Understand Various Competitive Challenges â€Myassignmenthelp.Com

Question: Discuss About The Understand Various Competitive Challenges? Answer: Introduction The nature of the competition in the food industry of Australia is rapidly rising which is giving rise to number of challenges as well as opportunities. The meat industry is one of the most well-known sectors which face numerous challenges as well as integration of technological advancements results in increase number of opportunities too (Hocquette, et al., 2012). The report will present the various competitive challenges and opportunities faced by the meat sector of the Australian food industry. Competitive challenges and opportunities facing the meat sector of the Australian food industry Challenges faced by the meat sector of the Australian food industry (Source: AMPC, 2016) Challenges facing the meat industry of the Australian food industry are rising with an upsurge rate which is making difficult for the companies to sustain. There are several kinds of challenges such as environmental, legal, competitive, technological, etc. But in present scenario, due to several factors, there is a strong threat of the competitive challenges to the businesses. International Competition The primary challenge is of the growing international competition as there is effective supply of the meat to manage the demand by the global companies through strong distribution channels and huge production capacity. This kills the share of the domestic companies and poses as a challenge for them to sustain (McConchie, 2016). Large-scale off-shore Processing There are only few key players that are processing the meat at large scale but still there are issues related to the processing of the meat at large scale. Because of the incapability to process at large-scale, the global players take possession of the markets and it kills the share of the regional players. Incompetence to produce undifferentiated products Another key competitive challenge in the meat sector is that there is extreme lack of differentiation. To sustain the market share, there is a much need to offer differentiated products to the consumers so that they do not switch to other brands due to lack of differentiation (Pethick, et al., 2011). Insufficient capital investment Insufficiency of the capital or lack of investments results in squat level of innovative practices to produce meat and this poses a competitive challenge for the companies. It has been analysed that the domestic player who are small in size not have much capital to invest and this restricts their growth and make them out from the market competition. Unmanageable inflation in primary markets In few of the key markets, there has been experienced sudden inflation which restricts the sale of the meat products and the unmanageability leads to decline market share of the company. There is a high need of having appropriate management of the production, demand and supply so that organisation does not have to face competitive challenges (AMPC, 2016). Lack of market coordination In Australia, it has also been analysed that there is extreme shortage of the market coordination which leads to ineffective supply of the meat products. Three is a strong need of market coordination so that the demands can be met successfully by the domestic suppliers and the global players do not fetch the market share (Bell, et al., 2014). Incompetence to understand the upsurge consumer and dynamic preferences Another key competitive challenge is lack of competence to understand and analyse the continuously rising and dynamic preferences of the consumers. The companies do not undertake such analysis and the lack of innovative practices, technological advancements and upgrade processing result in dissatisfaction of the consumers (Troy and Kerry, 2010). Supermarket war There is a strong and robust challenge imposed by the supermarkets on the growth and sales of the domestic retailers. The availability of fresh meat in lesser value, the consumers tend to purchase from the supermarkets and this results in cutting down of the market share of the regional players. This develops strong crisis among the domestic retailers and the supermarkets in Australia and thus the overall growth of the meat sector restricts (Reardon, et al., 2003). Opportunities in the meat sector of the Australian food industry Reducing costs with Robotics It is presently one of the pioneering opportunity for the Australian meat sector to develop and achieve success by taking sue of robots as new ways for packaging and processing of the products. There is extensive use of robots for achieving many benefits such as faster application, increased safety, lowered work place injury, reduced dependence upon labours and improve sanitation. Thus, to sustain and grow, the companies should take use of robotics technology (Runvik, 2017). Green credentials The importance of green bar is rising with time and it is one of the challenge as well as the opportunity for the industries. In present time, the consumers are willing to pay additional amount for environment safe and healthier, green and organic food products. Thus, there are several environment implications associated with meat production. Thus, it is an opportunity for the companies to enhance the green credentials and upsurge the sales in both domestic as well as global markets (International Food Meat Topics , n.d.). Enhancing transparency and clean products It is another opportunity for the Australian meat sector to extend the customer base and increase the sales by enhancing the transparency level by offering a more detailed and clear info to the consumers in respect with the production, processing and packaging of the meat products. If the consumers will offered more clean products with increased level of integrity, there are high chances of customer reliability and less threat of decreased market share (Trienekens and Zuurbier, 2008). Conclusion The report offers insight of several competitive opportunities and challenges faced by the meat sector of the Australian food industry. It has been evaluated that with the change in time and technologies, both the opportunities as well as challenges are growing for the domestic retailers of the nation. Thus, it is necessary to sustain these challenges and manage the long-term growth and sustainability of the businesses by focusing on few key factors such as integration of technology, analysis of customer needs, evaluation of the market trends, strategic moves, use of eco-friendly practices and offering more green and sustainable products which are hygienic and safe in nature. References AMPC, 2016. STRATEGIC RISKS FACING THE AUSTRALIAN RED MEAT INDUSTRY. Accessed on: 26th August, 2017. Pp.60. Accessed from: https://www.ampc.com.au/uploads/cgblog/id65/42161_AMPC_RiskDocumentvLR.pdf Bell, L.W., Hayes, R.C., Pembleton, K.G. and Waters, C.M., 2014. Opportunities and challenges in Australian grasslands: pathways to achieve future sustainability and productivity imperatives.Crop and Pasture Science,65(6), pp.489-507. Hocquette, J.F., Botreau, R., Picard, B., Jacquet, A., Pethick, D.W. and Scollan, N.D., 2012. Opportunities for predicting and manipulating beef quality.Meat science,92(3), pp.197-209. International Food Meat Topics, n.d. Challenges and opportunities for the meat sector. Pp.2. Accessed on: 26th August, 2017. Accessed from: https://www.positiveaction.info/pdfs/articles/fm28_1p29.pdf McConchie, R., 2016. Red meat sustainability report offers a feast of ideas to tackle challenges. Accessed on: 26th August, 2017. Accessed from: https://www.abc.net.au/news/rural/2016-10-26/report-outlines-challenges-red-meat-processing-industry/7968482 Pethick, D.W., Ball, A.J., Banks, R.G. and Hocquette, J.F., 2011. Current and future issues facing red meat quality in a competitive market and how to manage continuous improvement.Animal Production Science,51(1), pp.13-18. Reardon, T., Timmer, C.P., Barrett, C.B. and Berdegu, J., 2003. The rise of supermarkets in Africa, Asia, and Latin America.American journal of agricultural economics,85(5), pp.1140-1146. Runvik, K., 2017. How Robots Are Changing the Food Industry. Accessed on: 26th August, 2017. Accessed from: https://foodindustryexecutive.com/2017/02/how-robots-are-changing-the-food-industry/ Trienekens, J. and Zuurbier, P., 2008. Quality and safety standards in the food industry, developments and challenges.International Journal of Production Economics,113(1), pp.107-122. Troy, D.J. and Kerry, J.P., 2010. Consumer perception and the role of science in the meat industry.Meat science,86(1), pp.214-226.