As buyers are large supermarket chains for the most part, they have their own distribution networks which lessens the chance of dairy manufacturers integrating forward, once again strengthening the buyer’s position. As demand for dairy products is high due to it being a dietary staple, buyers are incentivised to stock them reducing their power Supplier Power Dairy farmers are key suppliers are the key suppliers with little real differentiable, alternatives with the exception of organically produced milk which attracts a premium. These farmers usually supply cooperative movements in the processing and packaging companies. The impact of rising milk prices are even a threat to these big processing companies that have to use futures markets to limit exposure to milk price fluctuations. This makes switching costs high among suppliers increasing their power.
Dairy Industry The dairy industry in India has been existent for centuries as a tradition for the major population of Indian rural households. People have been domesticating animals and using them for farming purposes for time long-established. The contribution of Milk to the national GDP is much more than any other farming activity or by-product with a staggering figure of 10.5+ billion dollars as of year 1994-96 (Source: Dairy India, 97). Milk has been a boon for over 70 million farmers in more than 5,00,000 remote villages (Source: Dairy India, 97) as it has provided them with supplementary income. Milk has also been beneficial in terms of nutritional advantages and thus it has been critical to people who are suffering from malnutrition
In 1831 they moved to a bigger factory with access to all the canal ports in Britain. In 1905 Cadbury launched its infamous “Dairy Milk” Chocolate, and in 1920 the colour of the packaging changed to the purple we know today. The Bourneville village in which Cadbury had first started still has many ties to Cadbury, even though Cadbury has been bought out by American mega-corporation, Mendelez International. Cacao Farming (SLIDE 3) Cacao beans grow in climates such as Latin America, Asia and West Africa, countries in West Africa such as Ghana and Ivory Coast produce more than 60% of the world’s cacao. (Slide 4) There has recently become a large demand for cheap cocoa, this is due to the growth of the chocolate industry.
2.1 History of Wincanton Plc Wincanton was founded as a transport and Engineering in 1925. The head office of Wincanton is located in Wiltshire, United Kingdom and has a total number of 17,500 employees. Wincanton business originally consists of the maintenance of dairy plant and equipment for the milk industry. However, in 1929, the company changed its name to Cow & Gate, and diversified into milk haulage, tanker distribution and the distribution of fuel in 1950. Between 1970- 2010, Wincanton Plc controlled distribution for manufacturers, expand its logistics services, acquired Glass Glover (1993), listed in London Stock Exchange (LSE) in 2001, acquired P&O Trans European in 2002, MidiData in 2004, Swales Haulage in 2007 and Product Support
The company had 837 stores at the end of August 2016 located in Japan and is presently considered a major global brand with over 1000 stores around the world. ("Our story | UNIQLO", 2018) INTERNATIONAL PRESENCE Uniqlo has been equally fortunate in its business Internationally since opening its first store outside Japan in 2001. Currently they have 958 stores around the world, the maximum being 560 in China, Hong Kong and Taiwan combined, 173 in South Korea, 144 in Southeast Asia and Oceania, 36 in Europe and 45 in the U.S. New store openings have been especially rapid in Greater China and Southeast Asia. Uniqlo established Fast Retailing (Jiangsu) Apparel Co., Ltd. in China after separating from its parent company for its global operations. In 2002, Uniqlo opened four abroad outlets in London, England alongside their first Chinese outlet in Shanghai.
Inditex went public in May 2001 and it was valued close to €13 billion by May 2002. It operated around 1,284 stores worldwide by 2001 and 54% of the revenue came from the stores outside Spain. It employs around26,000 employees worldwide which includes around 11,000 employees outside Spain. Zara’s methodology Business system Zara, by 1990 had expanded throughout Spain and started to establish itself internationally. It invested heavily in IT and logistics, which would later come as major help for the brand.
“Ampawa”… The Story of Quality Fresh Coconut Milk Asiatic Agro Industry Co., Ltd was established on October 4, 1994, and throughout its 22 years, Asiatic has been processing and exporting agricultural products of Thailand and is recognised in 77 countries around the world. The company remains its focuses in product development and innovation, particularly products from coconut. With production and processing plants located in the heart of Thailand’s coconut plantation area of 161 Rai in Amphawa district, Samutsongkhram province, the company processes nearly 200,000 coconuts or nearly 100 tonnes a day, which is equal to 60-70 coconuts a year. Food Focus Thailand had the opportunity to visit the factory producing “Ampawa” - 100% coconut milk
Competitor Analysis Marigold, is the market leader in fresh dairy and beverage market in Malaysia, however it is not entirely dominated by its own brand. There is existence of a few numbers of beverage and fresh dairy milk competitors. Dairies products are considered very low degree of differentiation with competitors. Therefore, customers are allowed to compare products’ quality and especially price, is the factor that customers considered the most between the competitors’ products. The intensity of competition in dairy industry is very tough (UK Essays, 2015).
It is one of the main shareholders of L’Oréal, the world’s largest cosmetics. So, partnering with other food giants will help the company in further growth. 4.THREATS Competitor: Two main competitor of Nestle are Haleebfoods and Enfrofoods which causes threat for the company. New entrants: The growth is the market segments can attract new entrants. Political and economic issues: The demand on a product can be reduced due to economic and politically our country Pakistan is not a stable country.