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The research case of this thesis - Jia Shide International Co., Ltd., specializes in the import and export of cereals. At present, the domestically-purchased cereals include white rice, brown rice, germ rice, black rice, millet, red rice, and red barley. Various types of goods are sold in the market. Foreign grain acquisitions are currently being made in Swaziland Ranch as organic white rice, preparing for advanced sales to Taiwan for a sale; for export cereals, there are currently no fixed orders and quantities (Taiwan has export controls)! The main acquisition of cereals is in the eastern region. Only a handful of cereals and special specifications were purchased in the west. At present, there are two rice mills in Taitung to supply the current orders!
Taiwan's cereal grain merchants need to make changes to their own development, from the original government's protection of the agricultural industry to the opening up of market trade, and the competition of various cereals in various countries.
Study the problem of the case to analyze its strategy and solution with five forces as follows:
A. Existing competitors (competitive)
a. Own rice mills - Dapan Grain Merchants (a well-known private label) emphasize its brand differentiation and uniqueness.
b. Own Rice Mills - Dapan Grain Merchants (no well-known brands), focusing on "brand" rather than output!
B. Alternatives (threat)
a. Instead of cereals, staple cereal products such as wheat products—flour, noodles, and bread, etc., and potato and other root and stem foods are used as substitutes for cereals, and a variety of cereal products are introduced.
C. Consumers (bargaining power)
a. Taiwan's domestic rice and rice crops, prices vary across the country, leading to spreads, so that the brand image of good rice without contaminating the origin of production,!
b. Imported rice and rice crops, grain imports from all over the world, emphasizing that the superiority of the quality of agricultural products produced in Taiwan is greater than the added value of spreads.
D. Suppliers (bargaining power)
a. The price of the transaction between farmers and rice mills will change due to the two major factors of harvest and market, and a reasonable negotiation and communication with rice mills.
b. The costs incurred by the rice plant from the acquisition of the rice raw materials by the farmers to the processing process, the packaging process accounts for 5% of the total cost, and the control can control the cost.
c. The cost of goods sold outside of the raw materials, such as bags, cartons, shipping, and management costs, etc. The method of reducing the rate of change is to enter into mid- and long-term contracts with upstream manufacturers!
E. Potential competitors (threat)
a. The new brand of grain merchants - implemented from the aspect of strengthening the brand and making good customer service, highlighted the superiority of the product brand of this case!
b. The rise of the “small-scale farming economy” that is prevalent in emerging markets reinforces the case that this case is a large-scale and quality packaging process. It is to make the difference superior to the small-scale farming economy!
The transformation of medium-sized grain merchants The biggest focus of large-scale grain merchants is to “brandize” grain merchants, bring their business concepts into the brand, and deepen their positive brand image impressions. Furthermore, to promote the depth and breadth of the brand, they can also respond to open-class operations. Direction, as a two-way convection between import and export!
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