Goizueta, Bono and Estraviz. Subject: "COMPETITIVE STRATEGY". EMBA at IESE, 2008

1. NARANJAS LOLA From the tree to your table in 24 hours Manuel Goizueta · Javier Estraviz · Paquito Bono

4. Industry Overview (2005-2007) Annual Production : 2376- 2661 (x1000 T) Exported: 1142 –1485 Nationally Consumed : 964 –1100 Cultivated area: 138 -165 (x1000 Ha) Producers: > 10.000 2 models. Vertically integrated (export) vs Highly fragmented, family producers Market share Trad. Outlet Store Supermkt Hipermkt Mercadillo Others % of land dedicated to production

6. The Industry Value Chain WHOLESALER IN ORIGIN COOPERATIVE GROWERS WHOLESELLER IN DESTINATION CENTRAL MARKET RETAIL CHAINS FOOD SERVICES RESTAURANT CATERING TRADITIONAL RETAIL OUTLETS LOGISTIC OPERATOR PACKAGING SELECTION FREEZING UNGREENING FINAL CONSUMER 0,18 €/Kg 0,73 €/kg 1,45 €/kg 13% 38% 49% 3-7 805,5%!!! Time/quality advantage Price/Margins advantage

10. RETAIL CHAINS FOOD SERVICES + RESTAURANT CATERING TRADITIONAL RETAIL OUTLETS The Business Model WHOLESALER IN ORIGIN COOPERATIVE GROWERS WHOLESELLER IN DESTINATION CENTRAL MARKET FINAL CONSUMER LOGISTIC OPERATOR PACKAGING SELECTION FREEZING UNGREENING 2,20 €/Kg !!

12. Substitution Slack Holdup Imitation Others with the same business model Sales of oranges in the traditional channel remain the same, also in gourmet No power struggles as Naranjas Lola controls the whole process No investment in MKTG. Consumer trends HIGH RISK (erosion of our Market with time) LOW RISK LOW RISK HIGH RISK (erosion of Sales and WTP) Sustainability Based on Ghemawat (2006) Added Value Captured Value