- 10 Marks
BMIS – L1 – QD8 – Competitive advantage and strategic direction
Question
D8 Dairy farm
The farm appears to have added value in the following ways:
(a) It has switched to organic farming.
(b) It has increased the range of products that it makes and sells.
(c) It has created a brand for their product.
(d) It has developed a direct marketing capability.
(e) It has developed a direct mail gift product.
Answer
(a) It has switched to organic farming. Some customers are prepared to pay more for organically-produced items, partly because organic products may be considered ‘more healthy’ and partly because customers may want to buy produce of animals that have been well-treated.
(b) It has increased the range of products that it makes and sells.
(c) It has created a brand for their product: branding can add value.
(d) It has developed a direct marketing capability, which presumably includes a potential customer database and an e-commerce facility.
(e) It has developed a direct mail gift product.
D8 Dairy farm
The farm appears to have added value in the following ways:
(a) It has switched to organic farming.
(b) It has increased the range of products that it makes and sells.
(c) It has created a brand for their product.
(d) It has developed a direct marketing capability.
(e) It has developed a direct mail gift product
- Tags: Branding, Direct Marketing, E-commerce, Organic Farming, Product diversification, Value Addition
- Level: Level 1
- Topic: Operations strategy
- Uploader: Samuel Duah