Case Study Of Bachoco

981 Words2 Pages

Based on its localization strategy, Bachoco generated another significant strategy that has already been mentioned, the opportunity to manage its own food has led to the diversification of products is given in the chicken market and in the market for processed food. This has a support in an example that if loses the margin for price and profit increases on inputs that will affect their sales of chicken and eggs that can also have extraordinary income from the sale of their balanced meals. Then knowing the food market, Bachoco has generated defense coverage in grain markets for futures prices.

All these acquisitions have led him to produce economies of scale to increase their productivity, improve their food prices and generate added value …show more content…

The poultry industry for small farmers was a challenge in the run up to the opening of trade barriers, overproduction of chicken discouraged and pulled out of the market for these small producers that did not have financial protection against these recurring phenomena. It is here where Bachoco had a thorough evaluation to take advantage of these outputs of producers and take part of the free market. It was not an exclusive practice of Bachoco, but many major producers of that time increased the size of sales and government subsidies obtained and had survived the fall in the price of chicken that was below the average cost of production (Hernández and Vázquez, …show more content…

Therefore, it is worthy, perhaps, other strategies that are implicit in the preceding paragraphs but is now important to mention. In the last ten years, the company has made strategic alliances to continue its process of innovation balanced products and diversification into turkey meat. In this example in 2006 reached an agreement with Mezquital Food located in the state of Sonora (Bachoco,

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