Osi’s Group

OSI’s Group

OSI’s core competencies on the food processing area are knowledge of operations and supply chain best practices, access to better technology and knowledge of safety and management practices. Their overall main strength lies in their large network of suppliers and the strong relationships they cultivate with all their partners and customers. With 3 primary processing facilities and 16 further processing facilities around the world OSI possesses global presence, recognition and local knowledge of different markets which is crucial to successfully operate in many countries like China.

If OSI was to work directly with retailers they risk damaging their reputation due to the unreliable cold chain logistic providers in the country.  Moreover, they would be competing with other companies that do not produce high quality meats and therefore are able to offer their products at lower prices. Attempting to reach retailers of restaurant chains at this stage without a brand that represents their production quality and safety standards would not be a smart choice.

The best option for OSI would be to first develop its brand in China to open the doors to the Chinese direct to consumer market and future exporting opportunities. The article explains that there is now greater consciousness around health habits and that there are customers who are willing to pay for higher quality foods in China. OSI is behind many large companies with global recognition such as McDonalds and KFC however because of the way in which they have worked they remained unknown and their efforts unrecognized by the consumer sector. Focusing on their areas of expertise such as food product development, supply chain management, global culinary expertise and global markets knowledge would help them build a brand image that can be taken globally because of its large network.

Exhibit 10 and 11 show the large increase expected in all meat sectors in the organized retail category and the expected growth in China’s export. This data demonstrates the opportunity that lies in Brand management and exporting. One of the concerns in exporting the remaining 80% of chickens that are not sold to QSR consumers is getting consumers around the globe to accept the chicken produced in China. European countries and the US have higher regulations and consumers have a lot of skepticism when it comes to purchasing food from China, for this reasons it those targets would not be ideal. Moreover, the logistics involved in shipping across the globe are nor profitable. When exporting, OSI should focus on the Asia Pacific Market, using Japan acceptance a guideline as most countries will follow now that Japan consumers accept OSI’s quality.

Among its current competitors are some well-known brands that similar in scale and function like Tyson and Keystone foods but do not serve Global QSR’s like OSI. This is a competitive advantage that OSI could use to create its image and increase its market share in ASPAC as Global QSR’s like McDonalds and KFC have rigid quality requirements that are comparable to Western standards.