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Kono in 2024 Strategic Analysis Report Name & ID *Date* IMPORTANT: Please delete all instructions in this document prior to submission – including this instruction. You should keep all the headings, page breaks, and section numbering format, but you may modify or adapt the figures or tables as you fit. Executive Summary This paper aims to evaluate Kono – a Māori owned food and beverage company in New Zealand, highlighting its global competitive context. It is to evaluate Kono's internal and external environments and develop strategies that make the firm more competitive. By the application of Porter's Five Forces model, there is a moderate threat of entry and increasing threats suggested by the threat of rivalry, with plants offering stiff competition. Supplier power is rising, as is the pressure on vendors to reveal their sourcing practices. This indicates an increasing consumer pressure on sourcing transparency, and competition with larger firms is still stiff. SWOT analysis uses branding and cost leadership as Kono's strengths, but the organization can be considered weak because it offers a limited range of products. That is why growth is seen in organic and plant-based foods and going international. Some actions for consideration are product differentiation, supply chain management, and increasing transparency using blockchain, ensuring sustainability and competitiveness with the current market. Introduction Kono is a New Zealand-based Māori owned food and beverage company with a range of wine, seafood, fruits, and snacks. Their focus is on sustainability, culture, thorough care for the territories, and natural and premium products to represent their bond with the ground. Kono is an owned company of the Wakatū Incorporation; it has employed indigenous principles of operation and seeks to develop products that will create awareness about New Zealand's food and beverage sector to the international market. External Analysis The food industry is a susceptible and competitive business because food preferences change within a short while; there is always a legal ban on some food products, and there is an issue of outsourcing foods from different regions of the world in case of a crisis. This means that companies in the given environment must constantly review their strategic plans. This essay will assess Kono based on internal and external environments and how the firm can use strategic tools to survive competition. Based on the theoretical analysis that utilized SWOT, VRIO, and Porter's Five Forces models, this paper will reveal the strategic implications for the company operating within the scope of the food industry. Porter’s Five Forces and Business Industry Analysis In this section, a brief analysis of Kono's operating environment is based on Porter's (1985) Five Forces model. First, the threat of new entrants is moderate since newcomers to the industry experience stiff competition due to high capital investment, entrenched customer loyalty, and distribution networks. However, as these barriers reduce due to technological advancements enabled by firm growth, flexibility, and resilience, more firms are looking for opportunities in niche markets, including organic, plant, or sustainably sourced foods. Second, the intensity of the bargaining power of suppliers is an essential factor influencing the operations of food firms. Kono needs to develop long-term partnerships with suppliers to get the best raw materials at a cheaper price. However, supply chain volatility due to environmental factors like climate change and political upheavals can result in high costs and supply contract availability. This is well illustrated when sourcing its raw materials, either organic or specialty materials, as the industry faces high supplier power due to the availability of these materials. Third, the bargaining power of raw materials has become equally potent in recent years due to the growth of purchasing power, knowledge, and information availability in the market. Customers are increasingly concerned about information about the origin of food products, its impact on the environment, and its nutritional value (Fuchs, 2020). Therefore, there is a continued need for Kono to strive and innovation meet these expectations and, most significantly, its products from its competitors. Another threat rated high is the threat of substitutes, which are becoming more apparent in the food industry through things like plant proteins, cultured meats, and functional foods. These products act as healthier or more sustainable substitutes for conventional food items and increase the competitive pressure on those like Fonterra. Lastly, the intensity of competition is high in the food industry, given that significant international firms such as Sanford Limited and Zespri International are developing new products and adopting very aggressive marketing strategies. Therefore, for Kono to sustain its position, it must sustain its cost advantage coupled with operational effectiveness and seek out differentiation factors such as the company’s sustainability or product variety. SWOT Analysis SWOT analysis provides a broad picture of Kono's structure and possible advantages and threats by evaluating the firm's fortified internal environment and vulnerable internal weaknesses and comparing them to powerful external stratified environment opportunities and threats. Some of the company's strengths include maintaining a strongly associated brand Image, having a vertically integrated supply chain, and having a cost leadership strategy. These factors help Kono sustain high operation efficiency, provide products at low-cost prices, and guarantee product quality and standard. Conversely, the drawback is scant product differentiation in the company's product portfolio. While it has been successfully practicing cost leadership as its strategic Kaynak significant competitive advantage, it hampers marketplace adaptability by not being capable of promptly managing changing consumer trends, especially the inclination towards a healthy and environmentally friendly food supply. A number of favorable themes are present, such as the increased consumption of organic, vegan, and local ingredients. In expanding its product line to the above-mentioned, Kono can obtain more revenues and become popular with different clients. Besides, there is potential for diversification in the overseas markets, mainly in developing nations, due to increased consumer preference for packaged and processed foods (Mintzberg, 2009). They are regulatory threats, supply chain threats, and competitive threats. In particular, due to the increasing number of regimes and legislative actions, th...