Porters 5 forces for Kiwi fruit industry

Threat of New Entry (HIGH)

Large supplier base though overall production of kiwi fruit when compared with the other fruits is less Low switching costs

Bargaining Power of Suppliers (Low)

Bargaining Power of Customers (High)

Many options for customers

Fragmented suppliers Margins for suppliers not very high High supply variability

Rivalry Among Existing Competitors: (High)

Number of players are more and fragmented

Threat of Substitutes (High)

Many fruits Other healthy fruits available at lower costs

The awesome part about this case is that Zespri has contested each of these forces and worked on increasing its say in the market

Analysis of Zespris Value Chain

Firm Infrastructure: Its is SPE (Special Purpose Entity), works as a cooperative , has sales offices across all its exporting markets Support Processes Human Resource Management : 280 staff , with 117 working in global offcies in addition to the Scientists and the cultivars Technology Development: R&D into taste improvement and patents, has call center and website to Help the growers Procurement of Resources: The Kiwi fruit from the local growers, to counter seasonal unavailability; they are Using global sourcing Primary Business Processes

Operations

Inbound Logistics
The Kiwi Fruit from the Cultivars

Outbound Logistics
Quality checked fruit to destined markets

Customer Service Marketing and Sales

- Refer all case facts

Shipment Packaging Cold Storage Quality Checks

Takes market feedback to Customize Exchange Programs for retailers Gives Brix ratings for sweetness