...Zespri: Case Analysis 1 Key Issue Zespri, a Kiwi exportation company, is faced with a dilemma: the company wishes to expand their capital, however they are facing a declind in superiority in the fruit market. They wish to control the market by keeping Zespri brand products on the shelves of stores all year round, rather than just seasonally. Furthermore, Zespri is incurring costs from exporting that are preventing them from optimal expansion. Internal Analysis The VRINE model is based on the assumption that competitors in an industry cannot change their resources and capabilities quickly or easily. Value, Rarity, Inimitability, Nonsubstitutability, and Exploitability are attributes that are considered to provide the basis for a competitive advantage. Is it valuable? Zespri has a unique format that makes the company valuable. The company is based on a grower-owned design, which makes it a highly sophisticated design model. Zespri is based on long-term partnerships with suppliers and throughout the value chain. Global demand increased due to the nutritional value and the exotic taste of the fruit. Kiwifruit was the most nutrient dense fruits among all of the popular fruits. Growers have an advantage over other locations because the New Zealand environment allows them to develop an understanding of how to provide the best product and high quality fruit. Also, New Zealand had dominated the global production of kiwifruit due to the development of the green-fleshed...
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...04-75-498-01 Strategic Management Fall 2015 Zespri Case Analysis Due Date: October 26th, 2015 Instructors: Prof. Jonathon Lee Group #5 Deryck Devogelaere Xiwen Guo Tianxiao Tang Zihao Huang Zheng Leung Introduction Zespri is a company that is located in New Zealand, it is more specifically a grower-owned business. In 1992 the industry suffered and growers carried all of the risk, to counteract this issue, innovation and product differentiation had to occur. In 1997 the company unveiled itself as Zespri International Limited. The focus of this case is however is related to the CEO Jager, who was elected the position is 2008 by the board of directors. Jager’s idea is to increase the exporting of kiwi’s by $3 billion by 2025, and how Zespri will achieve this goal. Achieving this goal will ultimately face many challenges such as; maintaining a leading position in the industry, developing strong brands and implementing marketing techniques that differentiate from competition, all the while establishing recognition of Zespri’s products. Throughout the case we will analyze the challenges and offer possible solutions for Zespri to consider. The way we will analyze this case is implementing the VRINE and 5 forces model. Additionally we will look at internal, external and financial factors that affect Zespri, both currently and long term. Lastly with the use of the financial statements we will project financial reports and assess the possibility of increasing the exports...
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...Case report --- Zespri 04-78-651 Professor: Jonathan Lee Submitted by: November 1, 2014 1. Key issue Zespri, as a world-renowned brand of kiwifruit, is facing some difficulties in the future growth of the company and looking for ways to maintain its leadership position in the increasingly competitive kiwifruit export industry. To be specific, Zespri wants to increase its kiwi export to $3 billion by 2025(double the export), which means Zespri needs to triple the size of global sourcing. On the other hand, Zespri has to figure out how it can differentiate itself in the future development. 2. Internal & external analyses To further analyze Zespri’s existing issues, the internal and external analyses should be done. And the VRINE Model and Porter’s Five Forces Model, as well as CAGE Distance Framework are used in the following report. 2.1 Internal analysis --VRINE analysis * Growing techniques The growing techniques supported by the technical program improve the quality of New Zealand kiwifruit. The sweeter taste meets customer needs and creates value to them. Thus the capability is valuable and rare, because the supply of sweeter kiwi by these growing techniques is relatively scarce compared to competitors from other countries. But it is imitable and substitutable in the long run. New Zealand growers have successfully exploited its capabilities to increase the quality of kiwi and earn profit through sales increment. * Investment in innovation ...
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...Summer 2015 Instructor : Prof. Lucas Wang Case Analysis # 1: Zespri Group # 2: Peida Yang, 103613868 Yaan Zhu, 104126891 Yongxin Pu, 104108802 Colton Boros, 103953326 Tatiana Tuzlova, 103084152 Introduction Zespri is a grower-owned corporatized cooperative based out of New Zealand. The company, which was introduced in 1997, is focused solely on delivering and marketing Kiwifruit. Zespri was founded out of necessity by New Zealand's Kiwifruit growers after the price of kiwifruit declined and the industry faced a disaster. Zespri is owned by 2,700 current and former kiwifruit growers, and is governed by an eight member board elected by the shareholders. In 2008, Lain Jager was elected CEO of Zespri, the first person from inside the kiwifruit industry to be elected as CEO by the board of directors. The focus of this case is the CEO of Zespri Group Limited, Lain Jager, wanting Zespri to increase New Zealand kiwifruit exports to $3 billion by 2025, and how Zespri plans to achieve this. On the way to realizing this commitment, Zespri faces many challenges. From maintaining its position as the leader in the industry which has seen a huge growth globally, especially in China, Italy, and Chile, to the business side of developing strong brands that differentiate from the competition and establish recognition of Zespri's products. We will look in depth at these challenges, and offer possible solutions for Zespri to pursue. Through the use of analysis models, including the VRINE...
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...Zespri Group Limited is a grower owned main exporter of New Zealand grown kiwi. New Zealand was the world’s third largest kiwifruit producer and held a 30% share of the global trade market. Zespri had experienced strong growth in Asia where consumers were willing to pay top prices. Zespri had strict growing standards, quality control systems and invested in consumer branding and innovation. Kiwi fruit came to New Zealand in 1904, it was discovered that the monotonous soil and temperate climate produced high yields of large fruit, which once harvested in the fall ripened over a long period of time in the winter. With increased production, growers needed to find new markets to sell their kiwifruit. In the late 1970’s commercial growing started in Italy, France, Japan, U.S., Chile and several other countries. Since 2000 the world production of kiwifruit had increased by 75%. The four largest producers of kiwifruit in 2010 were China, Italy, New Zealand, and Chile. Zespri’s Objectives: Zespri was the leading marketer of kiwifruit worldwide and there main objective was to maintain its leadership position and to meet Zespri commitment to increase New Zealand’s kiwifruit exports to $3 billion by 2025. In order to do this there global sourcing needs to triple in size. Another one of Zespris goals was to help growers adopt the best technology and growing practices. Zespri focused mainly on growing great tasting, healthy, growing the number of people around the world who regularly enjoy...
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...Key Issues Zespri is one of the largest producers of kiwifruit, located in New Zealand it produces Green, Gold, and Organic Green and Gold kiwifruit seasonally in New Zealand and from globally sourced producers. As the number one exporter in New Zealand of kiwifruit it continues to grow globally with focus on quality, innovation and marketing. Recently, competition has increased with new innovation and new brands. One of key issues for Zespri is if they are on the right path to maintain its leadership position and increase its commitment to increase exports to $3 billion by 2025. The other is if Zespri is to double in size, it will need to triple its global sourcing needs to satisfy demand when New Zealand fruit is out of the market. Macro Analysis PESTEL analysis can help us determine important features associated with the specific industry. Political: Regulations on exports were created by the New Zealand Kiwifruit Marketing Licensing Authority, with hopes of eliminating New Zealand Origin Kiwifruit competing against itself. As well as the Kiwifruit New Zealand exclusively authorizing Zespri to export New Zealand fruit. Turners & Growers, a New Zealand fruit marketing company, added kiwifruit to their global brand and legally attempted to challenge the SPE structure that critical for 90% of Growers future success. Economic: The exchange rates between critical markets in the Kiwi industry is considered as Zespri sells products in different currencies...
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...Analysis: Zespri Submitted to: Dr. Jonathan Lee Submitted by Group #5: Lifang Huang 104005864 Wei Li (Sherry) 104018790 Rong Shang 104050190 Le Zhang 104010354 Weicheng Zhao 104048973 November 10th, 2014 Major Issues Zespri is the main exporter of New Zealand-grown kiwifruit and the leading marketer of kiwifruit worldwide. As the global demand for kiwifruit increased, there is much room for Zespri to grow both in emerging markets and in existing markets. However, the major issue Zespri faces is that if it is on the right track to maintain the leadership position and to achieve the commitment to increase New Zealand kiwifruit exports to $3 billion by 2025. There is another issue in terms of Zespri’s global sourcing program. According to Jager, the CEO of Zespri, the global sourcing needs to triple in size if Zespri wants to double in size to satisfy demand when New Zealand fruit is out of the market. Zespri needs to figure out how to keep its competitive advantages and increase profitability. Internal Analysis VRINE Model There are several unique resources and capabilities that Zespri possesses, which makes it more competitive than its competitors. Zespri’s products are Zespri Green, Zespri Gold and Zespri Green and Gold, which are all of high quality. Besides, Zespri is a grower-owned business whose strategy includes an integrated supply chain, a premium brand, targeted investment in innovation and twelve-month supply. Value Zespri is valuable...
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...|Section |Section Title |Pages | |1.0 |Executive Summery | | |2.0 |Company Data- | | | |Name & Address- | | | |History- | | | |Company size- | | |3.0 |Product to be exported | | |3.1 |Product category | | |3.2 |Product description | | |3.3 |Present Annual sales | | |4.0 |Strengths...
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...ZESPRI CRITERIA AND OPTIONS + RECOMMENDATIONS DECISION CRITERIA The decision criterion for Zespri is how it can expand its presence on a global scale, and what other applications for the Kiwifruit there can be. With Zespri’s presence as marketing firm that markets premium kiwifruits that have been subject to several quality standards to ensure consumer’s satisfaction; its product line is limited to only four products. Its expansion can be derived by targeting and engaging in emerging markets like Iran, building its presence through was such as engaging in community outreach, as well as strategic partnerships in different markets in different countries. The decision is based on the fact that there are many uses and benefits of the kiwifruit, and it has the potential and rewards that appeal to certain markets that it does not have a presence in. One potential for expansion in Canada and the United States and markets that have not yet been touched in Europe, and in emerging markets like India and Indonesia is through their juice and smoothie markets, and enhanced flavor water with Kiwifruit flavor. The juice and Smoothie Bars industry has been steadily growing as a relatively new niche industry yielding revenues of $2.4 billion in the American market(http://planetsmoothiefranchise.com/learn-planet-smoothie/big-smoothie-industry/); it still shows capacity to grow. A way to enter that industry is to use smoothie bars, or incline themselves with established organizations like...
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...endorsement. "Food miles" refers to the distance between where the food is grown and where it is eaten. Supermarkets today sell fresh fruit from South America and frozen meat from New Zealand - and everything in-between! Many food products contain ingredients or components that have traveled across the world and thus accrued many food miles. Transporting food burns fuel and produces greenhouse gases, which in turn causes climate change. The CO2 produced during this process, is referred to as the 'carbon footprint' – how big a mark it makes on the environment. However, it is not as straightforward as just looking at the miles: if the alternative to shipping naturally-ripened fresh produce over thousands of kilometers is to produce it closer to home but in very energy-intensive greenhouses, is this better? It may be that there are carbon-neutral greenhouses powered by renewable energy sources in the near future which go some way towards answering this. In "Real insights" the public discussions at COP15 in Copenhagen on the impacts of food production and distribution on climate change are discussed. On top of the environmental concerns, there is also the ethical question of taking away the livelihoods of farmers from poorer regions of the world who grow crops for export. This discussion falls into the concerns voiced by some groups about food sovereignty. As with other consumer products in the world, food products and their manufacturers are now coming under closer...
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...Purple Cow Transform Your Business By Being Remarkable Seth Godin visit Penguin at: www.penguin.com e penguin about the author Seth Godin is the author of four worldwide bestsellers including Permission Marketing, Unleashing the Ideavirus and Survival is Not Enough. He is a renowned public speaker and is contributing editor at Fast Company magazine.You can find him at www.sethgodin.com This is a work of fiction. Names, characters, places, and incidents are either the product of the author’s imagination or are used fictitiously, and any resemblance to actual persons, living or dead, business establishments, events or locales is entirely coincidental. Purple Cow Portfolio Book / published by arrangement with the author All rights reserved. Copyright © 2002 by Do You Zoom, Inc. This book may not be reproduced in whole or part, by mimeograph or any other means, without permission. Making or distributing electronic copies of this book constitutes copyright infringement and could subject the infringer to criminal and civil liability. For information address: The Berkley Publishing Group, a division of Penguin Putnam Inc., 375 Hudson Street, New York, New York 10014. The Penguin Putnam Inc. World Wide Web site address is http://www.penguinputnam.com ISBN: 0-7865-4431-7 PORTFOLIO BOOK® Portfolio Books first published by Penguin Publishing Group, a member of Penguin Putnam Inc., 375 Hudson Street, New York, New York 10014. Portfolio and the "Portfolio" design are trademarks...
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