Good Example Of Alltech`s Competive Advantage Case Study
Alltech is a multi-national company that has majored in production of enriched animal feeds and nutrition. It has depicted a strategic growth rate since its founding and has continued to develop a variety of products that keep the company at the top of its competitors. The firm`s all-natural line of animal feed supplements ensured that they targeted the ready market because of the worldwide growing interest in natural foods. The different pharmaceutical companies that produce products that are parallel to Alltech`s products, impose huge competition. The world market size was predicted to grow rapidly because of increased acceptance and knowledge of health benefits from natural feed products. Other companies in this industry have set goals to woo the wide based potential customers. Competitors include Pfizer, Novus international, and Elanco. Alltech has operational mechanisms that will ensure that it remains a key player in the market and it gets a big share of the new customers.
Marketing strategy used by Alltech is effective in sensitizing a wider population on the benefits of its products. The company reserves about 5% of its revenue for advertising and direct marketing of their products. It has a team of experts that device innovative strategy that will penetrate the entire market. The branding department worked on graphics and videos and determined ways of using emerging media and the Internet in advertising. Their strategy base was raising awareness on important food safety issues and then providing the industry with a defined solution.
The company has organized extensive training program that will ensure its workers are highly skilled and can perform demanding activities revolving around the enterprise`s operation. Alltech employs many people on a yearly basis for a variety of job descriptions. To increase production efficiency, every employee has to perform his or her part to perfection. Unwarranted errors arising from lack of training would bar the company from its targeted sales. The company thus gave all employees a deeper understanding of the processes that align the company to its global strategy.
Well-devised research and development department in Alltech will always give the company a competitive advantage. The company allocates 12% of its revenue to research with the aim of coming up with innovative products that satisfy their customers. They have employed expert scientists to work on different projects. The research team works on quality assurance activities by conducting extensive trials of the products. The company also funds research programs in various universities. Alltech has ability to conducts extensive tests, unlike most of its competitors, needed for regulatory approval.
The management and leadership organization within Alltech ensures that operations are efficient and use the latest technology for increased production. The founder is goal oriented and pushes his organization to excel in all aspects of their business. Lyon, CEO, enhanced effective communication amongst all the employees and has built a prominent teamwork within the organization. He paid attention to all details including minor proceedings within the company. The company has a board of directors who meet regularly to discuss on operations within the organization. They formulate new initiatives that will keep the business on top of its competitors. The managers work on daring projects driven by increased sales mentality. The increased revenues show efficiency of the leader’s strategy.
Alltech has depicted high qualities and strategic plans that will see the company overcome its competition to retain its leading role in the sale of animal products. The management, extensive research programs, improved marketing skills, and specializations are a few of the company`s strongholds. Working to improve these aspects will ensure the company grows its sales revenue, when they acquire part of the projected new market.