Sunner Development Co. Ltd. was originally established as a chicken hatchery in China. Its CEO shortly expanded the operation to become the first company in China to integrate all three phases of the poultry industry: meat packaging, chicken farming and feed generation.
In the process, he's rejected the three prevailing poultry industry business models: disintegration, consisting of largely unaffiliated businesses that specialize in only one area and rely on position contracts to organize their co-operation; buyback, whereby companies not only sell feed to chicken farms but also buy back the mature broilers; and subcontracting, where unaffiliated farms are paid a fee to raise chickens. The chief executive officer must analyze whether the complete integration model is sustainable in the future.
Sunner Development Co. Ltd Integrator in the Chinese Poultry Industry case study solution
PUBLICATION DATE: November 25, 2015 PRODUCT #: W15544-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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