Giuseppe's Original Sausage Company
Giuseppe's Original Sausage Company
Case Analysis
Giuseppe's Original Sausage Company is a company that formed in late 1991 by Joe Cotrone in Memphis Tennessee. Because of USDA regulation issues the company did not did not open its doors right away but the sausages did make their way to the Memphis in May festival that highlighted Italy and Italian food. Finally, Giuseppe's opened their doors in late 1992 after all the government regulations were complete. This was a gourmet sausage company that specialized in dinner sausages that consisted of ore than 80 different sausage products. In the beginning sales were slow but by late 1997 sales were over $250,000 due to expanding clientele. This case analysis will analyze Giuseppe's external and internal environments as well as recommend strategic actions to maintain a competitive advantage.
1. Describe the Dominant Economic Characteristics of the Industry.
The Dominant Economic Characteristics of the Specialty Sausage Industry
Growth and Position in Life Cycle:
The specialty sausage industry was in the growth phase of the industry's lifecycle. In 1997 the industry had a growth rate of 18.3% with the market in Memphis growth at 15.4% from the prior year. Also, the regional segment expanded to $2 million.
Number of rivals:
The market was competitive and the number of rivals consisted of 25 to 30 regional and national brands that were sold in the Memphis market with about 5 being major competitors including Bryan, Jimmy Dean and Johnsonville.
Buyer needs and requirements:
In 1992 the NPD consulting group's crest service indicated that more Americans were eating ethnic specialty foods and 84% of the people surveyed at Italian foods beside pizza.
Production Capacity:
Giuseppe has the capacity to produce more sausages. Since the company is not producing more sausages with this capability the prices of the sausages are higher than necessary.
Technological Changes:
Technological change isn't a big
Case Analysis
Giuseppe's Original Sausage Company is a company that formed in late 1991 by Joe Cotrone in Memphis Tennessee. Because of USDA regulation issues the company did not did not open its doors right away but the sausages did make their way to the Memphis in May festival that highlighted Italy and Italian food. Finally, Giuseppe's opened their doors in late 1992 after all the government regulations were complete. This was a gourmet sausage company that specialized in dinner sausages that consisted of ore than 80 different sausage products. In the beginning sales were slow but by late 1997 sales were over $250,000 due to expanding clientele. This case analysis will analyze Giuseppe's external and internal environments as well as recommend strategic actions to maintain a competitive advantage.
1. Describe the Dominant Economic Characteristics of the Industry.
The Dominant Economic Characteristics of the Specialty Sausage Industry
Growth and Position in Life Cycle:
The specialty sausage industry was in the growth phase of the industry's lifecycle. In 1997 the industry had a growth rate of 18.3% with the market in Memphis growth at 15.4% from the prior year. Also, the regional segment expanded to $2 million.
Number of rivals:
The market was competitive and the number of rivals consisted of 25 to 30 regional and national brands that were sold in the Memphis market with about 5 being major competitors including Bryan, Jimmy Dean and Johnsonville.
Buyer needs and requirements:
In 1992 the NPD consulting group's crest service indicated that more Americans were eating ethnic specialty foods and 84% of the people surveyed at Italian foods beside pizza.
Production Capacity:
Giuseppe has the capacity to produce more sausages. Since the company is not producing more sausages with this capability the prices of the sausages are higher than necessary.
Technological Changes:
Technological change isn't a big