Value Chain Analysis on Fowler's Farm

Value Chain Analysis
Name
Institution
Due Date
Value Chain Analysis
Fowler's Farm Case Study
Farming refers to one of the many commodity operations, as in the case of Fowler's farm. The farm products prove challenging to differentiate unless there is the application of a grading system that also influences market prices. In this case, one of the preferable descriptions of the farm's strategy could be cost-leadership. Such strategy proves consistent with the various financial issues that farms encounter within the United States (Dung et al., 2020). The aspect of diminishing profits across farming has necessitated the sponsorship of the Farm Aid. The case study reveals the extent of price pressure that the Fowler farm is currently facing. As depicted calls for appropriate cost management, this scenario is more critical for the success of the farming process that appears to be a priority of Kelly's objectives.
Competitive strategy refers to the various initiatives that a firm takes to attract new customers alongside providing them with fulfilling expectations alongside strengthening the market position. There exist different competitive strategies, two of which include;
* Cost Leadership strategy
* Cost focus strategy
In this scenario, the cost leadership strategy is applicable in the implementation of small businesses. This concept requires long-term commitments for the purpose of selling products and services at lower prices. It is required that the small companies produce goods alongside services at a low cost to avoid losses to the profit margin (Dung et al., 2020). The cost focus strategy may reflect some aspect of similarity with the cost leadership strategy, however, in the cost focus strategy, the firm targets a particular segment within the market and provides the market with low prices.
Mapping the value chain
This documents the material flow to explore the efficiency and effectiveness that the chain creates towards the delivery of products as per required volume, quality, and type to meet consumer needs. The tables and figures below identify the major inputs alongside activities that comprise production, processing, distribution, retailing, and consumption of dairy farming, corn production, and tobacco farming at Fowler. In this case, the value addition represents various activities that bring value to the consumer through ensuring that the final product or service is valuable. Necessary but non-value-adding represent the activities that fail to contribute to the product's value but are deemed necessary within the existing supply chain processes. These may include excessive, substandard inputs, insufficient skills as well as inadequate processing (Cucagna & Goldsmith, 2018).
The value chain helps identify the various elements in detail in the value chain and could quickly help Kelly locate potential areas that require cost reduction. One of the major examples of value chain applicable in the case of the Fowler farm include the following;
Corn Farming Value chain
Value Chain

Duration

Preparation of the land/soil

January to March

Procurement of supplies, seeds, and fertilizer

February to April

Planting Process

April

C...