Question

In: Psychology

A friend of yours is thinking of starting an organic farm in Kakani that supplies vegetables...


A friend of yours is thinking of starting an organic farm in Kakani that supplies
vegetables to restaurants and hotels in Kathmandu. You are supposed to suggest her if
that is a good idea by doing an industry analysis using Porter’s five forces model.

Solutions

Expert Solution

Starting an organic farm is very good idea. Now people are becoming health conscious so they prefer organic vegetables rathers then chemically prepared vegetables.

This is very good business accordingly to the requirements of this generation:

I can prove this by using Porter’s five forces model:

1. Competition in Industry:

The first step to plan and start an business is to analyse the competition in the market. Right now there is no big name or big company in this industry. This is the best business to start now and this business can be started with low investment by making partnership with small scale farmer. By this you get quality product and farmers gets more value then they get in big markets.

2. Potential of new entrants: In this business anyone can enter. This business has no such boundary but according to my experience no big name is going to enter in this business because they invested their amount in chemical products. So they can't move themselves from that industry easily. This requires lots of courage to leave that well-established industry for new forming industry.

3. Power of supplier: Power of supplier this is an big factor for sustain a company for long term. In this business powers of supplier are not so high. Company can easily switch to new suppliers without so many difficulties and company maintains it's profits in longer run.

4. Power of customers: This is also an big factor for product based company. In this case company no need to spent much on finding new customers. This is because as I said earlier consumers are now becoming health conscious that is why they are looking for such products. If any new organic product launch in the market then they definitely go through it and company establish his base in the market.

5. Threats of substitutes: There is no such threats of substitutes because organic products need special methods of techniques and materials which are costly for those who starts this on small scale and this is very difficult to maintain quality. This is why no newcomer in this industry spent too much initially if he spents so much then also this is very difficult to maintain quality compared to the well established company who is working in this field for longer time.

These are the Porter's five forces model for this organic farm.

Hayet Jeridi answered 5 months ago
Next > < Previous

Related Solutions

Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing. The farm’s...
Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing. The farm’s leading product is Salad-in-a-Bag, which is a mixture of organic green salad ingredients prepared and ready to serve. The company sells a large bag to restaurants for $25. It calculates the variable cost per bag at $19 (including $1 for local delivery), and the average total cost per bag is $22. Because the vegetables are perishable and Great Oaks Farm is experiencing a large...
A friend of yours has approached you about starting a hot dog stand at the courthouse....
A friend of yours has approached you about starting a hot dog stand at the courthouse. She has collected the following information and would like you to help her evaluate the business. The sale price will be 3.50 for a hot dog, potato chips and a drink. The projected cost per sale is 1.35. Condiments are projected to be $ .35 per sale. The hot dog cart will be leased for a 12-month period for $ 425 per month. Liability...
Special Order Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing....
Special Order Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing. The farm’s leading product is Salad-in-a-Bag, which is a mixture of organic green salad ingredients prepared and ready to serve. The company sells a large bag to restaurants for $25. It calculates the variable cost per bag at $19 (including $1 for local delivery), and the average total cost per bag is $22. Because the vegetables are perishable and Great Oaks Farm is experiencing...
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for sale to food companies. On November 1, he sells his vegetables to Granny’s Pie Company for $65,000, inclusive of 13% VAT. Granny’s Pie Company uses his vegetables to produce savory meat and vegetable pies (they’re huge in the UK). After the production of the pies is complete, Granny’s Pie Company sells the pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13% VAT....
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for sale to food companies. On November 1, he sells his vegetables to Granny’s Pie Company for $65,000, inclusive of 13% VAT. Granny’s Pie Company uses his vegetables to produce savory meat and vegetable pies (they’re huge in the UK). After the production of the pies is complete, Granny’s Pie Company sells the pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13% VAT....
You and your best friend have just finished a Marketing Degree and are thinking about starting...
You and your best friend have just finished a Marketing Degree and are thinking about starting a company that targets virtual advertising for the likes of Facebook, Instagram and Tic Tock. The business will be run from your study as the cost of commercial leasing is too expensive for now, but you need state of the art equipment to compete in the field. As you have just finished Uni you have limited cash from your part-time jobs. In your Business...
Sunburst Veggies is a vertically-integrated company which both grows[1] and processes organic vegetables. Their company-grown vegetables...
Sunburst Veggies is a vertically-integrated company which both grows[1] and processes organic vegetables. Their company-grown vegetables are canned and then sold wholesale to grocery stores. The company began their operations in San Marcos, Texas in the mid-1990s and the corporate headquarters remain there. Sunburst grows a wide variety of organic (non-GMO) vegetables in greenhouses, some of which cover more than 200 acres. The vegetables are shipped from manufacturing facilities near the greenhouses. This assures the vegetables are processed as quickly...
A friend of yours recently said they came in contact with an antigen that is known...
A friend of yours recently said they came in contact with an antigen that is known to cause an allergic reaction based upon a family history. However, your friend says they did not feel an allergic reaction. You believe though your friend will suffer an allergic reaction if they come in contact with the antigen again. Please discuss what happened with your friend with the first initial contact and what will happen if/when your friend comes in contact with antigen...
A friend of yours is excited about the results of an evaluation of a new rehabilitation...
A friend of yours is excited about the results of an evaluation of a new rehabilitation program for adult prison inmates. She compared a sample of released prisoners who completed the program while they were incarcerated to a sample who did not, and she found that 21% of the treatment group was rearrested within one year of release, compared to 36% of the no-treatment group. She asserts that this is a definitive proof that the program works. What should you...
A friend of yours bought a handful of common stocks issued by a small company a...
A friend of yours bought a handful of common stocks issued by a small company a few months ago. Recently, the company filed for bankruptcy and is now in the process of liquidation. Indicate in which order of priority would the following parties be able to claim the company’s assets: Holders of common stock Bondholders (secured with collateral) Holders of preferred stock In general, could the court take possession of your friend’s private assets (house, car etc.) for owning a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT