SWOT Analysis:
Strengths:
- More than 4 decades in the milk formula development, production and research which allow
them to become first - most recognizable brand name in this industry.
- Production of differentiated portfolio of products.
- Ownership of their own vertical supply chain / “farm-to-consumer” vertical integration
framework.
- Ability to develop innovative products in light of markets changes and changing consumer
preferences.
- Long-standing history of uninterrupted business and presence.
- An organizational structure and leadership that support innovation.
- Highest market share and availability all over Egypt governorates.
- Access to global markets through exporting to 33 countries which contributes 7% to Juhayna
total revenue.
- Commitment to sustainability and corporate social responsibility.
Weaknesses:
- Although Juhayna had access to global markets but its major part of total revenue coming from
Egyptian market, which make Juhayna more vulnerable to Egyptian market economic
disturbances.
- Cost-Effectiveness imbalance due to excessive resources usage to maintain innovation of high-
quality products.
- Although Juhayna is considered one of the leading companies in its industry, it has struggled to
diversify into additional product segments.
- Facing difficulty in estimating demand, prompting the company to maintain higher levels of
inventory both internally and in the distribution channel.
Opportunities:
- Growing health and nutrition need and awareness.
- Growing attention for products and services that contribute to healthy longevity.
- Growth of global population.
- Growing focus on plant-based products.
- Growing demand for products suitable for long-term storage in case of crisis.
- Global expansion of e-commerce.
- Opportunities to more access to global markets.
- Opportunities to more engagement in social projects that meets sustainability goals and
objectives.
Threats:
- Macroeconomic disruptions represented in the devaluation of the Egyptian pound (EGP),
coupled with foreign currency shortages and port restrictions, created a complex operating
environment.
- Successive increases in energy costs.
- High competition in food & beverages industry either from local or international companies.
- A lot of interruptions in supply chains
- Regulatory and legal challenges which can affect industry locally and internationally.
TOWS Analysis:
SO Strategies
Use strengths to take advantage of opportunities
- Using their legacy in milk formulation & nutrition industry to play an influential role in growing
health & nutrition needs.
- Being the highest availability all over Egypt, it can take the advantage of growing population.
- Having their own farms (Vertical Supply Chain), allow them to take benefits of growing focus on
plant-based products.
- Using their ability to adapt to market & consumer preferences changes to take the benefits of
global expansion of e-commerce.
- Going for more access to global markets based on their current success in this field.
- Showing their commitment to Sustainability & CSR objectives through more engagement in
projects and activities that meet their goals.
WO Strategies
Minimise or overcome weaknesses by taking advantage of opportunities
- Juhayna can be less dependent on Egyptian market revenue & hence less vulnerable to
economic disturbances within, by being more focused on accessing more global potential
markets.
- Going for more diversification for their products segments by being more responsive to growing
demand for plant-based products, products suitable for long term storage & also products that
meet growing awareness about healthy nutrition.
ST Strategies
Use strengths to overcome, defend against or avoid threats
- Focus on more access to global markets to allow more availability to foreign currency to mitigate
Egyptian market macroeconomic disruptions.
- Having their own vertical (Farm-to-Consumer) supply chain allow them to mitigate risks raised
from repetitive interruptions in supply chains.
- Ability to produce differentiated portfolio of products, ability to develop innovative products and
responsiveness to changing consumer preferences can help Juhayna in high competition in the
field of food and beverages industry.
WT Strategies
Minimise effect or impact of weaknesses and avoid threats
- Improving demand forecasting and inventory management.
- More focus on global markets to reduce dependence on Egyptian market to mitigate risks arising
from macroeconomic disruptions.
- Improving management of costs by optimizing resources usage.
- Optimal usage of energy resources in order to mitigate effects successive increases in energy
costs.
- Close follow up to any regulatory and legal updates related to industry through a qualified team
to achieve optimal compliance.
