Development of Agribusiness Enterprises - Asian Productivity ...

4. Know Who You Are and Who You are Up Against
Would you rather be David going against Goliath or the mouse that helped the lion
with a thorn in its paw? Putting in perspective one’s capability versus that of competitors
should be done on a periodic basis in order to determine long-term attractiveness. This would
make it possible to spell out later what strategic position should be pursued.
Keeping abreast of trends and development in the industry, both domestic and
worldwide, has also become vital for the survival of SMEs. Changes in consumer
preferences and values have far-reaching effects on mounting consumerism, i.e., nongenetically
modified or environmentally friendly products.
The growing accessibility and use of the Internet by farmers and communities in the
rural areas (e.g., India) has helped in terms of empowering farmers and making them less
vulnerable to, and dependent on, local traders and cartels.
One advantage of being a small enterprise is that of being less visible or even invisible
to the titans of the industry. It is also easier for SMEs to safely watch and evaluate the moves
of market leaders from afar. As an SME, it is important to know and assess who the major
players are at the local, regional, national and even international level, especially with the
gradual lowering of trade barriers and worldwide trade liberalization. Knowing their
markets, product offerings, production capabilities, financial resources, business interests and
directions, etc. will help in identifying potential opportunities as well as threats. That will
enable a decision to be made on whether to compete, collaborate or move on to other
businesses. For that purpose, the classic SWOT (strengths, weaknesses, opportunities and
threats) analysis and environmental scanning techniques are useful techniques.
5. Focus on A Critical Few (Pareto Principle)
For companies and industries with good earnings, opportunities are usually greater for:
C rationalizing outputs in looking for new products and markets or radically changing
processes, in order to gain additional advantage over competitors (e.g., new
technologies); or
C establishing a better supply base (e.g., backward integration, and contract partners).
However, resources (e.g., capital, technology, manpower, land, materials, water and
time) have always been limited and will become scarcer in this finite world. The disparity
becomes more pronounced for SMEs whose networks and access to markets, technology,
capital, etc. are not as wide as those of large companies (e.g., multinational/transnational
companies). There is a need to be judicious as to which problems, deficiencies, opportunities
or programs are to be pursued first. It is common experience that overlapping programs
waste precious resources, or higher priority concerns are overlooked because of poor
communication and coordination (e.g., training modules, equipment purchases and material
selection). These are avoidable with better communications and focus.
Step 2: Select What Intervention/Treatment to Use
1. Look at Your Toolbox
After pinpointing what needs to be done (Step 1), deciding on which intervention or
treatment to use will be much easier. Sourcing and choosing from a wider field of options
would help ensure a more optimal program or strategy. Interventions or strategies can be
categorized in a variety of ways:
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