In 2013, exporter VP Group and Kenyan horticulture maker is weighing possible growth opportunities against the growing threats in its creation and the export markets.
Along with the $121 million in 2012 revenues, the VP Group has grown fast recently by expanding its vegetable and flower generation beyond Kenya into Ethiopia and Ghana; investigating new products like sugar; and vertically incorporating by bringing marketing and logistics businesses in-house. The company's leadership is excited about future growth opportunities but also worried about the effect of the increase on its entrepreneurial culture of VP Group.
The company also faces increasing cost pressures due to rising costs in Kenya and flat prices in U.K. supermarkets, its primary buyers. VP Group's size, the vertical integration, and accentuate on sustainability leave it highly positioned as a long term associate to U.K. supermarkets, but changes to the general operating environment might need the company to reconsider its strategy.
VP Group Vegpro Grows Beyond Kenya, Chinese Version Case Study Solution
PUBLICATION DATE: December 16, 2013 PRODUCT #: 514C35-PDF-CHI
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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