Strategic Management: SWOT Analysis of The Sultan Center

This report presents a SWOT analysis of The Sultan Center (TSC), a prominent retail chain in Kuwait. The analysis evaluates TSC's strengths, such as its skilled workforce and established presence with 59 stores, and weaknesses, including limited workplace diversification. Opportunities like improving quality control and expanding online marketing are explored, alongside threats like intense competition and technological advancements by rivals. The report examines TSC's management structure, business strategies focusing on revenue growth, margin improvement, expense and asset efficiency, and continuous improvement through employee training. The target market and its challenges are discussed, with recommendations including increasing workplace diversity, investing in R&D, leveraging promotional strategies, and enhancing online shopping capabilities to maintain a competitive edge in the retail sector. The report also references the importance of understanding the local customer preferences.

Running head: MANAGEMENT
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Name of the Student:
Name of the University:
Author’s Note:

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SWOT analysis is one of the most essential frameworks that must be carried on by all
the organizations' in order to survive in the long run. This is because of the fact that there is a
huge competition in the market and all the organizations are trying their best to get the maximum
market share and also to gain a good competitive advantage. Sultan center is one among the well
known retail companies in Kuwait that tries to excel in the production and the sale of the best
quality supermarket goods. They try their best to take care of all the needs and demands of their
customers by providing them with the best and fresh quality goods.
strength weakness opportunity threat
Skilled labor force A limited number of
stores.
Must utilize a large
amount of diverse
expertise
Huge threat from the
other competitive
firms like M.H.
Alshaya
59 stores have been
established and
successfully running
along with some
restaurants as well
Lack of
diversification in the
workplace
Working more over
the quality control
Availability of better
services like coupons,
free gifts, better after-
sale services which
might make their
customers switch to
other alternatives
Corporate leadership
along with inclusive
work culture is
Lack of proper
advertisement on an
Use promotional
methods and online
Large Global
expansion by

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followed so that all
the employees can
give in their views
and opinions
International level marketing systems competitors
Main products or services
The Sultan Center or TSC is one of the most popular supermarket chains operating in
Kuwait. In the year 1976, Mr. Jamil Sultan founded PSC Supply, a division of The Petroleum
Services Company. However, with the gradual increase, they have been able to expand their
business in the retail field. Sultan Center excels in the sale of products like day to day grocery
items including soap, oil, the electronic household gadgets like washing machines, Fridge, TV
and also many other such products.
They have been able to understand the changing customer need and demand pattern. Thus
they make sure to help their customers with the after-sale services like 24*7 hipline system. They
have also started using the social networking platforms like online booking system and the
WhatsApp chat system as well so that they can assist their customers as per the customer's
convenience (Ji et al. 2018).
Management structure
Flatarchy is the commonly followed management structure in this organization. The
board of directors and the other executive always try to develop a proper and two-sided
horizontal communication system. This ensures that all the employees are being able to give in
their feedback, ideas, and opinions in all the business decisions.

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Strategy for the organization
They mainly follow 5 business strategies
 Growth revenue-dividing their revenue in a proper way so that they can gain proper
flexibility in making their investments (Ashley and Tuten 2015)
 Improving the margins-They always try to provide the best possible services to
customers. They have a handpicked range of products (approx 1200) made with the
freshly available raw materials in order to satisfy their customers.
 Expense efficiency-They follow the method of constant improvement so that they can
improve the quality of their workforce and their overall production.
 Asset efficiency-Assets management is followed in a very sound and effective manner so
that it can be used later for purposes like renovating their stores and others.
 The constant improvement-The organization trains all their employees with the skill
development sessions and talent management so that they can perform well in the long
run.

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Target market
Geographic segmentation
The organization usually tries to appeal to the customers who are located in the regional
sectors. Sultan center usually works as a regional independent retail organization that tries to
boost up the regional economic system. There can be a major shift in this segmentation.
Customers might develop a keen interest in tasting or using the products that are from outside
their own regional domains (Ji et al. 2018).
In such cases, they might try to switch to other alternatives like other alternative firms
This will be a threat to the organization as they will be losing their customer base. Thus in order
to save them from this loss, the organization must develop an inclusive culture so that they can
recruit multicultural employees. This will help them in getting the innovative and newer range of
ideas for improving their production.
Challenges
One of the greatest challenges is the competition that can be faced by competitive firms.
Social media marketing is one of the major sectors that might affect the grown of this
business in a considerable way. The modern-day consumers are looking for easy and convenient
ways of making their transactions. Thus Sultan Center must venture into new and innovative
areas of online marketing and the social marketing platforms for appealing to customers who
cannot come down to their physical stores and thus prefer online shopping.

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Strengths
 They have been able to excel themselves in the filed of product diversification. In
other words, the company is not only working as one of the major retailers in Kuwait
but also has a chain of restaurants
 59 stores have been successfully launched in many different parts of Kuwait and
outside as well. Some of the other stores are operating in places like Bahrain, Jordan.
Weakness
Lack of diversification in the workplace is one of the major grounds that the organization
needs to work upon. As it is majorly a local or regional company the workforce usually
comprises of the employees from local regions of Kuwait. Thus other employees belonging from
different races or cultures might suffer from the fear of discrimination. This also hinders the
inflow of the diversified and innovative business ideas.
Opportunities
Improvement of quality assurance and the quality control department must be carried out.
This will help in analyzing and solving the issues that are present in the organization. This will
also help in identifying and solving any damages in the production or the manufacturing of the
products.
Threats
 Facing a huge competition from the other competitive firms

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 Technological development and advancements by the other competitive firms may
provide better facilities to the customers and they can switch over to them.
Competitive environment
The competitive environment will help in instilling a major feeling of competition within
Sultan Center and also within the other competitive firms. However as it is the age of a large
scale competition there will be a rat race among retail companies like Sultan Center and M.H.
Alshaya and many other such firms to grab the maximum market share. However Sultan Center
will be able to use the opportunities like skilled manpower, regional market base and the
continuous improvement strategy for their improvement.
The competitive environment will help in instilling a major
Management Team Initiate
The management team has to develop a properly diversified work culture in the
organization. This will be done by developing a horizontal or open-ended two-way
communication system (Godey et al. 2016). This will help in including all the employees in the
business decision making the process. Inclusive work culture must be initiated by the
management that the HRM department can venture into the hiring of employees from Global
level rather than staying concentrated only in the region or the community boundaries of Kuwait

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Key resources
The regional or local workforce is able to understand the preference pattern of the local
customers thus being able to satisfy their needs and demands. They will be able to use the good
connection in their regional sectors. As they have been working as a community based regional
retail shop in a successful manner they will be able to market their home based products to the
outside markets.
Recommendation
 Increase diversification in the workplace: This will help the company to hire
employees belonging from different socio-cultural backgrounds. As a result of this,
they will be able to get a huge amount of better and diversified innovative business
ideas for improving their business
 They have to invest over their R&D sector so that they can get to know about the
recent market trends arising in the business industry and bow they can strive to
achieve the sane
 Usage of prior promotional and advertising strategies must also be used.
Transactional marketing system has to be used so that they can attract customers
through gift coupons, free membership or free subscription schemes, loyalty
discounts and other such advantages.
 Online shopping system along with home delivery must be initiated by the company
so that they can provide better services to their customers. This will help them in
expanding their market in other National and International locations.

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