April 08

April 2008, World Apple Report Highlights

Competitive Strategies for Apple Firms
This is the second article discussing competitive strategies for apple firms. The first was published in the March 2008 issue. In the past, much competition in the apple industry involved destructive rivalry that drove prices below production costs. Now, apple firms must frequently compete for the business of large retailers on quality, price and service. Even in this setting, apple marketers must use unique offerings (in varieties, brands, exclusivity, processes, etc.), in order to avoid destructive rivalry.

Major Turning Point Ahead in Food Markets
For almost two decades, consumers have enjoyed rising incomes, low inflation, rising house prices and cheap debt. This has enabled them to steadily upgrade their lifestyles and the quality of the foods they buy. Conditions have changed dramatically in the last year as financial markets imploded and the housing boom has collapsed. Consumers now face falling real wealth, rising prices, stagnant real incomes and shortage of credit. This is likely to lead to an upswing in demand for medium and lower-priced foods, more shopping at discount stores and a decline in status shopping.

Beware of the Polls
Polls and opinion surveys are constantly quoted to justify the policies of governments, the strategies of businesses or the preachings of social, ethical and moral crusaders. This article offers a brief primer on how to assess the credibility and validity of poll results. One needs to know how many respondents were polled, how representative the sample was of the population being studied, what questions were asked and how they were framed, and did the pollster or the poll sponsor have a vested interest in the results. In reading the results of any poll, a healthy skepticism is recommended. It also pays to compare the results of rival pollsters.

Special Statistics

United States: Advertised Retail Prices of Selected Fruits (chart)
Exchange Rate Changes: Who Gained, Who Lost Against the U.S. Dollar? (chart)

The authoritative guide to the world apple business today.

Belrose, Inc., 1045 NE Creston Lane, Pullman, WA 99163, USA
E-mail to: belrose@pullman.com
Tel: 509-332-1754
Fax: 509-334-5209