Birds Eye And The Uk Frozen Food Industry Summary
CASE 8: Birds Eye and the UK frozen food industry
1. Why did Birds Eye develop as a vertically integrated producer? When Birds Eye started business, during the early 50’s, the frozen food industry was a completely new market, where still was needed to develop some major issues. During this period the industry was growing really fast, around a 40% per annum. In order to maintain and sustain its growth, Birds Eye needed a very efficient and reliable supply chain. The strategy of vertically integration allowed the company to secure their high demand of raw material supplies, distribution of their products and maximizing production capacity. Another point for integrating vertically is the increasing barriers for new entrants in the industry.
1. Why did Birds Eye develop as a vertically integrated producer? When Birds Eye started business, during the early 50’s, the frozen food industry was a completely new market, where still was needed to develop some major issues. During this period the industry was growing really fast, around a 40% per annum. In order to maintain and sustain its growth, Birds Eye needed a very efficient and reliable supply chain. The strategy of vertically integration allowed the company to secure their high demand of raw material supplies, distribution of their products and maximizing production capacity. Another point for integrating vertically is the increasing barriers for new entrants in the industry.