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Introduction Tyson Foods Inc is the worlds largest fully integrated producer processor and marketer of poultry-based food products whose strategy is to Segment Concentrate and Dominate The firm is vertically integrated with seven specific levels of activity contains numerous subsidiaries has achieved successful acquisitions operated in a competitive environment that is heavily regulated and scrutinized and financially stable At issue herein is the question of how Tyson can continue to enjoy competitive advantages over its rivals ConAgra and Hudson Foods being principal in this category to capitalize upon its vertical integration and to maximize its position as the lowest-cost producer of value-added products in the market segment Analysis of Environment Firm Current Strategy Competition Your firm participates in an industry that is characterized as highly vertically integrated and in which since the 1950s poultry farmers combined feed mills and processing plants to create efficient operating complexes Three distinct processed poultry met products are produced fresh carcass products ie whole bird and parts formed products emulsified products Producers sell directly to large grocery and restaurant chains From 1987 to 1991 poultry processing shipments have increased from 14913 million to a total of 21703 million exhibiting a steady percent change increase that peaked in 1988-89 at 222 percent and is not at 37 percent Export value increased by a factor of 22 percent from 1990 to 1991 and import value increased in the same period by 156 percent The industry is affected by feed prices which have declined of late a factor that can widen profit margins Firms in the industry are able to a degree to control the influence of feed suppliers by producing their own feed Consumption of poultry and poultry products is continuing to increase 684 pounds chicken and 180 pounds turkey per person in 1994 Top four producers among which Tyson is placed capture less than 40 percent of the market competition tends to focus on price and quality Brand recognition is
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