Strategic Analysis of A2 Milk

Running head: STRATEGIC ANALYSIS OF A2 MILK
STRATEGIC ANALYSIS OF A2 MILK
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1STRATEGIC ANALYSIS OF A2 MILK
Table of Contents
Introduction:....................................................................................................................................2
Company overview:.........................................................................................................................2
Macro-environment analysis:..........................................................................................................3
Political factors:...........................................................................................................................3
Social factors:..............................................................................................................................3
Economic factors:........................................................................................................................3
Technological factors:.................................................................................................................4
Legal factors:...............................................................................................................................4
Environmental factors:.................................................................................................................4
Porter’s five force analysis:.............................................................................................................4
Threats of New Entrants:.............................................................................................................4
Bargaining Power of Suppliers:...................................................................................................5
Bargaining Power of customers:..................................................................................................5
Threats of Substitute Products or Services:.................................................................................5
Rivalry among the Existing Competitors:...................................................................................5
Conclusion:......................................................................................................................................5
References:......................................................................................................................................6

2STRATEGIC ANALYSIS OF A2 MILK
Introduction:
The aim of this report is to discuss the overall business of A2 Milk which offers a type of
processed milk in Australian market. This company has been fully operating from the 2000s in
this region and had spread in the market of New Zealand, the US, the UK and China. The
products offered by this company has unique target market. Including the pregnant women and
infants who need milk proteins the most. This report will discuss the business valuation of the
company in focusing the market of Australia and compare its position in the dairy industry of the
country. It will identify the threats and opportunities of the company by analysing the macro
environmental factors and Porter’s five forces analysis.
Company overview:
The a2 Milk Company was established in 2000 by Dr. Corran McLachlan in New
Zealand. The company has a strong as well as well established market in Australia. This
company provides a leading premium fresh milk brand which is available in all the major
supermarkets of Australia. It has a grocery value market share of close to 10%
(Thea2milkcompany.com 2019). This company has launched a2 Platinum service in 2013 which
is the leading infant formula rand of the country with 32% market share. In the later part of
1980s, the founder explores that the peptides like those of casein, are created during the digestion
of the milk that have negative or positive health effects. This is the reason why The A2 Milk
Company offers a processed cow milk that lacks the forms of β-casein proteins or A1 but has
mostly A2 form in the products (Thea2milkcompany.com 2019). This type of processed milk is
found in the regions of Australia, New Zealand, the United States of America, the United
Kingdom and China.
The company has been investing extensively in the brand across 2018 financial year both
in the product development as well as in the marketing. It has invested in the highest national
brand advertising expenditure in gaining the strong editorial media coverage a in one hand and in
the infant fresh milk and other formula categories. After the launch of a2 Platinum in the 2018
financial year, the company has grown its market position with the new products launched 4
junior milk drink and Premium a2 Milk powder blended with Mānuka honey as well as a2
Platinum® Premium Pregnancy milk formula (Thea2milkcompany.com 2019). Along with the
offerings in the Australian region, the company has entered the countries like New Zealand,