middle East. So they decided to diversify their business in order to sustain their previous position and also possibly experience a continuous growth. The new products such as tomato......
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Approximate Word Count: 791
Approximate Pages: 4 (260 words per double-spaced page) |