Competitive Advantage Factors in Vertically Diversified Brand Chicken Business: A Partial Value Chain Analysis of a Japanese Poultry Wholesaler

Japan Agricultural Research Quarterly
ISSN 00213551
NII recode ID (NCID) AA0068709X
Full text

We aimed to clarify the competitive advantage of a vertically diversified brand chicken business as a method of creating a sustainable poultry business, using a part of Porter’s value chain framework to extract strengths and linkages of a company’s marketing in a case study of one enterprise adopting this business model. Company T1 achieved vertical diversification of its production, processing, distribution, sales, and restaurant businesses through its original brand chicken, produced on a direct-management farm and cooperative farms under uniform quality control. T1 internalized its poultry farming and never abandoned this model, despite its low profitability, because its original brand H chicken was a high-quality product at the core of T1’s marketing strategy. We concluded that this high-quality original product resulted in a successful vertically diversified business within the poultry industry. To achieve this success, efforts are needed to maintain high levels of quality using sophisticated human resource approaches.

Date of issued
Creator Kenji HOSONO Yuji YASHIMA
Subject

broiler integrator

communication skills

internalizing poultry farming

Publisher Japan International Research Center for Agricultural Sciences
Received Date 2019-06-24
Accepted Date 2020-03-06
Available Online
Volume 54
Issue 4
spage 327
epage 333
DOI 10.6090/jarq.54.327
Language eng

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