Value Addition Tim, Managing Director of Agrarian Ltd Is faced with the dilemma on how to move his company up the value chain and bring In more revenue.
Currently, the products Girlhood Ltd produces is rice bran 011. This product currently produces a huge amount of crude wax and gum byproducts each month.The problem In this case Is how can Tim make use of the mass amount of byproducts produced each month and hat other products can be made from rice bran. The solution to this problem Is simple. Tell should suggest to his company that they copy what the competitors are doing. The competitors are spending more money on research and development to discover new innovations for the use of rice- bran and the byproducts in the production of it. Some competitors may also be selling their byproducts to companies who have found ways to utilize it.
If Agrarian implemented this change, they should be able to also move up the value chain and further compete with their competitors. The types of innovation that Agrarian could create could be ways to improve the yields on rice, developing genes to fight off certain infections that rice face, and ways to make use out of the by products they create. Selling the byproducts to other companies will also improve Griffon’s bottom line and eventually, up the value chain for its’ customers.