Sydney Food and Beverage Industry
In business today, a fresh scene is characterized by an environment is characterized by unstable environment which is dynamic and competitive. Because of the outcomes of the revolution of technology, globalization and also hyper competition, organizations and businesses encounter a lot of challenges. Businesses currently encounter more challenges as compared to earlier times because of the effects of technological advancement, increased competition, along globalization. There exists to steady pressure to the managers and business owners in finding the best solution for keeping their businesses performing effective and efficiently (Bustinza, Bigdeli, Baines, & Elliot, 2015). More so in the industries of beverages and food, it is evidence that globalization effects have pressed towards tough an objective. This includes the rising the range of quality items. Due to this pressure, businesses are forced to quickly adapt to the strategies of supply along with configuration towards the unstable conditions of the market. Businesses on the other hand too should have a strategy that is constant in socio-technological sector context (Chakravorti, 2009). In this environment of competition, acquiring an advantageous competitions is the best goal of each and every organization. Therefore, the advantage of the chain has been taken to ensure that the competitive advantage is achieved in different beverage and food industries. This is a student’s sample: ORDER YOUR PAPER NOW
Competitive advantage and the value chain analysis
The concept of competitive advantage and the value chain
The definition of competitive advantage is said to be the benefit over other competitors in the market that can be realized by giving your customers better values compared to other businesses. This can be done by either reducing the prices for the commodities, or by providing improved services and other benefits that defend the higher prices. The existence of competitive advantage is seen when an organization is in a position to offer and supply commodities to the consumer and then supply it at a lower price or other benefits of delivery which out ways the benefits offered by the competitors (Johansson & Newman, 2010). Therefore, competitive advantage is realized in force at the time when the company is in a position to exceed the outcome in average with the similar line of product. In the sector of food and beverages, for the competitor to lure new customers to buy their product may lead to the company lowering their prices or bring new brands of products, and can as well increase the level of marketing.
Value chain on the other hand, is said to be the activities done by other businesses for the purposes of creating value to their clients (hanifah & Mohamed, 2011). The organizations cost and the effect of profit is determined by the manner in which the business activities are carried out. Therefore, assists organizations in understanding different sources that beneficial for the business. In sectors of beverages and food, value chain basically is stakeholders network that are engaged in growing, processing along with selling of food which the consumers eat. This process starts from the farm and ends at the table. This is a student’s sample: ORDER YOUR PAPER NOW
Competitive nature of the Sydney Food and Beverage Industry:
The beverages and food industry consist of those businesses that are employed in manufacturing along with the packaging of beverages and products beginning from raw materials to the finished products fit for consumption. The sector also involves the manufacturing of foods packaging products and equipments. There are diverse ranges of products that are manufactured and supplied by the industry. For example we have ingredients, retail food, and service. Business flexibility portray rapid product supply and hence ensure consumer wellbeing and health, value for money, and convenience. One of the major business areas of the economy are the food and beverage of Australia. This is in terms of its contribution financial and employment. Customer demands for food and beverages drive the food and beverage industry. The customers seek for value, quality products and also products that are diverse. The availability of food and beverages reflect the ethnic and Australia’s culture.
There are more than 50,000 people that get employment opportunities with the industry every year. Besides, beverage and food industry in NSW gets more than $22 million income annually. This industry also benefits from outcomes of agriculture that are situated in the rural areas of NSW. The industry has direct access to market which is consumers’ largest in the whole world (“Food Processing and Beverages”, 2016). To add on this, Greater Western Sydney is also a home for thriving beverage and food industry.
The Concepts of Competitive Advantage in Australia
The sector of beverages and food, the manufacturing industries and fresh products have a value of $114 billion thus making a contribution to the Australia economy. These sectors are Australias’ biggest businesses and are almost four times larger when it is compared with the automotive industry parts. An average of 300,000 people is employed by the food and beverage companies. This number represents about 2.6 percent of the employed people in Australia. Because of the increased competition in beverage and food industry, there are diverse restaurants and companies with the notion of competitive benefit in order to create a good name and also compete with their rivals in the market. For example, Fosters and Lion Nathan is seen to have to possess a huge number of competitive benefits when compared with other companies producing beverages in the industry. Lion Nathan is capable of attracting large number of people because of its effectiveness in wide collection. The actions that take place in Lion Nathan businesses are the wide variety of alcoholic beverages. The major business focus is innovation and finding new ways of growing and expanding their businesses. Lion Nathan almost makes satisfaction of all the demands of and the consumer needs. Off late, Lion Nathan has innovated new alcoholic beverage which has attracted a large population and raised the rate of its consumption as well.
Menu Engineering is the concept used by beverage and food industries. This concept is defined as the study of profitability and popularity and the manner in which the factor can affect and influence the profitability of menu items. It also includes the manner in which the factors can influence the placement of menu items on the menu cards. The function of menu engineering is easy. What it does in just raising the profitability per guest. Menu engineering concepts provides the organizations manage the information about profitability and popularity of the item on the menu to ensure there is proactive planning, recipe designing along with the decision about the customer pricing formulation. Therefore, menu engineering cannot be considered to be sustainable for food rotation, recipe standards, proper buying, or any other control in the kitchen which can impact negatively on the organizations costs. Contrary to this, menu engineering is a technique by which one can evaluate each and every item placed on the menu card in relation to what it contributes towards its bottom line to its contribution towards its bottom line dollars as at now. Therefore, allowing for the identification of items by managers that want to do trade. This is a student’s sample: ORDER YOUR PAPER NOW
In conclusion, the competitive advantage concept for the organization doesn’t only mean matching that which other competitors can do, but also discovering what the consumer wants or has desires. It also involves the profitable fulfillment of their desires. For that reason, a tool that can be used in measuring the importance and the needs of the perceived consumer values is an analysis of value chain. By giving organizations opportunities to decide on their strategic weaknesses and strengths of their actions along creation of value systems and market procedures, the value chain analysis has become an important assessment tool for competitive advantage.
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