Birds Eye
Why Birds Eye developed as a vertically integrated producer:The following are chiefly the reasons why Birds Eye developed as a vertically integrated producer.
· Undeveloped Infrastructure: The frozen food market during 50's and early 60's was in its infancy with the raw material suppliers, distributors and retail stores relatively unsophisticated. The infrastructure needed to support the business was not fully developed. For the raw materials (peas), farmers needed help with investments in harvesting equipment and with farming expertise. In the distribution, retailers needed financing help with the purchases of refrigerators. In such scenario, it made sense for Birds Eye to both forward and backward integrate as it had the both the capabilities and resources to manage the entire supply chain.· Rapid Growth: During the 1950's and 60's the tonnage sales were increasing at a rapid rate of 40% per annum. During such remarkable growth periods it makes sense for companies to......
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