Competitive Forces Vs. Foreign Competition

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Question 1 Competitive forces: Due to the fact Delhaven Orchards has been around 1961. Local and foreign competition has increased drastically. Competitors are being innovative by increasing the quality of apples without little or no change in the prices. As stated in the case study, Ontario is the most expensive place to grow fruits and vegetables in North America. This gives an absolute advantage to foreign companies to import their fruits into Canada at a lower price. Canadians would prefer buying apples from local producing company. However, due to a higher price many people would then prefer buying imported apples as they are very cheap. This will affect Delhaven business as their span of customers will decrease. Political forces: As mentioned in the case study, Ontario is the most expensive province to grow fruits and vegetables in North America due to high labor and safety regulations. This will affect Delhaven a lot as this will increase their cost of production to a greater extent. Government needs to interfere in these matters and try to keep the cost low as possible. One good decision government supports, is allowing foreign workers to work in farming field. This keeps the cost drastically low and allows Canadian companies to be competitive as possible, Natural forces: If the weather and climate remains in good shape. This will favor the farmers a lot. If due to some reason there is a blizzard or any other disaster, production of vegetables and fruits will be halted. This will result in extensive loss for the farmers who are dependent on their production for few months. It is crucial that climate remains good and they try to extract the production much as they can in good conditions. Societal forces: If the population... ... middle of paper ... ...d recommend Delhaven Orchards to use corporate level strategy. Corporate level strategy has lot of benefits. Firstly, corporate level strategy urges diversification in the business. Delhaven can focus in similar fields related to farming. Due to the fact, Delhaven Orchards has lot of competition, corporate level strategy is the best way to combat it. This will help their business venture grow. If Delhaven one business sector is going in loss. They have other sectors to focus for, this will not abolish the whole corporation itself as they have now other business sectors in hand. One of the biggest advantage by diversifying is gaining added market share. Targeting new groups of customers will help them create their brand awareness in the market. There are lot of financial gains when business implies corporate level strategy as it opens doors of ample opportunities.
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