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Expanding Through Innovation
1. Bermillo, Ferdinand V.
Matias, Jenille B.
Rull, Jhoana Marie E.
Velasco, Albert John T.
Villaester, Sheena C.
Japan agricultural
cooperative in umaji village
2. TABLE OF CONTENTS
03case summary
01 02 analysis of
organization’s vision
external environment
04 internal environment
05 smart objectives
3. TABLE OF CONTENTS
08generic strategy
06 07 alternative courses
of action (aca)
evaluation of acas
09 recommendation
10 implementation plan
4. ● 1948 - JA Umaji was established in accordance
with the land reform act to protect family-run
farmers created after World War II
● JA Umaji is engaged in finance, insurance,
purchasing, sales, farm management and
providing guidance on agricultural technical
issues and other services
● Early 1970s - the key industry of the Umaji village
was forestry but it shrunk rapidly due to Japan’s
policy of liberalizing timber import
● 1961 - JA Umaji selected Yuzu when the
Japanese government passed the Fruit Promotion
and Development
● Develop value-added Yuzu products, product
differentiation, direct marketing and nationwide
targeted marketing
● 1989 - Fresh Yuzu juice and Ponzu were
developed
case summary
5. ● Opportunities came after various direct marketing
campaigns in Specialty Food Fairs in department
stores
● Yuzu products gained more visibility when the
products were rebranded as a sentimental item to
promote rural life in Umaji Village
● 1996 - established its homepage and created
various infrastructure like processing plant,
distribution terminal, treatment facility, call center,
bakery, restaurant and gift shop
● New products like Yuzu pepper, tea, jam,
marmalade, salad dressing, soap, shampoo,
rinse, skin lotion and a handbag made from
thinned cedar (“Monacca”) were developed over
the years with a total of more than 40 items
● JA Umaji Coop has a list of more than 320,000
direct and regular customers with 60,000 tourists
who have visited their facility
case summary
6. JA Umaji aims to protect
family-ran farms by creating a
sustainable and progressive
cooperative that would
provide support and
opportunities to enrich the
economic and social lives of
everyone in the community
analysis of organization’s vision
core values
JA Umaji is grounded by
the principles of resilience,
equity, and continuous
learning and improvement
core purpose bhag
JA Umaji intends to be the leader
in environment-friendly
agriculture in Japan, become a
globally-recognized entity in the
field of agriculture able to
compete with bigger, more
established companies, and
position itself as a tourist
destination for customers
interested in organic and
ethically sourced products
vivid description
JA Umaji aims to pursue steady
innovation and product
development to ensure that
they’re up-to-date with latest
market trends. By leveraging on
raw materials largely available
in the area, they can add
revenue streams while making
sure that natural resources are
responsibility managed.
7. Internal and External Environment
STRENGTHS
● Established image/brand
● Product development and business
diversification
● Strong marketing campaign (selling the image,
direct marketing scheme and internet
marketing)
● Waste management
● Food products have shorter shelf-life
● Transportation/ distribution
● Lack of manpower
WEAKNESSES
Opportunities
● Availability of natural resources
● Development of new products made from on
hand raw materials - Yuzu is one of the most
popular of the acid fruits in East Asia
● Social trend awareness for organic and natural
products - Promotion of “Organic and Sustainable
Farming”
● Special grants/subsidy from the central
government/ Agribusiness Loans
● Technological advancement
● A declining and an aging population
● Economic downturn
● Government policies and legislation
● Natural resources though with a limited
land availability
● Numerous competitors with equal power
and resources
● Presence of substitutes
● Natural Calamities
Threats
8. ● Increase profitability of the
organization.
● Increase production output.
● Improve cash flow.
Specific, Measurable, Relevant and Time-bound Objectives (SMART)
● Support a healthy and conducive workplace.
● Continuously practice natural recycling.
● Continuously encourage and promote organic
farming.
● Foster the spirit of community within its
customer base.
● Promote the “Village of Yuzu” as an agro-tourist
location for the full Yuzu-experience.
SOCIAL OBJECTIVEFINANCIAL
OBJECTIVE
STRATEGIC
OBJECTIVE
● Align all initiatives with Yuzu as a healthy and natural
brand.
● Sustain the revenue growth relative to output.
● Market development to nearby countries.
● Retain and Increase customer base.
● Invest in product research and development.
9. TOWS MATRIX
OPPORTUNITIES
1. Availability of natural resources as Brand identity.
2. Development of new products made from on hand raw
materials - Yuzu is one of the most popular of the acid fruits
in East Asia.
3. Social trend awareness for organic and natural products -
Promotion of “Organic and Sustainable Farming”
4. Special grants/subsidy from the central government/
Agribusiness Loans
5. Technological advancement
THREATS
1. A declining and an aging population
2. Economic downturn
3. Government policies and legislation
4. Natural resources though with a limited land availability
5. Numerous competitors with equal power and resources
6. Presence of substitutes
7. Natural Calamities
STRENGTHS
1. Established
image/brand
2. Product development
and business
diversification
3. Strong marketing
campaign (selling the
image, direct marketing
scheme and internet
marketing)
4. Waste management
S/O - Use Strengths to take advantage of Opportunities
1-3 The established brand image of JA Umaji can help
strengthen the promotion of organic and sustainable farming
campaigns which will be the differentiating factor among its
competitors.
2-1 Product development and business diversification while
utilizing available natural resources within the region.
2-2 Through research and development JA Umaji can come up
with other products from their resources that would help them
boost their profitability in the long-run.
3-3 JA Umaji can request additional funding to support their
marketing campaigns in reaching wider market
4-5 JA Umaji can capitalize on creating new products with the
right technology and proper waste management.
S/T - Use Strengths to minimize Threats
1-3 Being in the business for several decades gives resilience to
adapt to any government policies and legislations
1-6 While there are available substitute products in the market,
consumers buy goods from established brands like JA Umaji.
2-4 JA Umaji may capitalize on their product development and
diversification despite limited land availability
2-5 Customized attributes of a product achieved through R&D to
satisfy consumers and outperform rivals.
2-7 JA Umaji can survive natural calamities as they can come-up
with new products that they may launch once calamity hits them.
3-5 Strong marketing campaign and being one of the users of
internet marketing is a huge advantage over various competitors. It
makes them “veteran” in using e-commerce platforms.
4-4 Their waste management initiative can help sustain or maximize
at the least available natural resources.
10. TOWS MATRIX
OPPORTUNITIES
1.Availability of natural resources as Brand identity.
2.Development of new products made from on hand raw materials - Yuzu is one of the most popular of
the acid fruits in East Asia.
3.Social trend awareness for organic and natural products - Promotion of “Organic and Sustainable
Farming”
4.Special grants/subsidy from the central government/ Agribusiness Loans
5.Technological advancement
THREATS
1.A declining and an aging population
2.Economic downturn
3.Government policies and legislation
4.Natural resources though with a limited land availability
5.Numerous competitors with equal power and resources
6.Presence of substitutes
7.Natural Calamities
WEAKNESSES
1.
Food products have shorter shelf-life
2.Transportation/distribution
3.Lack of manpower
W/O – Improve Weaknesses by taking advantage of Opportunities
1-2 Shorter shelf-life can be enhanced through investment on research and development on natural
preservation of their items.
1-5 New technologies may help in processing products to improve shelf life of the products (e.g.
carbonating the juice).
2-5 Small vehicles that can carry tons of products and enter into mountainous/ small areas can be
utilized in transporting/ distributing goods.
3-3 With the increasing social awareness of the market and along with the growth of the company may
be used to boost manpower recruitment of the organization.
W/T – Work to eliminate Weaknesses to avoid Threats
1-5 Improve the shelf-life of the product at par with other competitors.
2-2 Improving supply chain and distribution of the products will help mitigate effects of the
economic downturn.
3-5 Increasing manpower to meet clients demand will avoid clients from shifting to other
competitors.
11. alternative courses of action
aca 1 aca 3aca 2
JA Umaji to continue
improving their
products through
diversification,
innovation and
process automation.
JA Umaji to
showcase its
products and natural
resources as Brand
Identity through Agro-
Tourism
JA Umaji to focus on
expanding the market
reach through
improved marketing
strategy and supply
chain
12. aca 1: ja umaji to continue improving their products through
diversification, innovation, and process automation
Advantages Disadvantages
● Availability of technological advancement
to expand the line of JA Umaji’s products.
● Maintain their direct and regular
customers.
● Cost incurred by product and process
development will be offset by long-term
cost savings from operational efficiencies.
● Diversification provides the cooperative an
economic buffer which would make them
less vulnerable to failure should
competition get tough.
● Relatively slow ramp-up to expand
customer base
● Hefty cost may be required for the
automation
● A considerable amount of resources would
be expended to facilitate market study and
research and development
● Start up and additional overhead costs
13. aca 2: ja umaji to showcase its products and naturAL RESOURCES
AS BRAND IDENTITY THROUGH AGRO-TOURISM
Advantages Disadvantages
● Fosters farmer-customer partnership
● Focused on providing benefits for its
farmer-members and the Umaji Village
community
● Creates employment opportunities for the
aging population of the Umaji Village (Tour
Guides)
● Increased sales of JA Umaji’s locally
produced products
● Forge stronger links within the community
and create new networks
● Promoting Agro-Tourism can be done by
keeping and maintaining excellent
customer service and support through its
newly built call center
● Agro-tourism can be a seasonal event
● Bringing people to the farm might carry
with it some form of liabilities
● Permits/Accreditation must be secured
with the central government before
commencing operation
● Additional cost might be incurred to
ensure a safe, tourist-friendly farm visit
● Agro-tourism will be very much affected
by the economic downturn and natural
calamities.
14. aca 3: ja umaji to focus on expanding their market reach through
improved marketing strategy and supply chain
Advantages Disadvantages
● Increased product awareness and recognition
● Potentially tap a new market to improve
profitability of the company.
● Developing new marketing and distribution
channels would open up the possibility of
exporting goods and would enable JA Umaji to
penetrate the global market.
● Avoid effects of economic downturn.
● Provide business continuity despite natural
calamities.
● Fresh and informative marketing content can
be made through its website
● Can emphasize efforts being conducted by the
company to ensure high quality product
through investing qualified talent and
resources for R&D.
● New marketing initiatives would require
additional cost for the cooperative
● It might take time to do an assessment of
physical resources and proper timing of the
harvest to ensure operational readiness
● More profit oriented rather than creating a
sustainable agri-cooperative for the benefit of
the farmers and community.
15. decision
STRENGTHS
Criteria ACA 1 ACA 2 ACA 3
To become healthy and natural brand (+) Retaining the organic and healthy
image of the product
(+) Appealing consumers for peaceful and
healthy rural life equates to healthy and
natural brand perception
(+) Tapping a new market would trigger
improvement of image branding as part
of the marketing strategy, which is
healthy and natural, to exploit social
awareness of the market.
Sustain the revenue growth It will be difficult to sustain revenue
growth of diversified and innovative
products without strategic marketing.
(+) Venturing to a new service will not only
increase brand awareness but also an
opportunity to tap new markets/ investors.
(+) Enhancing and expanding market
reach of the product will mostly likely
entail growth.
Market development to nearby
countries
Can be under ACA 3 specifically to
create exclusive products that will satisfy
preferences of other countries.
(+) It will be easier to enter new markets in
nearby countries if products become
popular due to Agro-tourism.
(+) Will definitely serve to materialize
strategic objectives to tap nearby
countries.
Increase and retain customer base It will be difficult to increase customers
as they might also reject new products.
(+) Will definitely contribute to increase
customer base but not necessarily equates
customer retention
(+) Will definitely contribute to increase
and retain customers because of market
strategy in place.
Invest in talent and resources for
product research and development
(+) Continuous effort to improve and
innovate the product will support this
objective
Boosting tourism most likely means
investing in services to achieve customer’s
overall experience in the village rather than
the product.
Expanding the market will be focusing on
the market strategy and supply chain
logistics.
16. decision
30%
Criteria ACA 1 ACA 2 ACA 3
Promote natural recycling agriculture (+) New technology and product
innovation is already promoting this
activity
(+) Promoting recycling is a value added
service to promote the village. Also, it may
be prompted to use as a pattern for
manufacturers of Yuzu products.
This is not particularly part of marketing
strategy and supply chain activity.
However, the activity can be used to
promote social responsibility of the
company
Promote organic farming inside and
outside the region
(+) New technology and product
innovation is already promoting this
activity
(+) Promoting organic farming is a value
added service to promote the village. Also,
it may be prompted to use as a pattern for
manufacturers of Yuzu products.
This is not particularly part of marketing
strategy and supply chain activity.
However, the activity can be used to
promote social responsibility of the
company
Foster community spirit (+) Innovation and process improvement
promotes a safe and work-life balance
environment.
(+) Elderly can participate in promoting
tourism and creating value-added
experience with the tourist. Also, it supports
local farmers in the village
This is not particularly part of marketing
strategy and supply chain activity.
However, the activity can be used to
promote social responsibility of the
company
Promote the “Village of Yuzu” as an
agro-tourist location for Yuzu-
experience
Innovation, process improvement and
diversification is to satisfy the taste or
need of the customer.
(+) This promotes the overall experience of
the customers not just with the product but
also the village where it was manufactured.
This is not particularly part of marketing
strategy and supply chain activity.
However, the activity can be used to
promote the product with other
countries.
TOTAL
POSITIVE POINTS
5 8 4
17. Based on the foregoing, ACA 2 got the highest number of
points upon considering all identified criterias in the case.
However, there are no negative points provided to ACA 1
and ACA 3 as they were essential assets of ACA 2.
Product diversity, innovation, process improvement,
marketing strategy and supply chain can be implemented
along with an Agro-tourism campaign to fully utilize Umaji’s
assets, experience and workforce.
CONCLUSION BASED ON ACA EVALUATION