Scribd Logo
Upload

Welcome to Scribd!

  • 756 views

    Ziwo's Executive Summary

    Uploaded by

    swarnima biswari
    Ziwo is a leading agricultural materials company in northeastern China that vertically integrated its supply chain in response to declining market share from 2008-2011. This proved successful, as the company's income increased from $3 million in 2011 to $42 million by 2015. However, internet giants now challenge Ziwo's business model and position in the market. To maintain competitiveness, Ziwo must analyze risks in its supply chain, strengthen its distribution network, reduce transportation costs, conduct a SWOT analysis, and improve its social media presence.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Ziwo's Executive Summary

    Uploaded by

    swarnima biswari
    756 views2 pages
    Ziwo is a leading agricultural materials company in northeastern China that vertically integrated its supply chain in response to declining market share from 2008-2011. This proved successful, as the company's income increased from $3 million in 2011 to $42 million by 2015. However, internet giants now challenge Ziwo's business model and position in the market. To maintain competitiveness, Ziwo must analyze risks in its supply chain, strengthen its distribution network, reduce transportation costs, conduct a SWOT analysis, and improve its social media presence.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Ziwo is a leading agricultural materials company in northeastern China that vertically integrated its supply chain in response to declining market share from 2008-2011. This proved successful, as the company's income increased from $3 million in 2011 to $42 million by 2015. However, internet giants now challenge Ziwo's business model and position in the market. To maintain competitiveness, Ziwo must analyze risks in its supply chain, strengthen its distribution network, reduce transportation costs, conduct a SWOT analysis, and improve its social media presence.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    756 views2 pages

    Ziwo's Executive Summary

    Uploaded by

    swarnima biswari
    Ziwo is a leading agricultural materials company in northeastern China that vertically integrated its supply chain in response to declining market share from 2008-2011. This proved successful, as the company's income increased from $3 million in 2011 to $42 million by 2015. However, internet giants now challenge Ziwo's business model and position in the market. To maintain competitiveness, Ziwo must analyze risks in its supply chain, strengthen its distribution network, reduce transportation costs, conduct a SWOT analysis, and improve its social media presence.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Ziwo Agricultural Service Co.

    Ltd : Vertical Integration


    Executive Summary

    Ziwo is situated in Shenyang in northeastern China, leading company in sales of agricultural


    materials. In 2006, due to the changes where family farms became more centralized, and
    the larger market saw decline in their market share and income from 2008 to 2011. Ziwo
    considered vertically integrating its supply chain process to break even the losses. Since
    implementation the company has been successful. Manufacturers, ALF, and large granaries
    was all able to increase product prices and inventory cost and reduce costs. Case shows that
    Ziwo’s income increased from $3 million in 2011 to $42 million by 2015.

    But due to the internet giants of the same market, their current business model, and the
    vertical integration was challenged, and they were at risk of losing their position in the
    market. In 2015. Ziwo needs to identify the steps in their existing vertical integration supply
    chain, analyze the risk and work on the recommendations.

    Problem Identification-
     Only 1 revenue generation market- Ziwo has its products from ALF and only that is
    generating revenue. That is resulting in non-transparency of the AM’s and AP’s.
     Social influences – The IG’s are taking over Ziwo’s position due to their social
    presence in this technology run world.
     Supplier practices – due to its one streamline transportation system they can risk
    getting poor customer relations.
     The threat of substitute products and services – there are always new entrants and
    alternatives for any product that is available in a particular market.
     Industry competitiveness – the IG’s are their biggest competitors and they need to
    find out a way to be more accepting to the customer than the IG’s.

    Recommendations-
     Strategic Group analysis- brand identification, specialization, push and pull strategy,
    product quality, supply chain processes.
     Implementing Balanced scorecard framework – to assess the performance of their
    existing supply chain strategies and how changes can be made in their SCM,
    bottlenecks and customer relations.
     Strengthen Value and Distribution network – by adding quality and enhanced
    elements in this vertical, it will allow Ziwo to main a sustainable competitiveness.
    Would recommend for achieve a good distribution network as this put the company
    in control of where its products are placed, easy availability of its products. It will
    also allow Ziwo to closely work with their end consumers and build a good
    relationship and loyalty.
     Transportation risk elimination- By collaborating with the local deliveries they can
    streamline and reduce cost and EDT for their products from ALF to the end
    consumer.
     SWOT Analysis- it talks about the vertical’s strengths and weaknesses which can
    resolved internally and opportunities and threats by analyzing the external key
    factors of the SWOT. This can help improve the long-term position of the company.
    This activity will help Ziwo build up its position in the international market by the
    opportunities offered.
     Social presence – They can use consumer-centric segmentation and targeting.
    Customer based and orientated marketing strategies which attracts new customers
    and telling the existing ones what’s new and running in the current market.

    You might also like