Essay: NAMOI Cotton Co.'s Business Level Strategies." (50 Characters)

Identify different business level strategies (cost leadership, differentiation, focus and integrated cost leadership/differentiation)? Analyse the Agribusiness’ business level strategy.

The business level strategies provide value to the customers and also assist them to emphasize on the competitive advantage by taking into consideration the core competencies in context to particular products. This strategy is considered to create effective pricing and also enhance the customer value which affects the overall success of the company.  There are four business level strategies like integration cost leadership, focused cost leadership, focused differentiation and differentiation. This strategy should be considered by the company so that it can be simple to accomplish goals and objectives in the competitive market. The business level strategies of the NAMOI Cotton company are as follows.

(Source: NAMOI, 2018).

The cost leadership is considered as an effective business level strategy approach. In context to NAMOI Cotton it has been seen that company offers low price products in the market and also company focuses on maintaining the quality. The company offers services to buy the cotton seeds from growers for the objective of the sales in domestic and international market. It has been examined that company provides Cotton seeds to customers in Australia, china and Japan. The supply chain network of the company allows the effective and efficient purchase of the cotton seed by considering the growers and also delivers the product in domestic and internal markets. The company is also considered as the leader of the market and the growth is achieved in the Australian Market (Powell, Welsh and Eckard, 2017).

The company has approximately 12 operational cotton gins and also 3 warehouse facilities are provided by the people that help to handle 1.5 million bales per season. It has been seen that due to this company can easily attain the competitive advantage in the market. The company is also considered as the popular leaders in attaining the efficiency through ginning technology research and development (Mo et al., 2018).  There are many types of customers who are purchasing the products of the company but it has been seen that to grow in the market the company has maintained. This strategy helped the company to survive in the competitive market and given competitive advantage to the company. This has not only enhanced the growth in the market by also the profits of the company has been enhanced (Bijman, 2016).

This strategy is also considered by the company in which it has been seen that focus is given on competing in the market based on the target market. The companies compete in the market by considering the price and target market strategy. It has been analyzed that company focuses on marketing cotton seed services in the rural regions of New South Wales and also in Southern Queensland. By providing these services the companies can easily enhance the quality of the product which not only maintain the image but also boost the productivity level (NAMOI, 2018).

Focused Cost Leadership

Also the company focuses on minimizing the cost so that it can be simple to grab the large market share. The company also focused on maintaining tight control over production and also overhead costs. Tight control enhanced the production level of the company and also maintained good image in the market. It also gives impact on the overall process of the company.  It has been seen that through this the company minimize the cost of sales and also in context to research and development. The price of the company product is based on the internal efficiency so that cost of buying the products can be minimized (Hill, Jones and Schilling, 2015).

To be the cost leader the company attained the strategy of reducing the cost of the services so that it can be easy to accomplish goals and objectives. In this the companies not only compete in relation to the prices   but it has also been seen that small segment of the market is selected to offer products and services in the market.  Also this company servers the need of the producers so that it can be easy to enhance the sale of the services in the market. The products which are offered are of low price which helps to maximize the growth of the company (Salavou, 2015).

The company considered the differentiation strategy by focusing on considering the joint venture agreement with Louis dreyfus commodity. The grower services of the company are operated from regional offices situated in wee waa more and Trangie and Goondiwindi. The differentiation strategy helps the company. It has been seen that this strategy has given competitive advantage. The company has considered this strategy so that improvement can be seen in the overall environmental changes and also in acquiring the new skills.  The company offer differentiated products in the market at low price which has given impact on the entire functioning of the company (Brenes, Montoya and Ciravegna, 2014). The company has built good image in the market with cotton growers and also internal spinning mills for the overall procurement of the Australian cotton from farm gate to the end world markets. Namoi cotton focuses on delivering the premium cotton to the internal spinning mills so that it can be easy to manufacturer the products. The company has the link with the Australian growers and also with the international spinning mills which helps to maintain the quality of the products in the market. The company offers variety of cotton marketing options to the growers which also enhanced the demand of the products in the market. The company also maintained the supply chain so that it can be easy to distribute the products in the market. The supply chain of the company should be maintained as it helps to distribute the products in a proper manner and it can be only done when there is proper supply chain. So, the company emphasizes on maintaining the supply chain so that distribution of the products can take place in a proper manner (Rueda, Garrett  and Lambin, 2017).

Differentiation

By considering the business level strategies it has been seen that company offers products and services at the low price in the market so that market share can be enhanced. Also the services of the company are differentiated by maintaining the quality of the cotton and also the company supplies the products to the international spinning mills. To enhance more growth into the market it is important for the company to focus on all market segments like retail, industry and government so that the strategies can be maintained for the long term. The company also considered this strategy so that environmental changes can be taken into consideration.  The company has also maintained the image by offering the products at low price which maintained the image of the company in the competitive market (Leonidou et al., 2015).

The company is known as the leaders in achieving the effectiveness through ginning technology research and development. It is important for the company to maintain the image of the company so that business can survive for long time in the competitive market. This strategy can be useful as through this it can be easy to market the products in the competitive market.  It is the responsibility of the company to maintain the structure so that profits can be maintained. The differentiation strategy is also considered by the company as it helps to maintain the quality of the services and products offered in the market. The company maintains the differentiation in the market and just because of this the company achieved large market share which is beneficial for the success of the company (Wheelen et al., 2017).

References 

Bijman, J., 2016. Agricultural cooperatives and market orientation: A challenging combination?. In Market Orientation, pp. 151-168. Routledge.

Brenes, E.R., Montoya, D. and Ciravegna, L., 2014. Differentiation strategies in emerging markets: The case of Latin American agribusinesses. Journal of Business Research, 67(5), pp.847-855.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2015. Strategic management theory. Cengage Learning,.

Leonidou, L.C., Fotiadis, T.A., Christodoulides, P., Spyropoulou, S. and Katsikeas, C.S., 2015. Environmentally friendly export business strategy: Its determinants and effects on competitive advantage and performance. International Business Review, 24(5), pp.798-811.

Mo, J., McDougall, S., Beaumont, S., Munro, S. and Stevens, M.M., 2018. Effects of simulated seedling defoliation on growth and yield of cotton in southern New South Wales. Crop and Pasture Science, 69(9), pp.915-925.

NAMOI., 2018.Cotton growing together. [Online]. Available at: https://www.namoicotton.com.au/operation-services/cotton-marketing . [Accessed on 13 September, 2018].

Powell, J.W., Welsh, J.M. and Eckard, R.J., 2017. An irrigated cotton farm emissions case study in NSW, Australia. Agricultural Systems, 158, pp.61-67.

Rueda, X., Garrett, R.D. and Lambin, E.F., 2017. Corporate investments in supply chain sustainability: Selecting instruments in the agri-food industry. Journal of cleaner production, 142, pp.2480-2492.

Salavou, H.E., 2015. Competitive strategies and their shift to the future. European Business Review, 27(1), pp.80-99.

Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management and business policy. pearson.