Determination of the external factors
Australia is one of the largest countries the world for agri produces. This is mainly due to the reason that Australia is having diverse weather and climate conditions along with having favorable resources that are helping in bulk production of agri goods. This is also the reason for presence of number of agribusiness firms in the Australian regions (Hove and Tarisai 2013). Batlow is one of the major agribusinesses currently operating in the Australian region and exporting to more than 100 countries around the world. Batlow is known for their rich and tasty apples wholly produced in Australia with having rich flavor. Apart from producing apple, they are also having other products such as cherries, cider and fruit juice (Katchova and Enlow 2013).
There are number of locations around Australia carefully chosen by Batlow for their production. According to the information available, the locations of apple production are being chosen based on the favorable climate conditions, rainfall, soil conditions and farming practices. Currently, they are having three growing locations across Australia along with having packaging and marketing facilities (Batlow.com.au 2018). However, it should also be noted that among all the revenue streams of Batlow, apple is the largest source of earning for them. This is mainly due to the reason that they are having diverse variety of apples and they are mainly known for their apples only. In addition, apples are being exported by them in more than 100 counties that help them to earn the major revenue from it. It can also be noted that apples are helping Batlow in creating brand value in the global market also (Dominiak and Ekman 2013).
This report will discuss about the major revenue streams for Batlow in the Australian region. In addition, this report will also discuss about the external environmental factors along with identification of the internal competencies of Batlow. The competitive advantages ad resources will also be discussed. In accordance to the issues identified, this report will recommend a few steps for Batlow.
Political factors
Australia is a democratic capitalist country with having pro-business approach in place. In accordance to this capitalist approach, business organizations are also having favorable political environment in place (Chaudoir, Dugan and Barr 2013). In addition, Australian based companies are having added political preferences over the foreign companies and this is also an important positive impact on the business operation of Batlow. Australia is having favorable diplomatic and political relationship with other countries across the world. This is also helping Batlow in having business opportunities in the global market and they are leveraging it by exporting apples to large number of countries. On the other hand, Australia is having relatively stable political system in the country with low probability of coup or any instability (McAllister 2014). It is also reported that Australia is one of the top ranked countries in the transparency list. Thus, impact of corruption will also be low for the organizations operating in the Australian market.
Economical factors
Australia is having favorable growth rate of national economy with having more than 3 percent of growth as of middle of 2018. This shows the increasing market opportunities for Batlow in doing business in Australia (Plumb, Kent and Bishop 2013). It should also be noted that global economy is also enhancing on an average basis and it is also creating business opportunities for Batlow in the global market. However, a major economic challenge for Batlow is the entry of global brands in the Australian market. This is posing serious threat for them by increasing the level of competition in the market. In addition, the tax and other advantages being provided by the Australian government to the Australian grown business organizations are also helping Batlow in having favorable economic factors in their business operation (Manalo, Perera and Rees 2015).
Political factors
Social factors
Australia is one of the most globalized countries in the world with having strong influence of the current global market trend. Thus it is beneficial for Batlow to have updated products in the market according to the current market trend. In addition, with the increase in the consciousness among the Australian customers regarding health, the market potentiality for the fruits and fruit based products is rapidly increasing (Tapre and Jain 2014). Average customers are more accepting fruit based products as alternative. This trend is relevant in the global market also that is providing more social opportunities for Batlow. The branding of Batlow being an Australian grown agribusiness is also helping them to have positive social trend in the market (Huang et al. 2017). However, this should be noted that social preferences of Australia are much diversified due to the presence of immigrants from different countries. Therefore, it is important for Batlow to have more diversity in their product portfolio. Currently, they are only having limited flavors and variants as offerings.
Technological factors
Impact of technology is less in the business process of Batlow due to the reason that they are more focused on natural production process. This is enabling them to have the authentic natural taste and aroma of their products. They are dependent on technology only in their packaging process. However, this may have some sort of limitation for them due to the reason that with the increase in the demand of fruit based products in the market; they may not cater properly without the use of technology. On the other hand, latest and updated technologies are being used by their competitors and this is helping them to have lower average cost and more production levels (Rossi Stacconi et al. 2013). Hence, rapid change in the technological field is posing challenge for Batlow in catering to the market demand.
Environmental factors
Environment is having larger impact on the business process of Batlow due to the fact that they are based on farming. However, according to the information, Batlow promotes sustainable farming practices with having no use of artificial chemicals and fertilizers. This is having major two advantages for them with one being the unique taste of the fruits and the other one is limiting the impact on environment (Kuo, Chen and Tsou 2014). However, in terms of environment, the major challenge for them is the change in the weather and climate conditions. Australia is also facing the issue of environmental degradation and it is leading to uneven rainfall and climatic conditions. This will cause challenges in the production process of Batlow and it will also affect the taste and other distinctive features of their products. In addition, these factors are not controllable also.
Legal factors
Australia is having certain rules and regulations in terms of agribusiness. These rules include the quality of the consumable products. One of the major acts that should be followed is Biosecurity act 2015 (Suckling 2015). In addition, Australia is having number of other legislations that should also be followed. Batlow is having more intensity and impact of legal factors due to the reason that agribusiness is directly related to the food culture of the customers.
Economical factors
Resources
Major resources for Batlow include the access to financial resources, human resources and strategic resources. Batlow is the part of Ausfarm, which is one of the largest agribusiness in the Australian regions. Thus, Batlow is enjoying the financial resources of Ausfarm in their business operation. This is helping them to initiate more effective farming process and packaging process. This is also helping them to invest more on their farming practices that is increasing their production (Bowen 2014). Access to increased financial resources is also helping Batlow to have more extensive marketing strategies in the target market. On the other hand, human resources of Batlow include the growers. These growers are responsible for the growing of apples. The skills and expertise of these growers are helping Batlow to have the apples with distinctive characteristics. Thus, it can be concluded that capabilities of the growers are helping Batlow to have the major competitiveness in the market. Strategic resources for Batlow include their locations of farming (Eisend and Schmidt 2014). These locations are being strategically chosen by them that will serve the ideal conditions for their farming practices. The ideal climatic conditions and weather conditions are helping Batlow to have the products with desired qualities.
Capabilities
Organizational capabilities for Batlow include their global market presence and having number of farming locations in the Australian region. As per the available information, Batlow is exporting to more than 100 countries. This capability of them is helping in having the larger market share and revenue apart from the Australian market (Uhlaner et al. 2013). This capability of Batlow is also enabling Batlow to optimally utilize their resources. Currently, they are having three farming locations in Australia along with separate facilities for packaging and marketing. This infrastructure of them is enabling in having proper business process to compete in the market.
Identification of the core competencies
One of the major core competencies of is quality of their products. This is due to the reason that distinctive taste and aroma and other characteristics of the fruits are helping Batlow to have competitive advantages in the market. In addition, this also enables them to stay ahead in the competition. Another core competency of Batlow is brand value. This is due to the reason that the brand value that they have acquired in the Australian market is favorable and positive. In addition, their brand value represents the quality of their products (Martelo, Barroso and Cepeda 2013). This is also helping them to stay relevant in the market along with gaining market share in the global market also. The human resources are also their core competency due to the reason that the market position of Batlow is depending on the effectiveness of the human resources especially on the growers. They are the responsible one in maintaining the distinctive taste and characteristics of the fruits.
Identification of the competitive advantages
|
Core competencies |
Valuable |
Rarity |
Inimitability |
Organizational capability |
|
Human resources |
Skills and expertise of the human resources are helping in creating more value in the products. |
This competency is not rare due to the reason that other competitors can also have the access to skilled employees. |
The skills and expertise of Batlow’s human resources can be imitated but the intensity can be same and similar for other players also. |
Batlow is capable enough in managing their growers as well as other human resources that is further helping them to have more employee effectiveness and efficiency. |
|
Strategic locations |
It is enhancing the value by providing the proper conditions for farming. |
This is not rare and others can also have the access. |
This can be imitable by others. |
Batlow is capable enough to maintain their 3 locations and they are willing to have more in future. |
|
Brand value |
This is creating value by enhancing the customer recall rate. |
This is not rare. |
This can be imitated and others can have larger brand value. |
They are capable enough to maintain their band value with their available infrastructure. |
|
Product characteristics |
This is creating the customer value by providing distinctive tastes. |
This is natural and is rare. |
This can be imitated by others. |
The internal orientation of Batlow is centered towards maintaining the brand value. |
- Batlow should have more product diversity with having more flavors and variants. This will increase the target customer segments.
- Batlow should have more farming locations in different regions to minimize the impact of climate change.
- More sustainable technologies such as aquaponics can be used by them to have more competitiveness in the market. This will also help them to gain advantages in the market.
Conclusion
This report concludes that Batlow is having relatively favorable external business factors in the Australian region. However, there are number of negative factors also being identified for them. In addition, this report also discussed about the internal capabilities and competencies of Batlow and it is identified that product characteristics of Batlow are the major competency for Batlow in doing business. In accordance to the identified limitations, a few recommended steps are discussed in this report that can further help Batlow to gain more competitiveness from their future business operation.
References
Batlow.com.au (2018). About – Batlow Apples. [online] Batlow.com.au. Available at: https://batlow.com.au/about/ [Accessed 26 Aug. 2018].
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