Strategic Analysis of Fonterra: Boosting Market Share in the Agribusiness Sector

Fonterra

Fonterra
Executive summary
It has been observed that it is important for the companies to emphasize on considering the
different strategic concepts as it will help in boosting the market share in the competitive market.
The company selected for the task is Fonterra. In this paper there are various models that are
discussed in this paper such as VRIO MODEL, PESTLE ANALYSIS and also competitive
analysis is made so that it could be easy for the company to maintain the market share in the high
level of competition. The paper has highlighted the key competencies that will help the company
to grow in the market.
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Fonterra
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................2
Business units and product lines......................................................................................................2
External environment analysis.........................................................................................................3
Political factor..............................................................................................................................3
Economic factor...........................................................................................................................3
Social factor.................................................................................................................................4
Technological factor....................................................................................................................4
Environmental factor....................................................................................................................4
Legal factors.................................................................................................................................5
Internal analysis...............................................................................................................................5
Capabilities of Fonterra...................................................................................................................5
Core competencies...........................................................................................................................6
Competitive advantage identification..............................................................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Fonterra
Introduction
It is important for the organization to emphasize on controlling operations by taking into
consideration internal and external aspects so that it could easy to consider the strategies. The
organization chosen for assignment is Fonterra which is known as largest organizations in the
Agribusiness sector. The organization has a large market share in the Australian market and it is
one of the ASX listed company.
This report emphasizes on the external and internal business environment in relation to Fonterra
Company. The core competencies and competitive advantage will also be discussed in the next
part of the paper. The last part of the paper will elaborate the recommendations that should be
considered by the company so that competitive advantage can be attained.
Fonterra Company is known as the largest organizations in the Agribusiness sector. The
organization emphasizes on the dairy production and also provides dairy ingredients and services
according to the requirement of consumers. The activities of the company are managed by more
than 21,400 workers in Australia and in New Zealand. The director of the organization is Theo
Sperings ( Fonterra, 2019).
Business units and product lines
There are various business units of the organization in the market of Australia. The different
units of the company are concerned with Fonterra brands, NZMP ingredients, Anchor Food
Professionals and Fonterra Milk Supply. By having the diverse business units it can be seen that
the demand of the different segments can be fulfilled. The company is also emphasizing on
fulfilling the needs of the consumers of the diverse product portfolio.
By taking assistance from NZMP, the organization provides dairy products to the food
manufacturers and the organization cater the need of domestic and industrial platform. The
overall revenue of the organization is more than 1.120 Billion and the overall revenue is created
from different units such as customer segment, food segment and supply segment. There are
different customer’s brands that assist in maintaining the brand value of the company (Fonterra,
2018).
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