Trade Winds Citrus Limited (TWCL)
Strategy Formulation: Situational Analysis and Business Strategy
Table of Contents
TWCL current competitive (generic) strategy
TWCL value chain analysis
Internal Factor Analysis Summary (IFAS)
External Factor Analysis Summary (EFAS)
Strategic Factor Analysis Summary (SFAS)
This report is about Trade Winds Citrus Limited (TWCL) and the formulation of a strategy in order for the company to compete effectively and efficiently against competitors in the Jamaican fruit and vegetable juice market. Many techniques were used in developing a strategy for TWCL. The company’s current generic strategy and its value chain activities were analyzed. Strengths Weaknesses Opportunities Threats (SWOT) Analysis, Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS) tables were useful in developing an understanding of TWCL’s internal and external environments. Strategic Factor Analysis Summary (SFAS) and TOWS matrices were then used to develop strategies for TWCL. Trade Winds Citrus Limited (TWCL) is a backward vertically integrated agri-business specializing in citrus products and juices. TWCL is located in Bog Walk, St. Catherine and the company owns a plant nursery, citrus groves, a packing house, juice plant and 3 juice brands (Trade Winds Citrus Limited, 2006). The company is a privately-owned and operated family business. TWCL started as United Estates Limited (UEL), an Industrial and Provident Society registered in August.UEL was an agro-industrial enterprise that owns a processing facility and agricultural lands. In 2001, the name was changed to Trade Winds Citrus Limited. TWCL is also devoted to satisfying and exceeding the expectations of its stakeholders by delivering products of consistent quality in compliance with the appropriate standards. The company achieves this through continuous improvement and development, customer focus, quality management and food safety policy (Trade Winds Citrus Limited, 2006). The company also has Hazard Analysis Critical Control Point (HACCP) and ISO 9001:2000 Certification. The Tru-Juice “Premium Quality” juice brand was launched in 1995 and it has been marketed as Jamaica’s first 100% freshly squeezed orange juice from its inception. TWCL also has a variety of other fruit juice brands inclusive of Freshhh Juice Drinks & Fruit Drinks and Wakefield which was acquired in 2005 and has allowed the company to gain economies of scale while also further assisting the company in distributing its products in North America.
TWCL’s Current Competitive Strategy (Generic Strategy)
TWCL is currently in an intense competitive battle with Pepsi Jamaica for the Jamaican fruit and vegetable juice market. There are a variety of competitive strategies which companies such as these can employ to gain and sustain a competitive advantage in a particular industry. According to Porter, there are four "generic" business strategies that could be adopted in order to gain this competitive advantage. They are: Cost Leadership, Differentiation, Differentiation Focus and Cost Focus. TWCL is currently employing a differentiation competitive strategy. This generic strategy speaks to the ability of a firm to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale service (Wheelen & Hunger, 2010). The firm may also charge a premium price for the product because of the value added by the uniqueness of the product (Tru Juice Premium Brand). TWCL differentiates its Tru-Juice premium quality brand...
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