Strategic Positioning Of The Michigan Vegetable Industry

The Michigan vegetable industry has witnessed several challenges in the past few years. The future of the industry remains uncertain too. This strategic positioning study aims as identifying the strategic issues faced by the industry and developing strategies to face the uncertain future. Strategic Analysis and Scenario Analysis are the two techniques that have been used in this study. Through Strategic Analysis, the inability to offer year round supply, the need for differentiation and increasing regulations have been identified as the critical strategic issues that need to be addressed to ensure a successful future for the industry. The nature of increasing regulatory pressure, global sourcing and supply activities, urban sprawl, changing consumer trends, changes in the world economy, retailer consolidation and technological changes were identifies as the seven fundamental uncertainties likely to impact the Michigan vegetable industry. Three possible future scenarios--survival of the few, no surprises, and renewal and growth--were developed, based on the plausible combinations of these uncertain forces. Competitive strategies have been recommended for dealing with uncertainty and for addressing the critical strategic issues. Some of the strategies that have been recommended are: (1) formation of strategic alliances with domestic/global suppliers from other vegetable producing regions to enable the industry to provide an array of products throughout the year, (2) adoption of effective farm strategies, such as, HACCP, in day-to-day operations to facilitate the industry's ability to meet varying private standards, and (3) industry coordinated marketing efforts to promote products.