Value Chain Analysis is the particular process by which a business organization identifies the primary and support activities that adds up to the value of the final products. Therefore Value chain analysis can be termed as the strategic tool which analyzes the internal firm activities and identifies the activities which are the most valuable and helps the organization to gain a strategic competitive advantage in the market.
Inbound Logistics- Water is the main ingredient for all the products that are manufactured by New Zealand Juice Limited. The company occasionally faces significant challenges in assessing the particular raw material. The products prepared by the mentioned company uses natural products like fructose corn syrup which are purchased from Australian based suppliers. However things have changed recently and for the last few years the availability of the corn has helped the company save cost on exporting. The company produces apple and orange juices for the consumers. The company depends totally on exports to get high quality apples and oranges from other places of the world. This escalates the cost of the company but the company gains a strategic advantage in the market for maintaining a high standard for its products.
Operations- The operations of the company are mainly restricted to New Zealand but as mentioned earlier the company is in the process of expanding its operations in South East Asia and Indonesia has been selected at the beginning. The company will have to establish an efficient network to start the operations there (De Backer & Miroudot, 2014).
Outbound Logistics- The mentioned beverages company claims to be the number 1 producer and seller of juices across the country. Distribution channels utilized consists of the distribution operations that are operated and controlled by the organization, independent bottling partners,
Marketing and Sales- The sales of the company includes products like apple juice, orange juice and a variety of naturally produced juices. The company has to produce extra volumes of these juices to cope up with the demand of the new market.
Service- The mentioned company has a proper customer service in New Zealand and thus they have to appoint a customer service team which can easily help to solve all the problems and issues of the customers.
The mentioned juice company will have to develop an export based value chain to make sure that the products are successful in the international market. Some of the main steps that are needed to be taken care of by the company include;
The management of New Zealand Juice Limited has decided to visit the Indonesian market to properly choose an appropriate agent, distributor and supplier in the mentioned country. The appointment of the representative requires utmost care and precision (Timmer et al. 2014). The management must be aware of every single rules and procedure of the Indonesian market and adhere to all the rules. The company has to be patient, persistent and have to make sure to market its products in such a way which will help to make its presence felt in the country. The most important factors that have an impact on the purchasing decisions of Indonesia are the pricing, financing, technical skills and the after sales service. The management of the business organization has to establish a proper training care center to make sure that the local employees of Indonesia are well trained to manage all the operations of the regional business in Indonesia. These training must not be confined only to the employees and technical and non technical labors but should also include the officers and the managers (Touchton, 2015).
After a thorough analysis of the market in Indonesia the management of New Zealand Juice Limited will have the idea of its competitors in the local market, the price of the competitive products in the local market, the strategies of the competitors in Indonesia and many more such relevant details. This will be helpful for the organization to prepare its own strategy for marketing its goods and products (Hollensen, 2015).
Investment is always a subject of high risk and it doubles or perhaps triples on the chance of risk. But though there is a high degree of risk involved in such an operation companies prefer to take the risk to increase their revenue and their brand name across different countries (De Backer & Miroudot, 2014). Investments in emerging markets like Indonesia is one of the biggest risks as the market is fully not developed and there are a number of country specific dynamics that threatens to destabilize the development process of the organization. Some of the main risks involved in Indonesia are;
Risk Mitigation is the process by which a company proposes plans and implements them to reduce the various kinds of risks involved within the operations of the organization. New Zealand Juice Limited has in place some specific strategies to address the risk concerns. These include;
Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of Cleaner Production, 52, 329-341.
De Backer, K., & Miroudot, S. (2014). Mapping global value chains.
Guesmi, K., & Teulon, F. (2014). Equity Market integration and Currency Risk: Empirical Evidence for Indonesia (No. 2014-096).
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Timmer, M. P., Erumban, A. A., Los, B., Stehrer, R., & de Vries, G. J. (2014). Slicing up global value chains. The Journal of Economic Perspectives, 28(2), 99-118.
Touchton, M. (2015). Trapping the tigers: Regulation of market entry and the rule of law in SE Asia. The Social Science Journal, 52(1), 8-21.
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