Case Analysis Perdue Farms
Perdue Farms
The external threats are as follows:
Most of the competition sells frozen products for less money.
Perdues cost to raise chickens is above the national average.
Growth rate in chicken sales is only 5% due to lack of frozen line.
Over capacity of chickens has reduced wholesale prices, which reduces profit margins.
Competition is strong in broiler industry with 53 competitors.
Untapped markets in the Upper Mid- west need to be explored
1. The Perdue Farms, Co. has internal strengths and weaknesses that need to be addressed and evaluated; The strengths are as follows;
Perdue is vertically integrated which means that they produce the chickens, they breed, hatch the eggs, they select the growers, build Perdue chicken houses, formulate and manufacture their feed, oversee care and feeding, operate their own processing plants, distribute via truck and marketing. They now also sell what used to be waste, such as the chicken feet that is sold to the Orient as a
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