Al Maya Group plans expansion

The article shows the large expansion of Al Maya group. The growth was because of the “traffic growing and high gasoline price” which will allow the company to be like the “neighbor stores” for the people. Part of their growth is through Investing more than Dhs 40 Million in setting up 8 new supermarkets and at least two fashion retail stores. In this article I will use Porter framework to analyze the company.

The Company is considered substitute and could be a substitute of their companies. Large Company like, Carrefour is considered a big challenge to Al Maya company. Carrefour is a very popular and with highly demands over the GCC. It has 13outlet in the GCC and its revenue is more than 3.67 billion. From this information we can find out that Carrefour is considered threat to Al Maya and could be substitute for it.

There are many competitors to Al Maya Company such as, Lal’s, Choithram and Tesco. The competition between them is very hard specially when they are equal in size and power, so we can see that May’s expansion could be a way of differentiate and way of rising above its competitors.
Al Maya group could also use buyers and suppliers power as way to expand. Buyers and suppliers power have a very big impact on the expansion of Al Maya Group. For that the company is targeting buyers and suppliers and trying to affect on them.