Case Study on Success Story of Just Falafel

Contents

Brief Background 1
External and Internal Analysis 2
Political 2
Economical 2
Social 3
Technological 3
Environmental and legal 3
SWOT 4
Strengths 4
Weaknesses 4
Opportunities 5
Threats 5
Different strategies that Just Falafel uses 5
Different problematic areas and their causes 6
Conclusion, Solutions, and Recommendations 7

Brief Background

The given case study talks about the success story of a popular fast food brand in the UAE. It is commonly known as Just Falafel. Ali Al Mazroui had a dream to open up a fast food chain in the UAE and to expand that chain globally in the international market. The Co-founder of the company, who is known by the name of Mohammad Bitar also contributed to the regional as well as global growth of Just Falafel. Just Falafel is a big fast food producing company in the UAE since 2007. It became amazingly popular amongst nationals as well as non nationals of the UAE due to brilliantly delicious food products, especially Falafel. Falafel is a chick-pea patty, which is served to their customers on a flat shaped bread piece. It contains useful and nutritional ingredients, such as Vitamin E, Iron, Magnesium, and Foliate. As a result of which, these things have made the food product and the company itself quite popular in the UAE. It is one of the highly growing fast food chains in the UAE. It is known to have represented the cultural heritage of the UAE through its food products, hospitality services, and good customer relations. Their main product was a new food product in the food industry of the UAE as a result of which, it was able to get their customers’ attention in an amazing manner as they seemed to have liked the taste of Falafel. The case study involves the brief historical background of Just Falafel, including their vision, mission, and their corporate as well as ethical values. It also gives closer insights to their different programs and events that they organize in order to encourage young bright talented people. Finally, it discusses the whole process of the global as well as regional growth of the UAE’s food industry. Along with this, it uses the Porter’s five forces model in order to analyze the food market of the UAE and to discuss different ways that Just Falafel used in order to expand their market globally as well as regionally. As a result of which, it ends with the detailed study of their global expansion related plans and different ways that they have undertaken in order to maintain the competitive advantage over other major competitors in the food industry of the UAE. This report will analyze their external as well as internal environment in order to come up with major issues that they might face in the near future. It will contain several useful recommendations on the basis of the analysis of their external and internal environment that they can undertake in order to eliminate different risks and problems. This will help them in continuing their global growth and in developing their company as an internationally acclaimed fast food chain.

External and Internal Analysis

Just Falafel has opened several restaurants in different regions of the UAE and in different parts of the GCC region. Other than this, it has gone through a rapid expansion over the last few years as it has expanded its market in Australia and UK.
Political

Its head quarter is in Abu Dhabi, the UAE. In the starting period of its existence, it was supported financially by several Arab investors and since then, it has managed to develop good relations with the investors as well as with the franchisee partners. It has different franchisees in the UAE and all those franchisees are controlled by their Franchisee owners. The government of Abu Dhabi has supported different food companies in the region and has helped them in expanding their market in foreign countries in the world as these food companies indirectly or directly represent the Arab’s rich culture of traditional food items of different flavours. It has collaborated with different foreign ingredients providing companies as a result of which, they manage to bring the desired level of quality of their food items. Collaboration with different foreign companies also helps them in expanding their market in foreign parts in a better manner.
Economical

Different regional as well as globally famous big brands have entered into the food market of the UAE, as a result of which, the competition between them has increased to an amazing extent. This resulted in increasing prices of food items as a result of which, they face a high risk of reflecting a bad impression on the lower middle class families of the UAE. The resulting bad economical conditions in the Abu Dhabi as far as local citizens are concerned result in degradation of their living standards. However, slowly and gradually people have started spending higher amount of money on food, health, and luxury goods as well as services. It has grown economically in different parts of the world and still plan to develop the food market by increasing the expansion rate.

Social

Different local citizens as well as local families of the UAE are not used to the growing level of urbanization as it has resulted in entry of foreign people in the UAE for job as well as business purposes. Many regional as well as international companies tend to recruit foreign employees in order to maintain the desired level of quality of their employees. This has resulted in lack of confidence among the local citizens of the UAE. Although the increasing urbanization has surely resulted in an amazing economic growth of Abu Dhabi as a result of which, lower middle class families have started spending considerable amounts of money in luxury goods as well as health and food related services. This surely helps Just Falafel in maintaining good relations with local citizens of the UAE as far as their business is concerned. It has surely improved the level of food industry in the UAE as it has acted as an alternative to food chains like Subway, McDonalds, and KFC.

Technological

It has collaborated with different foreign companies as well as foreign food industry related agents for ingredients as well as for achieving their goal of expanding their market in different regions of the world. As a result of which, they have continuously developed by introducing modern technologies to their business related operations, administrative services, marketing, and their production. This helps them in generating employment opportunities at an alarming rate as newer technologies increase the demand of more employees. It has expanded in different foreign countries like Australia and UK due to their achieved level of technological advancement.

Environmental and legal

They believe in maintaining a healthy and a safe environment for them as well as for their employees in order to provide healthy food items to their customers. They believe in making sure that their economic growth is sustainable in nature. They believe in taking ethical as well as non ethical considerations before conducting any type of activity. The legal aspect of the company is surely having a competitive edge over other competitors as it was strongly supported by the government of Abu Dhabi and high level Arab investors.

SWOT

Strengths

They have grown considerably well as far as their regional growth is concerned. They have managed to expand their market in countries like Lebanon, Jordan, UK, Saudi Arabia, and other different GCC countries. This has surely attracted a lot of foreign countries as well as foreign customers as well. Abu Dhabi’s major portion of the total population consists of non nationals those who have higher standards of living. This surely helps them in gaining popularity amongst them. They are funded by Arab investors and they have profited considerably well. This gives them a strong financial support, especially because their main base consists of several number of oil reserves. Their highly trained team of employees and the top level management team enhance their business growth in a considerable manner. They provide good quality food items and believe in maintain the desired level of quality. This gives their customers a unique experience and a satisfying experience. They have values, such as variety, uniqueness, cultural diversity, and customer satisfaction. This helps them in attaining the planned level of economic growth every year.
Weaknesses

Their major weakness is that their brand is quite unfamiliar amongst most people who live in Abu Dhabi and other different countries of the world. This is because the major portion of the Abu Dhabi’s population consists of non nationals. Many people in Abu Dhabi do not tend to try their food items due to their degraded level of thinking as far as their perceptions and principles towards fast food items are concerned. They need financial support from different governmental organizations of Abu Dhabi but they rely on their private investors. This might pose a high risk of over-reliance on local investors. Their supplies of their local spices and flavours might disturb the international financial trend. This might bring disturbance in their pricing strategies as they need to cope up with the global prices as well.

Opportunities

Their fast food chain has not gained much popularity in comparison to the other established old fast food brands or vegetable restaurants. They are quite new in the food industry as a result of which, they have an opportunity to bring the desired level of growth by understanding the local as well as global market in the food industry according to their customers’ choices and taste of flavours. Different fast food chains are considered to be unhealthy in nature as a result of which, they have an opportunity to change the already established conventions of the fast food market by bringing the desired level of quality and nutritional quotient of their food items. Their product and their fast food chain are unique therefore they do not face strong regional competition. Different non nationals of different ethnic backgrounds are open to try new things due to their open minded nature, which gives them an opportunity to gain their attention at an alarming rate.

Threats

The UAE provides tax free zones to different foreign business firms as a result of which, Just Falafel has a high risk of strong competition due to entry of foreign fast food chains, like Subway and McDonalds. Their competition might get intensified if they fail to maintain the desired level of quality and nutritional quotient of their food items and their business related services. Their economy might collapse in the time of recession. Lack of employment opportunities for local citizens has already instilled the feeling of anger and frustration in them. This might bring the sense of repulsion amongst local citizens as far as the habit of going to local fast food restaurants is concerned.

Different strategies that Just Falafel uses

They follow different strategies in order to enhance their over-all business growth, such as differentiation and cost leadership. They aim to maintain the desired level of quality and health quotient of their food products and business related services as a result of which, they believe in differentiating themselves and their products from other fast food chains and their products. They are continuously trying to initiate innovating marketing strategies by coming up with catchy slogans, different innovative food items, and different technological advancements. This will help them in maintaining their uniqueness as far as their traditional food chain and their food products are concerned. They promise to give the healthiest and the best quality food products to their customers and in order to do that, they implement an innovative marketing strategy of allowing their customers to customize their items in their menu. This helps them in giving higher numbers of choices and options to their customers. They also believe in attracting customers of different cultures and different ethnic backgrounds as result of which, they continuously modify their food items by bringing new flavoured spices and new food items. Their good quality services also help them in attaining the desired level of sustainable growth. However, they believe in offering these food items at affordable prices in order to maintain their cost leadership. This is because of the fact that the industry of fast food restaurants already faces a major problem of lack of focus on lower middle class families as they offer their food items at relatively higher prices. They also believe in maintaining good relations with their customers by giving them good quality food services. They believe in modifying their functioning according to the feedback they receive from their customers as a result of which, they make sure that they satisfy their customers. They believe in relying on major values, such as health quotient, quality, and customer satisfaction in order to achieve the desired level of sustainable development. They believe in maintaining an effective interaction with their customers through their responsiveness and through their professional services.

Different problematic areas and their causes

There are different areas where they might face major problems as well as issues if they do not work according to their above listed weaknesses and their major threats. The level of competition has already increased due to entry of international food chains in the UAE market as a result of which, it has become hard for regional food companies to cope up with the increasing competition. Moreover, these international competitors are fully equipped with the modern technology, however, local fast food chains are not exposed to these modern technologies the way they are exposed to them. The major problem is that they have come up with a product that is already globally famous due to companies like Subway, KFC, and McDonalds in America, UK, and other metropolitan countries. Now, the population of Abu Dhabi and the UAE is majorly occupied by the non national those who have come there for job and business related purposes. Therefore, it becomes hard for Just Falafel to attract these foreign residents as they are already exposed to such products. Most food chain companies have started operating the department of non-vegetarian dishes as well. Increasing level of urbanization and industrialization have made sure that now people are exposed to better health care services and better food items. Therefore, Just Falafel’s would take a lot of time to convert itself into an international fast food brand until and unless they come up with something unique in their marketing strategies, food items, flavours, spices, and different production operations as well as administrative operations that form the basis of their over-all growth.
They need to generate employment opportunities for local citizens as well as many companies claim that they are doing it but they do not because they want to attain the desired level of quality of their employees. However, lack of employment opportunities for local citizens might instil the feeling of anger and hatred against local fast food chains. Their brand is quite unfamiliar however their market is quite familiar due to already established companies like Subway and McDonalds. They are having a major problem of lack of proper investment as they are heavily reliant on local Arab investors. This might lead to a major problem of lack of financial support if they do not collaborate with foreign business companies and investors for enhancing their over-all growth. Moreover, since their products are a bit traditional in nature as their flavours and food items are highly influenced by the Arab culture as well. Therefore, this might lead to a major problem in such a way that their flavours might get altered and affected due to conventional international trends as far as the aspect of finance is concerned.
Conclusion, Solutions, and Recommendations

Just Falafel is a highly growing fast food chain in Abu Dhabi, the UAE. It has managed to step in the market of UAE with a strong basic foundation due to local Arab investors as well as due to their high popularity amongst local citizens of the UAE. The higher level of industrialization, economic diversification, and urbanization has already started existing in Abu Dhabi as the government of Abu Dhabi is trying to diversify the economy by encouraging and supporting the growth of different industrial sectors other than the oil industry. The food industry is surely one of them as over the last few years, it has seen emergence of several local fast food chains as well as entry of already established fast food chains in the UAE due to the increasing level of urbanization. It is one of the most popular outlets in Abu Dhabi as well as in the UAE, but in order to achieve the desired level of global economic as well as business growth it has to come up with global collaborations as well as modifications in different types of operations according to the conventional global trends. They have introduced different traditional as well as western flavours in the food market of the UAE as a result of which, it has surely attracted a lot of local as well as foreign customers. This is helping them in expanding in different regions of the country by collaborating with different franchisee owners in countries like Lebanon, Jordan, and UK. However, it can be concluded on the basis of the SWOT as well as the PESTEL analysis of Just Falafel that Just Falafel does contain a lot of unseen loop holes in their over-all functioning. The economy of the UAE is facing a bad time of recession as a result of which, Just Falafel has already got the sense of dilemma as far as their measures and actions are concerned in order to deal with the time of recession.
Just Falafel should try their best to collaborate with different foreign ingredient providing as well as foreign business investing firms in order to get a strong financial support. They should try to include the government of Abu Dhabi through their development, awareness, and workshop programs. This will give them a strong backing support of the government and collaborations with foreign entities will make things easier for them to expand their market in different parts of the country as well as in different countries in the world. Over the last few years, they have already become successful as far as their regional growth is concerned. However, they should try to adopt different modern technologies and modern as well as innovative strategies in order to enhance their over-all growth. This can be done by being aware of the modern technologies that impact the growth of those international food chains. These technologies should be implemented in different departments of their business, such as customer services, customer care, HR department, production department, marketing department, and operations department. This will help them in working the way internationally acclaimed food chains do. In order to achieve the desired level of growth, they have to make sure that they maintain an effective interaction with their customers by providing them easily available customer care services, different innovative flavours, different food items, and different multi flavoured cuisines. They should market their business as well as their products by using different innovative media forms, such as online platforms including social networking websites, such as Facebook, Twitter, YouTube, and Instagram. They should hire professionals in order to remain active on such social networking websites. Customers should form an affectionate bond with Just Falafel. This can be achieved only if they adopt modern media forms for advertising their products.

Skills

Posted on

March 7, 2018

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