Value Chain Analysis on Fowler’s Farm

Value Chain Analysis
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Value Chain Analysis
Within Kelly's objectives and goals, cost management is essential to ensure a successful farming process. The preferred description for Fowler's Farm is the cost-leadership. The main reason behind the strategy is that farm products have proven to be challenging to differentiate unless a grading system influences the market price, which is cost leadership. With the cost-leadership strategy, there is proof of consistency, considering the firm's financial issues in the United States. There has been concern about diminished profits in the firm, which has attracted some sponsorship of Farm Aid. From the case study, Fowler's Farm faces price pressure and calls for appropriate cost management (Blocher et al., 2019).
The conceptual definition of competitive strategy is initiating various initiatives within a firm to attract customers and provide them with fulfilling expectations, aiming to strengthen their market position. As a small business, cost leadership and cost-focus strategies are essential for Fowler's Farm to remain competitive. The cost-leadership strategy requires a long-term commitment to facilitate the sales of farm products at lower prices and remain competitive (Blocher et al., 2019). Through this strategy, Fowler's Farm produces goods alongside other farm services at the minimum possible cost to avoid any profit margin loss. With the cost-focus strategy, Fowler's Farm targets a specific segment within the market and then provides lower prices than in other segments to remain competitive.
Mapping the value chain is defined as exploring a value chain's efficiency and effectiveness, especially in delivering products concerning the quality, volume, and type that the consumer needs. The common value chain activities in Fowler's Farm are producing, processing, and distributing the finished products. Similarly, distribution is conducted, retailed, and consumed by the customer of three main products. The farm products from Fowler's Farm include tobacco farming, dairy farming, and corn production. Through value addition on the products, the final product that gets to the consumer is valuable and in demand.
Non-value adding, also an essential activity in value chain analysis, ensures that activities that fail to contribute to the value of the final product are deemed with the existing processes in the supply chain. Some of the activities in Fowler's Farm that fail to contribute to a final value-added product may include inadequacy in processing, extensive inputs, insufficient skills, and substandard inputs.
The main competitive advantage for Fowler's Farm lie...