Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Question
Chapter 10.6, Problem 1CC
Summary Introduction
Case summary:
Company IA has had tremendous success. But, it is facing significant challenges going forward. The powerful competitors of Company IA have taken note of their success. Besides the external issues, the firm is also facing significant internal challenges.
The advent of new leadership is pushing the firm into the online sales of their products. It failed to realize that the internet is a big disruptor for retail business. It is facing major limitations due to its complex ownership structure.
To explain: The internal challenges of Company IA.
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Salalah Company is an Omani company, operating in the food industry and sells its products to only government institutions.
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Bargaining Power of Buyers is low because food industry is a profitable industry
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Rivalry in the food industry is high
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Bargaining Power of Buyers is high, because government is the only customer.
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Threat of New Entrants because Salalah company operates for a long time
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