SWOT Analysis of FMCG Market in UAE for Britannia

Running head: BUSINESS POLICY AND STRATEGY
BUSINESS POLICY AND STRATEGY
Name of the Student
Name of the University
Author note

2BUSINESS POLICY AND STRATEGY
FMCG or fast moving consumer goods are the products that have a high shelf turnover at
a relatively lower cost. This type of products does not require much time, thought and a huge
monetary investment for purchase. FMCG includes products like health beverages, snack food,
dairy products, branded flour, oral care, skin care, perfumes, household cleaners etc (Srivastava,
2013).
SWOT is the acronym for strength, weakness, opportunity and threats (Dyson, 2004). It
will help to identify the key internal and external factor that affects the organization. In this
paper, the SWOT analysis will help to find the factors that affect the FMCG market of UAE.
Britannia wants to expand its business in the UAE and for that, they needs to understand
the market of FMCG products in UAE. SWOT analysis will help Britannia in understanding the
key internal and external factors that affects the working of the FMCG market in UAE.
Strengths:
 FMCG companies need a low operational cost to base its operation.
 The FMCG market in UAE will be suitable for Britannia as UAE have an established
distribution channel (Lakshmanasamy & Anil, 2015).
 The consumer market of UAE is developed and they prefer products of good quality and
this is a good sign for the FMCG market as the consumer are ready to spend any amount
in exchange of quality products.
Weaknesses:
 The legal procedures of export and import facility of UAE are strict and this affects the
organization.
 The FMCG products always have a risk of substitute or counterfeit products. In UAE or
outside UAE the FMCG products face a huge threat of substitute products.

3BUSINESS POLICY AND STRATEGY
Opportunities:
 The rising income levels of the customer are hinting towards increased customer
spending. This is a positive sign for the FMCG market of UAE as well as for Britannia.
 The market of UAE has a huge potential for exporting. This can be possible if the EXIM
policies of UAE made suitable for the market.
Threats:
 The increasing level of competition in the market of FMCG products will be a tougher
challenge for the FMCG companies.
2. For building a company, the entrepreneur or the leader should have some skill that will help in
the successful establishment of the organization. The skills that will help in preparing a company
are:
 Financial management: Managing the finances in the company is one of the important
factors that the leader or the entrepreneur needs to have. Forecasting the cash flow and
sales and to monitor the profit and loss will help the organization is avoiding any
potential risks.
 Marketing: Marketing the product is one of the important aspects of establishing a
company. A good marketing strategy helps in creating brand awareness and also help in
creating a customer base.
 Negotiation and communication: Communicating and negotiating with the suppliers,
customers, potential investors and the employees needs to be good, Good
communication helps in effective functioning of the organization.
3. The importance of setting short-term goals is: