Arthur W. Perdue's Poultry Business



             Opportunities.

             - Produce roasted Chicken and Chicken parts.

             - Produce other kinds of meats.

             - Offer products on the west coast.

             Threats.

             - Computer Malfunction.

             - Over capacity in the market.

             - Slow consolidation .

             Porters Five Forces.

             Risk of entry by potential competitors.

             The risk of entry from potential competitors is low, due to the barriers of entry. The barriers of entry are high, traceable to the cost of starting the business and what it costs to remain successful. Perdue also has a cost advantage over potential new entrants that is credited to superior production operations. Perdue has control of their inputs required for production, such as labor, materials, equipment, or management skills.

             Rivalry among established company.

             Between the existing companies rivalry is strong. There is no significant price competition because of the over capacity in the broiler industry.

             Bargaining power of buyers.

             Buyers (consumers) have a great deal of bargaining power because the buyer has a variety of brands to choose from and a lot of options to choose from such as precook, fresh, roasted and boneless.

             Bargaining power of suppliers.

             Perdue Farms supplies all of its own inputs, and they have established relationships with the distribution retailers. .

             Threat of substitute products.

             The substitute products for the broiler industry are pork, beef, and seafood. These items hold a real threat to the broiler industry.

             Evaluation of SWOT analysis.

             Perdue is in a very good competitive position. It has gained recognition for becoming one of the top broiler companies in the nation. One strength of Pedrue it that they own their own trucking fleet which they can distribute their own product. A main strength of Perdue Farms is that they refuse to let their product be shipped frozen. Perdue says that if the poultry is shipped frozen, it will loose flavor and moistness when cooked. This strength can result into brand loyalty, because when customers see the name Perdue, they know that the product is fresh not frozen.

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