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Research paper example essay prompt: Akia Rice Company - 863 words
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Akia Rice Company Business and economic conditions Slide: ** Akia Rice Company is specialty food retailer The Akai Rice Companys primary source of revenue comes from selling its only product to Chinese Speaking individuals in the Los Angeles area. In fact, Akai Rice Company has three primary business functions: importer, packaging, and retailer. Since no revenue is realized from importing its product, nor from packaging its own product, the Akia company for purposes here will be classified as a Specialty Foods Retailer. ** Keen competition in Specialty foods market. It is competing against the many other similar companies that import or grow, package, and sell specialty rice from around the world.
In reality, Akia Rice Company must compete against brands such as Lundberg Rice Company (a specialty Californian rice) and Acquerello Organic Rice Company (a specialty Italian rice) that sell their products in specialty food stores such as Trader Joes, Whole Food Markets and Wild Oats Market. ** Economic boom has stimulated consumption on non-essential items As for the economic condition, since the time Akai Rice Company first came into existence in 1997, the U.S current economic condition has been nothing short of phenomenal. Most importantly this economic boom has led to increased consumer spending on non-essential items. This is extremely important for a company like Akai Rice. While the company does sell a food product; at $150 for a 35 pound box, it would be very difficult to convince anyone that this particular food is an essential grocery item. There are too many far cheaper foods, be it not as healthy that could be substituted for this product that would sustain a persons diet. Slide: ** Americans are eating more rice then ever before. According to the U.S.
Department of Agriculture, per capita use of rice climbed 191 percent from 1970 to 1997, and in recent years per capita rice consumption has been increasing about one pound per year in the United States. Consumption of rice in the U.S. in year 2000 would climb to 30 pounds for each person, up nearly 10 pounds since 1985. The bottom line is Americans are eating more rice then ever before. 2) Neutral environment Slide: ** Many authoritative organizations and publications encourage people to consume starchy vegetables Many prominent and highly respected health organizations, such as the ADA, which is The American Diabetic Association, and AHA, which is The American Heart Association, are all strongly encourage individuals to increase their daily consumption of starchy vegetables. Furthermore, other respected health publications such as Runners World Magazine encourage all level athletes to eat starchy vegetables because these are full of complex carbohydrates.
** Akai Rice is just one type of starchy vegetables. These organizations and publications contend that starchy vegetables are essential for a healthy diet, and complex carbohydrates are energy athletic individuals need to perform at peak level. Fortunately, Akai rice is just one type of starchy vegetables that are being emphasized by these prominent and respected organizations and publications. 3) COMPETITOR ENVIRONMENT Main Competitors Weaknesses Slide: ** Competitors rice products contains fewer nutrients that Akai rice. In a blind taste test conducted using Nishiki Rice (a high quality white rice), another specialty rice, and Akai rice; 60% of total testers chose Akai Rice 32% of chose Nishiki Rice only 8% of the similar specialty rice This test just indicated that more individuals are likely in favor of the taste of Akai rice. Competitors rice products are of the white rice category and White rice contains fewer nutrients than Akai rice, Even though Akai rice contains higher nutrients and has favorable taste, other competitors strengths are significant Slide: ** Much cheaper retail price than Akai rice ** Much longer history than Akai rice ** Much larger distribution reach First of all, the Akai Rice Companys purchases only one product from only one area of the world.
This practice heavily dictates the price that Akia must set for its product, and is, in fact, a competitive advantage for other rice companies. The reason why is: Other companies purchase in worldwide rice markets to find products in lower prices; from United States, China, Thailand, India, Japan and Vietnam, but the Akai Rice Company cannot. Please take a look this chart. In our research, we list almost 12 major rice products that are currently prevalent in Chinese super market. For e.g., Named 1st Rice, sells 50 lbs for 18.99 A & A Long Grain, sells 25 lbs for 7.99 Nishiki Rice, sells 20 lbs for 9.99 Calrose Rice, sells 20 lbs for 4.99 But Akai rice sells 35 pounds for $150, Other rice companies sell their rice at considerable lower prices; therefore, the cheaper retail price became one of competitive advantages of other rice producers and companies.
Second, those competitors, compared to Akai rice, have a longer history in the market. Some of them have been existed for more than 10 or 15 years, they are much more widely recognized by consumers and customers have accepted their logos and these companies reputations already, for many years. Finally, those competitors have a much larger distribution reach; these companies distribute their products to markets well beyond the Los Angeles Region. Competitors Strategies are the extension of their strengths. Theyre currently preceding the following: Offer a quality product at a very competitive price. Reach far more consumers by advertising in more areas and more frequently.
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