Competition is fierce in the business world and as a result companies must have distinctive resources and capabilities that set them apart from their rivals and competitors. Sometimes, competitive advantage can result from the ability to use a strong organizational structure and company internal knowledge for industry-related product diversification and growth. Agrana, having been an established company since 1988, has learned the tricks of the trade and most of the ins-and-outs of how to become a successful profiting company while also expanding into numerous countries. Agrana was very limited to how many buyers they could sell to. As a result, competition seemed overwhelming- but not for long. One year after Agrana was founded, the CEE (Central and Eastern European) countries broke away from communism and joined the EU (European Union). This opened up a whole new playing field …show more content…
It is difficult for someone to start a new company and compete with Agrana due to all of the connections and expertise that Agrana possesses. Since Agrana is not only in Austria, but also invested in many other countries, competition would have to seriously diversify themselves to possess a resource or capability that is very rare and hard to imitate in order to stand a chance at competing with Agrana’s wide-ranging portfolio. Agrana was able to increase their economies of scale so that they could compete with larger firms and later on being one of the suppliers for Coca Cola and a few other big name brands. In 2010 Agrana built a milk processing plant in Egypt. Agrana did this because they wanted to enter the market here but avoid the dairy and fruit import tax of 35 percent. Agrana makes wonderful management decisions such as this to remain quite profitable and