Dakota Growers Pasta Case Analysis

Dakota Growers Pasta Company

Full Case Analysis

1. mail service Description

2. Strategic Analysis

3. Decision and Support

1. Situation Description

Pasta consumption has been on the rise, according to the US Department of concern 1998 report. Contributing drivers of industry change, which contributed to the annual increase of 2-3% in consumption, are changing lifestyles, increased availability of pasta sauces, healthy aware consumers and the increased number of Italian restaurants. Pasta purchases for ingredient affair in easy to prepare dishes, make up 43% of the market share. A contributing factor is the fact that couples, who two work, submit less time for preparation in the kitchen.

The area in which Dakota Growers is situated is the idea climate for growing superior durum wheat. Production facilities are close to rail organisation where the products can be easily distributed.

Currently, DGP is using a perpendicular integration strategy that has worked well in the past. With the changing industry, DPG have responded to competition as well as other changes such as price changes within the past decade.

5 Competitive Forces

Rivalry is strong, specially in the private- note segment because of larger margins and more choices in brands in which to market. It seems evident that consumer perceive an added value to Italian sounding brand names of pasta since imported pasta is regarded as having a higher value.



Large producers have exited private-label production in vow to focus on their own brands.

Well known companies have exited the do work of durum milling and others have entered. Since production exceeded consumption in the late 1990s, the industry is not as attractive for sore entrants.

Availability of substitute products, such as potatoes and rice, is moderate since consumer tastes whitethorn change. For example, consumers may prefer using rice in a expression instead of pasta. Historically, pasta consumption...

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