Essay ZESPRI Case

4325 Words Apr 9th, 2014 18 Pages
Case Analysis-Zespri

Business Strategy
Dr. Jonathan Lee


1. Main issue
Zespri’s main issues are to maintain their leadership in the industry and to increase New Zealand kiwifruit exports to $3 billion by 2025. In order to reach the objective, in existing market, Zespri should increase per capita consumption through more focused marketing. They also need to find emerging markets, research on new varieties and improve the 12 months supply program.
2. Porter’s five forces
2.1 Degree of rivalry
The degree of rivalry is low. The four biggest kiwi fruit producing countries are China, Italy, New Zealand, and Chile. Despite of the higher production of China, it had
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Suppliers and Zespri are in the reciprocal relationship. They need each other and should go hand in hand in the future. Zespri should make effort to develop a good relationship with customers such as spending more money on promotion and making them well understand the value of New Zealand kiwifruit.
3. VRINE Analysis
3.1 Is it valuable? ----Yes
Zespri is a grower-owned corporation and the main supplier of the world’s third largest kiwifruit producer, New Zealand-grown kiwifruit. It had exported over 100 million trays of kiwi to more than 60 countries all over the world in the last one year, which meant the export value for Zespri was over $1.5 billion. (p. 1.) According to Zespri Group Income Statements from 2006 to 2010, Zespri had earned 25,890,000 NZD of net profit after taxation in 2010. Besides, Gold kiwi is sold by a price 30% higher than Green and Gold made up about 25% of Zespri’s sales. That is to say, Zespri has the capability to keep meeting the increasing demand of customers by supply chain management to gain long term shelf space and also has the resources to meet shoppers’ preference for sweeter alternatives by Taste Zespri Program and investments on R&D.
3.2 Is it rare? ----Yes
Kiwifruit market is a niche market which accounted for only less than one-quarter of 1% of global fruit production in all. In addition, Zespri focused on various attracting ads channels like transportable ads and tasting promotions which differentiated it

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