MARKETING

Case Study Analysis Devro

Case Study Analysis Devro

Introduction

Today's companies are facing various challenges to maintain their competitive advantage which is not only helpful for company to achieve higher market share and growth in revenues as compared to its competitors but also ensures the long-term sustainability for company to sustain in dynamic and competitive world of today (Francis, Simons & Bourlakis, 2008). This case study will analyze the competitive advantage of world's leading production company of collagen products Devro. Since, last half decade, Devro as an industrial supplier is providing quality products in collagen product-line to large multinational companies and individual butchers in food industry. Collagen is basically the form of protein which can be used in various products through usage of highly sophisticated biochemical processing technologies in eatable products. It is transformed in strong as well as flexible edible casing and other related products (Prajogo, 2007).

Collagen is mostly used in meat eatable products such as in hot dogs and other meat products. The Collagen is also widely used in healthcare products and range of cosmetics products. Devro has strong presence as largest manufacturing in many parts of the world including Scotland, U.S, Australia, and Czech Republic with products like Custisin, Coria and Devro. This highlights the great strength of companies to be present around the complete and also have comprehensive technical know-how which can be translated in better financial muscle and correspondingly high potentiality for business to meet the demands of markets and customers around the globe. Besides, there is growing demand of collagen products around the globe due to increasing awareness and changing preferences of people to adopt healthy eating options. This translates in great opportunity for Devro, which it can seize by supplying edible collagen casings in food related with sausage applications (Leat, Marr & Ritchie, 1998).

Devro is also involved in manufacturing and marketing its products of plastic castings, collagen gel, collagen film and purified collagen raw materials which is specifically used for the purpose medicines in healthcare. The company also supplies range of its products to third parties which sells their products such as plastic casings, fibrous and cellulose. The company is headquartered Chyrston, U.K and is publicly traded company.

Value Chain Analysis

The competitive advantage of the Devro which enables it to get the highest market share in collagen market is strong and continuous manufacturing process of collagen which also enhances the capability of the Devro to supply the requirements of several food markets around the globe. This also increases the capacity of Devro to add more value to each activity in product from its production to end consumers through primary and support activities of value chain (Birn, 1986).

The value chain is the strategic and marketing activities which is taken place in business to strength the competitive advantage of business and to make it sustainable for the longer-period of time. The competitive advantage must lead to either cost leadership or differentiation for the company; otherwise the very purpose of competitive advantage would be defeated (Prajogo, ...