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Strategic Positioning in Agribusiness: Analysis and Options

Author

Listed:
  • Allan Gray
  • Michael Boehlje
  • Jay Akridge

    (Department of Agricultural Economics, College of Agriculture, Purdue University)

Abstract

The planning process presented in the paper outlines several methods of analysis that farm business managers can use to choose among three business position options. The five forces model is an effective tool for scanning the external business environment and assessing a business’s internal resources and capabilities. The value plate will assist managers in identifying the activities upon which a business may build a competitive advantage. Once these are assesses, managers must select a strategic position from three options: operational excellence/cost leadership, product or service innovation, and customer intimacy.

Suggested Citation

  • Allan Gray & Michael Boehlje & Jay Akridge, 2004. "Strategic Positioning in Agribusiness: Analysis and Options," Working Papers 04-13, Purdue University, College of Agriculture, Department of Agricultural Economics.
    • Handle: RePEc:pae:wpaper:04-13
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    File URL: http://ageconsearch.umn.edu/bitstream/28639/1/sp04-14.pdf
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    Keywords

    strategic planning; five forces model; value plate model; strategic options;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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