AeroFarms LLC - Cultivating a Brighter Future

Transcript:AeroFarms LLC - Cultivating a Brighter Future:
AeroFarms LLC - Cultivating a Brighter Future Presenting to: Ed Harwood, David Rosenberg, and Marc Oshima, Co-founders of AeroFarms LLC Presented by: Nanyang Consulting 2019 Agenda 1 2 3 4 5 6 7 8 Problems Recommendations Analysis Alternatives Implementation Financials Contingency Conclusion 2 Problem statement: AeroFarms faces risks of financial sustenance amidst growing concerns of consumer resistance and economic threats 3 How will Aerofarms overcome financial viability issues and growth barriers to attain its goal of 25 farms by 2022? Recommendations: AeroFarms can combine existing competencies with strategies to achieve goal of 25 farms by 2022 4 AeroFarms can achieve growth, social impact, and technological innovation with the given strategies External analysis: Aerofarms operates in a competitive environment with huge potential for technological and economic advancements Demand for vertical farming is increasing Consumers are becoming increasingly conscious of health and sustainability Solving problems of food security, urbanization, population Urban Farming and Food Security Act Program Area Priority – potential for grants Partnerships with eateries and organizations 5 Opportunity Trade tensions between China and USA Legislations restricting internal funding and capital movement Competition – from substitutable farming Threat Internal analysis: AeroFarms exhibits a unique business model which is capital intensive and requires reinforcement 6 Strength Producing more carbon emission – use of LED lighting High Capital expenditure Limited crop varieties – no high-calorie grains Long time to realise profits Lack of right talent Consumer Stigma – lack of USDA-certified organic seal Weakness Aeroponics technology is not affected by climate change Presence in urban areas – shorter product to market cycle Data repository and analytics Patented technology and processes Ability to experiment with techniques using data Worlds largest vertical farm facility Localization – with talent and farms Brand value analysis :Competitive farming methods have an advantage over Aeroponic farming across dimensions 7 High Low Relativity Expenditure Range of crops Profitability Market Value Aeroponic Aquaponic Hydroponic Strategic alternatives have been considered on the basis of our analysis 8 Positive growth prospects Current Portfolio sustenance Diversification Financial sustainability strategy Growth hacking Global Community strategy Terrace cultivation practices Farmers initiative in US AeroFarms to advertise a new brand and purpose – ‘Cultivating Sustenance Together’ Effective growth hacking marketing to overcome current customer stigma Building a customer ecosystem to build customer base 9 What Need to quickly grow and acquire customers Overcome customer stigma Effective usage of available data Why Implementation (1/3): Growth Hacking to build