Information System Strategy Management and Analysis of Baladna Company

This report provides a comprehensive analysis of Baladna Company, a major Qatari dairy producer, focusing on its information system (IS) strategy. The analysis utilizes several strategic tools, including SWOT analysis and Porter's Five Forces, to assess the company's strengths, weaknesses, oppor...Read More

RUNNING HEAD: INFORMATION SYSTEM STRATEGY MANAGEMENT
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Information System Strategy Management

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Table of Contents
Introduction......................................................................................................................................2
Tools and Models............................................................................................................................2
SWOT Analysis and Porter 5 Forces...............................................................................................4
Conclusion and Recommendations..................................................................................................7
References........................................................................................................................................9

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Introduction
Baladna is a Qatari company that produces dairy products and raises livestock. It is Qatar’s
largest locally owned dairy and food producer, supplying over 95% of the country’s fresh dairy
products. Baladna was founded by Ramez Al-Khayyat and Moutaz Al-Khayyat. In 2019, the
company launched an initial public offering and raised $392 million (Baladna,2020). The
manufacturing unit of Baladna spreads over an area of 2.4 million sqm with a capacity of 24,000
cows. The farms are designed to protect the cows from climate changes. Sufficient space and
technology advancement and infrastructure provide animal sufficient space and protection.
Further, farms also characterized an onsite factory for processing milk and packaging milk and
for the production of dairy products including cheese and some types of sweets (Baladna,2020).
The report is based on the analysis of Qatari company and the organization that has been selected
is “Baladna Company”. In the below sections, Baladna environmental analysis is done using
SWOT analysis and Porter five forces. This report aims to identify information system issues and
understanding the famous model of strategies such as Balanced Scorecards, Porter value chain,
Porter five forces, and SWOT analysis.
Tools and Models
1. Balance Scorecard: A balanced scorecard is a strategic tool used to improve and
identify various internal business functions and their outcome. This tool is used
to provide feedback and measure performance in the organization. The balanced
scorecard involves measuring four main perspectives of business that are learning
and growth, customers, finances and business processes. This tool is used to
attain measurements, objectives, goals, and initiatives that result in all these four
perspectives. This tool aims to identify factors that hinder business performance.
Most businesses use the balanced scorecard model to apply strategy mapping to
know where value is added (Rothaermel,2016).
2. Porter Value Chain: This model focuses on systems, and how inputs
transformed into outputs. According to Porter a chain of activities that are used
by all businesses described and further classified as primary activities and

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secondary activities. Here, primary activities include inbound logistics,
operations, outbound logistics, and marketing and sales and services. Support
activities include procurement, human resource management, infrastructure and
technological advancement (Rothaermel,2016). Hence, all these activities add
value and result in the final output.
3. Porter Five Forces: This is an important tool for knowing the competitiveness of
business and for identifying strategies that are potential profitability. This helps to
understand the forces in the industry that directly impact business operations. The
five forces that make up the environment in which business runs are competitive
rivalry, bargaining power of supplier, bargaining power of buyers, the threat of
substitution, and the threat of new entry (Rothaermel,2016).
4. SWOT Analysis: SWOT analysis is a tool that helps to assess the four main
aspects of any business that are strengths, weaknesses, opportunities, and threats.
This model helps to identify challenges that an organization is going to face and
to identify opportunities that help to gain competitive advantage by utilizing the
strengths of the business. With this analysis, better strategies can be made that
distinguish a business from its competitors and prove to be beneficial to compete
in the market in the long run (Rothaermel,2016).
SWOT Analysis and Porter 5 Forces
Porter Five forces
This is a holistic strategy framework that helps to analyze the present scenario and level of
competition in the industry (Magretta, 2011). Porter Five forces analysis is done for Baldadna
Company so that the company can build a competitive advantage in the dairy farm retail
segment. Further, with that, the company can explore profitable opportunities in the market.
Bargaining Power of Buyers: Buyers are demanding in this segment as they have specific
needs and demand when they buy dairy products. Companies operating in this segment take care
of buyers due to that they cannot set higher prices for their products. In this industry, the
customer base is powerful and smaller, this leads to higher bargaining power in the hand of
buyers and increase their ability to seek offers and discounts (Lambert, and Hashim, 2017).

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Source: (Magretta, 2011)
Bargaining Power of Suppliers: The bargaining power of suppliers in this industry is moderate
as companies in this industry procure raw materials from different suppliers and don’t depend on
one supplier. Due to that suppliers are not in a dominant position. However, the negotiating
power in the hand of suppliers is less. This help companies to earn higher profits as a power in
the hand of companies is more and they can switch to other suppliers as per their convenience
whenever required (Gengler, and Al-Khelaifi, 2019). Hence, the bargaining power of suppliers is
moderate.
Threats of Substitute: When any new service or products can meet the similar needs of
customers differently than this directly impact on industry profits. The threat of substitutes is
high in the dairy industry as most of the companies in this industry have the same products
(Wright, 2019). Products offered by companies in this industry offer a value proposition that
helps to differentiate the same products uniquely.
Threats of New Entrants: This threat in the dairy industry is high as many players easily enter
into this industry because of less restriction and investment. Due to that companies face high
innovation pressure and competition from new players (Wright, 2019). Hence, the threat of new

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entrants for Baladna Company is high in this industry due to that, profits decreased for existing
players in the industry.
Competitive Rivalry: The competition in the dairy industry is intense in Qatar, as there are
major players that are working in various segments or has a presence in the agricultural segment,
and dairy segment that increases competition in the industry (Namany et.al,2020). For, Baladna
Company the main competitors in the market are Ghadeer Dairy and Arab Qatari agricultural
production company (Namany et.al,2020). Hence, the competition in this market is high and
companies are struggling to operate and grow.
SWOT Analysis
Strengths: The key strengths that are identified for Baladna Company are its premium
positioning in Qatar, concentration efforts of management for attaining mission of the
organization, and its diversification and product portfolio (Baladna, 2019). As the company
offers agriculture products, dairy products, and raise livestock that helps the company to reduce
its expenses related to the procurement of raw material. Hence, key strengths are diversification,
backward integration, resources, and position in the domestic market.
Weaknesses: Baladna is a Qatari company that has a strong presence in the domestic market
and not on the global platform. Further, the company has higher sales as supply 95% fresh dairy
product in Qatar but operating in losses as in 2019, the company had a loss of 33,604,753 QAR
(Baladna, 2020). Hence, some of the weaknesses of Baladna are its poor financial performance
and less presence at the global platform.
Opportunities: The opportunities that are prevailing in the food industry in Qatar are increasing
demand for dairy products in the market, the use of internet and e-commerce and increased
globalization (Hassan et.al,2018). Baladna Company can take advantage of all these
opportunities as the company with its strengths can expand in other markets across the world and
using e-commerce platforms can sell dairy products and reach a large number of customers at the
right time with minimum cost. Hence, the company can take advantage of opportunities like
technology, online platform, increasing demand for dairy products and reduced trade barriers.

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Threats: Food industry and mainly in dairy products companies are facing stiff competition.
Baladna Company is also facing competition from Ghadeer Dairy and Arab Qatari agricultural
production company (Namany et.al,2020). Further, the threat of the bargaining power of buyers
and substitute is high in this industry that impacts directly on profitability because operating
expenses increases. Hence, because of these issues, the company might struggle to operate
profitably and to sustain in the industry for the long run.
Conclusion and Recommendations
From the analysis, it is known that Baladna operates in the food industry in Qatar and offers
dairy products in the domestic market. By using tools such as Porter Five Forces and SWOT
Analysis it is known that the company possesses strengths such as its management, dominant
position in the market and has a strong product portfolio. With that, it is known that the company
had to operate in losses from past years. It is recommended considering the analysis that the
company should gain the advantage of opportunities such as opts for expansion strategy to
increase its market share at the global platform. Further, the company should ensure its presence
across all the social media channels and offer products to customers with both online and offline
channels. All these can result in high sales and increase the market share of the company at a
global level and improve the profits of the company. Hence, it is concluded that there are many
challenges for Baladna Company in this industry but there are many opportunities from that the
company can take benefits.

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References
Baladna, 2019. Annual Report 2019. Accessed From:
https://baladna.com/investor_relations/ipo/financial-statements/financial-statement-2019/
Baladna,2020. About Us. Accessed From: https://baladna.com/
Gengler, J. and Al-Khelaifi, B., 2019. Crisis, State Legitimacy, and Political Participation in a
Non-Democracy: How Qatar Withstood the 2017 Blockade. The Middle East Journal, 73(3),
pp.397-416.
Hassan, Z.U., Al-Thani, R., Atia, F.A., Almere, S., Balmas, V., Micheli, Q. and Jaoua, S., 2018.
Evidence of low levels of aflatoxin M1 in milk and dairy products marketed in Qatar. Food
Control, 92, pp.25-29.
Lambert, L.A., and Hashim, H.B., 2017. A century of Saudi-Qatari food insecurity: paradigmatic
shifts in the geopolitics, economics, and sustainability of Gulf states animal agriculture. The
Arab World Geographer, 20(4), pp.261-281.
Magretta, J., 2011. Understanding Michael Porter: The essential guide to competition and
strategy. Harvard business press.
Namany, S., Govindan, R., Alfagih, L., McKay, G. and Al-Ansari, T., 2020. Sustainable food
security decision-making: an agent-based modelling approach. Journal of Cleaner
Production, 255, p.120296.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Wright, S., 2019. The Political Economy of the Gulf Divide. In Divided Gulf (pp. 145-159).
Palgrave Macmillan, Singapore.