Competitive analysis of the taro productive activity: an approach based on the Michael Porter´s theory

Abstract

This research aimed to develop a competitive analysis of the productive activity of taro or Colocasia esculenta through Michael Porter's theory to know its strategic and competitive situation from a Mexican farmer's perspective. This is because throughout the literary review, we did not find any analysis related to this activity. The methodology was based on a qualitative study with exploratory scope. The way this study was designed is summarized in four methodological steps with an approach based on Porter's theory. The first step was the collection of information from secondary sources. The main source of information comes from a research project carried out in Veracruz, Tabasco and Oaxaca during 2016, as well as statistical information from various databases such as SIAP, USDA and STATCAN. All this information was given a treatment and classification according to the five competitive forces (second step), diamond (third step) and positioning of Porter (fourth step). The competitive analysis based on the aforementioned theory was carried out by a multidisciplinary team of researchers to enrich and feedback the study, obtaining specific results of the productive activity. In the five competitive forces is found that the Mexican taro is grown to be exported almost entirely to Canada and the United States of America (USA), so its main competitors are producers and exporters from other countries. The threat of new participants and the power of the buyers is high, with the possibility the Mexican taro is replaced by another from another country, especially when the competition is based on low prices. For that reason and for other factors the rivalry between existing competitors is high. The determinants of Porter Diamond show that there are opportunities and challenges both in the domestic market and abroad, but under conditions of uncertainty. Mainly because the NAFTA (North American Free Trade Agreement) will be modified, which would affect the agricultural sector in general. Finally, a non-defined situational positioning is indicated. The conclusions indicate that this productive activity has the potential to contribute to the economy and job creation. Currently, there is no established generic strategy, but involuntarily this activity competes with low prices without any differentiation. The competitive situation is perceived as vulnerable according to the performed analysis. Therefore, it is vital that cooperation, formalization and linkage between stakeholders be achieved horizontally and vertically. Adding a synergy with the government, academic and research institutions as well as other organizations in the region to compete globally.