Access to high quality inputs Consumers are sensitive to the quality and taste of the industry products they purchase. Therefore, purchasing agricultural inputs from healthy yields is crucial ensure maximized end-product quality, increasing demand for a company's products.
Attractive product presentation Given the relative homogeneity of industry products within each industry product segment, successful advertising and product presentation can positively distinguishes a company's product from others, which can increase company sales.
Economies of scale Companies that produce a high volume of output benefit from lower operating costs due to economies of scale. This grants these companies a competitive advantage by allowing them to sell their products at lower prices.
Ability to pass on cost increases The industry's most successful companies must be able to establish well-known brands. In doing so, these companies are more able to pass on cost increases when input prices rise due to brand loyalty.
Supply contracts in place for key inputs The prices of fruit and vegetable inputs are incredibly volatile due to factors such as adverse weather conditions and insect infestations. To negate this, long-term fixed-price supply co