Evaluation Essay on Hormel Foods Corporation

Introduction

Hormel Foods Corporation is one of the top firms in the meat production industry. For years, Hormel Foods has undergone redefinition of how it conducts its business in consumer goods. The corporation has a market cap of 18.29 billion US dollars and is listed in the New York stock exchange. As one of the leading corporations in the meat production industry, Hormel Foods has several strength opportunities which aid it is thriving in the market. These strongholds also guide the market share in current markets as well as new entries in the market.

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Information on the Meat Production Industry

New trends in customer interest could open up new markets for these industries globally to generate new revenue flow. Creating new markets due to France' government contracts provides the meat industry with opportunities for entering into new upcoming markets. Additionally, an increase in consumer spending and economic growth following years of slow growth and recession in the industry is an excellent prospect for France to attract new consumers and improve its shares in the market. The meat industry in France faces threats on the specific current product under the Paris agreement (2016). Liability laws in France could expose the company to particular liability claims if the policies change. New technologies by the suppliers and competitors can also be a threat to the firm in the short and long-term future. Another danger is the stiff competition due to the rise in the number of players involved in the industry globally, and this puts downward pressure on the sales rate and profitability.

Main Competitors: Their Strengths and Weaknesses

If the competition between the leading competitors in this industry is stern, then the prices will drop, and the industry's viability will go down as well. Hormel Foods runs in quite a competitive Meat Products industry. The corporate competes with the turkey and pork products manufacturers, and producers of other products like peanut butter, fish, and chicken. Its largest global competitors happen to be Smithfield Foods, Tyson Foods, Cargill Meat Solutions Corp., and Campbell Soup Corporation (Justine par. 12). In France, the leading competitors in the meat industry are Loeul and Piriot Co., La viande (The Meat), and Seara. The local industry also faces competition from Irish, German, Spanish, and American imports. These sectors rival on the grounds of customer service, breadth of product line, brand identification, and product quality. This rivalry takes a toll on the general long-term success of the industry. Hormel Foods could challenge the intense competition among its main rivals in the industry by working with the competitors to raise the market size instead of focusing on small markets. They could also build scales to compete even better, and create a sustainable differentiation.

Government Controls on the Meat Industry in France

France's globally famous meat industry focuses on a continuous technological plan geared toward providing future-based solutions to the social, environmental, and food challenges facing the sector. The French government backs up this strategy by offering financial support to the industry to oversee innovative, significant projects with a desire to incorporate digital technology throughout the production chain. The government also regulates a labeling and traceability approach to identify beef slaughterhouses and rearing sites.

Strengths and Weaknesses of Hormel Foods

Some of the strengths of Hormel Foods company is that it has successful track records of incorporating complimentary firms through acquisition and mergers. Hormel Foods attempts to include several innovative firms to modernize its functions and generate a reliable supply chain. The company just like the meat industry in France also has a secure distribution network which extends to most of its potential market, a stable supplier community, and this would benefit Skippy's consumers into profiting from the products. Another notable strength of the company is its strong brand portfolio that happens to be quite useful if the firm desires to venture into new product entries like the planned peanut business in France. Although Hormel is a top organization in its industry, it has several weaknesses such as entering into other production sectors with its existing culture (Justine par. 6). This relates to the meat industry in France which faces challenges from the new entrants such as the peanuts business hence its small market share seems to be on the decline. This entrance into France will influence new strategies for managing things, innovation, and puts pressure on the industry by offering unique value propositions, reducing costs, and lowering the pricing strategy to its consumers. In comparison to other companies in the same industry, the company has gaps in the range of products distributed by the firm, and this gives its competitors a strong market base.

Information on the Market

The meat market in France comprises of the retail sale of frozen meat, packed fresh and cooked meat, chilled raw, processed and ambient meat. The market's value depends on retail selling prices for different companies. The volume of consumption rose between 2012 to 2016 a compound annual growth rate of 2.7% to a total of 2,498 million kgs (Market Research par. 4). France main meat market is generally the whole of Europe. Consumers in France are usually a hard lot. They have a desire of purchasing the best offers available by spending as little as they can on the products. This perception puts pressure on the meat industry profits in the long-term. The more powerful and smaller the industry's customer base is the higher the consumers bargaining power and their capacity of seeking an increase in offers and discounts.

Works Cited

Justin, Hellman. "Hormel Foods: A Short SWOT Analysis." Valueline.com. N. p., 2015. Assessed 7 November 2018, from value line.com/Stocks/Highlights/Hormel_Foods__A_Short_SWOT_Analysis.aspx#. W-K6qJMza01

Market Research. "Meat in France." Marketresearch.com. N. p., 2018. Assessed 7 November 2018, from www.marketresearch.com/MarketLine-v3883/Meat-France-10932570/