Earth and Sky Organics

Question: Discuss about theEarth and Sky Organics. Answer: Introduction This a rapid increase in demand for organic foods in the country causing farmers to turn to organic farming rather than conventional (Rousseau and Vranken, 2013, p.35). In Australia organic foods considered healthy and efficient in developing human immunity to diseases, thus generally increasing the demand for organic foods, however, they may be expensive or potentially inaccessible to most people in urban areas. Earth and Sky organic company was established with the main purpose of coming up with a model for the distribution of fresh organic produce at a lower cost. Moreover, the distribution model also improves the accessibility of these organic products to its target audience in Australia. Porter's Generic Strategies A companys size of the market share defines whether the companys profitability is above average, which outlines if the company has an advantage over its competitors in the end. According to Marian and Thgersen (2014) there are two basic types of competitive advantage, low cost or differentiation When the two are combined with the objectives a firm seeks to achieve , leads to three generic strategies for gaining higher performance in the market: cost leadership, differentiation, and focus. Earth and sky employs two generic strategies in a manner that it stays relevant and profitable than its competitors and they are cost leadership and differentiation. Cost Leadership Generic Strategy It is quite transparent that Earth and Sky Company use this strategy. Its literally based on being the lowest cost producer in the current market. The company as established on this basis by restructuring their model. Earth and sky organics obtain their produce directly from certified organic farmers, which defiantly emit any intermediaries in the process. This makes it easy to give low and affordable prices to its target audience increasing its profits and growth in the organic market in Australia (Panwar et al. 2015, p 100-103). Differentiation Generic Strategy Differentiation generic strategy entails the uniqueness of a firm in meeting the customer requirements and needs (Magretta, 2013). Earth and Sky Company has uniquely identified what most consumers want; affordable prices, high-quality products, and accessibility to these products. Affordable prices and high-quality products ,have been made possible by cutting out intermediaries and acquiring these organic foods directly from certified organic farmers .The removes the barrier of inaccessibility to these products in two simple ways: one is the option of home delivery where a client's request for an order that it brought directly the location requested. The other is with Earth and Skys partners pop-ups, situated strategically to the comfort of the clients. References Magretta, J., 2013. Understanding Michael Porter: The essential guide to competition and strategy. Harvard business press. Marian, L., Chrysochou, P., Krystallis, A. and Thgersen, J., 2014. The role of price as a product attribute in the organic food context: An exploration based on actual purchase data. Food Quality and Preference, 37, pp.52-60. Panwar, R., Nybakk, E., Pinkse, J. and Hansen, E., 2015, July. Competitive Strategies and Small Firms Social Responsibilities. In Proceedings of the International Association for Business and Society (Vol. 26, pp. 99-111). Rousseau, S. and Vranken, L., 2013. Greenmarket expansion by reducing information asymmetries: Evidence for labeled organic food products. Food Policy, 40, pp.31-43.