Insight into Bellamy’s Australia Limited: Strategic Management

Running head: MANAGEMENT
Strategic Management
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Executive Summary:
The objective of the report is to provide an insight into Bellamy’s Australia Limited; an
Australia based manufacturer of infant formula. The report commences with a brief introduction
of the company information. A Porter’s competitive analysis shows that the company is highly
competitive within the industry in which it operates. The report also helps in identifying the
business level and the corporate level strategies of the firm. The report also leads to the findings
that strategies implemented based on the ideas put across by Porter’s and Mintzberg results in
improved strategy formulation. The report also puts across recommendations for developing new
capabilities that helps it in adapting to the changing environment of the industry.

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Table of Contents
Introduction:....................................................................................................................................5
Background Information..................................................................................................................5
Major Industry within which it competes:.......................................................................................6
SWOT Analysis of the Firm:...........................................................................................................7
Porter’s Five Forces for Determining the Competitiveness of Firm:............................................10
Commitment towards Environmental Ethics.................................................................................13
Challenges Faced by the Firm.......................................................................................................13
Economic Condition of the Firm...................................................................................................14
Distinctive Features of Business Level and the Corporate level Strategies of the Firm that
determines Success........................................................................................................................14
Ensuring Improved Strategy Making in Future Guided by Porter and Mintzberg........................16
Recommendations for Development of New Capabilities to Adapt to Changing Industry
Environment..................................................................................................................................19
Conclusion:....................................................................................................................................20
References:....................................................................................................................................22

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Introduction:
The report aims at providing an insight into Bellamy’s Australia Limited. Bellamy
Australia Limited, initially known as Tasmanian Pure Food Ltd represents a major food and
beverage company based in Australia (bellamysorganic.com.au, 2019). It is the parent company
of the Bellamy’s Organic which is one of the biggest producers of organic formula for the
infants. Bellamy’s has been a company based in Tasmania that produced 100 percent certified
Australia made organic food. Bellamy’s distributes its product range to the pharmacy,
supermarket chain and the medical stores across the Australian subcontinent. It also undertakes
direct online sales to the consumers online through sales portal. It also undertakes export of its
products in Hong Kong, China, Malaysia, Singapore, New Zealand and Singapore. Due to the
increased demand of its product, the company also opened office in Singapore as well as
Sanghai. The report focuses on the major industry of competition, porter’s five forces for
determining competitiveness; business and corporate level strategies, proposals for improved
strategy making and recommendations for developing newer capabilities for adapting to new
environment.
Background Information
Bellamy’s began as the Bellamy’s Organic in the city of Launceston, Tasmania in the
year 2003 as family operated firm. Bellamy’s Organic was however taken over by Tasmanian
Pure Foods in the year 2007 which represented a private business that had the aim of investing in
and building Tasmanian food and agribusiness (bellamysorganic.com.au , 2019). Later, in 2014,
Tasmanian Pure Foods had been renamed as Bellamy’s Australia. An immensely successful July
got the company listed in the Australian Stock Exchange (ASX). Huge trading and over 30

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percent rise in the initial prices of shares proved that the company’s launch resulted in
outstanding success by the commentators of the financial industry.
The product range of the company included infant formula that included toddler milk,
follow on formula, baby porridge, baby rice, cinnamon breakfast and apple, teething rusks, baby
macaroni, brown rice pasta and spelt pasta, fruit and grain snacks, readymade meals for babies
and the vegetable macaroni(bellamysorganic.com.au , 2019). The products are available for three
age groups that include the newborns between 0 to 6 months, the infants between 6 to 12 months
and toddlers between 1 to 3 months. In the year 2014, the company underwent an expansion of
its range and included the organic milk products for children in the age group of 3 + years. This
was a supplementary food for the children that was made to complement not only the dietary
needs of the toddlers but also the children who might require additional nutrients and energy.
Major Industry within which it competes:
The major industry with which Bellamy Australia Limited competes is the organic food
and beverage industry which shows a substantial amount of growth as per the reports of 2019
(austorganic.com, 2019). According to a conducted research by Mobium Group and Nielsel
Company, the organic food market grows at a rate of $1 billion on a yearly basis. Health and
beauty, dry grocery and dairy comprises of half the sales of the organic market. Further research
has put across that increase of product availability along with additional convenience of retail
channels has led to the increasing level of frequency of the organic purchasing that helped in
adding newer consumers. It is the food products that acted as one of the entry points of the
Australian consumers into the organic food industry. In other words, the organic food and
beverage industry is thus considered a booming industry in recent times.

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The top three competitors of Bellamy’s Australia Limited are a2 Milk, Bubs Australia
and Synlait. The a2 Milk is one of the biggest rivals of Bellamy’s. Bubs Australia competes with
Bellamy’s in the field of Food Processing. Synlait which is one of the prominent competitors
generates closer to 254 percent revenue of Bellamy’s.
Figure 1: Diagrammatic Representation of the Growth of the Organic Market
Source: (Lobo, Mascitelli & Chen, 2014).
SWOT Analysis of the Firm:
The SWOT analysis refers to internal as well as external analysis of the firm. The
internal analysis refers to the strengths and weakness whereas the external analysis refers to the
opportunities and threats.
Strengths: