OSI In China Analysis
OSI in China: Pre-assignment
OSI China is a difficult situation because they have already invested a large amount of capital, time and are currently left with 80% of the chicken after vertical integration. All four options to consider are mixed with unpredictable outcome regardless of the option and will depend heavily on the company’s capabilities and resources. Since 80% of the chicken is currently available for sale with no demand from Chinese customers one of the solutions OSI can consider is to create the demand. The case mentioned that OSI is in the process of developing flavor coatings and processing techniques to diversify their product portfolio. I would pushed this forward by leveraging on the strong alliances and partnership that OSI has with McDonalds. This would allow for a new product entry to draw the customers and entice them. OSI reputation for high quality and safety, can provided them with the opportunity to negotiate with competitors in creating new opportunities for the other 80% of the chicken that has no demand. The relationships that OSI has created along the way have always been carefully nurtured and built. This is why I would select to expand sales to current customers regardless of country. By using the tangible, intangible and human resources along with the company’s capabilities (processes, technical knowledge, and continuous improvement). Since McDonalds and other fast food retailers have a strong presence in China and other parts of the country. OSI can position this as another opportunity for their relationship to grow stronger through investing together in selling flavor coating chicken (parts currently now desired). They can performed joint marketing forums to raise awareness. Unfortunately, this is the only option I see viable since developing a grocery retail brand in China could force OSI premium chicken to be sold as a commodity. OSI can also export these flavored coasting chicken to the neighboring countries in
OSI China is a difficult situation because they have already invested a large amount of capital, time and are currently left with 80% of the chicken after vertical integration. All four options to consider are mixed with unpredictable outcome regardless of the option and will depend heavily on the company’s capabilities and resources. Since 80% of the chicken is currently available for sale with no demand from Chinese customers one of the solutions OSI can consider is to create the demand. The case mentioned that OSI is in the process of developing flavor coatings and processing techniques to diversify their product portfolio. I would pushed this forward by leveraging on the strong alliances and partnership that OSI has with McDonalds. This would allow for a new product entry to draw the customers and entice them. OSI reputation for high quality and safety, can provided them with the opportunity to negotiate with competitors in creating new opportunities for the other 80% of the chicken that has no demand. The relationships that OSI has created along the way have always been carefully nurtured and built. This is why I would select to expand sales to current customers regardless of country. By using the tangible, intangible and human resources along with the company’s capabilities (processes, technical knowledge, and continuous improvement). Since McDonalds and other fast food retailers have a strong presence in China and other parts of the country. OSI can position this as another opportunity for their relationship to grow stronger through investing together in selling flavor coating chicken (parts currently now desired). They can performed joint marketing forums to raise awareness. Unfortunately, this is the only option I see viable since developing a grocery retail brand in China could force OSI premium chicken to be sold as a commodity. OSI can also export these flavored coasting chicken to the neighboring countries in