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Copy of Zespri
Transcript of Copy of Zespri
Rivalry Among Competition
Bargaining Power of Suppliers
Threat of New Entrants
Bargaining Power of Buyers
Main exporter of New Zealand kiwifruit to all markets
Owned by 2,700 current and past kiwifruit growers
One product line - can concentrate all efforts here
Consistently deliver a quality product - premium consumer brand
Long-term relationships with distributors
Small niche product
Targeted investment in innovation
'Canopies' for growing
Tools for using their products
Threat of Substitute
Brand strength and size.
Country of origin
New Zealand and growing expertise.
Willingness to invest.
Relationships with growers
Blue Ocean Strategy Concept
Recommendations & Implementation
Zespri Five Forces Analysis
Potential legal issues associated production, marketing, and competition.
Sustaining market poisition and market dominance.
Global sourcing results were disappointing.
Global outsourcing must triple in size in order for Zespri to double in size.
PSA can and has caused major supply setbacks.
Higher production in Chile and China
Reassess overall business target.
Market kiwis from multiple origins, not just NZ
Lowers risk in case of environmental factors
License 'Zespri System' to growers in other countries
Northern and Southern Hemisphere
12 month supply of quality fruit
Continued focus on satisfying strong Asian & Western Europe demand.
Look to break into low comsuming but populous India & Indonesia.
Look to supply new higher income areas - Middle East & Eastern Europe.
Focus on health benefits for mothers/health conscious individuals.
Provide samples and promotions
Grading system to educate about and push sweeter premium fruits.
Product Development of Sweeter Fruits and Push a Blue Ocean Strategy.
Increased product Variety and Innovation.
Continue to Develop Year Round Cultivars.
Target higher income nations such as Middle Eastern Countries.
Create a grading systems
Take advantage of South America and the Caribbean growing capabilities.
Marketing push in the US.
Push new benefits of fruit and extended in store promotion.
Provide funding to research/eradicate PSA.
1930's - 40's
Niche market opportunity.
Room for growth in existing markets.
Greater industry collaboration.
Alliances with international competitors and retailers in export locales.
Technological opportunity for increased efficiency.
Recommendations & Implementation
Current Market Situation
9-month growing season
Marketing/focus limited to saturated markets
High production and distribution costs
Relatively small growth in orchards compared to competition
Internal grower conflicts
•The growing of quality
Kiwi fruit relies on the correct
•Cost and Difficulty
Lack of marketing investment
Enza and other global supplier groups.
Zespri needs to maintain its position to be a price setter.
Growers hold political power and must be kept satisfied.
Provides great quality fruit, research diseases and growing processes, set prices, and market their brand.
Demand for fruit can be seasonal/based on trends.
Products are homogeneous
Industry is not the foremost supplying group for buyers.
Buyers have little bargaining power currently because of the Zespri SPE, or single point of entry procedure that regulates pricing.
Competition, Enza or Other Fruit
Threat of Legislation Spurred by
Number of diseases (PSA,
Enza and other global supplier producing a homogeneous product.
China - Increasing productivity.
US: Decreasing production
Success depends on Zespri's marketing and different value proposition.
Lower production costs
Chile. Attempting to follow the Zespri model.
Kiwi fruit makes up 1% global fruit sales.
Easy to switch - Not the most practical nor aesthetic fruit.
Zespri has first mover adv.
Zespri has IP protected brands
Takes time to develop uniquely flavored fruit, so low level threat.
Porter's Five Forces
Zespri future guide.
European and Mediterranean Plant Protection Organization
(4) The NewZealand Institute for Plant & Food Research Ltd., 2010, Let’s Beat PSA, Retrieved on 2.18.12 from http://www.plantandfood.co.nz/page/lets-beat-psa/our-psa-research/new-cultivars/
(6) Fresh Fruit Portal, Nobody wins with PSA disease, January 6th, 2012, retrieved on 2.19.2012 from http://www.freshfruitportal.com/2012/01/06/nobody-wins-with-psa-disease-says-chilean-kiwifruit-chief/
(5) McShane, G. April/May 2011, Americafruit Magazine, retrieved on 2.19.2011 from Fmit quality set to detennine Chilean sucoess - Chilean Fresh Fruit ...
(2) Enza, About US, retrieved on 2.20.2012 from http://www.enza.co.nz/templates/Enza/Page____768.asp0x
(1) Alvarez, J., Shelman, M. January 13th, 2012. Zespri, Harvard Business School, Doc ID# 1059-1388-657B-0002657C
(7) Dole Worldwide, Company Information, retrieved on 2.20.2012 from http://www.dole.com/CompanyInformation/AboutDolee/DoleWorldwide/LatinAmericaandCaribbean/tabid/1297/Default.aspx
References - Content
References - Images
Largest threat to NZ production.
Effects both Green and Gold. Green is more susceptible.
Vines under 5 years old are more at risk.
Contaminated vines have to be incinerated and all tools sterliized.
Effects many kiwi producing areas but reasons for severity are not well understood.
Prevention is costly and not 100% effective.
Possible that warmer temps over 77 degrees F are less conducive for PSA.
Look to increase supply to the US to take advantage of large high income market and weakening domestic production.
Either done through cheaper South American growers or through the US due to its limited & declining grower numbers.
Continue to develop new cultivars and techniques which can be protected by intellectual property rights.
Push development of Sweeter Fruits and Push a Blue Ocean Strategy.
Sweeter, high quality fruit that is difficult to replicate.
Redefine the market for kiwi fruit.
Invest resources in to researching PSA and other biological threats to kiwi production.
Focus on improving political relations with non Zespri NZ growers to reduce the threat of Zespri being disbanded.
Kiwi fruit is a small niche - US$3.4bn in sales representing 1% of global fruit market.
Producer countries are biggest consumers with Western Europe being the largest import market.
High population countries with growing affluence (USA, India & Indonesia) are small consumers.
Producers split by Hemisphere due to growing seasons.
Many global growers suffer from domestic price cutting competition, lack of organization and inefficiency.
Competition and low yields have resulted in declining kiwi fruit growing areas in some countries such as the US.
Industry & Zespri timeline
Current Zespri & market situation.
SWOT, Five Forces & Blue Ocean.
Alternatives to current strategy
Short and long-term recommendations.