Hormel Foods is a big food processing company which has over the years grown into an iconic company in the food industry. The company mainly deals in meat products such as turkey and chicken. The company usually engages in products in the meat industry where it controls a high part of the market in the industry. The company has grown to be a business hub worth admiration. It deals with many types of products which are all in the food industry. The company is divided into five main business models. The main products are Refrigerated Foods, Turkey store, Speciality foods and international products. Some of their products are Hormel Chilli, SPAM, Wholly Guacamole, Hormel Black Label Bacon, Hormel Party trays, Skippy peanut batter, Jennie-O turkey products, Lloyd’s barbecue products.
Over the years, 6the company has acquired some other enterprise to build up their business. One such move was made in 2015 when it purchased the Applegate Farms. This moves the company receive a very high growth brand in the sector that involves natural and organic products. Apparently, at the time, the Applegate company was the largest brand in the natural and also the organic meats sector. In the years 2016, the company has made loads of revenue from poultry and perishable items. Almost two-thirds of their revenue got generated from the items.
The company has some aspects bearing in mind that it is a huge company. One of the main strengths the company has is that it is endowed with a high level of management expertise which has enabled it to maintain a high level of competence while it also maintains a food balance sheet., The company has continued to maintain a good expertise by maintaining more and more acquisitions. One of their big acquisitions is that one of the Applegate company. This has enabled the company to maintain a good brand name. This is because it has well maintained the other companies that it has acquired.
Another strength of the company is that there has been a constant increase in the demand for protein foods. Hormel is on the right side of this trend. As the world continues to grow, more and more people continue to appreciate the culture of eating meat products. There has been a huge growth in the number of people taking protein products. Apparently, there has also been the incorporation of proteins into other foods which do not require proteins (Townsend Consulting 67). Additionally, the companies are a huge company. In that sense, it has economies of scale. The company controls a huge part of the American market. In so doing, it purchases products in bulk which enables it to sale the products at a lower price since it enjoys economies of scale. This enables it to buy and sale at an advantage compared to its competitors.
The Hormel foods company has most of its products in an area where there is a high level of competition.
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