AGRANA CASE STUDY
AGRANA CASE STUDY: FROM LOCAL SUPPLIER TO A GLOBAL PLAYER
Introduction:
Agrana is a Vienna based company with a 26 year old history starting, back in 1988, as a holding company for three sugar factories and two starch factories and becoming a global player with 55 production plants in 26 countries, participating in the food and beverages industry while supplying the major players of the market. This case study is trying to explain how this company achieved this fascinating journey from a local supplier to a global player, applying the strategy tripod to the case.
1. From an industry-based view, how would you characterize competition in this industry?
Competition of Agrana is quite fair due to its ability work on the forces of effective dynamic markets which are the threat of substitutes, purchasing power of potential buyers, rivalry and companies producing similar products. Initially Agrana started as an infinitesimal non-significant company of Austria but its timing was right. This is because its arrival was welcomed with the opening of the European Union (EU) and the Central and Eastern Europe (CEE) to the superior market early in 1989. This largely encouraged them to indulge in foreign marketing by directly liaising with CEE thus making investment in those countries. Being located in Western Europe, particularly in Austria, was an added advantage since strong bonds had been created during the cold war thus a clear understanding of the market at that time compared to other countries which gave them an added opportunity. Opening up the tariff barriers allowed Agrana to partner with other gigantic companies such as Nestle, Coca-Cola and Pepsi making it to gain a wide scope of customers. Also stipulations on increased industrialization from the European Union have forced the company to focus on expansion in order to compete with other growing companies’ worldwide and ensure threshold growth of both Austria and the countries which have their substituent
Introduction:
Agrana is a Vienna based company with a 26 year old history starting, back in 1988, as a holding company for three sugar factories and two starch factories and becoming a global player with 55 production plants in 26 countries, participating in the food and beverages industry while supplying the major players of the market. This case study is trying to explain how this company achieved this fascinating journey from a local supplier to a global player, applying the strategy tripod to the case.
1. From an industry-based view, how would you characterize competition in this industry?
Competition of Agrana is quite fair due to its ability work on the forces of effective dynamic markets which are the threat of substitutes, purchasing power of potential buyers, rivalry and companies producing similar products. Initially Agrana started as an infinitesimal non-significant company of Austria but its timing was right. This is because its arrival was welcomed with the opening of the European Union (EU) and the Central and Eastern Europe (CEE) to the superior market early in 1989. This largely encouraged them to indulge in foreign marketing by directly liaising with CEE thus making investment in those countries. Being located in Western Europe, particularly in Austria, was an added advantage since strong bonds had been created during the cold war thus a clear understanding of the market at that time compared to other countries which gave them an added opportunity. Opening up the tariff barriers allowed Agrana to partner with other gigantic companies such as Nestle, Coca-Cola and Pepsi making it to gain a wide scope of customers. Also stipulations on increased industrialization from the European Union have forced the company to focus on expansion in order to compete with other growing companies’ worldwide and ensure threshold growth of both Austria and the countries which have their substituent