This article presents the results of the justification for the development strategy of a Russian company specializing in the production of a unique biological feed additive “Organic” derived from leather raw materials. Due to the insufficient availability of leather raw materials for producing the feed additive in Russia and the high market demand for organic feed, the central idea behind the business development strategy is to justify the company’s integrated growth strategy by establishing a branch in Turkey. This will ensure integration with stable sources of raw materials, increase the capacity utilization of the innovative feed additive production, and enhance the profitability of the agribusiness. The article provides an economic and market justification and assesses the risks of scaling the company’s integrated growth business model. The economic efficiency of implementing the proposed business development strategy and its financing has also been evaluated.

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Integrated Growth Strategy for Agribusiness: Economic and Market Justification

  • Elena Kosinova,
  • Ekaterina Agalarova,
  • Yuliya Gunko,
  • Marina Ponomarenko,
  • Aya Sliki

摘要

This article presents the results of the justification for the development strategy of a Russian company specializing in the production of a unique biological feed additive “Organic” derived from leather raw materials. Due to the insufficient availability of leather raw materials for producing the feed additive in Russia and the high market demand for organic feed, the central idea behind the business development strategy is to justify the company’s integrated growth strategy by establishing a branch in Turkey. This will ensure integration with stable sources of raw materials, increase the capacity utilization of the innovative feed additive production, and enhance the profitability of the agribusiness. The article provides an economic and market justification and assesses the risks of scaling the company’s integrated growth business model. The economic efficiency of implementing the proposed business development strategy and its financing has also been evaluated.