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Sadafco Case Analysis What Are The Strengths Essay

Sadafco Case Analysis What are the Strengths and Weaknesses of SADAFCO?

SADAFCO has several strategic strengths that have given the company a defensible market position in their core markets. In addition to their brand strength, their distributions agreements with Bagalla continued to be a highly effective barrier to entry. With 13,000 freezers installed in Bagella stores, SADAFCO has not only captured shelf space, they have also captured mindshare and supply chain planning and forecasting with this large retailer. Bagella generates 40% of all ice cream sold in the market and is considered the leading retailing that competing Multinational Corporations (MNC) must work with in order to gain shelf space and sales. SADAFCO has successfully thwarted their attempts to replace the coolers in stores, holding...

What makes these distribution agreements so effective is the streamlined supply chain that SADAFCO has created and continues to invest in heavily. The spoilage rate for all food products is high, yet for ice cream the need for accuracy, alacrity and effective supply chain planning is critical for SADAFCO to stay profitable over time. In addition to these operational and branding strengths, SADAFCO has succeeded in creating products that appeal across the age and income spectrums of its customer base.
The weaknesses include a high level of dependency on their local suppliers, lack of advertising funding and support compared to MNCs, and lack of multichannel sales that would reduce the high dependency on Bagella. Despite these weaknesses however…

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