Dairy Product Manufacturing Case Study

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Dairy product manufacturing company Companies that engage in the dairy product manufacturing business in any economy are often very important to the whole dairy industry. The importance of the manufacturers is linked to the need for farmers to have stable buyers for their raw milk who will then process it and sell it to different consumers (Australia, 2014). In Australia, the dairy product manufacturing industry faces some cost pressures that are brought about by the important inputs needed in the industry like energy and labor (Australia, 2014). On the other hand, the industry has a number of advantages attached to it hat includes the availability of highly competitive raw milk costs that happens to be the biggest single input cost in the industry. Focused differentiation structure For the company to make the best out of the industry, it would be appropriate to adopt the focused differentiation strategy as the strategy combines a total of two out of the three generic approaches of competitive strategy (Brenes, Montoya, & Ciravegna, 2014). By adopting this business structure, it means that, the business will be focusing its attention to small customer groups by offering them differentiated milk products. Reasons for…show more content…
One of the reasons for adopting this strategy is that, the company stands a better chance of winning the loyalty of the targeted customers. The reason for this is because, the company will offer differentiated products to the customers based on their preferences (Brenes, Montoya, & Ciravegna, 2014). Secondly, on winning the loyalty of the customers and specialize in offering high quality products, it will be very possible for the company to charge premium prices to the products offered. The end result of the premium products will be high profit margins being realized by the company for some time (Humphreys, & Grayson,

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