Perdue Incorporated Competition
Now Viewing Perdue Incorporated's competition in: Meat Products Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large is the company's market area? - Because of the perishable nature of the product, most company facilities serve only a limited area.
What types of customers does the company sell to? - Supermarkets, food distributors, restaurant, and hotel chains are often major customers.
How many customers does the company have? - Smithfield Foods, the largest pork producer, has 4,000 customers.
Does the company have any long-term sales contracts that specify volumes and prices? - These are rare. Most sales are made close to delivery and at current prices.
How does the company get new accounts? - Trade shows and company visits are typical.
How large a sales force does the company have? - Most companies have an in-house sales staff, but also use food brokers and distributors.
Competitive Landscape
Demand is driven by consumer income and by exports. Because meat is largely a commodity, the profitability of individual companies depends on efficient operations and an effective distribution network. Large companies have big economies of scale in production and distribution. Small companies can compete effectively in a local area or by producing unique products. The industry is capital-intensive: average annual revenue per employee is about $1 million.
Business Challenges
CRITICAL ISSUES
Compliance with Federal Regulations - Each year, more than 76 million Americans get sick and about 5,000 die from consuming contaminated foods and beverages. The USDA, which regulates various aspects of meat processing operations and has the power to shut plants down, has promoted a Hazard Analysis and Critical Control Point system (HACCP) in slaughter and meat processing plants to reduce food contamination.
Difficult Working Conditions - Workers in slaughterhouses and meat processing plants receive relatively low wages and often work in difficult conditions. Labor turnover can be high. Meat processing, which requires workers to make repetitive motions with sharp tools, is one of the most injury-prone jobs in the US.
Industries Where Perdue Incorporated Competes
- Food
- Meat Products(primary)
- Edible Oils
- Agriculture
- Agricultural Support Activities & Products
- Animal Production
