ZESPRI Case

4319 WordsApr 16, 201418 Pages
Case Analysis-Zespri 04-78-651-02 Business Strategy Dr. Jonathan Lee Content 1. Main issue Zespri’s main issues are to maintain their leadership in the industry and to increase New Zealand kiwifruit exports to $3 billion by 2025. In order to reach the objective, in existing market, Zespri should increase per capita consumption through more focused marketing. They also need to find emerging markets, research on new varieties and improve the 12 months supply program. 2. Porter’s five forces 2.1 Degree of rivalry The degree of rivalry is low. The four biggest kiwi fruit producing countries are China, Italy, New Zealand, and Chile. Despite of the higher production of China, it had…show more content…
When it comes to relationship with local suppliers, Zespri had the advantage over others that it contributed on building good relations with its exporters and this asset was not owned by most competitors. 3.3 Is it inimitable? ----Yes It is not simple for other competitors or new entrants to imitate kiwi producing techniques and the value of Zespri for the reason that Zespri has system patent and intellectual property to protect it from being replicated. Besides the special structure of the company is hard to copy since about 82% shares of Zespri were owned by growers, those growers were motivated internally to come up with more innovative thoughts about their products in order to gain more profit margins. This, to some extent, gave an impetus to the development of all types of kiwi to have more attributes that customer wants which was more effective than other companies under different structures. The close relationship with suppliers also made Zespri difficult to duplicate due to the suppliers would protect their cultivated customer groups globally. 3.4 Is it non-substitutable? ----No Kiwifruit could be replaced directly or indirectly by many alternatives in the market. For example, other kinds of fruits and vegetables that can provide fiber, Vitamin C or iron like Del Monte’s extra sweet “Gold” pineapple, functional drinks and healthy drinks that are portable as well as nourishing. What’s more, other kiwifruit

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