Hamdi Ulukay Founder Of The Yogurt Industry
Winifred Ode Afrane
Professor Germaine Albuquerque
Business 201, Section 002
February 3rd, 2014
Assignment 1 Hamdi Ulukaya the founder of Chobani said when he loved yogurt, the thick kind and that was what he was eating when growing up in Turkey where his mum made it from their family's dairy farm but when he moved to the United States, he found the American yogurt was too sugary and watery so he made some at home himself. He one day came across an advertising yogurt factory for sale in his mail which was a junk mail and decided to even tho he didn't have enough money to buy and re innovate the factory but bought the factory and used the competitive advantage of managing a business to make Chobani a successful. Hamdi Ulukaya innovated
a Greek yogurt in America because the America yogurt was watery and sugary and also wanted to bring something new into the production of yogurt industry by obtaining loan from the bank to finance it and immediately hired a master yogurt maker from Turkey and hired four employees from the factory he bought , Kraft. They made private-label American-style yogurt as a contract manufacturer to finance which is also part of innovating to bring in revenue. Quality of the Chobani yogurt was also one competitive advantage Hamdi Ulukaya took into advantage by hiring a master yogurt maker from Turkey to make the yogurt. The company spent two years two years perfecting their recipe and worked hard to get the packaging right by getting the Europe container which a wider and squatter because the American yogurt containers were having narrow openings. Service, by the late 2007, they were ready to provide services by stalking the yogurt in to the market and firstly decided to put the yogurt in the mainstream grocery than put it into the specialty stores and also stocked them in the dairy aisle together with other yogurts. They also negotiated with retailers to pay off the slotting fees over time as the yogurt was sold. Speed, delivering of Chobani was growing because withing a couple of weeks after it was launched, the company started getting orders for 5,000 cases and they started to make more of the yogurt than selling more it. Over the next 18 months they found measures to increase the capacity of the factory without making investment and because the company couldn't buy new equipment, they went around the country to buy used equipment and also retrofitted their filling machine,the big constraint on their plant in order to handle 100,000 cases every week. Cost Competitiveness, the company was able to keep costs low in order to achieve profits and to also be able to offer prices that are attractive to consumers. They did this by limiting their capital investment by relying on manual labor instead of automation or machines example is the finished cups of yogurt were hand-packed in cartons and also made sure the employees and the milk suppliers were paid every Friday. They also made sure every cup of yogurt sold gave the company free cash. Sustainability, Chobani was able to sustain in the market because the made sure not to allow other investors into the company but also putting the consumers into consideration has been able to sustain the company and also his employees and also learning some thing from private equity has helped Hamid Ulukaya to make decisions concerning the company and its sustainability. In conclusion, Hamid Ulukaya the founder delivered all types of performance by making sure he put measures there like not allowing investors into the business and also producing quality packaging and products and their quick success has made bankers willing to fund the growth of the company.
Professor Germaine Albuquerque
Business 201, Section 002
February 3rd, 2014
Assignment 1 Hamdi Ulukaya the founder of Chobani said when he loved yogurt, the thick kind and that was what he was eating when growing up in Turkey where his mum made it from their family's dairy farm but when he moved to the United States, he found the American yogurt was too sugary and watery so he made some at home himself. He one day came across an advertising yogurt factory for sale in his mail which was a junk mail and decided to even tho he didn't have enough money to buy and re innovate the factory but bought the factory and used the competitive advantage of managing a business to make Chobani a successful. Hamdi Ulukaya innovated
a Greek yogurt in America because the America yogurt was watery and sugary and also wanted to bring something new into the production of yogurt industry by obtaining loan from the bank to finance it and immediately hired a master yogurt maker from Turkey and hired four employees from the factory he bought , Kraft. They made private-label American-style yogurt as a contract manufacturer to finance which is also part of innovating to bring in revenue. Quality of the Chobani yogurt was also one competitive advantage Hamdi Ulukaya took into advantage by hiring a master yogurt maker from Turkey to make the yogurt. The company spent two years two years perfecting their recipe and worked hard to get the packaging right by getting the Europe container which a wider and squatter because the American yogurt containers were having narrow openings. Service, by the late 2007, they were ready to provide services by stalking the yogurt in to the market and firstly decided to put the yogurt in the mainstream grocery than put it into the specialty stores and also stocked them in the dairy aisle together with other yogurts. They also negotiated with retailers to pay off the slotting fees over time as the yogurt was sold. Speed, delivering of Chobani was growing because withing a couple of weeks after it was launched, the company started getting orders for 5,000 cases and they started to make more of the yogurt than selling more it. Over the next 18 months they found measures to increase the capacity of the factory without making investment and because the company couldn't buy new equipment, they went around the country to buy used equipment and also retrofitted their filling machine,the big constraint on their plant in order to handle 100,000 cases every week. Cost Competitiveness, the company was able to keep costs low in order to achieve profits and to also be able to offer prices that are attractive to consumers. They did this by limiting their capital investment by relying on manual labor instead of automation or machines example is the finished cups of yogurt were hand-packed in cartons and also made sure the employees and the milk suppliers were paid every Friday. They also made sure every cup of yogurt sold gave the company free cash. Sustainability, Chobani was able to sustain in the market because the made sure not to allow other investors into the company but also putting the consumers into consideration has been able to sustain the company and also his employees and also learning some thing from private equity has helped Hamid Ulukaya to make decisions concerning the company and its sustainability. In conclusion, Hamid Ulukaya the founder delivered all types of performance by making sure he put measures there like not allowing investors into the business and also producing quality packaging and products and their quick success has made bankers willing to fund the growth of the company.