Industry: Global Kiwifruit Industry
Essay by zakp • March 15, 2019 • Case Study • 336 Words (2 Pages) • 757 Views
Corporate Strategy: Single product, broadly engaged across the value chain (60 countries and 17 offices)
Industry: Global kiwifruit industry
Business-Level Strategy: Differentiation (premium price)
Issues: Over the next 15 years they want to double sales ($3 billion of sales by 2025)
1.5(1 + r)15 = 30, r = 4.73% (reasonable based on passed growth
External Analysis
Stakeholders: Growers, end users, government, competitors, retailers
Political:
- New Zealand government
- Trade agreements between countries
- Shipping regulations
- Tariffs and taxes
Economic:
- GDP/Disposable Income
- Exchange rates in countries where kiwi is sold
Social:
- Kiwi is considered a “Superfruit”
- Trend towards healthy living (“Foodies”)
- Affordable luxury product
- NZ as a pristine land
- NZ national identity
Technological:
- Transportation and logistics
- Research and development
- Biology research
Environmental:
- Agricultural capabilities
- Green movement
Legal:
- Patents on new products
SUMMARIZE
Zespri advertises kiwi, which is a commodity. Competitors gain as well (not only Zespri). Growers and suers of kiwi benefit, as do retailers, creating a demand to have Zespri kiwi products on shelves. This creates higher margins
Porter’s Five Forces
Barriers to Entry | Medium |
|
Bargaining Power of Suppliers | Low |
|
Bargaining Power of Buyers | Medium to High |
|
Substitutes | High |
|
Rivalry | Medium to High |
|
SUMMARIZE
VRIO
V | R | I | O | |
Product Innovations | Yes | Yes | Yes | Yes |
Government Relations | Yes | Yes, maybe not in long term | No | Yes |
Network of Farmers | Yes | Yes | Maybe | Yes |
Network of Buyers | Yes | No | No | Yes |
Marketing/Branding | Yes | Yes | Yes, maybe not in long term but have first mover advantages | Yes |
Zespri System | Yes | Yes | Yes | Yes |
New Zealand | Yes | No | No | Yes |
Logistics | Yes | Yes | Yes, maybe not in long term | Yes |
Communication | Yes | Yes | Yes, maybe not in long term | Yes |
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