Important Terminology Used in Agribusiness Strategy

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Important Terminology Used in Agribusiness Strategy

Agribusiness Strategy:

A detailed plan of action for achieving one’s goals and objectives is known as Strategy. Agribusiness Strategy is a word with various meanings and all of them are related and helpful to those who are executed with setting strategy for their agribusiness corporations, business, or organizations. Companies or organizations should be aware of some important terminology used in Agribusiness strategy. 

Important terminology used in agribusiness strategy is summarized below:

Competitive superiority:

“Competitive superiority” is the relative position of a company according to its superiority over rival companies for agribusiness strategy. In the modern society where it is possible to acquire information by all kinds of means, many differentiation strategies may be imitated by other companies. In order to provide the customer with better value than the competition, it is necessary to develop a business strategy for competitive superiority through a combination of multiple factors rather than low prices, but design, quality, production system, and brand.

Customer satisfaction:

“CS” known as “Customer satisfaction,” means the level of satisfaction a customer gets after using a product or service and it satisfies their expectations. “CS management” is an important terminology for agribusiness strategy used in management practice that concentrates on customer satisfaction.

CS management is based on the idea that creating corporate value from the perspective of the customer and giving the customer a sense of satisfaction contributes to corporate management for agribusiness strategy.
In CS management, the demands and opinions of customers are collected to analyze their needs and behavior. As a result, the service that will satisfy the customers is determined. This information is utilized to expand services that should be provided and eliminate services that should be scaled down. CS management begins when a customer takes a product. It aims to raise the corporate value by having the customer choose the corporation’s product over numerous rival products and make repeat purchases when replacement is necessary. It promotes awareness of customer satisfaction and providing not only product quality but also follow-up service after-sales.


Collaboration or affiliations between corporations are known as “alliance”. There are different forms of alliances including those without any capital ties that come together only in specific fields, and those with capital ties that unite as “mergers.”Nowadays, these collaborations and affiliations have turned into popular in several corporations.
The objectives behind this increase in alliances are to eliminate unnecessary corporate competition and reduce costs such as those in research and development by sharing the burden between several companies.

M & A (Mergers and Acquisitions):

“M&A” important terminology for agribusiness strategy  is a general term for corporate “mergers and acquisitions.” A “merger” is the formation of one corporation from multiple corporations, while an “acquisition” is the purchase of an entire corporation or part of a corporation for agribusiness strategy.
This form of the alliance also includes “absorption-type mergers” in which one of the corporations continues while the other ceases to exist. The objectives of M&A include entering new industries or markets, business tie-ups, corporate reorganizations, business bailouts, etc.

Integration through a holding company:

A company that holds large quantities of shares in other stock companies and exercises control over those companies called a holding company. Some of the advantages of integration through a holding company are that it allows for business strategies that always seek profit for the entire group, and it can also speed up decision-making processes.

Capital participation:

“Capital participation” relates to increasing relationship with another corporation by acquiring shares in that corporation and becoming a shareholder. Capital participation encourages a cooperative association as capital is held by the other corporation, but it does not grant that corporation the authority to formulate decisions regarding management.


Cooperation between corporations in performing business activities is called “Tie up”. Tie-ups are expanding from those confined to specific fields such as sales tie-ups and production tie-ups (OEM production, etc.) to those of sharing technology and cooperative recycling of waste, etc.

Above terminology maybe abide by Agribusiness company for agribusiness strategy.

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