Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 20 September 2021
Revision date: 11-Oct-2021
Length: 22 pages
Data source: Published sources
Abstract
The a2 Milk Company (a2MC) became the most valuable company listed on the New Zealand stock exchange in 2018 by capitalizing on a biochemical discovery related to the protein composition of cows milk. Because many people find the A1 protein difficult to digest, and that protein may be related to other health problems (eg, diabetes), a2MC sells dairy products containing the A2 protein only primarily in Australia and China. With sales of NZD730 million in 2017 and a desire to grow, a2MC formed a strategic relationship with Fonterra, the worlds sixth largest dairy company, in February 2018. But one month later, Nestle, the world's largest dairy company, confirmed that it had begun selling A2 infant formula in China and people speculated that it would start selling A2 products in Australia and New Zealand later in the year. a2MC's retiring CEO Geoffrey Babidge and newly appointed CEO Janyne Hrdlicka must decide how to respond to Nestle's entry. Can this successful entrant become an incumbent with a sustainable competitive advantage?
Locations:
Industries:
Size:
USD500-1 billion; Small
Other setting(s):
2000-2018
Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 1 April 2019
Length: 45 pages
Data source: Published sources
Spanish language
Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 20 September 2021
Length: 25 pages
Data source: Published sources
About
Abstract
The a2 Milk Company (a2MC) became the most valuable company listed on the New Zealand stock exchange in 2018 by capitalizing on a biochemical discovery related to the protein composition of cows milk. Because many people find the A1 protein difficult to digest, and that protein may be related to other health problems (eg, diabetes), a2MC sells dairy products containing the A2 protein only primarily in Australia and China. With sales of NZD730 million in 2017 and a desire to grow, a2MC formed a strategic relationship with Fonterra, the worlds sixth largest dairy company, in February 2018. But one month later, Nestle, the world's largest dairy company, confirmed that it had begun selling A2 infant formula in China and people speculated that it would start selling A2 products in Australia and New Zealand later in the year. a2MC's retiring CEO Geoffrey Babidge and newly appointed CEO Janyne Hrdlicka must decide how to respond to Nestle's entry. Can this successful entrant become an incumbent with a sustainable competitive advantage?
Settings
Locations:
Industries:
Size:
USD500-1 billion; Small
Other setting(s):
2000-2018
Related
Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 1 April 2019
Length: 45 pages
Data source: Published sources
Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 20 September 2021
Length: 25 pages
Data source: Published sources