ZESPRI is an international company which is currently the leader in the industry. Their localization into the Bay of Plenty is part of its strategy, as 80% of NZ kiwifruit are produced there. The company is a leading marketer worldwide. They export in 60 countries, such as in China, Japan, and Europe, and sell over 390,000 tons of kiwifruit each year. In general, the sale volume of kiwifruit increased in all the countries they exported in. ZESPRI represents 30% of the whole traded volume, and the company is still growing year after year thanks to increasing demand. The main markets are Japan, Spain, Germany, and Korea.
The strategy to have a large portfolio of export countries engenders fewer risks. They employ over 130 staff in New Zealand and 100 offshore. They have great awareness and notoriety. Their Label allows customers to recognize their products. The brand name is the result of a complex thought (attractive, distinctive…) pronounceable in different languages.
They have different size, different quality, different tastes, depending on Orchard management practices, weather and harvest date… ZESPRI also use special growing techniques. They emphasize on quality and their control system is complex. The most famous variety is the Gold kiwifruit (more profitable with a higher price). They constantly research on new cultivars creation. Innovating is really important for the company. All varieties have intellectual properties (patent, license). They deliver a fruit with a unique flavor and soft texture. Furthermore the products' attributes are an advantage and they communicate largely on it (vitamin C, low fat…). All products are traceable. The quality of the kiwifruit have huge advantages such as repeat customer purchase (increase revenues) and also lower fruit loss (reduce costs). The price of the fruits depends on demand and exchange rate. They charge a premium price and use a grid pricing. Products are valued by customers and customers are loyal.
[...] Strategies POTENTIAL STRATEGIES ZESPRI has different potential strategies to follow. Some of them are the following: - Growth in existing markets ZESPRI will focus on high value markets. For example: on Japan and Asia, at the same time as continuing to deal with key European countries. They will also improve their relationship with distributors and retailers to negotiate better contracts. - Relationship with cultivators Cultivators will continue to be the shareholders. The brand will also invest in other industries, such as transportation, water… to help the industry. [...]
[...] Strategic management of ZESPRI Table of Contents I. Current Performance Analysis and Evaluation…………………………………….…..p1 II. External Factors Analysis Summary: Five Forces Model of Competition…….……..p2 III. Internal Factors Analysis Summary: Resources and Competencies………...………p4 IV. Strategies……………………………………………………………………………..….p5 V. Business Model Design and/or Revision………………………………………….…….p6 I. Current Performance Analysis and Evaluation ZESPRI is an International company which has a position of leader in the industry. Their strategy was the localization into the Bay of Plenty, as 80% kiwifruit are produced in NZ. The company is a leading marketer worldwide. [...]
[...] The company has a good management to create engagement. Each personnel care about the business. The system of quality control is well managed, and there is only few fruit loss. In all steps of the supply chain, ZESPRI is eco friendly. They well manage their knowledge and capabilities to make things happen in an ethical way. Another competence of ZESPRI regarding the supply chain could be the knowledge and techniques they use to store the product. All products arrive in stores in the best condition. [...]
[...] Horizontal development. |Opportunities |Risks | |Premium price |Expensive costs | |New markets |Long time | |New customers |Investments | |Differentiation |New competitors | V. Business Model Design and/or Revision. [pic] - Customers segments This is the target, to reach to people and to serve. A company should have profitable targets. The company has to study its target and understand their needs to reach to them in a better way. ZESPRI is well known. They export in 60 countries. The company uses a “premium price” positioning, and customers are willing to pay for the good quality. [...]
[...] Substitutes limit profits. The threat is increasing: - Beverages made with kiwifruits - Other juices - Other fruits - The buyer looks for low cost - Switching costs are low RIVALRY AMONG EXISTING COMPETITORS New products introduction, price discounts, advertising campaign... High level limits profitability of the industry. We have to look at the intensity with which companies compete and on the basis on which they compete. There is high level of rivalry: - There are a lot of competitors. [...]
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