How to successfully compete in modern export fruit markets? Lessons from a leading export producer in Argentina

Abstract

PurposeThe purpose of this paper is to expand the understanding of the type of strategies that can be successful for firms located in the South to get integrated and compete in modern export fruit markets.Design/methodology/approachTo achieve the research purpose of the paper the authors carry out an in-depth case study. They analyze the export strategy of Patagonian Fruits Trade, an Argentinean leading exporter of apple, pear and kiwi.FindingsResults revealed that Patagonian Fruits Trade developed a strategy focused on supplying decommoditization to compete in modern fruit export markets. A key aspect of the firms' business model relies on its capability to meet the demand of high-income markets by providing conventional, organic and biodynamic club varieties. However, the sustainability of the strategy heavily relies on the firm's capability to fund club varieties' licenses and on the firm's ability to negotiate with clients and suppliers.Research limitations/implicationsAdopting a case study method limits the generalization of results. However, it provides new insights into the type of export strategies that can be successful in modern fruit markets as well as its main limitations.Originality/valueResults of the study, based on original empirical evidence, shed light on key factors for the integration of Southern fruit producers into modern fruit markets.