Masafi Water Company Case Study
INTRODUCTION
BACKGROUND
Masafi Water Company, established in 1976, is a locally based leading brand in the UAE. The home of this water lies in the mountainous region named Masafi found in Ras Al Khaimah, which is one of the sevens Emirates in the UAE.
The bottled water market in the UAE is currently ablaze with a remarkable 30% growth in bottled water consumption. Water consumption in UAE is expected to rise from 514.5 million litres to 768.1 million litres by 2015.
Both domestic and international bottled water manufacturers have been positioning their brands to benefit from this high consumption and establishing market leadership is a challenging task.
Many factors contribute to the UAE’s high level of bottled water consumption. Some of them …show more content…
So the company’s management plays a very important role. The promoters of Masafi Water Company and its top management are highly respected in the industry. Their dealings with their stake holders are fair. The company is committed to socially responsible and ethical practices. The product quality is maintained in spite of highly competitive pricing. The company maintains good relationships with all their stake holders. They enjoy a large segment of the market on the strength of the quality in all their products. The company has set up recycling units to recycle its bottles. The company consistently uses polyethylene terephthalate (PET) bottles unlike many other water brands. Their positioning has focussed on being Healthy and …show more content…
• The food and beverage and hospitality business is currently in boom and will remain so for the next decade as per industry trends and will help the company sustained growth.
• The company can use existing technology and resources in the diversified business to a large extent and this also reduces market stress for the company.
• It will help the company reduce the risk of investments as different products and markets while being diverse can also support each other. FMCG sector is a growing business and Masafi can use its existing potable water customers as a ready market for the products that the company will add on to its product line.
Disadvantages of Diversification • The company is a leader in the UAE market as it stands today but global players like Coke and Pepsi are tough competitors. New markets can also pose challenges with competition from established local players.
Inference from Studying the Advantages and Disadvantages of
BACKGROUND
Masafi Water Company, established in 1976, is a locally based leading brand in the UAE. The home of this water lies in the mountainous region named Masafi found in Ras Al Khaimah, which is one of the sevens Emirates in the UAE.
The bottled water market in the UAE is currently ablaze with a remarkable 30% growth in bottled water consumption. Water consumption in UAE is expected to rise from 514.5 million litres to 768.1 million litres by 2015.
Both domestic and international bottled water manufacturers have been positioning their brands to benefit from this high consumption and establishing market leadership is a challenging task.
Many factors contribute to the UAE’s high level of bottled water consumption. Some of them …show more content…
So the company’s management plays a very important role. The promoters of Masafi Water Company and its top management are highly respected in the industry. Their dealings with their stake holders are fair. The company is committed to socially responsible and ethical practices. The product quality is maintained in spite of highly competitive pricing. The company maintains good relationships with all their stake holders. They enjoy a large segment of the market on the strength of the quality in all their products. The company has set up recycling units to recycle its bottles. The company consistently uses polyethylene terephthalate (PET) bottles unlike many other water brands. Their positioning has focussed on being Healthy and …show more content…
• The food and beverage and hospitality business is currently in boom and will remain so for the next decade as per industry trends and will help the company sustained growth.
• The company can use existing technology and resources in the diversified business to a large extent and this also reduces market stress for the company.
• It will help the company reduce the risk of investments as different products and markets while being diverse can also support each other. FMCG sector is a growing business and Masafi can use its existing potable water customers as a ready market for the products that the company will add on to its product line.
Disadvantages of Diversification • The company is a leader in the UAE market as it stands today but global players like Coke and Pepsi are tough competitors. New markets can also pose challenges with competition from established local players.
Inference from Studying the Advantages and Disadvantages of