Ulker SWOT and PESTLE Analysis

Strength

1. Leading confectionery company in the MENA region and well positioned for future growth: Ulker has well positioned itself for future growth prospects in Middle East and North Africa (MENA). Various acquisitions have been done so that Ulker is able to act as local and regional producer. This will help in building higher scale in primary markets. It also gives potential to add new business capabilities in core categories. In Saudi Arabia, Ulker holds the 1st position with highest market share. It managed to be ahead of the competition and increased its profitability. With high awareness levels, it continues to increase the market share further with new product launches and organic growth. In Egypt also, Ulker maintains first position in biscuits and targets to be second in cake and in top 5 in chocolates. It reached market leadershif UI MENA which owns Amir Global, Ulker aims to achieve leadership position in all of MENA. This has helped in accessing some of the main markets like Saudi Arabia, UAE, Lebanon, Qatar, Kuwait, Jordan and Egypt. It also helped in winding down costs which improved the services offered in the region.

2. Strong market share in total confectionary in Turkey: Ulker has demonstrated splendid performance in the domestic market. It emerges as the top position holder in Turkey with around 37% market share. All the 3 divisions of biscuit, chocolate and cake have been doing well with 40.4%, 40.8% and 23% market share respectively. Its market share has increased in the past year in terms of value across all 3 divisions. The branded sales of its synergy products along with the newly launched products have contributed in this growth. Owing to the strong and successful marketing support and new launches, its sales volume, revenue and gross profit has also seen an upward trend. Effective sizing and pricing initiatives along with the continuous cost efficiency in supply chain projects have helped Ulker taste success in their domestic operations year on year.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Political

1. Tense and unstable diplomatic and political relationship with Saudi Arabia and Egypt: Ulker has been into operations in countries like Saudi Arabia and Egypt but the political relations of these countries are quite furrowed with Turkey. According to a recent media report, Egypt is attempting to form a regional security coalition against Turkey since both the countries have had a bitter relationship since 2013. The security alliance aims to counter Turkish presence in the region. This political instability between Egypt and Turkey will have serious implications for MENA affecting their security and stability. Turkey has been involved in all Arab conflicts and hot spots. This has increased tensions with countries like Egypt and Saudi Arabia and also triggered conflicts in volatile countries such as Syria, Libya and Palestine. Due to Turkey’s increasing role and influence, Arab’s governments have been trying to counterbalance Turkey’s presence at any cost. Thus, Ulker’s operations in these countries under such circumstances will get impacted a lot.

The remaining section of “Political” is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

1. Compliance with food safety laws and regulations: Ulker being a food processing company needs to pay attention to food safety and defense and respect ethical principles. Ankara, Gebze and Esenyurt Factories of Ülker Bisküvi that adopts the principle of producing “Delicious, Healthy and Reliable” products in continuous and superior quality in hygienic conditions needs to abide by many such rules and regulations for safety. They need to comply with laws and regulations. They hold quality certifications such as ISO 9001:2015 Quality Management System, ISO 22000 2018 Food Safety Management Systems, etc. Also, as Ulker majorly operates in Islamic countries, its products are HALAL certified which is an important compliance it adheres to.

Environmental

This section is available only in the 'Complete Report' on purchase.