AEROFARMS A BETTER WAY TO FEED HUMANITY GSB

Transcript:AEROFARMS A BETTER WAY TO FEED HUMANITY GSB:
AEROFARMS A BETTER WAY TO FEED HUMANITY GSB Consulting Group SITUATIONAL ANALYSIS How will AeroFarms respond to the challenges facing the vertical farming industry to create a sustainable and profitable business model? VALUE PROMISE AND FUTURE STATE To combat limited crop variety, funding, high energy consumption and talent scarcity concerns. 5 Year Strategy to ensure a sustainable and profitable business through brand repositioning, geographic expansion, talent acquisition. KEY ISSUES RECOMMENDATIONS ANALYSIS JANE POSITIONING MAp Global vertical farming market expected to grow to US$12.77bn by 2026 Growing demand for vertical farms: Climate change, Population growth, global food crisis & urbanisation Vertical farms generate 10x more carbon footprint than traditional Trends toward organic, healthy food and environmental impact Aerofarm needs to address their environmental impact and increase variety High Variety Low Variety High environmental impact Low environmental impact Aerofarm VALUE PROPOSITION vs CUSTOMer NEED Aerofarm: 95% less water and zero pesticides Minimal environmental impact High production efficiency – 390x more efficient than traditional farms High production capacity & availability But, Low consumer awareness Aerofarm needs to reposition its brand, grow customer awareness and increase variety to meet consumer needs ACCESS TO FINANCE US$238m in funding (highest of competitors) Low profitability and high capital requirements US Trade tensions – potential for ban on international venture capitalist funding Need for scale - increase farms from 9 to 25 by 2022 GEOGRAPHIC EXPANSION Aerofarm should expand internationally to grow, increase reach and improve profitability ALTERNATIVES AND PATH FORWARD SHIVANI RECOMMENDATIONS ALTERNATIVES DECISION CRITERIA DECISION MATRIX High Capex, low profitability High Capex Not a core competency DECISION MATRIX REC I: Brand repositioning strategy Outcome: Consumer concerns and analyst skepticism around Vertical Farming will be addressed REC II: Geographic expansion strategy Outcome: Global presence with unencumbered access to VC funding REC III: Talent acquisition strategy Outcome: Address talent scarcity and create skilled labour for vertical farming future IMPLEMENTATION KATE IMPLEMENTATION I: Brand repositioning strategy END CUSTOMER: First world Affluent High earning Environmentally conscious Move towards vegetarian and vegan IMPLEMENTATION I: Brand repositioning strategy ORGANIC $1M to fund research into organic certification – can be linked to talent strategy Collaborate with foundation of food and agri research USA – help with lobbing USA VARIETY Move towards legumes and lentils Type of sprout – similar growth High protein Popular to consumer in consumer profile ENERGY Launch of key initiative – “ THE SPECBOOM INITIATIVE” High carbon neutralizing plant on