Question

In: Operations Management

Please talk about the Opportunies and Threats of Abdul-Latif Jameel company ?

Please talk about the
Opportunies and Threats of Abdul-Latif Jameel company ?

Solutions

Expert Solution

Opportunities:

  • As the world is moving towards renewable energy ALJ has a huge opportunity in terms of developing business in countries which are adopting renewable energy especially solar energy
  • In the developing world where ALJ Real Estate works there is a huge opportunity in terms of development of affordable middle income houses
  • There is also opportunity in Electronics & Appliances sector where ALJ works in Saudi Arabia and the MENAT region due to the growth of e-commerce and more retail channels opening up
  • Also since there is a lot of social reform going on in Saudi Arabia right now under the new crown prince Salman, like allowing women to drive etc. there can be a lot of potential for ALJ to tap in sectors that are opening up due to these reforms

Threats:

  • The opportunities which come with the opening up of the society and markets of Saudi Arabia also bring threats for ALJ Company in terms of other competitors entering the market and competing with ALJ for a share of market & consumers wallet

  • The automobile business which is the mainstay of the ALJ Company is not doing very well worldwide and also in the MENAT region. In the future also the forecast of growth of this sector is not very high

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