Australia market

Agrochemical. Low barrier to enter.

Agriculture, it is an export market potencial. They ensure they have a competitive price.

Different type of agri.product.

Two mayor products. First generics, not anymore and the other, competitive (difficult) the owner of
the pattern but nobody else.

Create supply chain.

Actors

Manufactured in china. We know, 1000 of plans, verity in quality. 2000 only in China and India.
(lower cost , less regulations, quality is varied. (good,bad, pour)

Agents Link Market send the contact between importer and manufacture. Get contracts and bargain
process. Helps the importer. They have a broad network expertise in the Chine supply market. They
know the active people over there. Understanding of the Chinese market. Based on singapur

Importer. Registration holders do the import and the licence to sell the product. Negotiate good
prices, they might have capital to assure it can reach good. Farmers trust on them.

Distributor.

Lower volume they buy. Interact with the farmers.

Farmer

Buy as needed, they operated big farms. Much bigger, land.

Strength and weakness

 Manufacturer, low cost/cheap (S). Quality (w). Do not have real access to the Australian
Market.
 Language barriers and disadvantage Chinese did not speak good English.
 Poor reputation.

Agents.

Strength.

 Supply knowledge, understanding the suppliers, quality. Volumes want to ensure you will get
the volume.
 They are trusted.
 Singapore as it is based there, good reputation.
Weakness

 Cost centre in the SC. They get a fee.

Importer

Strength.

 They have capital.

 Owner of the brand. Brand is important, farmers still remember the brand.

 They know the distribution network, long term relationship.

 Highly dependent on the agent.

Distribution.

Strength.

 They have the distribution network.

 They know their customers.

Weakness

 Smaller budgets.
 Buy and sell the product.
 Small margin of profits.

Farmers.

 They do not have inventory. (weakness and Strength) No limited inventory

 They have some idea of the demand, but it is dependable.
 Limited access to capital (weakness)

What did the company do?

 Value was changed. The Company, operation factory to farmers. In the new business
model, considers only two players. Take the roll of the agent and the distribution.
Connect manufacturer in China with the farmers in Australia.
 Change in the business model.
 They need to build knowledge in the registration process.
 They need to become the registration in Australia,
 Change relationships with manufacturers, new contracts . it is easy relationships.
 Build trust with farmers.
 Access to capital, buy product and import it.
 Challenges.

 Resistance from farmers.

 Competition from Farmers partners (distributions) specially importers. It is easy
to go the manufacturers. There are coming going, in the business process.
 Before Distribution interact with farmers. And now they have to do it from
Singapore.

How they solve it/ might.

 Mayor cost saving to the farmers.Conflict in the minds.

 The lead time, local inventory at the warehouse. It did not do it at the beginning because of
the holding cost and required capital.
 Local sells team. Help the farmers, local real aussies.