One of the lessons Bega Cheese Limited can learn from Wal-Mart and Nike is how these companies developed third party manufacturers whose business solely depends on them thus creating a scenario where these third party manufacturers have significantly less bargaining power compare to Wal-Mart and Nike.
Bega Cheese produces and supplies several dairy products throughout Australia Paish, M. They want to buy the Bega cheese porter offerings available by paying the minimum price as possible. Customers often seek discounts and offerings on established products so if Bega Cheese Limited keep on coming up with new products then it can limit the bargaining power of buyers.
By understanding the core need of the customer rather than what the customer is buying. By experimenting with product designs using different materials so that if the Bega cheese porter go up of one raw material then Bega cheese porter can shift to another. It will reduce the bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its sales and production process.
Strengths Efficient and cost effective schemes of production Exporter of dairy products to main markets in the Gulf region Able to cater the risk Manage the demand of high production Attaining greater efficiency and competence Opportunities Have been offered an increased demand of dairy products from Asia Major exporter of the United Arab Emirates, Kuwait and Saudi Arabia Attainment of greater efficiencies Working for the advancement of the enduring sustainability of the industry The waste water from all the factories around is being utilized for field growth on the farms which are possessed by Bega Cheese or its shareholders.
New products will also reduce the defection of existing customers of Bega Cheese Limited to its competitors. Suppliers in dominant position can decrease the margins Bega Cheese Limited can earn in the market.
This put pressure on Bega Cheese Limited profitability in the long run. Developing dedicated suppliers whose business depends upon the firm. This competition does take toll on the overall long term profitability of the organization.
Its dairy products range includes cheddar cheese, grated cheese, mozzarella cheese, cream cheese, cheddar and Colby cheese snacks, infant nutritional powders, milk powders and whey powders.
SWOT Analysis Bega Cheese Limited is such an organization that is persistent to change in structure of an organization from its very existence. New entrants are less likely to enter a dynamic industry where the established players such as Bega Cheese Limited keep defining the standards regularly.
By building economies of scale so that it can lower the fixed cost per unit. Threat from Substitute Products Rivalry among the existing players. They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity.
By rapidly innovating new products. The smaller and more powerful the customer base is of Bega Cheese Limited the higher the bargaining power of the customers and higher their ability to seek increasing discounts and offers.
By increasing the switching cost for the customers. The threat of a substitute product or service is high if it offers a value proposition that is uniquely different from present offerings of the industry.
Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition. Introduction The Bega Cooperative Society Limited is an Australia based company, which has been established for more than years.
This will be helpful in two ways. Threats Unstable and diverse market requirements and the cost of inputs Probability of unavailability of land, feed grains and irrigation water due to the unfavorable environmental conditions Protectionism in competitor markets Elements in the industry that lead to the controversies against the company Native communities offering to contribute to the culture Weaknesses Unstable and capricious climate of the region that could anyhow effect the high production and Rivalry among the Existing Competitors If the rivalry among the existing players in an industry is intense then it will drive down prices and decrease the overall profitability of the industry.
Building capacities and spending money on research and development. It significantly reduces the window of extraordinary profits for the new firms thus discourage new players in the industry.
Threats of Substitute Products or Services When a new product or service meets a similar customer needs in different ways, industry profitability suffers. Bega Cheese Limited has to manage all these challenges and build effective barriers to safeguard its competitive edge.
Bargaining Power of Buyers Buyers are often a demanding lot. The sole owners of this company are the dairy farmers who reside in the Bega valley and nearby dairying regions in the South East NSW.
For example services like Dropbox and Google Drive are substitute to storage hardware drives. Bega Cheese was lead to bring about a change in its organizational structure by the presence of external and internal mediators; the organization has improved its growth and has become even more sustainable due to this change Working on Our Future Together, - Porter’s 5-Force Analysis Michael Porter’s 5-forces can be used to analyze an industry and help shape and create a “competitive strategy” (Porter, 6).
Q1 What are the types of strategic alliances Bega form to develop competitive advantage? Brief Background A Cheesy Industry Analysis Question 3: Considering the dynamic challenges facing the Australian commodity market, what future strategy should Bega Cheese pursue? SWOT and PEST Analysis of Bega Cheese Ltd.
Introduction The Bega Cooperative Society Limited is an Australia based company, which has been established for. Bega Cheese Porter BEGA CHEESE LIMITED ORGANISATION’S CHANGES THROUGHOUT THE YEARS.
STRUCTURE, EMPLOYEES & CULTURE Bega Cheese Limited is an organisation which through the years of its existence leads the way in structure change in an organisation. A former Bega Cheese boss and convicted paedophile has apologised for his crimes, telling a court he 'just wasn't able to resist the urge that time'.
Economy Business Structure Management Systems thinking Design Bega Geography of Vojvodina Cooperative Strategic management Innovation Porter's five forces analysis This is an Essay / Project Essays / Projects are typically greater than 5 pages in length and are assessments that have been previously submitted by a student for academic grading.Download