Low-cost strategy
Rothaermel (2015) has observed that technology adoption in agricultural and competitive strategy primarily progress towards major objectives. Porter’s has transformed the theoretical understanding, practise and knowledge of business strategy. It has been signified that competitive strategy has taken offensive or defensive performances in order to create a different stable position within the industry to contest efficiently with the five competitive forces and yield a return on investment and revenues for the organisation. Porter’s three generic business strategies involve leadership differentiation and focus (Whitton, Baker and Mounter 2016). It has been noted that while increasing cost leadership Papyrus Australia produces products or services for a broad range customer base with economical costs generating from revenues of scale. However while adopting differentiation strategy the organisation further efforts to differentiate the product or service supply (Laurenceson, Burke and Wei 2015). Papyrus Australia has been offering standardized products as well as services to wide-ranging markets at the economical competitive prices (Papyrusaustralia.com.au 2018). Price range has remained the primary theme in their marketing strategies. However Plunkett et al. (2017) have coupled this with exceptional basic services as well.
Mohsin (2015) noticed that the broad ranging market pursued by Papyrus Australia tends to facilitate agribusiness domain to expand the cost of their resources over expensive volume thus condensing the investment per unit. Such economic cost position underlines the organisation’s aggressive pricing policy and further has been able to attain technological expertise from broad array of sources which in general do not aim to invest in essential research and development (Laurenceson, Burke and Wei 2015). However value create concept can be utilised as an efficient mechanism for evaluating the prospective of a low-cost leader strategy of Papyrus Australia. Furthermore internal procurement seeking for economical cost importation along with the frequently assessing and benchmarking suppliers’ performance against competitors can be considered to be as actions which can be used to implement a low cost strategy for the organisation (Purves, Niblock and Sloan 2015). Taking into consideration the inbound as well as out down logistics, resourceful, just in time delivery concepts which Papyrus Australia acknowledges fundamental can reduce down-time or wait time at the supplier docks (Plunkett et al. 2017).
It can further concentrate the account holding expense which would be perceived as another example of performance that would be executed as part of a low cost strategy. However the ‘value plate’ primarily provides mechanism for managers engaged in agribusiness sectors like Papyrus Australia. The company will be able to access the potential of various actions which might be executed as part of cost leadership strategy and further to establish whether those actions process the actual capacity (Whitton, Baker and Mounter 2016). However the actions primarily intend to contribute a competitive advantage compared to other producers in agribusiness sector and produces the similar product and supply similar customer base.
Differentiation strategy
Papyrus Australia manager primarily emphasizes on differentiation which offers a consistent series of recently developed products and services. Their production service offerings having positioned at above average market prices due to the additional value that has been delivered by the differentiation and innovations generated by the organisation (Zhang, Chen and Sheng 2015). If the organisation pursue a wide ranging market it will enable to expand the costs of these innovation over large volume further sustaining down costs per unit of sales. However if a more narrowly illustrated niche market is followed, size economies tend to have less tendency and elevated prices will be required in order to produce adequate margins (Larder, Sippel and Argent 2018). The emphasis of the organisation on certain customers tends to constrain the appeal of the production of considerable diminutive market but possess the benefits that the solutions are so well comprehended to this customer base (Laurenceson, Burke and Wei 2015). This has further led to the rivalry of Papyrus Australia to get resistant to the niche market of agribusiness sector.
At this juncture, the value plate can be implemented to evaluate the potential of the effective differentiation strategy. However the differentiation strategy of Papyrus Australia might incorporate procurement processes which are more focused on excellence and restricted delivery times for suppliers than emphasising on low price (Papyrusaustralia.com.au 2018). Taking into consideration technological equities performance to avail the advanced and most effective research and development along with recently developed product innovations would be integrated to the strategy of the organisation (Mehlhorn et al. 2017). An effective differentiation strategy would further include comprehensive interpersonal relationships with consumers in relation to marketing and sales activities instead of focusing on transactional relationship that is universal with the economical strategy where purchase the revenue is common.
Larder, Sippel and Argent (2018) noted that as a result and inclusive quality criteria and sustainability that quality would be major determinants of the inbound logistics operations as well as outbound logistics dimensions of the successful differentiation business strategy of Papyrus Australia (Purves, Niblock and Sloan 2015). However it has been anticipated that these competitive strategies would result in elevated costs, however those expenses would tend to be more than compensated by the actual resources that emerged from selling a differentiated product in agribusiness sector of Australia.
The Australian agribusiness sector primarily occupies a considerable position in the Australian economy and further possesses a strong track record in inviting global investment across the agricultural supply chain. Whitton, Baker and Mounter (2016) indicate that the diverse climatic and rainfall pattern of Australia along with its soil types tend to maintain a broad range of agribusiness firms which involves tropical and temperate horticulture, thorough inland and coastal aquaculture as well as production of timber and forestry products (Larder, Sippel and Argent 2018). Australia has been enjoying various forms of beneficial factors in the domain of agribusiness sector. Australia’s geographic isolation and leading quarantine and supervising regime facilitate the preservation of utmost prominent for excellence level of production (Mohsin 2015). Furthermore proximity towards Asian economies, immense unrestricted trade agreements along with counter seasonal production for the northern hemisphere imply that transnational organisation who have been generating from Australia. This can efficiently deliver their production throughout the year and can further be enabled to stimulate demand for Australian goods and services in global markets (Plunkett et al. 2017).
Agribusiness’ business level strategy
Australian agriculture has been consistently financed and expanded by science and technology based farming for the sector. This is for the sustained average agricultural productivity revenue of above 2% over the past 5 decades. Mehlhorn et al. (2017) have revealed that extensive competition level pertaining to agribusiness in Australia has been generated from locally expanded production mechanism and technologies along with global investigation and development. However persistent innovativeness witnessed infirm machinery, refined plant and animal breeding programs as well as innovative transport solutions tend to support the capacity of Australian agribusinesses to generate highly exceptional commodities to the global market. Furthermore assessing the second export of agricultural produce and services over two thirds of agricultural goods and commodities generated on farm are reported to have been exported every year. It has been noted that over the past two decades the rate of production and exportation of eco friendly products have increased at a substantial rate in response to the elevating level of international demand for higher value products (Mehlhorn et al. 2017).
Change in climatic conditions and related prolonged route periods have further created hindrances in water supply and affecting the economy in the current period. However the management of water resources across a dry continent is identified as a vital sector for Australia (Purves, Niblock and Sloan 2015). This sector primarily specialises and is capable of generating advanced technologies and infrastructure along with efficient water resource management recycling and reuse and reclamation technologies. The considerable rate of investment done in water by the Australian government has further invited greater areas of avenues for the agribusiness sector. Australia has been distinguished as a logical suppliers’ source for agricultural goods products food as well as biofuels (Papyrusaustralia.com.au 2018). The professional and specialised farming communities further signify of competent and reliable supply chain associate for international stakeholders.
However taking into consideration the extensive series of agricultural resources along with rural production there can be identified recently developed agricultural opportunities accessible within a stable and consistent investment and regulatory environment. Larder, Sippel and Argent (2018) revealed that Australia leads the world in several areas of agricultural investigation. Furthermore R&D research developers have been executed by State and Federal government organisations including various cooperative research centres which invite together industry and government resources. The Australian Farm Management Consultancy Services primarily into provide guidance to its clientele base introducing the most economic revenues from farming (Purves, Niblock and Sloan 2015).
Papyrus Australia Limited fundamentally provides farmers with biological active nutrients and programs which further helps in reducing a living healthy as well as sustainable for optimum plant and livestock productivity and efficiency (Papyrusaustralia.com.au 2018). However Australian biotechnology and gene technology experts span a wide range of arenas involving improved with carbohydrate enhancement and bioactive compounds (Mohsin 2015). Australian biotechnology has been facilitating powerful new mechanism for enhancing farm animal breeding programs which involves genetic mapping mechanism and tools in order to distinguish both disease resistant techno animals and certain specific genes associated to health weaknesses and effects.
References
Larder, N., Sippel, S.R. and Argent, N., 2018. The redefined role of finance in Australian agriculture. Australian Geographer, 49(3), pp.397-418.
Laurenceson, J., Burke, P.F. and Wei, E., 2015. The Australian public’s preferences over foreign investment in agriculture. Agenda: A Journal of Policy Analysis and Reform, 22(1), p.45.
Mehlhorn, J.E., Miles, M., Bonney, L. and Tewari, R., 2017. Perceptions of entrepreneurship in a university agribusiness program: developing a scale. International Journal of Food and Agricultural Economics, 5(2), pp.27-33.
Mohsin, M., 2015. Agribusiness financing in Australia: issues and research agenda. International Journal of Economics and Finance, 7(7), p.1.
Papyrusaustralia.com.au 2018. Corporate Information About Papyrus Australia. [online] Papyrusaustralia.com.au. Available at: https://www.papyrusaustralia.com.au/the-company/about-us/ [Accessed 14 Sep. 2018].
Papyrusaustralia.com.au 2018. Papyrus Australia | Converting Banana Palm into Renewable Fibre. [online] Papyrusaustralia.com.au. Available at: https://www.papyrusaustralia.com.au/ [Accessed 14 Sep. 2018].
Plunkett, B., Duff, A., Kingwell, R. and Feldman, D., 2017. Australian agricultural scale and corporate agroholdings: environmental and climatic impacts. International Food and Agribusiness Management Review, 20(2), pp.187-190.
Purves, N., Niblock, S.J. and Sloan, K., 2015. On the relationship between financial and non-financial factors: A case study analysis of financial failure predictors of agribusiness firms in Australia. Agricultural Finance Review, 75(2), pp.282-300.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Whitton, C., Baker, D. and Mounter, S., 2016, February. Foreign ownership in Australian agribusiness: results of a survey of firms. In 2016 Conference (60th), February 2-5, 2016, Canberra, Australia (No. 235412). Australian Agricultural and Resource Economics Society.
Whitton, C., Baker, D. and Mounter, S., 2016, February. Foreign ownership in Australian agribusiness: results of a survey of firms. In 2016 Conference (60th), February 2-5, 2016, Canberra, Australia (No. 235412). Australian Agricultural and Resource Economics Society.
Zhang, D., Chen, C. and Sheng, Y., 2015. Public investment in agricultural R&D and extension: An analysis of the effects on Australian broadacre farming productivity. China Agricultural Economic Review, 7(1), pp.86-101.
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