Danish boycott

Recently, people started talking about the offensive cartoons that was published by the Danish media. Many messages and e-mails were encouraging Muslims to boycott all Danish Products until they receive an apology from the Danish authorities.
According to the article “Effect of Danish Boycott Patchy”, people in Saudi Arabia had strong reactions against the controversial cartoons, published in the Danish and Norwegian media that was depicting the Prophet Mohammed. In Jeddah, many supermarkets showed that Danish products have been withdrawn and customers stopped buying Danish products.

As I think, Buyers have a Bargaining Power. When they decided to boycott Danish Products, they forced the percentage of sales to decrease which will affect the percentage of the Danish profits in the long run. For example, when customers stop buying Danish products, supermarkets will stop also importing more products which will have a great effect on the producers. In addition to that, Danish products were standard and undifferentiated, so Buyers have no problems in finding other alternatives and stop purchasing Danish products.

On the other hand, this article illustrates one of Hamel’s concepts which is Customer Interface and that’s through the Relationship Dynamics. As I think, there was an interaction between the customers and Saudi Dairy and Foodstuff Companies. After the stock price of SADAFCO declined, they tried to clarify to the customers that they are 100% Saudi company and they do not import or sell any products from Denmark. They assured that they produce all their products in local factories and get all the raw materials from local markets. Another example might be the relation between the customers and the producer (Denmark). Producers should also look for the satisfaction of their customers and in this case, they might have to give their apology for the customers in order to convince them to buy again Danish products. Otherwise, customers will continue boycotting and start looking for other products from other producers.

Moreover, the article shows another concept which is Strategic resources. Through core processes, supermarkets in Jeddah added value to their customers by removing all Danish products from their shelves. They are trying to be loyal to their customers by encourage them to boycott all Danish products.

Danish authorities should pay more attention to the risks that they may face if customers continue their boycotting to Danish products. They should take a quick action and give an apology to all people in order to save their economy.