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Alik Case Study

1023 Words5 Pages

Company’s background:
Albaik is one of the first Saudi fast food chains, specializes in fried chicken and has more than 40 branches in Jeddah where it is headquartered. It was founded in September 1974 by Shakour AbuGhazalah who saw there was a need for high quality inexpensive or affordable food, served fast and courteously, in a clean and inviting environment, he transformed an old warehouse he was renting, and opened the first fried chicken restaurant in Saudi Arabia which was located on Old Airport Road in Jeddah.
The restaurant is a well-known Saudi fast food restaurant which primarily sells shrimp and chicken with a list of herbs and spices in form of pieces, warps and sandwiches for acceptable price. It has branches in Makkah, Madinah, …show more content…

Since Albaik restaurant had a great success in Saudi Arabia for 40 years, it decided to go global or expand to one of the gulf countries, the reason behind why Albaik decided to expand to one of the gulf countries is to access to a much larger base of customers. So the company can enjoy improved profits and increased revenues from these new customers with new needs which could help in expand the kinds of meals. Another reason is to access new technologies and new talented employees, with the advanced and latest technology, such as new technologies in Dubai, Albaik will be able to offer a better service or product at a higher profit. Also it will be able to recruit employees who speak many languages and have unique skills enhance connections with a broader customer base. And improve the company’s reputation and become a trusted brand, it is not an easy feat to accomplish, when Albaik goes internationally or even to gulf countries, the customers and potential business partners will instantly think more highly of the company when they know it has an international …show more content…

Assessment of alternative market entry strategies:
1- Exporting: means goods produced in one country and shipped to another for future sale or trade.
Advantage: it is good in general because it helps in increasing sales and profits by expanding into new market. It is the best strategy when the manufacturing firm wants to improve its profit.
Disadvantage: extra high transport costs and tariffs are likely to be realized and since it requires transportation time, exporting is only for manufacturing firms so it is not a good choice or strategy for the restaurant that offers food.
2- Licensing: means to give permission for a specified time period, and in return, receives a royalty fee. For example, an authorization by Albaik to use the licensed material which is Albaik technique and food by the licensee (UAE company).
Advantage: faster access to the market. It is good for the firm that want to have a faster access to the market and brand

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