Blue Skies Case Study

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2. BLUE SKIES’ DECISION TO LOCATE PRODUCTION OPERATION IN GHANA Blue Skies, though it is headquartered in the UK, has located one of its production operation in Ghana, West Africa. We will assess the usefulness of this decision by employing the framework for determining optimal location. Considering the cost and easy accessibility to markets, it was Ghana that stood tall in these. Ghana had offered a direct route major European markets. This makes it easier for Blue Skies to employ freight services to conveniently reach its consumers. The cost of freight services to Europe is relatively cheaper thus, cost-wise, it was prudent to settle with Ghana. With regards to inputs and government incentives, Ghana produced larger quantities of pineapple for export. Though countries like Ivory Coast and Costa Rica exported more, Ghana was the leader in the air-freight export business. Also, Ghana had a more liberalized trade policy comparative to that of other considerable countries. This serves as an incentive to engage in international trade with European countries while in Ghana. In a market which was considered niche, Blue Skies was able to differentiate its offerings as well as reduce operational and location cost. Considering these points, …show more content…

Consumers are sensitive to price changes due to the lack (or low level) of differentiation of these agricultural products. Also, most customers determine the quality of the pineapple by its taste. This was a major factor to why customers changed their preference from the Smooth Cayenne to the MD2 which is sweeter. The ability of firms to access the market key to being relevant in the industry. Due to this, some firms store the pineapples in fridges, despite the reduction in taste, in order to make them accessible when demanded. Some of the factors the case might have failed to mention are advertisement and delivery

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