Economic Attributes of Seprod Ltd.
Seprod is one of Jamaica’s leading manufacturing and distributing companies, specializing in edible oils and fats, corn products and other household consumer products. Seprod is very involved in the community as it participates in various charity events as well as educational events.
Seprod is a mature company that has a relatively stable demand for its products throughout the year as they specialize in basic everyday food and household products. They seek to keep their prices as low as possible and as such customers are relatively insensitive to price.
Seprod does not have many competitors in Jamaica, the main competitor being Grace Kennedy. There are few suppliers offering branded products. These established branded products and good relations with the distribution channels create high barriers to entry. Another barrier would be the assets needed to set up a competing company. Highly specialized technology and equipment are required in the manufacturing of these products. Potential entrants would be reluctant to invest as these equipments are expensive and cannot be used in another industry. As well as customers might tend to have brand loyalty and it is hard to encourage brand switching especially in terms of food items. The specialized assets make it harder for new entry into the market but inversely make it harder to leave as well, because assets are so specific they are very hard to sell and so firms might find great difficulty in attempting liquidation.
The manufacturing process of seprod products is a combination of capital and labour intensive. It requires a significant amount of funds to purchase the plant and specialized equipment as well as there is a need for labour to complete the finished product. The process is complex with little tolerance if any for error.
Their products are marketed by the different businesses that they are distributed to but additional promotion will help increase demand as well as brand awareness. Brand recognition and
Seprod is a mature company that has a relatively stable demand for its products throughout the year as they specialize in basic everyday food and household products. They seek to keep their prices as low as possible and as such customers are relatively insensitive to price.
Seprod does not have many competitors in Jamaica, the main competitor being Grace Kennedy. There are few suppliers offering branded products. These established branded products and good relations with the distribution channels create high barriers to entry. Another barrier would be the assets needed to set up a competing company. Highly specialized technology and equipment are required in the manufacturing of these products. Potential entrants would be reluctant to invest as these equipments are expensive and cannot be used in another industry. As well as customers might tend to have brand loyalty and it is hard to encourage brand switching especially in terms of food items. The specialized assets make it harder for new entry into the market but inversely make it harder to leave as well, because assets are so specific they are very hard to sell and so firms might find great difficulty in attempting liquidation.
The manufacturing process of seprod products is a combination of capital and labour intensive. It requires a significant amount of funds to purchase the plant and specialized equipment as well as there is a need for labour to complete the finished product. The process is complex with little tolerance if any for error.
Their products are marketed by the different businesses that they are distributed to but additional promotion will help increase demand as well as brand awareness. Brand recognition and