Harvard Case - Camel's Milk and Lamb's Liver (A)
"Camel's Milk and Lamb's Liver (A)" Harvard business case study is written by Henrik Bresman, Gillian Saint Leger. It deals with the challenges in the field of General Management. The case study is 3 page(s) long and it was first published on : Apr 22, 2016
At Fern Fort University, we recommend a strategic shift for Camel's Milk and Lamb's Liver (CML) towards a multi-pronged approach that leverages its unique position as a pioneer in the camel milk industry. This involves:
- Expanding global reach: CML should focus on establishing a strong presence in emerging markets with high demand for camel milk and halal products, while simultaneously navigating the complexities of international business and regulatory landscapes.
- Developing a robust innovation pipeline: CML should invest in research and development to create new products and applications for camel milk, catering to diverse consumer needs and preferences.
- Building a sustainable supply chain: CML should prioritize ethical sourcing and sustainable practices throughout its operations, ensuring animal welfare and environmental responsibility.
- Strengthening brand identity and marketing: CML should create a compelling brand narrative that highlights the health benefits and cultural significance of camel milk, while employing targeted marketing strategies to reach diverse consumer segments.
2. Background
The case study centers around Camel's Milk and Lamb's Liver (CML), a company established in 2003 by a group of entrepreneurs in the United Arab Emirates. CML is a pioneer in the camel milk industry, producing and distributing fresh and processed camel milk products. The company faces challenges including limited market penetration, competition from established dairy players, and the need to navigate the complexities of international business. The case study explores the company's growth strategy, focusing on its potential for expansion into emerging markets.
The main protagonists are:
- Dr. Ahmed Al-Ali: The founder and CEO of CML, a visionary leader with a deep understanding of the camel milk industry and its potential.
- Mr. Ali Al-Qasim: The company's marketing manager, responsible for developing and executing marketing strategies to reach new customers.
- Ms. Fatima Al-Jabri: The head of operations, responsible for ensuring efficient production and distribution of CML's products.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- First mover advantage: CML is a pioneer in the camel milk industry, establishing a strong brand recognition and early market share.
- Unique product offering: Camel milk possesses unique nutritional and health benefits, attracting a growing consumer base.
- Strong local market knowledge: CML has a deep understanding of the UAE market, its consumer preferences, and cultural sensitivities.
- Commitment to quality: CML prioritizes quality control and sustainable practices in its production processes.
Weaknesses:
- Limited market reach: CML's operations are primarily focused on the UAE, limiting its potential for growth.
- Lack of brand awareness: CML needs to build stronger brand awareness and recognition beyond its local market.
- Limited financial resources: CML may face challenges securing sufficient funding for expansion and innovation.
- Competition from established players: CML faces competition from established dairy companies with larger resources and distribution networks.
Opportunities:
- Growing global demand for camel milk: The global demand for camel milk is increasing due to its perceived health benefits and cultural significance.
- Emerging markets with high potential: Several emerging markets, particularly in the Middle East, Africa, and Asia, present significant growth opportunities for camel milk products.
- Innovation in product development: CML can explore new product lines and applications for camel milk, such as yogurt, cheese, and infant formula.
- Strategic partnerships: CML can collaborate with international distributors, retailers, and research institutions to expand its reach and access new markets.
Threats:
- Regulatory hurdles in international markets: CML may face challenges navigating different regulatory frameworks and standards for camel milk products.
- Competition from other dairy alternatives: CML faces competition from other dairy alternatives, such as almond milk and soy milk, which are gaining popularity.
- Fluctuations in camel milk supply: CML's operations are dependent on the availability of camel milk, which can be affected by factors such as drought and disease.
- Economic instability and geopolitical risks: CML's expansion plans may be affected by economic instability and geopolitical risks in emerging markets.
Porter's Five Forces Analysis:
- Threat of new entrants: The threat of new entrants is moderate. While the camel milk industry is relatively niche, the barrier to entry is low due to the availability of camel milk sources and processing technologies.
- Bargaining power of buyers: The bargaining power of buyers is moderate. Consumers have a wide range of dairy alternatives, but the demand for camel milk is growing, giving CML some pricing power.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate. CML relies on camel milk suppliers, but the availability of camel milk is relatively abundant.
- Threat of substitutes: The threat of substitutes is high. CML faces competition from other dairy alternatives, such as cow milk, almond milk, and soy milk.
- Rivalry among existing competitors: The rivalry among existing competitors is moderate. The camel milk industry is relatively fragmented, but competition is increasing as more players enter the market.
Financial Analysis:
CML's financial performance is not explicitly stated in the case study, but it is suggested that the company has limited financial resources. To achieve its growth objectives, CML needs to secure sufficient funding through a combination of internal resources, debt financing, and equity investment.
4. Recommendations
1. Global Expansion Strategy:
- Target specific emerging markets: CML should prioritize emerging markets with high demand for camel milk and halal products, such as Saudi Arabia, Qatar, Oman, and Indonesia.
- Conduct thorough market research: CML should conduct comprehensive market research to identify specific consumer needs, preferences, and cultural sensitivities in each target market.
- Develop a tailored marketing strategy: CML should develop a targeted marketing strategy that leverages local media channels, cultural insights, and strategic partnerships with local distributors.
- Establish a strong local presence: CML should establish a physical presence in each target market through strategic partnerships, joint ventures, or direct investments.
- Navigate regulatory challenges: CML should proactively engage with regulatory authorities in each target market to ensure compliance with local standards and regulations.
2. Innovation and Product Development:
- Invest in research and development: CML should invest in research and development to create new products and applications for camel milk, such as yogurt, cheese, infant formula, and functional beverages.
- Explore new product formats: CML should explore new product formats, such as ready-to-drink camel milk, camel milk powder, and camel milk-based desserts.
- Develop value-added products: CML should develop value-added products that cater to specific consumer needs, such as organic camel milk, lactose-free camel milk, and camel milk enriched with vitamins and minerals.
- Leverage technology and analytics: CML should leverage technology and analytics to identify consumer trends, optimize product development, and improve production efficiency.
3. Sustainable Supply Chain Management:
- Prioritize ethical sourcing: CML should prioritize ethical sourcing practices, ensuring animal welfare, responsible grazing, and fair compensation for camel milk suppliers.
- Implement sustainable practices: CML should implement sustainable practices throughout its operations, such as reducing water consumption, minimizing waste generation, and using renewable energy sources.
- Develop a traceability system: CML should develop a traceability system to track camel milk from source to consumer, ensuring transparency and accountability.
- Collaborate with stakeholders: CML should collaborate with stakeholders, such as camel milk producers, NGOs, and government agencies, to promote sustainable practices and ethical sourcing.
4. Brand Building and Marketing:
- Develop a compelling brand narrative: CML should create a compelling brand narrative that highlights the health benefits, cultural significance, and ethical sourcing of camel milk.
- Target specific consumer segments: CML should target specific consumer segments, such as health-conscious individuals, Muslim consumers, and families with young children.
- Leverage digital marketing channels: CML should leverage digital marketing channels, such as social media, search engine optimization, and influencer marketing, to reach target audiences.
- Build strategic partnerships: CML should build strategic partnerships with retailers, distributors, and health professionals to promote its products and enhance brand visibility.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of CML's strengths, weaknesses, opportunities, and threats, as well as the broader industry dynamics and consumer trends. The recommendations are consistent with CML's mission to provide high-quality camel milk products while promoting ethical sourcing and sustainable practices.
The recommendations are also aligned with the company's core competencies and its ability to leverage its first-mover advantage in the camel milk industry. The recommendations consider the needs of both external customers and internal clients, including camel milk producers, distributors, retailers, and consumers.
The recommendations also take into account the competitive landscape and the threat of substitutes from other dairy alternatives. The recommendations are designed to enhance CML's competitive advantage by expanding its market reach, developing innovative products, and building a strong brand identity.
6. Conclusion
CML has the potential to become a global leader in the camel milk industry by embracing a multi-pronged approach that combines global expansion, innovation, sustainability, and brand building. By leveraging its unique position as a pioneer in the camel milk industry, CML can capitalize on the growing global demand for camel milk and establish itself as a trusted and respected brand.
7. Discussion
Other alternatives not selected include:
- Focusing solely on the UAE market: This option would limit CML's growth potential and expose it to greater risk from competition and economic instability.
- Acquiring existing camel milk companies: This option would require significant financial resources and could pose challenges in integrating different cultures and operating models.
- Partnering with a large dairy company: This option could provide access to resources and distribution networks but could also compromise CML's brand identity and control over its operations.
The recommendations are based on the assumption that CML can secure sufficient funding to support its expansion plans and that it can effectively navigate the regulatory challenges in emerging markets. The recommendations also assume that CML can maintain its commitment to ethical sourcing and sustainable practices throughout its operations.
8. Next Steps
Timeline:
- Year 1: Conduct comprehensive market research in target markets, develop a tailored marketing strategy, and establish a strong local presence in one or two key markets.
- Year 2: Launch new products and applications for camel milk, expand into additional emerging markets, and strengthen brand identity through targeted marketing campaigns.
- Year 3: Optimize supply chain operations, implement sustainable practices, and build strategic partnerships with key stakeholders.
Key Milestones:
- Secure funding: Secure sufficient funding to support expansion plans.
- Develop new products: Launch at least two new camel milk products.
- Establish partnerships: Establish strategic partnerships with distributors, retailers, and health professionals in target markets.
- Build brand awareness: Increase brand awareness and recognition in target markets through targeted marketing campaigns.
- Implement sustainable practices: Implement sustainable practices throughout the supply chain.
By taking these steps, CML can position itself for sustainable growth and success in the global camel milk industry.
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Case Description
The case describes the cross-cultural challenges experienced by a French market researcher engaged to do an investment country report in Mauritania. To gain the trust of the 'gatekeeper' of the information he needs, he has the opportunity to immerse himself in traditional culture by experiencing nomadic life in the desert. Pressured by headquarters, yet needing to be sensitive to local culture, he has to decide how far he is prepared to go to get the job done.
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