Abstract

An integrated approach, based on the Porter model (1985), is discussed for the primary and secondary dairy industry. The goal is to analyse the local and international competitiveness of this industry. The two types of competitive advantage are low cost and differentiation. Low cost is discussed in the light of the industry's structure. Differentiation is looked at the attributes separating dairy products from its rivals, e.g. wholesomeness, safety and quality, marketing approach and the back-up system. Attention is paid to the five competitive factors, the combination of which determines the ultimate profit potential of an industry.

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