Various challenges faced by the organization in Australia that affect the competitive strategy of the organization in very significant manner. One of the major issues faced by the Australian dairy industry is supply chain management that affect the overall productivity of the organization. Different stages of supply chain include milk production, processing and manufacturing, exporting and retailing (Pembleton et al., 2015). One of the major issues for the dairy industry is that production rate of the milk is frequently changing, thus management is not able to fulfil the demand of the customers and management is not able to earn the profits. The major competitive challenge is to raise the productivity of finished to sell in the market. Various minks producing organizations are available in Australia like Nestle, Fonterra, Kraft Food and many more they are giving tough competition to each other that affect the productivity of each other. In order to sustain in the market, organizations need to develop the sound strategy that helps the management to gain the competitive advantage. With the help of micro and macro environment analysis, management is able to identify the factors that affect the management in very significant manner (Klerkx and Nettle, 2013). Food supply chain is the multiple channels that can be utilized to get the food from the producers to consumers.
As the organizations in Australia have the global channel to supply the food products, thus various challenges are faced by them to sustain in the market like global competition, variation in taste and preference of the customers, government policy, political and legal environment of the country and many more (Bell et al., 2014). Particularly, one of the organizations in Australia is Dairy Farmers that has to face various challenges related to the business like global competition, up gradation in technology, change in taste and preference of the customers that affect the business in very significant manner. Management needs to set the good marketing strategy in order to attract the new customers towards the organization and assist the business to gain the competitive advantage. Milk products are perishable in nature and affect the business in very significant manner. The quality of goods would be hampered if customers do not use them for the longer period (Von Keyserlingk et al., 2013). Thus, it can be said that organization is not able to commit the durability of the products to the customers.
Opportunities faced by dairy industry
As the marketing trends are changing, it is easy for the organization to reach the customers easily and increase the market share. Customers are able to connect with the online website of the organization and easily order the products as per their choice. In the last couple of years, dairy industry in Australia becomes the fastest growing industry that improves the economy of the country. Government of Australia is providing various rebates to the entrepreneurs which are giving employment to the local resident of the country. It can be said that advertisement of the products becomes very easy which help the management to gain the competitive advantage (Sargeant and Paine, 2015). Government is also supporting the organizations in order to expand the business in different parts of the world. One of the biggest opportunities of the dairy organization in Australia is global exposure that encourages management to easily get the international customers and increase the profit margin of the organization.