Fyffes Strategy

3168 Words Apr 21st, 2012 13 Pages
Strategic Management- Second Assessment

Mr Paul Goodwin

20 March 2012

Completed by:
Lara Ciora
David Hegarty
Alan Kenny
Daniel O’Byrne
Michael Ryan
Jingbo Wang
Lili Zhu

The company’s overall Strategy

Fyffes follows a low cost strategy, but what does a low cost strategy mean for Fyffes?
The market size for tropical fruit is really large, bananas being the fifth most important agricultural commodity in world trade after cereals, sugar, coffee and cocoa. Six countries (India, Brazil, Ecuador, Philippines, China and Indonesia) account for 55% of total world production. Bananas and pineapples are common fruits, on average 10 kg of bananas are consumed by each of the 350 million EU citizens; therefore it is not really
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Fyffes procures its products worldwide and is one of the leading distributors of southern hemisphere fresh produce in Europe, in particular fresh produce sourced from South Africa and South America. The most common themes arising from the top managers so far involved the need to foster relationships among the SBUs and work with each other to reduce costs (Geoff Percival, 2012). It is critical for the relationship between the suppliers (Other region markets) and the distributors (UK, Ireland and EU). The four SBUs work together for the fresh fruits supplying and selling, the company launched its worldoffruit.com web site and subsidiary, offering Internet-based business-to-business fruits and vegetables sourcing and information supporting the company's operations are its network of 100 storage, distribution, ripening, and other facilities, a fleet of 17 company-owned or leased temperature-controlled ships, and its own land-based transportation fleet, it can share and reduce the transport cost. The synergy management of the four SBUs also helps Fyffes add more value to the supply chain and make the delivery more efficient. Organic (UK and Ireland, EU and Other)

The current situation for Fyffes is that it finds it difficult to grow market share. It has two large cash cows in its UK and Ireland businesses and they are more likely to create diseconomies of scale. On the other hand, Fyffes will find it difficult to gain in any mature

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