Kepak case study Essay Example | Topics and Well Written Essays - 2000 words

Kepak case study - Essay Example Therefore, Kepak, over the years, has taken certain strategic initiatives such as commencing business through Agra Trading, offering convenience foods along with building a snacking brand spread across European market horizon among others. These incisive strategies as well as the use of co-opetition strategy can be invaluable prospects for the company in the future. However, it has to guard against aspects such as overcapacity to mitigate losses and to avoid downfall in sales. Table of Contents Executive Summary 2 Kepak has been recognized to be a leading player in the Irish Beef Industry which has over the years tacked several difficult scenarios with its incisive strategic capabilities. The company initially started its operations as a retail business of butchers. However, it gained its major success through supply of its wholesale beef products in the varied market segments especially the UK market. It has been recognized that the beef or meat industry possesses certain significan t challenges for companies operating in the industry such as threat of new entrants, and high buyers’ bargaining power among others. ... nts 3 Introduction 4 Analysis of Kepak’s Business Environment 5 Kepak’s Current Strategy 8 Critical Appraisal of the Strategy 10 References 14 Introduction Kepak was established by Noel Keating, initially as a retail business of butchers during the mid-1960s. Subsequently, Noel Keating commenced the supply of wholesale beef to the food service sector as well as in large markets. The industry for beef in European Union and Ireland during 1970s and 1980s was considered as a commodity business. The process of selling beef under the intervention of Common Agricultural Policy of European Union (EU) was extensively utilised mainly in the regions of North Africa and Middle East. During this period, the strategy used by Kepak was to decrease the prices of products and increase the margin of sales for building Economies of scale and achieving greater monetary success. In that situation, Noel Keating was of the view that the intervention which was applied in the conduction of bus iness was not sustainable in the long run. This prompted him to formulate a strategy based on customer service and differentiation. It was during this period that Kepak started working with Coop Italia, the leading meat producer which was well known for rendering utmost quality based offerings. The company recruited a set of Irish farmers to enhance the quality of production along with maintaining the needs of the customers in the global market context. Kepak used to sell the beef products to Irish and EU retailers for their own profitability and enhancement of their product line. The company also looked for maintaining the quality of products and delivering it to the customers. It has been stated that about 25% of beef volume and quality standards are rigorously controlled by Kepak through the