March 08

March 2008, World Apple Report Highlights

Developing Competitive Strategies
Michael Porter has been one of the leading thinkers and writers on competitiveness and competitive strategies for firms and industries in the last two decades. This article summarizes his recent thoughts on developing competitive strategies. Porter argues that while most firms focus on competition with existing rivals in the same industry, competition can also arise from the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers and the threat of new substitute products or services. In the apple industry, the two most important competitive forces are strong rivalry among existing competitors and the bargaining position of buyers. Strategies deriving from this conclusion are discussed in the April 2008 World Apple Report.

Measuring International Competitiveness
This article discusses the findings of the thirteenth World Apple Report annual comparison of competitiveness among 29 major apple producing countries using 22 separate criteria on production efficiency, industry infrastructure and inputs, and financial and market factors. Chile retained the number one ranking, just ahead of New Zealand. Italy, the United States and France took the next three positions. All these countries are major exporters. Canada and Russia lost most ground compared to 2007 while Turkey and Serbia-Montenegro gained most. China ranked 18th in competitiveness due to low productivity, infrastructure problems and weak marketing.

Best World Markets (Revised)
In the past, many international comparisons of Gross Domestic Product or per capita incomes were expressed in US dollars using the official exchange rate between each country's currency and the US dollar. This led to distortions because some currencies were under-valued and some over-valued. Some years ago, the World Bank began to use purchasing power parities to make such comparisons. The size of different economies was measured in terms of what money would buy in each country. However, purchasing power parities had been measured at different times and over different baskets of goods in different countries. The World Bank has now revised its measures of purchasing power parities based on a survey of the prices of 1,000 goods and services in 146 countries in 2005. As a result, the World Bank has made major revisions in its estimates of the size of different economies, of per capita incomes and of comparative prices. The 2005 data will provide a more reliable base for future international comparisons.

Special Statistics

United States: Personal Income per capita, by State, 2006, current dollars (table).
World: Top Twelve Economies, 2005 (table).
International Competitiveness Rankings, 2008 (table).
United States: Retail E-Commerce Continues to Grow (chart).
United States: Organic Apple Shipments and Exports, Dec 07-Feb 08 (chart).

The authoritative guide to the world apple business today.

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