Zespri Essay

646 Words Feb 28th, 2013 3 Pages
Key Issue:
The most prevalent problem in this case is whether Zespri is doing what is necessary to maintain its leadership position to increase New Zealand kiwifruit exports to $3 billion by 2025. In order to accomplish this, an additional problem they need to address is that they have to triple their global sourcing needs to satisfy demand when New Zealand fruit is out of the market. Zespri also needs to expand to more producers to develop vast amounts of kiwifruit during the off-season so that they are able to obtain their $3 billion dollar export goal.

Qualitative Analysis:

V.R.I.N.E Analysis: In order to understand the internal issues at Zespri, one can do an internal analysis of the company using the V.R.I.N.E model. This
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However, establishing the quality and the efficient system that Zespri has in place would take a lot of time and it would be hard for a new company to achieve what Zespri has accomplished. Also, Zespri’s scale and the SPE made it one of only a few private firms that could fund the required long-term investment in cultivar development for the niche crop. Therefore, it would be difficult for new entrants to acquire the necessary funds and compete directly with Zespri.

Non-Substitutability: There are numerous substitutes for kiwi. Many people enjoy other types of fruit such as strawberries, oranges, apples, plums, pears…etc. However, there is not a fruit that tastes exactly like kiwifruit and that gives the same health benefits as kiwi does. Also, there is no other fruit that can be eaten with a “spife” like a kiwifruit can be eaten, which makes it hard to substitute.

Exploitability: Zespri is exploiting their resources and capabilities very well. Zespri’s strategy of quality, branding and innovation have been showing good results and have made it a leading marketer of kiwifruit worldwide. Even in the face of global recession, Zespri’s sales volumes and wholesale prices were up. Zespri also has plenty of room for growth in existing markets. However, Zespri needs to exploit their global sourcing needs in order to triple in size to achieve their goal of increasing their export earrings to $3 billion.

Holistic Analysis: Altogether, this V.R.I.N.E analysis

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