Yara International: Africa Strategy Harvard Case Solution & Analysis

Yara International: Africa Strategy Case Solution


Yara International was founded in Norway in 1905 with an objective of dealing in the production of electricity. The company later on diversified its portfolio to the fertilizer industry with the introduction of the fertilizer products. Yara International deals in the fertilizers industry and is referred to as a leading producer in the world. Yara International has production houses in about 17 countries. The company sales record shows that the company has sold its products in about 150 countries that are distributed from the distribution offices in more than 50 countries.



The Yara International is financially strong from the dawn to dusk. The Company recorded great revenues of $14.5 billion in the year 2013. The revenues were accounted for the profit generation of $2.2 billion in the year 2013. The fertilizers core business of Yara International and contribute to 85 percent of the total revenue. The Yara International offers series of fertilizers products that involves almost every solution of the fertilizers.

The Yara International has large production capacity. The company has production houses in 17 countries that defines their great ability to produce fertilizers. The upstream segment of the Yara International is responsible for all the production activities. The production ability of the upstream segment of the company is presumed its strength,since Yara international is the largest producer of nitrogen fertilizers in the world.

The Distribution channel of the Yara International is the strongest, as they have distribution centers in more than 50 countries. The downstream segment of Yara International is responsible for all the distribution activities. The role of the downstream segment is to market and distribute the agronomic solutions and fertilizer products. The downstream segment has more than 200 places for distribution of the products worldwide. The distribution of the fertilizer products is on the rise as compared to previous year.

The Yara international offered differentiated products in order to increase the agricultural efficiency and productivity. Yara International offers higher margins products that attract maximum farmers to purchase its fertilizer products.Europe is assumed as the major hub for company with 43 percent of its sales coming from European countries.

The sales network of the Yara International is assumed as the strength to the company as they have scattered their sales throughout the world. The Research and Development of the Yara International is also one of its strengths. The Yara International is open to innovations and experiments that makes them the strongest in the region as a result. The innovative culture of Yara International helps the Research and development of the company in providing innovative products as per the customers’ needs.

The management of the Yara International has great ability to manage the operations of the company. Management has controlled its operations efficiently. The Yara International has excellent and delegated workforce of more than 10,000 employees. The management of the Yara International helps them in utilizing the strengths of the company and make huge profits, the efficient workforce also helps the company eliminate its weaknesses and reduce the costs and expenses.

The Yara international has differentiated products that reflects the customers will purchase the products at even higher prices. The Yara international can avail the huge margin of profits from their differentiated products. The company has made many acquisitions and new investments in order to diversify its risk and the company has joint ventures with big companies in order to increase their availability of the raw materials and to gain competitive advantage.

The Libyan Norwegian Fertilizer Company was created by Yara in a joint venture with the Libyan Investment Authority and the National Oil Corporation of Libya in order to expand the operations and production of the QAFCO to become the Middle East’s largest producer of the mineral fertilizer. QAFCO also became the largest single site for the production of the Ammonia and Urea in the world................

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