Founded by Arthur W. Perdue in 1920, Perdue Farms, Inc. has always focused on quality. To improve the quality of his stock, Arthur Perdue bought leghorn breeding stock from Texas and mixed his own chicken feed. By 1940, Arthur Perdue realized that higher profits would come from selling the chickens, not the eggs. In 1950, Arthur Perdue's son, Frank, took over leadership of the company and led the company into vertical integration. Perdue Farms controlled its own hatchery, feed formulations, and feed mill. Vertical integration continued and in 1968, Perdue Farms bought its first processing plant. The most important change occurred in the 1970s when Perdue successfully branded its chicken and distinguished it from the competition.
To increase quality, Perdue Farms used selective breeding and refused to ship its products frozen. Frank's drive for quality became known inside and outside the industry, and in 1981 he was inducted into the Babson College Academy of Distinguished Entrepreneurs. In the 1980s, Perdue Farms began to buy out other producers and included turkey and fully cooked chicken products into its product mix. International business began in 1992, and has grown to be five percent of Perdue Farm's revenues. Perdue Farms implemented a state-of-the-art information system in the 1990s and began building distribution centers. In this analysis of Perdue Farms, I will first discuss Perdue Farms internal strengths and weaknesses. Second, I will discuss the industry. Third, I will analyze the external threats and opportunities facing the company. Lastly, I will provide recommendations for Perdue Farms to continue its success far into the twenty-first century.
II) Internal Analysis
Perdue Farms took marketing to the next level. Branding a commodity was unheard of before Perdue Farms accomplished this task. By branding its products, Perdue Farms was able to charge a premium price for its...