Essays on The Competitive Environment in the Dairy Industry Case Study

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The paper "The Competitive Environment in the Dairy Industry" Is a great example of a Management Case Study. Australian dairy industry is a leading organization that produces a significant amount of primary products for domestic and foreign consumption. It is best in milk production and processing with a gross income accounting for about 9% of milk produced. Moreover, the farmers engage in calves' sale which is meant for meat production annually. Most of the dairy herd dominates in eastern Victoria while others located in Tasmania, Queensland, and New South Wales. Milk activity demands for access to irrigation or availability of rainfall, and productive soil capable of high carrying capacity (Beever and Doyle 2007, p. 653).

The cattle feed on highly nutritious pastures and supplementary feeds such as grains which increase the protein amount in milk. Animals, since European settlement in Australia, were to supply milk yield to the settlers and act as a future stock. At first poor pastures and soil were major problems and this led to wandering in search of an essential feed (Anderies, Ryan, and Walker 2006, p. 871).

Later, the number of herds increased but was not effective due to drought, famine, and lack of skills. The illiteracy made the cows are used for meat rather than milk purposes. The herd further spread as an exploration of more land took place extending southwards to Victoria and Tasmania. Sales of dairy products such as cheese and butter increased and demand resulted leading to the development of dairying. The growth led to other factors that were necessary for proper storage to prevent spoilage and better infrastructure for distribution of these products. The introduction of new technology included the use of refrigerators, milking machines, and replacement of poor pasture with better ones that opened a way for factory establishment all of which led to the expansion of the industry.

Farmers started to increase yields, and their profit rose. Pastures supported a butterfat increment annually that increased butter manufacturing in factories (Bellon and Lamine 2009 p. 659). Pasteurized milk aided in health improvement giving way to the dairy market expansion where after storing, it was transported to retailers and wholesalers who sold other products such as groceries and bread to farmers. The government during the early days controlled the prices of fresh milk by establishing regulations that ensured quality control productions.

After deregulation, a decline in the industry resulted. The number of facilities dropped due to the reduction of State assistance and market forces exposure that made it competitive (McDowell and Nash 2012.p. 678). The research aims at investigating the resultant drop in prices of the Australia dairy industry and the position of competition with international companies. Methodology Porter's five forces The important aspect of Porter's model is to show the attractiveness of the industry.

Therefore an organization is regarded to be attractive if the forces of this type arranged in a way that results in profitability level. Alternatively, the industry is unattractive when all the troops in the model interlink in a manner that leads to a drop in the company's profit. The strongest competition exists where companies share the same customers. The company with the highest dealer network has an advantage of bargaining power. A lot of alternative products exist in the rival firm thus profitability is low since the customers move away from the company.

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