In June 2014, Anthony Pile, founder and chairman of Blue Skies, called a board meeting to talk about the development plans of the company. The economic crises in Europe made consumers more price sensitive, putting pressure on the profit margins and instigating search for new marketplaces. Relying on air-freight transport, it delivered produce within two days of harvest.
Although Blue Skies had grown into a multinational with production operations on three continents, the company was still determined by European markets. The case describes the development of Blue Skies since its basis as a modest fruit processing business exporting fresh cut pineapple to Europe. It gives a summary of its strategy to capture more worth using vertical integration as a mean to lessen supply costs and enhance the caliber of inputs.
It exemplifies how competitive structures in the fresh cut marketplace shape the balance of power within the agrifood value chain, and how Blue Skies was able to maintain its competitive edge by means of a mix of product quality, production efficiency and market diversification.
PUBLICATION DATE: September 05, 2014 PRODUCT #: IDE08-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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