Strategic Analysis and Competitive Advantage: Bellamy's Australia

This report provides a comprehensive strategic analysis of Bellamy's Australia, an organic food company. It begins with an introduction to the organic food industry and Bellamy's Australia's operations, including its market presence in various countries. The report then delves into the company's micro and macro environments, utilizing SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors. Furthermore, the report examines Bellamy's Australia's competitive advantages, highlighting its unique strategies and market positioning compared to rivals like Bega and a2 Milk. It also explores the application of Porter's generic strategies, including cost leadership, focus, and differentiation, and how these strategies contribute to the company's success. The report concludes with recommendations and a summary of its findings, offering insights into Bellamy's Australia's strategic approach in the competitive organic food market.

Running head: International strategic management
International strategic management

International strategic management
Table of Contents
Introduction.................................................................................................................................................3
Micro and macro environment....................................................................................................................4
Company’s competitive advantage over its rivals.......................................................................................6
Porter generic strategies.............................................................................................................................6
Diversification strategy................................................................................................................................7
Recommendations.......................................................................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8
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Introduction
The main aim of this task is to explain and outline the business activities and operations of the
organic food company. It shall be noted that organic food is one of the biggest industries in the
world. Bellamy’s Australia that is a organic food company has been taken in the task. The
company delivers organic food products to the customers in the Australian market in order to
attract maximum number of consumers. Along with this, the paper explains the SWOT analysis
and pestle analysis that help to analyze and identify the threats and opportunities of rivalries. In
addition, here is the discussion about the porter generic strategies that include cost leadership
strategy, focus strategy and differentiation strategy. These strategies help the company to manage
the business activities effectively. Moreover, the paper explains that how Bellamy’s Australia
uses diversification strategy in the marketplace. It discusses how this strategy provides
competitive benefits to the firm. More detail of the task have been discussed below.
The organic food industry plays a vital role in each and every country. Organic food is a food
produced and manufactured by the methods complies with the standards of organic farming.
Bellamy’s Organic is an Australian organic infant formula and baby food company and is the
parent company of Bellamy’s organic. The organization serves its products in various countries
such as Australia, China, Hong Kong, New Zealand, Malaysia and Singapore. Bellamy’s
Australia is a major food and beverage company in the world which was incorporated in 2014 in
Australia. It is the biggest organic infant formula producer in the world. The organization
structure of the company is unique and strong (Bellamysorganic, 2018). The company produces
organic food for the babies, young children and toddlers. The firm offers formula, and toddler
milk drink, snacks, cereals and rusks to serve baby food as well as powered milk products in the
Australian market. The organization sells its products to retailers and distributor in the country.
With effective organization structure, the company has been able to attract wide range of
consumers in the international market. The organization structure of the firm has been detailed
below.
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Micro and macro environment
Micro environment: The micro environment plays a significant role in each and every country.
Bellamy’s Australia focuses on the micro environment to beat the competitors in the market. The
company can control on the micro environment after considering the plans and policies of the
competitors. SWOT analysis is done by the organization to identify and analyze the threats and
opportunities of the market as well as competitors (Löfving, Säfsten and Winroth, 2014). SWOT
analysis stands for strengths, weaknesses, opportunities and threats. SWOT analysis for
Bellamy’s Australia has been discussed below.
Strengths
 The company is performing well in today’s competitive world. The firm uses unique and
effective strategies in the global market.
 High level of customer satisfaction is one of the significant strengths for Bellamy’s
Australia.
 The company has become successful and effective by focusing and analyzing the
marketing.
 Strong and unique distribution network.
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 Effective and unique leadership team to conduct business activities and operations
successfully.
 It has a strong and unique base of reliable and trustful suppliers of raw material therefore;
the company has been able to provide supply of the products.
 Strong and dynamic free cash flow (Rothaermel, 2015).
Weaknesses
 The profitability ratio and net contribution percentage of Bellamy’s Australia are below
the industry average.
 Intense and high competition in the global market. Along with this, organizational
structure is not compatible and well matched with present business model.
 The company needs more investment in new technologies and resources.
 There are huge gaps in the product range sold and offered by the firm.
Opportunities
 Organization’s core competencies can be a successful opportunity for the organization.
 Decreasing cost of transportation is one of the biggest opportunities for Bellamy’s
company.
 New trends in the consumer behavior can provide a good opportunity to the firm for
expanding and flourishing the business effectively.
 The new and innovative technology provides an opportunity to Bellamy’s Australia
limited to distinguish the pricing strategy in the international market.
 Online channel also provides a great opportunity to the firm for maximizing the
profitability and revenue (Bull et al, 2016).
Threats
 Immense and high competition exists in the global market.
 New environment regulations and norms under Paris agreement might be a threat to
certain existing product categories.
 Changing consumer behavior can be biggest threat for Bellamy’s limited.
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Macro environment: This environment affects the success and growth of the in a large extent.
The company cannot control over the macro environment factors because these factors are
uncontrollable. Pestle analysis is done by the firm to analyze and evaluate the market conditions,
risks and threats of the competitors. Pestle analysis for Bellamy’s Australia has been detailed
below.
Political factors: These factors play a significant role in determining the profitability and
success of Bellamy’s Australia. The company is operating in food, beverage and tobacco in
various countries. Thus, various political factors affect the progress of the firm. The company
needs to focus on the rules, regulations and norms that have been made by the Australian
government. The political factors include level of corruption, political stability, risk of military
invasion, antitrust laws, and tax rates and incentives (Morris and Metternicht, 2016).
Economic factors: There are various economic factors such as inflation rate, savings rate,
exchange rate, interest rate and employment rate could affect the outcomes and revenue of the
firm. Bellamy’s Australia limited can use country’s economic factors such as inflation, growth
rate. The company should consider the various factors while initiating the business activities and
operations. It needs to focus on the exchange rates, government intervention, exchange rate,
economic growth rate and discretionary income. It will help to overcome the competitors in the
Australian market.
Social factors: The social factors include culture, values, beliefs, customs, and tradition of the
people that could affect the business activities and operations of the firm adversely as well as
positively. The society’s culture and way of doing things impact on the culture of the firm.
Shared values and beliefs of the population play a major role in how the marketers at Bellamy’s
Australia will understand and evaluate the customers of a given time period and how they design
marketing message for the food, tobacco and beverage industry consumers. The company should
focuses on the various factors such as skill level of the population, culture, attitudes, leisure
interests, gender and age of the people while implementing the new business operations (Grade,
2013).
Technological factors: Technological factors play a significant and effective role in order to
attract new and existing employees within the organization. On the other hand, technology is
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quickly disrupting the various industries across the world. As the same way, it also affects the
sustainability and revenue of the Bellamy’s Australia. Latest and new technology shall be used
by the company when producing new and innovative products in the international market.
Bellamy’s Australia must not only do technological analysis of the industry but also the speed at
which the technology disrupts that industry. It will help to strive with competitors in the global
market. Recent technology shall be developed by company to gain competitive advantages in the
marketplace (Pomeranz, 2013).
Environmental factors: The different countries have different norms and standards which can
impact on the progress and profitability of the firm. Before entering in a new market or
implementing new businesses in existing market the firm must focus and analyze the
environmental standards that are essential to operate in those markets. Bellamy’s Australia
should focus on the weather, climate change, air pollution to reduce and eliminate the future
risks and challenges.
Legal factors: There are ample of legal factors that influence the progress and target of the firm.
Bellamy’s Australia must focus on the legal factors to stay in the competitive market. No
company can survive and grow its business without analyzing and evaluating the legal factors.
The legal factors include antitrust law in food, beverage and tobacco industry, copyrights, patent,
health and safety law, consumer protection law and e-commerce (Aurand, 2013).
Company’s competitive advantage over its rivals
In today’s competitive world, the firm is increasing and enhancing the revenue and profitability
day by day. The competitors could affect the sustainability and outcomes of the firm adversely.
The company can gain various competitive advantages by analyzing and evaluating the plans,
policies and strategies of the competitors. The main competitors of the firm include Bega, a2
Milk, Make school, and GREE (Obolensky, 2017). These competitors may influence the
activities and operations of the Bellamy’s negatively. Bellamy’s Australia is making unique and
innovative strategies to beat and hit the competitors in the global market. It uses unique
packaging strategies to cope up with competitors. It shall be noted that the company differentiate
its products from the competitors to attain competitive benefits in the rivalries market. It has
made a unique position in the Australian market which provides a competitive advantage to the
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firm. Along with this, the firm provides organic food at appropriate prices to attract and increase
the number of customers. Pricing strategy can be an effective rivalry advantage for Bellamy’s
Australian limited company.
Porter generic strategies
After the various researchers, it has been analyzed that Bellamy’s Australia uses porter generic
strategies to attain maximum level of outputs and results in Australian market. By using generic
strategies, the company has been able to become a global leader in the organic food industry
(Bryła, 2015). The porter generic strategies that are used by Bellamy’s Australia have been
detailed below.
Cost leadership strategy: This leadership strategy helps the organization to meet the long term
goals and objectives effectively. Cost leadership is establishing a competitive advantage by
having the lowest cost of activities and operations in the organic food industry. This leadership
strategy is developed by Michael porter. By using this strategy, the company has been able to
identify the plans and actions of the competitors. Along with this, lower price is charged by the
organization to increase and enhance the maximum number of clients in the global market. This
strategy also helps in expanding the market share of Bellamy’s Australia. Under this strategy, the
firm focuses on the prices of the competitors to distinguish the prices of the organic products and
services from the competitors. The company can set the suitable and appropriate prices of
organic products by initiating the cost leadership strategy (Teeratansirikool et al, 2013).
Focus strategy: One of the significant strategy that used by Bellamy’s Australia is Focus
strategy. This strategy is used by the firm to focus and identify the demands, needs and
requirements of the target audience. It is one of the three generic marketing strategies that
increase revenue and growth of the firm (Dubuisson-Quellier, 2013). By using this strategy,
Bellamy’s Australia can satisfy the needs and requirements of the consumers in the international
market. Furthermore, this strategy increases and enhances the morale and confidence of the
customers towards the organization. This strategy also helps in making a dynamic image in the
eyes of the target audience. The focus strategy is divided into two parts such as differentiation
focus and cost focus (Brenes, Montoya and Ciravegna, 2014).
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Differentiation strategy: Under this strategy, marketing campaigns and programs are conducted
by Bellamy’s Australia to attract maximum number of consumers globally. By using this
strategy, the company provides information related to quality and aspects of the products to the
consumers in the marketplace (Davcik and Sharma, 2015). The differentiation strategy helps the
firm to differentiate its products and prices from the competitor’s products and prices. This
strategy involves differentiating it from competitor’s product as well as company’s own
products. Under this strategy, Bellamy’s Australia renders organic food and beverage products
for the different customer segments in the rivalries market (Grant, 2016).
Diversification strategy
After the various studies, it shall be noted that Bellamy’s Australia uses diversification strategy
to diversify its organic food and beverage products in the huge market. Mainly, the firm uses this
strategy to enter in the new market (Neubert, Wu and Roberts, 2013). By using this strategy, the
company has been able to produce various types of food and beverage products in the
international market. This strategy provides a wide range of benefits to the investors and
consumers as well. The diversification strategy protects the capital from the wild swings of the
market while attaining long term goals and objectives (Grade, 2013). If the company focuses on
the products and plans of the competitors the diversification strategy can become successful.
This strategy helps to increase and enhance the market share of the firm. By using this strategy,
the firm can reduce and eliminate the risks and challenges of the market (Karneta and Gultom,
2017). Besides this, Bellamy’s Australia has been able to produce new and innovative organic
products with the help of diversification strategy. No company can expand and explore the
business activities and operations without using diversification strategy at the workplace (Bauer,
Heinrich and Schäfer, 2013).
Recommendations
Although Bellamy’s Australia limited is attaining long term goals and objectives but still it needs
to focus on the management to make a strong financial position in the marketplace. Some of the
recommendations have been stated below.
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 It shall be noted that Bellamy’s Australia should focus on the management to attract and
retain maximum number of customers in the marketplace.
 Effective and dynamic promotional and advertisement strategies shall be used by the
organization to attract and retain ample of consumer in the international market.
 Apart from this, effective and unique packaging strategies shall be used by the company
to promote and encourage the organic products and services.
 Porter five forces analysis must be done by the Corporation to identify the level of
competition in the universal market (Bolman and Deal, 2017).
 Training and development sessions and seminars shall be conducted by Bellamy’s
Australia to attract talented and potential employees in the marketplace.
 Feedback and reviews shall be collected by the firm from the consumers to improve the
quality and features of the products. In this way, the company can make strong goodwill
in the Australian market.
 Leadership styles must be used by the Corporation to supervise and guide the employees
for doing work effectively and efficiently(Antonakis and Day, 2017).
Conclusion
On the above mentioned analysis, it has been evaluated that Bellamy’s Australia is one of biggest
brand in the Australia. It provides various types of food, beverage and tobacco products to the
consumers in the country. The above mentioned analysis shows that how the uses pestle analysis
and SWOT analysis to reduce and avert the challenges and risks of the marketplace. Besides this,
porter generic strategies are used by the firm to meet the long term objectives and targets and
further, this strategy helps to destroy the competitors in the market. The paper explains the
diversification strategy that is used by the company in the global market. At the end, some
business and functional level recommendations have been given to become successful in near
future.
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and private brands: More hype than substance?. Journal of Business Research, 66(8), pp.1035-
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