UNIVERSIDAD DEL NORTE

LEONARDO BARCENAS
DANIELA BLANCO
CARLOS DIAZ
MARIA BELEN SUAREZ
LUIS FELIPE TRISTANCHO

GUILLERMO MARQUEZ

LOGISTICS AND DISTRIBUTION

VIERNES 17 DE MAYO DEL 2019

CASE Avocado export case from Colombia – Dinero article
1. Correlate the theory with the case:
a. Explain the use of the concepts in the case: Competitive advantage + Cost
control on transport + Total Quality
b. How is the economy of scale used in the case?
2. What can you say about the channel of distribution that one of the exporters
used and why the company decided to change it?
3. Please identify:
a. Why the product presentation is an export solution in the case?
b. How the product limits the labeling of avocados?
4. As per the Dinero article:
a. What is the mode of transport and the gateways used for the export of the
avocado from Colombia?
b. Why do you think this is the way the avocados are exported?

ANSWERS

1a. At this point we can consider that Colombia has a competitive advantage
over some other countries in terms of weather stability that allows the región to
harvest all year round, leading the country to generate a proper, different and
better-structured chain of value, which leads to desirable prices compared to
other places. It can also be taken on consideration, that the cost of the
transport gives control of the merchandise they are shipping and can be more
effective in order to manage the Budget and also boost the maximum
optimization in relation to competitivity and client satisfaction.

b. The economy of scale refers to the power that a company has when it
reaches an optimal level of production to produce more at lower cost, The
more it produces, the less it costs to produce each unit.
These company had an excellent economy of scale since they went from
producing few units of avocado to producing more units. Also, they just
distributed to a national level to be the number one distributors of countries like
Holland, Spain, etc. This is why this case is a perfect example of the economy
of scale. Because this company started producing more quantity at less
production cost and earning a much higher profit

2.

The production of avocado Hass in Colombia is growing fast, boosted by

Ricardo Uribe, a businessman who started his activities in 2010. In the
beginning, the avocados were selling to an international retailer, the process
started on the producer, sold to a retailer and finally the consumer. In 2015, this
producer obtained a certification to export and at that moment he made the
decision to export his product directly to the consumer. It's possible that Uribe
took this decision to reduce costs and facilitates the process of exportation

3. A) It's important because the Colombian territory is good for harvesting

avocado Hass throughout the year,, but in other countries, you can not harvest
all year round. it is a fruit with many vitamins, such as vitamin c,d,e, ) It's
important because the Colombian territory is good for harvesting avocado
Hass throughout the year,, but in other countries, you can not harvest all year
round. it is a fruit with many vitamins, such as vitamin C, D, E, Viotina among
others, it is an attractive fruit for consumption by people who have a healthy
life, every day the avocado Hass is more known and it is added in recipes of
the chef.

b) Colombia is already making a name in the international avocado

markets.b. The labeling of the products is not only important for the fact that it
reflects the brand and the company that manufactures or produces the
product, it also contains information that on the one hand is necessary for the
consumed and on the other hand it is also regulated as the composition ( in
case of being a product of a chemical or food) and other relevant data
related to the origin dimensions etc. in the specific case of the avocado,, this
labeling is limited to the fact that being an edible product(perishable) that
does not require processing, since this cycle as a product only does not make
the addition of other products or transformation necessary, of the same, this
label contains more simple information, related to its origin and the company
in charge of cultivation, in some cases the information provided also details the
type of crop and even the useful life of the product

4.A. The mode of transport used to export the avocados is maritime. They used
the gateways from Cartagena, Santa Marta, and Buenaventura to export this
product to countries as Holland, Great Britain, and Spain.

B. Because they can transport more avocados in one trip. Also, it is cheaper
than other modes of transport. They have better care of boats, as they are safe
on containers.