Zafaran of Afghanistan, Essays (university) of Marketing

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Name: Muneer Sadaf (20200903131)

Course: corporate Strategic Management

Submit date: July 12, 2021

Teacher: Professor Dr. Wang

Program: MBA

Afghanistan Saffron industry

ABSTRACT

Because to the rapid growth of globalization, the world has been increasingly interconnected economically, socially, politically, and culturally through the ages. The cost of inputs and production variables are included in a sector's capacity to create products at a lower cost or provide them at a more competitive price, making a national sector competition analysis insufficient to describe the country's industrial structures. As a result, an assessment of the country's economy, its position among the world's economies, and an examination of national competition power in international competitions is required. The goal of this research is to look into saffron's monopolistic structures, companies in the global saffron business, the structure of the saffron business, and the competitiveness of saffron enterprises in Afghanistan. Farmers in Afghanistan are poised to make a significant contribution to the country's economy as saffron production areas are given special attention and expanded.

Furthermore, the large economic gains will encourage safer saffron cultivation, motivating low- income farmers to enter the profitable saffron market. In Helmand and other cities, however, farmers will not be required to produce dangerous plants. Renewing its international cooperation and image with a country that took a proactive approach to combating aspects that negatively impacted them would also be a significant step forward in the country's rehabilitation.

In this research we introduced the industry of Saffron in Afghanistan and analyzed the external and internal environment of industry Nonetheless, a SWOT analysis was conducted in Afghanistan's saffron sector to describe competition strategies. at the end of discussion we conclusion and summarized it.

Key words: Afghanistan saffron industry, saffron, strategic, competition strategy competition, SWOT analysis.

Introduction:

In terms of weight, saffron is the most costly spice on the planet. The spice is the dried stigma (tiny threadlike strands) of the "Crocus sativus Linnaeus" plant. Each stigma is incredibly minute, and tens of thousands of tiny strands go into a single ounce of the spice; because the stigmas are hand-picked from individual blooms, saffron's high price makes sense. Saffron is a Mediterranean spice with roots in Asia Minor, Iran, and Afghanistan. Saffron is now grown by a large number of farmers, and some private company’s process, pack, and export Afghan saffron.

The Ghoryan and Poshton Zarghon regions in this province are well known for their quality saffron. The Herat province has managed to achieve an excellent position on the production and export of saffron over these years, to the extent that some 90% of saffron production in Afghanistan is obtained from there.

Saffron has begun to grow in Afghanistan, according to the Food Zone program coordinated by the United States, Denmark, and the United Kingdom in 2009. Saffron manufacturing began to spread throughout Afghanistan after then. Farmers get between 2,500 and 4,000 dollars per square meter of poppy farm income, but saffron grown on the same area brings in 6,000 dollars per square meter. The natural assumption in Afghanistan is that saffron production does not occur everywhere (Katawazy, 2013).

How to compete and what kinds of operations are carried out in a certain industrial sector or product market segment are the topics of company strategy. It concentrates on synergy concerns with resource distribution and comparative advantages at the enterprise level because it deals more with competitive issues. Especially when it comes to product or market development and diversity. In other words, at this point, the strategies are in charge of land coordination of the pieces within an enterprise (Katawazy, 2013).

The strategy is another key aspect to consider. The strategy, like the vision of excitement, is focused on the future of the company rather than the present. While the vision is a more abstract view of the future, it is clearer and provides a more strategic direction. As a result, defining the approach, in particular, necessitates extensive research and analysis. Without a doubt, vision and strategy have a hierarchical relationship; selected strategies aid in the realization of the business vision. However, while the strategy provides the necessary resources and tools with the objectives to be achieved in the future, Independent of vision, resources and means, only determines the future direction.

In terms of strategic management, a company's competitiveness determines its long-term viability and maintainability. Many elements influence strategic management competitiveness. As a result, the company's strategic plans are formed in respect to the company's skills and resources in connection to the opportunities and risks identified by taking external factors into account. If any of these links are contradictory and contradict one of the established strategies when building a strategic plan, the company's plans will go in the incorrect path. While developing strategic plans, it is necessary to do thorough analysis and interpretation.

Strategic thinking revolves around the concept of competition. It might also signify different things at different times for different firms. Three typical uses of this notion are isolated in microeconomics, and competition strategies are investigated in various forms that point to competition in various forms (Barney, 1986).

Companies that desire to enter overseas markets can do it in a variety of methods, including exporting, forming strategic partnerships, investing directly abroad, and purchasing a firm. These entrance points are those on a scale formed by an increase in the amount of money invested in international markets by the firm, and each of them will be discussed in detail in the following parts (Bradley, 2002).

The Model and Methodology:

This research data were collected from various organizations and surveys as mentioned below,

• 24 saffron companies and 26 saffron producer associations,
• Afghanistan Ministry of Agriculture,
• Herat University, Faculty of Agriculture,
• Herat Chamber of Commerce,
• Afghanistan Standards Institute,
• International Afghanistan Saffron Research and Development Institute,
• Herat Saffron planting, patronage, process and marketing commission,
• Afghanistan saffron quality and control commission.

Objective:

 in the saffron industry, construct a SWOT analysis in Afghanistan, taking into account the competitive strategy, competition conditions, and competitive conditions inside and beyond Afghanistan  Assess the saffron industry's strengths and weaknesses as internal environmental factors, as well as the opportunities and risks posed by external environmental variables.  In terms of competitiveness, production, quality, and marketing, the advantages and disadvantages of Afghanistan's saffron sector have been noted.  The actions of firms in international markets, as well as how to join international markets, have been outlined, and a broad assessment of the Afghan saffron sector has been produced. However, in Afghanistan's saffron sector, a SWOT analysis was conducted. SWOT analysis was used in the study to describe competition strategies.

The Findings: When a corporation creates strategic planning, a SWOT analysis (Strengths, Weaknesses, Threats, and Opportunities) is the type of methodology used. It is a type of analysis that gives interpretation and serves as the foundation for developing strategic strategies. It allows the company to show off its assets, opportunities, and threats. This is the most crucial stage of the planning process for success. The foundations of the strategies are used to interpret the circumstances of the firm. The company's strategy is influenced by its resources and competencies, as well as the external environment. In this example, the SWOT analysis is used to describe the connections and situations that exist between the company's internal and external conditions. Table 1 lists possible tactics for evaluating Afghanistan's saffron sector competitive strategy using a SWOT analysis and other data gathered from our interviews.

Table 1 is based on the SWOT analysis Table has come up with four different strategies. The goal was to showcase Afghan saffron in international trade shows while emphasizing the benefits and

Opportunities

• Make the most of your strategic location
• Participation in international fairs for saffron demonstrations
• World-wide technology follow-up
• Take advantage of new market opportunities
• Saffron production is suited to the climate; • Saffron cultivation is supported by the government.

SO STRATEGY

Taking advantage of trade shows to gain access to worldwide markets

WO STRATEGY

to keep up with global technologies and set up production facilities in the country

Threats

• Product markets are difficult to reach.
• There is a lot of bribery and corruption.
• There are a lot of internal concerns.
• Excessive international competition • Companies outside the country have a significant media and advertising presence • Being border neighbors with countries with a bad international image

ST STRATEGY

Taking advantage of cost and capital benefits to improve media and advertising delivery

WT STRATEG

Construction of distribution and transportation infrastructure

potential of the ST (Strengths-Opportunities) strategy. It is hoped that Afghan saffron would gain international recognition and be enhanced in terms of branding. This will also encourage the target country to promote itself favorably and build a positive image for itself.

It was the goal of the WO (Vulnerabilities-Opportunities) strategy to exploit weaknesses and opportunities. It was chosen under this strategy to take advantage of the country's limitations and build facilities to improve the efficiency of the saffron sector. These facilities were built with the goal of increasing output and improving product quality. They will be able to work in better conditions and on the target workforce as a result of this.

The ST (Strengths-Threats) approach was developed by combining strengths and threats. The threats in this plan were exploited as opportunities. Its goal is to promote company branding and emphasis on advertising by taking advantage of government tax breaks and saffron manufacturing.

Incentive. Companies that are progressing in the direction of advertising will be recognized, and their future growth will be assured. Weaknesses and threats are the foundation of the WT (Weaknesses-Threats) approach. The development of distribution and transportation infrastructures has been defined based on these two headings. Afghanistan was aiming to develop in the industry with the growth of transportation opportunities in the saffron sector as part of this goal. As a result, the product market expands in tandem with the advancement of transportation. As a result, business expansion is prioritized.

We have found that the Afghan saffron sector is the most influential strategy among the selected strategies, based on current conditions. The goal of this strategy is to promote Afghan saffron and international branding. Afghan saffron's recognition has been determined to help the sector's expansion and development of competitive power.

5. Summary and Conclusions

The Afghan saffron sector attempted to determine the competitiveness strategy in this study. For this, a SWOT analysis was undertaken, and the saffron sector's competitiveness strategy was defined.

Thus, the market structure of the Afghan saffron market and possible investor prospects were investigated, the restrictions and drivers of market failure were identified, and lastly, some recommendations for the industry's development were made.

In comparison to global and regional markets, Afghanistan's copious export of saffron is generally praised for its superior efficiency in Europe, the United States, the United Arab Emirates, and other regions. There is no doubt that the saffron sector in Afghanistan has further growth potential if international standards are followed in terms of packaging and processing facilities, as well as farmer capacity.

Only a few huge corporations have influence over and modify pricing. Exports are hampered by the presence of only a few enterprises. As a result of this predicament, Afghan businesses have begun to embrace low-cost practices. The market has begun to penetrate low prices due to prices

2. Quality assurance and standard - Saffron plant packaging and process standards centers in all areas where the saffron plant is grown. Establishing necessary facilities in accordance with ISO certifications, saffron plant packaging in all qualifying organizations, including the procedure - Based on the experience of other nations with the Saffron national standard, plan and approve the "Saffron National Standard." - With the help of the international community, converting the saffron plant to a barcode system. 3. Afghanistan promotes the inner bazaar and international bazaar of saffron plant - Exemption from export customs charges - Coordination with the ministries of external affairs and trade - Coordination with the foreign ministries and ministries of commerce of the countries that entered to promote the Afghan saffron plant - Facilitation for fairs - Relations between internal and external private companies through Afghanistan embassies - Execution of workshops, festivals, conferences and exhibitions. - Ads related to saffron plant, translation, printing of articles, scientific books. 4. Applied research International Afghanistan saffron plant development and research institute established for the following purposes; - Research into the saffron plant's agronomic requirements. - Market research and exploration of saffron exports. - Saffron packaging and processing development research. - Obtaining fresh scientific findings at worldwide research centers on the saffron plant industry. 5. Capacity increase - Creating short and extended courses by programmers and training specialists to boost the saffron sector's capacity. - In Afghanistan, local and international experts will design a Saffron-based training session. - Create an application area for women who work in the saffron processing industry to receive training. - Saffron plant quality control laboratory technician training. - Setting up a training space for saffron plant experts and higher-level professionals. - Locating village-level peasant saffron schools. - In collaboration with the Ministry of Higher Education, coordination of faculties and agricultural institutes with saffron plant cultivation, processing, marketing, and other Afghanistan medical plants.

Expected results from the development of competitive power in the Afghanistan saffron industry:

Expanding the saffron planting area: When the following strategies are employed, productivity per hectare of the field increases. The growth of the saffron industry has a positive impact on other industries. In the industries of industry, transportation, and trade, permanent saffron production gives occupational equivalent. Women will have more job opportunities in the future. As a result, the Afghan saffron's export sentiment improves. In the October districts, the establishment of processing and packaging standardization centers is secured. In these facilities, a barcoding system is being developed. The sphere of production in Afghanistan will undoubtedly be expanded with the help of state subsidies to grow saffron, which will contribute significantly to the economy. Furthermore, because of Saffron's high economic return, farmers will be encouraged to grow it, guaranteeing that low-income farmers have a profitable business. Furthermore, farmers are no longer obligated to grow toxic plants like Helmand. As a result, Afghanistan's international image will have been restored, and it will have taken a significant step forward in the fight against drugs. Strategic management and general competitive tactics, foreign markets, company operations in international markets and their introduction to international markets, and a general appraisal of the saffron and saffron sector in Afghanistan are all discussed in this study.

Certain strategies have been established as a result of this evaluation. The superiority of the Afghan saffron sector has been assessed by taking into account weaknesses, opportunities, and threats, according to the Strategies SWOT analysis. The ST approach is developed by weighing the benefits and drawbacks of four different tactics. When the company's own capital is taken into account, the implementation of this strategy will contribute to promoting and branding the Afghan saffron sector, where the state is exempt from taxation on the cost side, as well as subsidies for promotional purposes and the introduction of financial resources to the media sector. This will aid in the growth and development of competitiveness in the Afghan saffron industry. This paper is the outcome of research into the current state of affairs in the Afghan saffron sector. However, if the sectors are viewed as a living thing, the tactics that have been established can be altered or enhanced.

References Asif, Mohammad, “SAFFRON MANUAL FOR AFGHANISTAN”, DACAAR Saffron,

Barney Jay B., “Types of Competition and the Theory of Strategy: Toward an Integrative Framework”, the Academy Of Management Review, Vol.11, No.4, 1986 Katawazy Abdul Samad, “A Comprehensıve Study Of Afghan Saffron”, Afghanistan investment support agency, April, 2013.