Zespri Corporate Strategy: Single Product, Broadly Engaged Across the Value Chain

Corporate Strategy: Single product, broadly engaged across the value chain (60 countries and 17 offices)

Industry: Global kiwifruit industry

Business-Level Strategy: Differentiation (premium price)

Issues: Over the next 15 years they want to double sales ($3 billion of sales by 2025)

1.5(1 + r)15 = 30, r = 4.73% (reasonable based on passed growth

External Analysis

Stakeholders: Growers, end users, government, competitors, retailers

Political:

• New Zealand government
• Trade agreements between countries
• Shipping regulations
• Tariffs and taxes

Economic:

• GDP/Disposable Income
• Exchange rates in countries where kiwi is sold

Social:

• Kiwi is considered a “Superfruit”
• Trend towards healthy living (“Foodies”)
• Affordable luxury product
• NZ as a pristine land
• NZ national identity

Technological:

• Transportation and logistics
• Research and development
• Biology research

Environmental:

• Agricultural capabilities
• Green movement

Legal:

• Patents on new products

SUMMARIZE

Zespri advertises kiwi, which is a commodity. Competitors gain as well (not only Zespri). Growers and suers of kiwi benefit, as do retailers, creating a demand to have Zespri kiwi products on shelves. This creates higher margins

Porter’s Five Forces

SUMMARIZE

VRIO