Bee Maid Honey Alternative 1: One Alternative Essay

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Bee Maid Honey Alternative #1:

One alternative Bee Maid Honey may consider, in order to remain competitive in an increasingly competitive industry, is to invite beekeepers in other regions to join their co-operative. Currently, Bee Maid Honey is comprised of beekeepers only in western Canada. The primary advantage to this strategy would be the increased economies of scale Bee Maid could acquire, especially given the strong growth in exports to the United States, across all provinces. This could give the company the scale needed to truly compete on price point with McCormick's acquisition of Billy Bee. However, there would be disadvantages with which the organization would need to contend.

Logistics would be a significant challenge for a geographically expanding Bee Maid. Processing and packaging plants would likely need to be located in both central and eastern Canada. Additionally, one of Bee Maid's founding principles was to provide consistently high quality honey. Ensuring this quality remained a constant, with the addition of new members, would require additional vigilance.

Alternative #2:

A second alternative for Bee Maid Honey would be to seek a multi-national corporation to by the co-operative out. Acquisition by an organization such as international food powerhouse, Associated British Foods, could give Bee Maid the financial, technological, and marketing resources needed to compete directly with Billy Bee. As the honey industry is a mature market, with little product innovation, consumers are more price sensitive when comparing brand-to-brand. The primary disadvantage to this strategy, however, lies in the loss of control for Bee...

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To be purchased by a large corporation, such as Associated British Foods, Bee Maid will simply become just one more division. Focus will be on maximizing revenues and profits, which may lead to a dramatic change in organizational culture, and ultimately product.
Alternative #3:

Instead of looking at expansion solely in Canada and the United States, Bee Maid may consider expanding their exportation to the European Union. The primary advantage to this alternative is the large market the EU offers. The EU is the largest importer of honey in the world ("Honey production," 2003). However, there are disadvantages to this strategy as well.

First and foremost, Bee Maid Honey would need to ensure they are meeting the strict EU guidelines for honey manufactured for human consumption. Additionally, Bee Maid would be competing with well-established brands that have already entered this geographic market. Lastly, marketing and distribution costs would be a significant financial investment for the organization.

Alternative #4:

A final alternative Bee Maid may consider is to not look to become the biggest, but instead focus on being the best honey manufacturer in the world. As mentioned, the honey industry is a mature market. Product differentiation through innovation is rare, and when it does occur and is successful, it can be easily copied by competitors. For this reason, price point is often a primary means of product differentiation. However, the advantage to…

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References

Honey production and consumption. (12 Mar 2003). Retrieved March 19, 2011, from http://www.meadmadecomplicated.org/honey/production.html.


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