Case Study Of Danone, An Agrifood Company

Amazing Essays
Industry Analysis

Goal/mission + Entry barriers
Danone is an Agrifood company. The mission of the company is to build a revolution of the alimentation and of the agribusiness. They also want to build a company more respectful of the environment.

For Danone, the health is a whole and not just a physical state. Health also integrate happiness, well-being and emotions. Alimentation is a key stake of health. Danone is aware of the cultural dimension of the alimentation in civilisations. Danone understand that alimentation is not only about physical needs but also about culture. Food is a big part of culture and Danone wants to respect it. This is why they have a lot of branch in a wide range of country (more than 300 branch worldwide). Danone
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Danone 2020 is a list of goals created in 2015 to specify the strategic priorities for 5 years and the way to work to achieve those goals. Danone wants to target every household. They do not want to do it by giving a general alimentation but a specific one of each household which fit with their culture. Danone want to give happiness by satisfying alimentation needs for every household in particular. Another strategical priority of Danone 2020 is to work for the planet and its living heritage. Danone want to build the future with what we already know joined to their achievement in research. Danone promote a particular way of doing business worldwide, with a lot of collaborators all around the world. Danone wants to build a friendly relationship with every collaborator. Danone understood that they need others to achieve goals as deliver drinkable water to everyone. This is the reason why they want to build a big friendship all around the world. For Danone, this is the fastest way to achieve goals as big as that. The other reason of this friendship is to keep a ‘human’ functioning in such a big …show more content…
They achieve 1,593 billion € of sales in this sector. It represents 7% of Danone’s turnover. The medical division’s turnover increase by +7,5% in 2015. Their operational margin in this sector is 17,95%. More than 65% of Danone’s sales in this sector are achieve in mature markets.
The top 3 of Danone brand’s which contributed the most to this growth are Fortimel, Ntrison and Neocate.
The top 3 of Danone’s operation countries which contributed the most to this growth are China, Brazil and United Kingdom.

Africa: biggest DANONE’s expansion
Africa represents more than 5% of Danone’s turnover, it is more than 1 billion€. 80% of this turnover is achieve by the fresh milk division. Morocco and South Africa are the main markets, but they are also present in Egypt, Tunisia, Algeria, Senegal, Nigeria, Ghana, Togo, Ivory Coast, Burkina Faso, Benin, Kenya and Tanzania. They are leaders of the fresh milk market in Morocco and south Africa, and leaders of the child nutrition sector in Morocco, Algeria, Tunisia and Egypt.
Danone bought some companies in Africa this year. The most significant are FanMilk (51% of shares, they control the company), Halayeb for Dairy Products and Juice (company specialized in cheese, the most dynamic fresh milk sector in Egypt) and Trefle (N°3 in Algeria for Fresh milk products).

Porter’s 5 forces
Threat of

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