Looking Ahead To New Market Strategies

The transformation away from the historical price-driven system is likely to continue. The economic reasons to move toward a consumer-friendly product offering are grounded in significant profit opportunities. Nonprice types of coordination that provide the raw material needed to support branded consumer product lines are growing in popularity with retailers, processors, and some producers. The research literature shows that when a participant in an organized group effort such as a vertical alliance makes investments in technology that is use-specific, the traditional pricing system may not be adequate as a governance system.[6] Investments in genetics, scanning technology, and technology to inject tenderness are clearly investments in use-specific technologies. In the presence of such new investments, governance systems will change and market strategies will have to change as well.

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