Library

Identification of Unique Resources

Summary

Understanding a farm's strategic position is increasingly important in today's competitive environment. For a farm to be successful over a long period of time, it must respond rapidly to competitive and market changes, benchmark continuously to achieve best practice, and establish a few core competencies. A farm can outperform other operations only if can establish a difference than can be preserved. To do this, a farm must either deliver greater value to customers, create comparable value at a lower cost (i.e., improve efficiency), or do both. Delivering greater value allows a farm to charge relatively higher prices for its products while improving efficiency results in lower average unit costs.