Business and Strategic Analysis of Warrnambool Cheese & Butter Factory Holdings Limited
1.1 Company’s Activities
Warrnambool Co. Limited is one of the leading producers of high-quality dairy products for the last 125 years. It is considered the oldest dairy producer and seller in the entire Australia Market. In addition, it longest existence in the marketing has led to its massive employment of the locals to work in its South-West Victoria site. The company started its operations from 1888 with all suppliers becoming its shareholders. The company has realized a significant rise in its operations since its commencement to date. Therefore, the Warrnambool has advanced its operations to incorporate its productions to include all dairy products …show more content…
1.3.1 SWOT analysis of WCB
The strength of WCB:
The company enjoys its strong competitive advantage accompanied better financial position. The overall strength of the company is drawn from its large production quantities and its wider market segment. The company’s longer existence in the dairy market together with its quality market makes its customers prefer WCB products. In addition, the company keeps its brand name and customers’ loyalty through its high values that ensure that consumers ' demands are met. The 50 percent export to the international market is a clear indicator of the position of the company in both internal and local markets.
WCB Weaknesses:
The main challenge facing the company is the decreasing supply of raw materials vis a vis the increasing demand of dairy products. This affects the production levels of the company thereby reducing its opportunities of satisfying its consumers. In addition, the increasing costs of production weakens the operation strategies; hence, the overall sales in the market. …show more content…
Threat of the new Entry: the company experiences various challenges from the entry of new dairy industries producing similar products in the market. In addition, the entry of different similar companies in the international market is also on the rise. ii. Bargaining Power of Suppliers: There is low bargaining power of the suppliers since the WCB also supplies their products to other factories. However, the milk suppliers have a higher bargaining power due to the high demand of the raw material. iii. Bargaining Power of Buyers: There is high bargaining power of the buyers because of the increasing capacity of the dairy products. However, WCB is sensitive of the high consumers bargaining power; hence, adjusts appropriately. iv. Threat of Substitute: It is evident that the dairy industry has a high threat of substitute. The introduction of new companies imposes high threat of the WCB’s products substitutes. Nevertheless, the WCB controls much of the local markets and the international
1.1 Company’s Activities
Warrnambool Co. Limited is one of the leading producers of high-quality dairy products for the last 125 years. It is considered the oldest dairy producer and seller in the entire Australia Market. In addition, it longest existence in the marketing has led to its massive employment of the locals to work in its South-West Victoria site. The company started its operations from 1888 with all suppliers becoming its shareholders. The company has realized a significant rise in its operations since its commencement to date. Therefore, the Warrnambool has advanced its operations to incorporate its productions to include all dairy products …show more content…
1.3.1 SWOT analysis of WCB
The strength of WCB:
The company enjoys its strong competitive advantage accompanied better financial position. The overall strength of the company is drawn from its large production quantities and its wider market segment. The company’s longer existence in the dairy market together with its quality market makes its customers prefer WCB products. In addition, the company keeps its brand name and customers’ loyalty through its high values that ensure that consumers ' demands are met. The 50 percent export to the international market is a clear indicator of the position of the company in both internal and local markets.
WCB Weaknesses:
The main challenge facing the company is the decreasing supply of raw materials vis a vis the increasing demand of dairy products. This affects the production levels of the company thereby reducing its opportunities of satisfying its consumers. In addition, the increasing costs of production weakens the operation strategies; hence, the overall sales in the market. …show more content…
Threat of the new Entry: the company experiences various challenges from the entry of new dairy industries producing similar products in the market. In addition, the entry of different similar companies in the international market is also on the rise. ii. Bargaining Power of Suppliers: There is low bargaining power of the suppliers since the WCB also supplies their products to other factories. However, the milk suppliers have a higher bargaining power due to the high demand of the raw material. iii. Bargaining Power of Buyers: There is high bargaining power of the buyers because of the increasing capacity of the dairy products. However, WCB is sensitive of the high consumers bargaining power; hence, adjusts appropriately. iv. Threat of Substitute: It is evident that the dairy industry has a high threat of substitute. The introduction of new companies imposes high threat of the WCB’s products substitutes. Nevertheless, the WCB controls much of the local markets and the international