Strategic Management: Business Level Strategies for NAMOI Cotton

This report provides a strategic analysis of NAMOI Cotton's business-level strategies. It delves into the application of integrated cost leadership, focused cost leadership, and differentiation strategies within the company. The report examines how these strategies contribute to NAMOI Cotton's competitive advantage, considering factors such as pricing, customer value, supply chain management, and market positioning in Australia and international markets. It also explores the company's focus on ginning technology, cotton marketing options, and its joint venture with Louis Dreyfus. The analysis evaluates the effectiveness of these strategies, referencing key academic sources to support its findings. The report underscores the importance of maintaining a strong market image and adapting to environmental changes to ensure long-term success in the competitive cotton industry. The report concludes by summarizing the strategies employed by NAMOI Cotton and their impact on the company’s overall performance and market share, emphasizing the importance of market segmentation and supply chain management.

Strategic Management

Strategic Management
Table of Contents
Business level strategies of NAMOI Cotton.............................................................1
Integrated Cost leadership strategy........................................................................1
Focused cost leadership strategy............................................................................2
Differentiation strategy...........................................................................................2
Analysis if the business level strategy.......................................................................3
References.................................................................................................................4
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Strategic Management
Business level strategies of NAMOI Cotton
The business level strategies provide value to the customers and also assist them to emphasize on
the competitive advantage by taking into consideration the core competencies in context to
particular products. This strategy is considered to create effective pricing and also enhance the
customer value which affects the overall success of the company. There are four business level
strategies like integration cost leadership, focused cost leadership, focused differentiation and
differentiation. This strategy should be considered by the company so that it can be simple to
accomplish goals and objectives in the competitive market. The business level strategies of the
NAMOI Cotton company are as follows.
(Source: NAMOI, 2018).
Integrated Cost leadership strategy
The cost leadership is considered as an effective business level strategy approach. In context to
NAMOI Cotton it has been seen that company offers low price products in the market and also
company focuses on maintaining the quality. The company offers services to buy the cotton
seeds from growers for the objective of the sales in domestic and international market. It has
been examined that company provides Cotton seeds to customers in Australia, china and Japan.
The supply chain network of the company allows the effective and efficient purchase of the
cotton seed by considering the growers and also delivers the product in domestic and internal
markets. The company is also considered as the leader of the market and the growth is achieved
in the Australian Market (Powell, Welsh and Eckard, 2017).
The company has approximately 12 operational cotton gins and also 3 warehouse facilities are
provided by the people that help to handle 1.5 million bales per season. It has been seen that due
to this company can easily attain the competitive advantage in the market. The company is also
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considered as the popular leaders in attaining the efficiency through ginning technology research
and development (Mo et al., 2018). There are many types of customers who are purchasing the
products of the company but it has been seen that to grow in the market the company has
maintained. This strategy helped the company to survive in the competitive market and given
competitive advantage to the company. This has not only enhanced the growth in the market by
also the profits of the company has been enhanced (Bijman, 2016).
Focused cost leadership strategy
This strategy is also considered by the company in which it has been seen that focus is given on
competing in the market based on the target market. The companies compete in the market by
considering the price and target market strategy. It has been analyzed that company focuses on
marketing cotton seed services in the rural regions of New South Wales and also in Southern
Queensland. By providing these services the companies can easily enhance the quality of the
product which not only maintain the image but also boost the productivity level (NAMOI, 2018).
Also the company focuses on minimizing the cost so that it can be simple to grab the large
market share. The company also focused on maintaining tight control over production and also
overhead costs. Tight control enhanced the production level of the company and also maintained
good image in the market. It also gives impact on the overall process of the company. It has
been seen that through this the company minimize the cost of sales and also in context to
research and development. The price of the company product is based on the internal efficiency
so that cost of buying the products can be minimized (Hill, Jones and Schilling, 2015).
To be the cost leader the company attained the strategy of reducing the cost of the services so
that it can be easy to accomplish goals and objectives. In this the companies not only compete in
relation to the prices but it has also been seen that small segment of the market is selected to
offer products and services in the market. Also this company servers the need of the producers
so that it can be easy to enhance the sale of the services in the market. The products which are
offered are of low price which helps to maximize the growth of the company (Salavou, 2015).
Differentiation strategy
The company considered the differentiation strategy by focusing on considering the joint venture
agreement with Louis dreyfus commodity. The grower services of the company are operated
from regional offices situated in wee waa more and Trangie and Goondiwindi. The
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differentiation strategy helps the company. It has been seen that this strategy has given
competitive advantage. The company has considered this strategy so that improvement can be
seen in the overall environmental changes and also in acquiring the new skills. The company
offer differentiated products in the market at low price which has given impact on the entire
functioning of the company (Brenes, Montoya and Ciravegna, 2014). The company has built
good image in the market with cotton growers and also internal spinning mills for the overall
procurement of the Australian cotton from farm gate to the end world markets. Namoi cotton
focuses on delivering the premium cotton to the internal spinning mills so that it can be easy to
manufacturer the products. The company has the link with the Australian growers and also with
the international spinning mills which helps to maintain the quality of the products in the market.
The company offers variety of cotton marketing options to the growers which also enhanced the
demand of the products in the market. The company also maintained the supply chain so that it
can be easy to distribute the products in the market. The supply chain of the company should be
maintained as it helps to distribute the products in a proper manner and it can be only done when
there is proper supply chain. So, the company emphasizes on maintaining the supply chain so
that distribution of the products can take place in a proper manner (Rueda, Garrett and Lambin,
2017).
Analysis if the business level strategy
By considering the business level strategies it has been seen that company offers products and
services at the low price in the market so that market share can be enhanced. Also the services of
the company are differentiated by maintaining the quality of the cotton and also the company
supplies the products to the international spinning mills. To enhance more growth into the
market it is important for the company to focus on all market segments like retail, industry and
government so that the strategies can be maintained for the long term. The company also
considered this strategy so that environmental changes can be taken into consideration. The
company has also maintained the image by offering the products at low price which maintained
the image of the company in the competitive market (Leonidou et al., 2015).
The company is known as the leaders in achieving the effectiveness through ginning technology
research and development. It is important for the company to maintain the image of the company
so that business can survive for long time in the competitive market. This strategy can be useful
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as through this it can be easy to market the products in the competitive market. It is the
responsibility of the company to maintain the structure so that profits can be maintained. The
differentiation strategy is also considered by the company as it helps to maintain the quality of
the services and products offered in the market. The company maintains the differentiation in the
market and just because of this the company achieved large market share which is beneficial for
the success of the company (Wheelen et al., 2017).
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References
Bijman, J., 2016. Agricultural cooperatives and market orientation: A challenging combination?.
In Market Orientation, pp. 151-168. Routledge.
Brenes, E.R., Montoya, D. and Ciravegna, L., 2014. Differentiation strategies in emerging
markets: The case of Latin American agribusinesses. Journal of Business Research, 67(5),
pp.847-855.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2015. Strategic management theory. Cengage
Learning,.
Leonidou, L.C., Fotiadis, T.A., Christodoulides, P., Spyropoulou, S. and Katsikeas, C.S., 2015.
Environmentally friendly export business strategy: Its determinants and effects on competitive
advantage and performance. International Business Review, 24(5), pp.798-811.
Mo, J., McDougall, S., Beaumont, S., Munro, S. and Stevens, M.M., 2018. Effects of simulated
seedling defoliation on growth and yield of cotton in southern New South Wales. Crop and
Pasture Science, 69(9), pp.915-925.
NAMOI., 2018.Cotton growing together. [Online]. Available at:
https://www.namoicotton.com.au/operation-services/cotton-marketing . [Accessed on 13
September, 2018].
Powell, J.W., Welsh, J.M. and Eckard, R.J., 2017. An irrigated cotton farm emissions case study
in NSW, Australia. Agricultural Systems, 158, pp.61-67.
Rueda, X., Garrett, R.D. and Lambin, E.F., 2017. Corporate investments in supply chain
sustainability: Selecting instruments in the agri-food industry. Journal of cleaner
production, 142, pp.2480-2492.
Salavou, H.E., 2015. Competitive strategies and their shift to the future. European Business
Review, 27(1), pp.80-99.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
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