Agrana Case Study
Agrana Case Study
AGRANA CASE STUDY: FROM LOCAL SUPPLIER TO A GLOBAL PLAYER
Introduction:
The story of the Vienna-based company, AGRANA is pretty fascinating when one considers the journey of 19 years and how far the company has come thus far. Also the fact that AGRANA is major participant in the food and beverages industry while supplying the major players is quite impressive. AGRANA realized total gross revenue of US$4bn by end of 2013 (Annual Report, 2013). The continual growth of AGRANA with current expansion into Australia and South East Asia is also very outstanding.
1. From an industry-based view, how would you characterize competition in this industry?
AGRANA has seen remarkable growth in its expansion and acquisition of new entities although it kept its diversification to a minimum. It still concentrates on its major divisions of Sugar, Starch, Fruit and Bioethanol production as currently. However, AGRANA has become a conglomerate of different entities within the group. The success of integrating these different entities with diverse origins has reduced its inter-firm rivalry to a minimum. Within its component parts, AGRANA has seen and continues to enjoy great success. As an industry leader, AGRANA has also cemented its lead by having a competitive edge using its “personnel, experience and financial strength” to the advantage of the company. The bas of AGRANA now has almost been solidified in an industry where new and potential entry commands a lot of resources and financial power. AGRANA has over the years strategically positioned itself in first solidifying its market base before expanding into the global scene. Since the concentration of AGRANA production is with agricultural producers, the supply base does not have a strong cohesion to sustain an effective bargaining power. AGRANA still maintains its production units with the processing of agricultural commodities and largely supplies to processors with a small direct consumer base. The
AGRANA CASE STUDY: FROM LOCAL SUPPLIER TO A GLOBAL PLAYER
Introduction:
The story of the Vienna-based company, AGRANA is pretty fascinating when one considers the journey of 19 years and how far the company has come thus far. Also the fact that AGRANA is major participant in the food and beverages industry while supplying the major players is quite impressive. AGRANA realized total gross revenue of US$4bn by end of 2013 (Annual Report, 2013). The continual growth of AGRANA with current expansion into Australia and South East Asia is also very outstanding.
1. From an industry-based view, how would you characterize competition in this industry?
AGRANA has seen remarkable growth in its expansion and acquisition of new entities although it kept its diversification to a minimum. It still concentrates on its major divisions of Sugar, Starch, Fruit and Bioethanol production as currently. However, AGRANA has become a conglomerate of different entities within the group. The success of integrating these different entities with diverse origins has reduced its inter-firm rivalry to a minimum. Within its component parts, AGRANA has seen and continues to enjoy great success. As an industry leader, AGRANA has also cemented its lead by having a competitive edge using its “personnel, experience and financial strength” to the advantage of the company. The bas of AGRANA now has almost been solidified in an industry where new and potential entry commands a lot of resources and financial power. AGRANA has over the years strategically positioned itself in first solidifying its market base before expanding into the global scene. Since the concentration of AGRANA production is with agricultural producers, the supply base does not have a strong cohesion to sustain an effective bargaining power. AGRANA still maintains its production units with the processing of agricultural commodities and largely supplies to processors with a small direct consumer base. The
References: 1. http://www.wikiwealth.com/research: agrana 2. http://www.agrana.com/en/investor-relations/publications/