Bellamy Strategic Management Executive Summary

Running head: Strategic management

Strategic management 1
Executive Summary
Bellamy’s strengths and business’s operations are contributing to its success. The company has
various products are all the products are available in good quality. The given report helps to
evaluate Bellamy's strategic position using models and frameworks. In the given report to
describe the macro environment for the company, PESTLE analysis is used. To evaluate
company's strength against competitors, Porter's five force analysis is used. Through the analysis
company's ability, strength and position can be known and can be used to get the sustainable
competitive advantage. Company's resources and competencies can also be used to get the
competitive advantage. VRIO framework is also used to identify the elements that can give the
competitive advantage to the company.
Bellamy
Strategic
management

Strategic management 2
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Macro-environment analysis.....................................................................................................4
2.1 Political..................................................................................................................................4
2.2 Economic...............................................................................................................................4
2.3 Socio – cultural......................................................................................................................5
2.4 Technological........................................................................................................................5
2.5 Environmental........................................................................................................................6
2.6 Legal......................................................................................................................................6
3.0 Competitive analysis..................................................................................................................7
3.1 Threats of new entry (low)....................................................................................................7
3.2 Bargaining power of suppliers (medium - high)....................................................................8
3.3 Bargaining power of buyers (Low)........................................................................................8
3.4 Threats of substitutes (low)...................................................................................................9
3.5 Industry rivalry (Medium).....................................................................................................9
4.0 Strategic capabilities..................................................................................................................9
4.1 Competitive advantage..............................................................................................................9
5.0 Bellamy’s resources and competency......................................................................................10
5.1 VRIO analysis......................................................................................................................11
6.0 Conclusion...............................................................................................................................12
References......................................................................................................................................13

Strategic management 3
1.0 Introduction
The given report focuses on strategic analysis on Bellamy, An Australian organic food
producer. The company is founded in 2003 in Launceston, Tasmania and headquarter of the
company is also allocated in Launceston, Australia. It is one of the largest organic food
producers in Australia. This company was the first entrant in an organic food industry. In 2004,
Bellamy produced first organically certified baby food and in 2005 it produced first organic baby
formula. Bellamy is providing nutritious organic choice to children(Morgans, 2015). The
company provides a range of organic food products for young children, babies, and toddlers. The
basic philosophy company follows to teach good eating habits to children from the beginning. A
healthy diet helps to develop the healthy mind. Bellamy is a certified organic which produces
food products that do not include harmful chemicals. The company does not use chemical
pesticides, chemical fertilizers, and artificial addictive and genetically modified organisms. All
the organic food products are prepared and packed in Australia. Bellamy is known for its high-
quality products. The company follows the concept of complete nutritious diet methodology that
helps for healthy development. In only Australia, the company has more than 4400 outlets
including Woolworths, Coles, Big W, Terry White and Costco(Bellamysorganic, 2017).
Laura McBain was appointed as CEO. Previously she has worked with numerous
companies and got experience from different industries. The products of the company are
distributed in Vietnam, Australia, Singapore, Hong Kong, China, Malasia and New
Zealand(Bellamysorganic, 2017). The Company is operating from last 14 years and has
developed the good reputation in the market. According to results of social media research in
2016, the company was recorded as the best baby food producer(Annualreports, 2016). The
revenue of the company is increasing year by year. In Australia and in China the revenue growth
was high. Some products of the company are toddler milk, infant formula, pasta, ready to eat
pouches, cereals, baby rice, cinnamon breakfast, brown rice pasta, fruit snacks, vegetable
macaroni, baby porridge and much more. Revenue of the company was recorded on 30 June
2015 as $125302000 and in 2016 the revenue of the company was $244583000 which means the
revenue has been enhanced by 95%(Annualreports, 2016). The company is looking for
expansion of its operations. Mainly the company’s revenue is coming from offshore.