Ferguson Dairy Company Case Summary
6.1 - Rivalry among competitors in industry
Observing the picture number 2 (1st point) is possible to analyze the rivalry among competitors in the industry.
Before the innovation the firm was in a particular “economic environment” because the regions in which the company operate, like Lazio, Toscana and Umbria, are very famous for the production of foodstuffs, in particular for wine, oil and cheeses.
This means that before the innovation the company had a lot of direct competitors to manage, and maintain a good position in the market was not simple.
After the innovation, the dairy has assumed a significant position compared to other companies.
First of all, the relationship between fixed and variable costs. Both are decreased, because the …show more content…
Indeed between products of the same value, clients would choose the cheaper.
After the innovation Fattorie di maremma has based its business on quality, in this way if it has a high price respect to the other company, it will not cause a problem.
6.3- Supplier bargaining power.
Looking the 3rd point of the figure we can analyse the supplier bargaining power. This is also one of the most important aspect to analyse.
Before the innovation the cheese factory appraised the very high costs concerning the taxes, so its principal supplier was the state. In addition, it had other additional costs to buy goods useful for the production. After the innovation, with the solar energy, it has been able to satisfy all its energy requirements, further it has a lot of primary resources like plants, lands and animals, that produce raw material to do business. In this way the firm can be self-sufficient, so independent from other suppliers.
6.4- Threats of new entrants.
The 4thpoint examines the danger of new entrants.
Before the innovation a lot of entrepreneurs could open this kind of activity, the most important
Observing the picture number 2 (1st point) is possible to analyze the rivalry among competitors in the industry.
Before the innovation the firm was in a particular “economic environment” because the regions in which the company operate, like Lazio, Toscana and Umbria, are very famous for the production of foodstuffs, in particular for wine, oil and cheeses.
This means that before the innovation the company had a lot of direct competitors to manage, and maintain a good position in the market was not simple.
After the innovation, the dairy has assumed a significant position compared to other companies.
First of all, the relationship between fixed and variable costs. Both are decreased, because the …show more content…
Indeed between products of the same value, clients would choose the cheaper.
After the innovation Fattorie di maremma has based its business on quality, in this way if it has a high price respect to the other company, it will not cause a problem.
6.3- Supplier bargaining power.
Looking the 3rd point of the figure we can analyse the supplier bargaining power. This is also one of the most important aspect to analyse.
Before the innovation the cheese factory appraised the very high costs concerning the taxes, so its principal supplier was the state. In addition, it had other additional costs to buy goods useful for the production. After the innovation, with the solar energy, it has been able to satisfy all its energy requirements, further it has a lot of primary resources like plants, lands and animals, that produce raw material to do business. In this way the firm can be self-sufficient, so independent from other suppliers.
6.4- Threats of new entrants.
The 4thpoint examines the danger of new entrants.
Before the innovation a lot of entrepreneurs could open this kind of activity, the most important