Perdue Farms Swot Analysis Essay

1296 Words6 Pages
Perdue Farms Inc.
I) Introduction Founded by Arthur W. Perdue in 1920, Perdue Farms, Inc. has always focused on quality. To improve the quality of his stock, Arthur Perdue bought leghorn breeding stock from Texas and mixed his own chicken feed. By 1940, Arthur Perdue realized that higher profits would come from selling the chickens, not the eggs. In 1950, Arthur Perdue's son, Frank, took over leadership of the company and led the company into vertical integration. Perdue Farms controlled its own hatchery, feed formulations, and feed mill. Vertical integration continued and in 1968, Perdue Farms bought its first processing plant. The most important change occurred in the 1970s when Perdue successfully branded its chicken and
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Also, one shipload on its way to Russia vanished and was later found to be impounded using forged documents. Control is this area needs improvement. The location of Perdue Farms processing plants could have been chosen better. Most of the industry is located in the Northeast, creating pollution concerns with the high levels of nitrogen and phosphorus in the chicken manure. In addition, labor costs, regulations, and resource costs are more favorable in other parts of the country.

III) External Analysis A) Opportunities Turkey and chicken are leaner meats and are popular in current diets trends. Turkey products in particular are becoming increasingly popular as a substitute for beef. Ground turkey, turkey bacon, and turkey sausages are some of the latest, healthier substitutes and have high potential for increased profits. Rivalry is tough in this mature industry and consolidation is becoming popular since the smaller companies can not keep up with strict regulations and the large capital investments required to expand. Perdue Farms is in a good position to acquire these small companies before the competition does. International trade is an opportunity with potential for huge success. Japan has high standards for quality and Perdue Farms fits in nicely here. The market may not be very strong in other countries, but with the right moves in customizing products, Perdue Farms could make international

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