Fawaz Alhokair Group Essay Example | Topics and Well Written Essays - 1250 words

Fawaz Alhokair Group - Essay ExampleCurrently, it has 10,000 employees working in Saudi and abroad. Company has experienced of import increases in gross profit, a corresponding net profit increase, and in operating income for the fiscal distributor point ending March 2013, as shown in Table 1 be junior-grade Table 1. Income increases, Fiscal course of study 2013* Comparative increases in income Item 2012 2013 % increase Net profit SR447.38M SR619.69M 38% Gross profit SR789.98M SR1,130.37M 43% Operating Income SR439.28M SR583.93 32.9% *12 months period Company considers these increases be due to their business strategies of unexampled stores opening, introduction of new concepts and brands, international expansion and acquisition of the Nesk Trading Projects, LLC. Sales totaling SR1.899bn in 2009 increase by 2% revenue in KSA market increased by 34.6% in 2013, while international market revenue increased by 186% in 2013. For 2014, sales is expected to reach SR2,925bn. Management believes it is able to draw and keep satisfactory workforce because of its corporate culture, and these trained employees are experienced in adapting to swift fashion transformation of the retail market in the Kingdom. Out of its 10,000 employees, 33% are Saudis. The company represents famous international brand products and is acknowledge as a leader in fashion retail businesses in Saudi Arabia. ... any has move to supply the market with new and fresh products in its stores conveniently located on major technical centers and shopping centers. Furthermore, the grandiose product display excites the customers to the store and into the product. This marketing strategy has allowed the company to be on top of competition and to be abreast on fashion trends. The various brands it carries in its collection are aimed to target the middle bracket division of the population thus creating a large base of operation. It has a competitive favour of being able to offer lower terms pricing because of the economies of scale in bulk products purchase, lease rentals, combined attributes of manpower fibre, committed management and a fully integrated logistics model. The low cost approach and the ability to source competitively priced products enabled Alkohair to gain an edge over its competitors. The low cost policy is one of the reasons for the success of the company. The fashion retail segment of the company sets a competitive advantage seeing that it can choose prime locations and get better rental deals since the real estate segment of Alkohair is the largest shopping mall developers in KSA. Alkohair works with a demographic structure that allows them to offer higher quality and more fashionable products. However successful the company is, it is still confronted by problems related to the internal environment shown as 1. Constant changes in fashion. These are the sensitive characteristics of the fashion industry. Fashion has a short animation cycle since the design s that are popular in one season loses its attractiveness in the next season. This turns unwrap to be a problem because company has to be aware of the fashion trends all the time. 2. Poor functioning of brands. Not all