Bee Maid Honey
Alternative #1:
One alternative Bee Maid Honey may consider, in order to remain competitive in an increasingly competitive industry, is to invite beekeepers in other regions to join their co-operative. Currently, Bee Maid Honey is comprised of beekeepers only in western Canada. The primary advantage to this strategy would be the increased economies of scale Bee Maid could acquire, especially given the strong growth in exports to the United States, across all provinces. This could give the company the scale needed to truly compete on price point with McCormick's acquisition of Billy Bee. However, there would be disadvantages with which the organization would need to contend.
Logistics would be a significant challenge for a geographically expanding Bee Maid. Processing and packaging plants would likely need to be located in both central and eastern Canada. Additionally, one of Bee Maid's founding principles was to provide consistently high quality honey. Ensuring this quality remained a constant, with the addition of new members, would require additional vigilance.
Alternative #2:
A second alternative for Bee Maid Honey would be to seek a multi-national corporation to by the co-operative out. Acquisition by an organization such as international food powerhouse, Associated British Foods, could give Bee Maid the financial, technological, and marketing resources needed to compete directly with Billy Bee. As the honey industry is a mature market, with little product innovation, consumers are more price sensitive when comparing brand-to-brand. The primary disadvantage to this strategy, however, lies in the loss of control for Bee...
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