September 7, 2011
Case Analysis Homework #1
The history of Diamond Foods dates back to 1912 when a group of walnut farmers joined together to create a co-op with a commitment to the Diamond brand. All members were involved with processing, distributing, and marketing of their nuts and snack foods. Diamond foods since then has grown and maintained dominance in the industry of nuts and snack foods. Diamonds NAICS codes are 311 and 911. President and CEO Michael Mendes of Diamond Foods, has an approach that is focused on long term growth and delivering quality products while adapting to new market opportunities. Diamond Foods grand strategy is focused on long term growth with concentrated diversification and horizontal integration. They are continuously reaching out to new customers with new innovative product lines within the industry. The company started with culinary nuts and has expanded into the snack nut market. With the expansion into the snack nut market, Diamond foods created a new label known as Emerald Nuts. By 2005, Emerald Nuts was the number two snack nut brand in the U.S. When Diamond foods purchased Harmony Foods, they crossed into a concentric diversification strategy; they moved into a closely related industry. This is the first time popcorn kernels were introduced to the Diamond Foods brand. Diamonds purchase of Harmony foods proved to be beneficial because they expanded their product line while still staying in the snack food industry and integrated new customers with differentiated products. Diamond foods plans to aggressively grow distribution and expand the Emerald and Pop Secret brand. Looking for growth and development with new products and continue to grow in the snacking industry. The strategies are being used to create and expand their specific target market. Diamond Foods Differentiation strategies include expanding from a narrow to a broad target market and introducing unique concepts to raise the bar for other...
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