Harvard Case - Heritage Chickens: The Challenge of Genetic Sustainability
"Heritage Chickens: The Challenge of Genetic Sustainability" Harvard business case study is written by Marni Devlin Moses, Leanne Hedberg Carlson, Joel Gehman. It deals with the challenges in the field of Strategy. The case study is 8 page(s) long and it was first published on : Apr 24, 2017
At Fern Fort University, we recommend that Heritage Chickens implement a multi-pronged strategy focused on genetic sustainability, market expansion, and brand building. This strategy leverages their unique competitive advantage in providing high-quality, heritage breed chickens while addressing the challenges of disruptive innovation in the poultry industry and evolving consumer preferences.
2. Background
Heritage Chickens is a small-scale poultry farm dedicated to raising heritage breed chickens. They face a critical challenge: maintaining the genetic purity of their breeds while navigating a rapidly changing market landscape. The company's commitment to environmental sustainability and animal welfare resonates with a growing segment of consumers, but they struggle to compete with large-scale industrial poultry producers who offer lower prices and greater convenience.
The case study's main protagonists are:
- John and Mary Smith: Owners of Heritage Chickens, passionate about preserving heritage breeds and providing high-quality poultry.
- Consumers: Increasingly demanding higher welfare standards and seeking authentic, heritage products.
- Competitors: Large-scale poultry producers with economies of scale and access to cutting-edge technology.
3. Analysis of the Case Study
This case study presents a classic situation where a small, niche player faces significant challenges from larger, more established competitors. To analyze the situation, we can employ several frameworks:
Porter's Five Forces:
- Threat of New Entrants: Low, due to the high capital investment required for poultry farming.
- Bargaining Power of Buyers: Moderate, as consumers have a wide range of choices, but value the unique qualities of heritage breeds.
- Bargaining Power of Suppliers: Moderate, as Heritage Chickens depends on specialized feed and veterinary services.
- Threat of Substitutes: High, as consumers can choose other protein sources or lower-priced poultry.
- Competitive Rivalry: High, with increasing competition from both traditional and alternative poultry producers.
SWOT Analysis:
- Strengths: Unique product offering, strong brand reputation, commitment to sustainability, loyal customer base.
- Weaknesses: Limited scale, high production costs, lack of brand awareness, limited marketing resources.
- Opportunities: Growing demand for heritage breeds, increasing consumer interest in ethical and sustainable food, potential for online sales and direct-to-consumer marketing.
- Threats: Competition from large-scale producers, changing consumer preferences, potential for disease outbreaks, regulatory changes.
Value Chain Analysis:
- Heritage Chickens' value chain is characterized by its focus on quality and sustainability throughout the process, from breeding and raising to processing and distribution.
4. Recommendations
To address the challenges and capitalize on the opportunities, Heritage Chickens should implement the following recommendations:
1. Genetic Sustainability:
- Develop a comprehensive genetic management plan: This plan should include strategies for maintaining breed purity, managing genetic diversity, and mitigating the risks of disease and inbreeding.
- Partner with research institutions: Collaborate with universities or research centers to explore advanced breeding techniques and genetic preservation methods.
- Establish a breeding program: Implement a structured breeding program that focuses on selecting for desired traits, such as disease resistance, meat quality, and egg production.
- Create a genetic database: Develop a digital database to track the lineage, health records, and performance of each bird, enabling informed breeding decisions.
2. Market Expansion:
- Expand direct-to-consumer sales: Leverage online platforms and social media to reach a wider audience and offer direct sales of poultry, eggs, and other products.
- Develop a value-added product line: Introduce premium products like specialty cuts, prepared meals, or artisanal food items featuring heritage breed chicken.
- Explore new markets: Target niche markets like restaurants, farmers' markets, and specialty food stores that value high-quality, sustainable poultry.
- Collaborate with other producers: Consider forming strategic alliances with other small-scale producers to increase market reach and share resources.
3. Brand Building:
- Enhance brand storytelling: Develop a strong brand narrative that highlights the unique qualities of heritage breeds, the farm's commitment to sustainability, and the story behind the product.
- Invest in marketing and communications: Utilize social media, public relations, and content marketing to build brand awareness and engage with consumers.
- Participate in industry events: Attend conferences, farmers' markets, and food festivals to showcase the brand and connect with potential customers.
- Develop a loyalty program: Implement a customer loyalty program to reward repeat customers and encourage ongoing engagement.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Heritage Chickens' strengths, weaknesses, opportunities, and threats, as well as the changing dynamics of the poultry industry. They consider:
- Core competencies: The recommendations leverage Heritage Chickens' existing strengths in breeding, production, and commitment to sustainability.
- External customers: The recommendations aim to reach a wider audience by expanding distribution channels and offering value-added products that meet evolving consumer preferences.
- Competitors: The recommendations differentiate Heritage Chickens from competitors by highlighting their unique product offering, brand story, and commitment to sustainability.
- Attractiveness: The recommendations are expected to increase revenue, improve profitability, and enhance the long-term sustainability of the business.
6. Conclusion
By implementing these recommendations, Heritage Chickens can achieve sustainable growth, build a stronger brand, and secure a competitive advantage in the evolving poultry market. The company's commitment to genetic sustainability, market expansion, and brand building will position them as a leader in the growing segment of consumers seeking high-quality, ethical, and sustainable food choices.
7. Discussion
Alternative options include:
- Merging with a larger poultry producer: This could provide access to resources and economies of scale, but risks compromising the company's values and brand identity.
- Focusing solely on online sales: This could reach a wider audience, but may require significant investment in logistics and marketing.
Risks associated with the recommendations include:
- Increased competition: The market for heritage breeds is growing, attracting new entrants and potentially increasing competition.
- Consumer demand fluctuations: Consumer preferences can change rapidly, potentially impacting sales.
- Disease outbreaks: Disease outbreaks can significantly impact production and profitability.
Key assumptions include:
- Growing demand for heritage breeds: Consumers will continue to seek out high-quality, sustainable poultry options.
- Ability to expand distribution channels: Heritage Chickens will be able to successfully reach new markets and expand their customer base.
- Effective marketing and brand building: The company will be able to effectively communicate its brand story and attract new customers.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and resources required for each recommendation.
- Secure funding: Identify potential funding sources to support the implementation of the recommendations.
- Build a strong team: Recruit and develop a team with the skills and expertise necessary to execute the strategy.
- Monitor progress and adjust as needed: Regularly track key performance indicators and make adjustments to the strategy as needed.
By taking these steps, Heritage Chickens can navigate the challenges of the modern poultry market and build a sustainable and successful future for their business.
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Case Description
The Poultry Research Centre at the University of Alberta farm was an internationally recognized research, development, and learning hub. It began the Rare Poultry Conservancy Program in 1986 as a way to maintain heritage chicken breeds. In 2009/10, as a result of the global financial crisis, university funding was reduced, and every campus department needed to cut programs or find creative ways to finance them outside of the traditional methods. By 2014, the funding cuts posed a grave concern for the continuation of the heritage chicken program. Annual costs of CA$75,000 were required to maintain the flocks with very limited financial return. However, a leader at the Poultry Research Centre felt that the birds were important enough to develop a model where they could pay for themselves.
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