Competitive strategy formulation case study of Dahlak Share Company in Eritrea

Abstract

A company without proper strategy is like a person without sight. The research deals with identifying the lost market that the company could not yet replace due to border conflict with Ethiopia, and with recommending future actions. The main goal of this research is to assess and analyze the external and internal situations of Dahlak Share Company. In order to formulate the best strategy, the company resources must correlate with the macro and microenvironment situation. Dahlak Share Company operates in Asmara, capital of Eritrea and it sells its products in local market and foreign countries, mainly in the Great Lakes region of Africa. Therefore, assessing and analyzing Eritrean and relevant other countries' situation, information regarding the footwear industry, stakeholder's interest and the company's capacity lends significance to the quality of the formulated strategy. The discussion on the research objective is based on the strategy formulation process. This research is a case study and is qualitative in nature. Therefore, financial reports, and other relevant company documents are used to collect the secondary data. Interviews have also been conducted with the company's management body to collect the primary data. According to the study findings the company has the opportunity to increase the demand of the Great Lakes region of African market and consciousness of Eritrean customers insistence on best quality products. The company is well branded in the region and it is known for its long time experience in shoe production. Moreover, the company has a strong management staff. Though there is tough competition in local and international market, Dahlak Share Company is able to succeed by minimizing unnecessary cost and improving the quality of its products.