Premium Pork Products, Inc. is in the middle of restructuring program that will see one of the leading company’s in the Pork supply industry. According to the company’s management, PPP (Premium Pork Products, Inc) is intending to enter in the more lucrative packaging industry. Most importantly PPP intend to have two main lines of business, that is, continue selling chunks of fresh pork to its customers and establish a line of packaged products to be sold through supermarkets and other retailing outlets. The company has great potential in the packaging industry considering the already …….
According to Han (2004) a larger segment of America’s beef consumers purchase the product in small quantities and usually purchase and consume immediately. In this regard, PPP should consider entering into the lower market segment that would have large consumer base. The margins might be small on individual package sales but this would be compensated through high volumes, which is the case with firms operating in the packaging industry…..
In conclusion other than household consumers, the company should also target institutional consumers, such as schools, hospitals and hotels. Premium Pork Product, Inc. will be much more productive and profitable after adopting the new business model of diversification and targeting both high and low segment market. It will increase on its revenue generation and will require more administration and management employees to ensure that it is able to achieve its set long term and short term goals. The company shall be strategically positioned to overcome competition and it shall be able to assimilate any unforeseen changed in the pork industry because it will be strategically positioned in its operation….
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