Strategic Management - A2 Milk Company PDF

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Strategic Management - A2 Milk Company...

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Case Analysis (A2 Milk Company Case)

Submitted to Prof. Gayathri Sampath

A2 milk company case

A2 Milk company is based in New Zealand. It is a dairy processing firm and sells milk products in Australia, China & other countries. Production of processed milk which has only the A2 protein and A1 protein excluded has been specialization of the firm. The rationale behind producing A2 milk was predominantly the issues people faced digesting A1 protein as well as health problems such as diabetes caused by A1 protein revealed by research. A2 Milk company joined a new strategic relationship with Fonterra Cooperative group. It did not produce A1 milk. However, the aim of the partnership was to stimulate market growth by combining A2 milk company’s brand strength and Fonterra’s market expertise in distribution. Nestle later entered the chinese market launching A1 free products. It posed a threat to the dominance of A2 milk company;s market. A2 milk company’s current strategy has been focussed on creating a broad portfolio of dairy products, precisely, nutritional ones, to expand in other regions. The company’s strategy in a nutshell has been on expanding its strategies as well as technologies in milk processing. With Nestle venturing into competing against A2 milk company by producing A1 free infant formula, even other firms such as Happy Valley Milk and China’s Mengniu started to sell A1 protein free products. The A2 Milk company should take following steps: 1) Increase promotion and advertising in China, Cutting down on the prices of products as well as increasing the distribution network. 2) To increase sales in Asia, A2 Milk company should take advantage of relationship with Fonterra 3) Sign long term supply contracts with farmers and lock up the supply of A2 milk. It will slow down the growth of competitors 4) Expand in different regions and thereby increase the market. This can be achieved by selling in other foreign countries such as US and UK 5) Alternate is to increase the product range. It will help in developing the brand of the firm...