Pfo
Paradise Farms Organics (PFO)
Individual Case Analysis Report
Introduction
This report will analyze Paradise Farm Organics (PFO), which produces a line of organic products which are suitable for a varied group of customers including outdoor and health oriented individuals. I would like to start by giving brief background information on the company. It will then be followed by an External and Internal analysis. I will also discuss various alternative strategies that the company can use and conclude by recommending one of these strategies for the company.
PFO started as a sole proprietorship in 1989 and was primarily a mail order company. It was incorporated in 1992 and by 1998; they entered into a private label contract with Mountain Safety Research (MSR), an outdoor equipment company, to provide organic and dehydrated food. This helped the company grow and provided a stable income but at the same time it limited PFO’s opportunity to gain a decent profit margin. Hence she started using the internet as a resource to reach out to customers even though she tries to avert from traditional marketing and prefers to have the customer find them.
External Analysis
The external conditions of the market and more or less favorable. With the size and growth of the industry, and with the awareness of organic and health related food increasing, demand for organic food generally exceeds supply which is a good sign for profit potential. Also on the other hand many of the mainstream food companies are indulging themselves into the natural food market which creates an issue for the smaller producers almost forcing them to focus on their own customers by identifying their own target markets. In this market the suppliers are increasing at a rate of 12% every year and with the customers virtually having zero switching costs, the retailers are able to impose on the producers. It should also be noted that there are many alternatives or...
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