3. Current Poultry Market in Mexico and the United States of America
Michael Porter in 1980 formulated the model of the five forces trying to synthesize the theories based on the industry to develop strategies (Vargas-Hernandez, Guerra, and Bojorquez Bojorquez, 2014). In their model, Porter considers external and internal factors that determine the performance of the firm. Also raises a number of strategies depending on the conditions of the industry a company can do to be successful. In the following lines will aim to break down each of the five forces model to describe the situation of Bachoco in Mexico and the United States. As a diagnosis of these factors can determine the attainment of its objectives which are aimed to have a high market …show more content…
In reality, there is not a strong threat of potential entries for the poultry industry has little incentive to entry, although it does not require extra investment to start a business in this industry. The effect it may have on the market the entry of a new competitor is very low. There are high risks of losses since the products are meat and require special treatment and specific buyers are somewhat faithful manner to current brands in the market. In fact it can be considered that there are an optimum number of producers because there is more that could saturate the market of products and this affects consumer …show more content…
It has nothing particular in economic theory; it is simply a niche that is drawing attention for the potential purchase of all Mexicans migrants. Best of all, especially for Bachoco is that the Mexican market in the US is mainly is concentrated among eight states which makes access, distribution and advertising easier to apply (Monterde and Romero, 2014). However, the distance is still a limiting factor for Bachoco.
Bachoco's Plans to expand into US territory are not myths. Having bought OK Industries, Bachoco is in constant evaluation in order to acquire new plants and reaching the target market is being proposed (El Financiero, 2014). Hernández and Vázquez (2009) say that the regions Northwest and Peninsula are the key for global participation because they are the ones with the certifications of the US government disease-free States. This factor is an important point because they are currently presenting flu bird cases in that country and this can help encourage exports of Mexican chicken to one side of the
Michael Porter in 1980 formulated the model of the five forces trying to synthesize the theories based on the industry to develop strategies (Vargas-Hernandez, Guerra, and Bojorquez Bojorquez, 2014). In their model, Porter considers external and internal factors that determine the performance of the firm. Also raises a number of strategies depending on the conditions of the industry a company can do to be successful. In the following lines will aim to break down each of the five forces model to describe the situation of Bachoco in Mexico and the United States. As a diagnosis of these factors can determine the attainment of its objectives which are aimed to have a high market …show more content…
In reality, there is not a strong threat of potential entries for the poultry industry has little incentive to entry, although it does not require extra investment to start a business in this industry. The effect it may have on the market the entry of a new competitor is very low. There are high risks of losses since the products are meat and require special treatment and specific buyers are somewhat faithful manner to current brands in the market. In fact it can be considered that there are an optimum number of producers because there is more that could saturate the market of products and this affects consumer …show more content…
It has nothing particular in economic theory; it is simply a niche that is drawing attention for the potential purchase of all Mexicans migrants. Best of all, especially for Bachoco is that the Mexican market in the US is mainly is concentrated among eight states which makes access, distribution and advertising easier to apply (Monterde and Romero, 2014). However, the distance is still a limiting factor for Bachoco.
Bachoco's Plans to expand into US territory are not myths. Having bought OK Industries, Bachoco is in constant evaluation in order to acquire new plants and reaching the target market is being proposed (El Financiero, 2014). Hernández and Vázquez (2009) say that the regions Northwest and Peninsula are the key for global participation because they are the ones with the certifications of the US government disease-free States. This factor is an important point because they are currently presenting flu bird cases in that country and this can help encourage exports of Mexican chicken to one side of the