Chapter 1.

Introduction

This chapter will include investigative research into the strategies small and medium enterprises
(SMEs) employ for growth in the cheese industry, with Loggie Cheese Company serving as a
case study. It includes the background, research aim, objectives, questions, significance, and
structure, to cast light on the key industry insights.

1.1 Background

The cheese industry is an important part of the food and beverage industry, with a long history,
and provides a wide spectrum of products that give customers different options and choice
(Ouyang et al., 2021). In the recent years, with the shift of the market towards artisan and
specialty cheeses, the consumers’ interest has been turned on which creates opportunities and
difficulties for small and medium enterprises (SMEs) operating in this niche market. For
instance, Loggie Cheese Company is a prime instance of a SME whose success can be studied in
the context of the cheese industry.

According to industry reports, the global

cheese market has been experiencing
steady growth, driven by factors such as
changing dietary preferences, increased
disposable income, and the rising demand
for convenience foods (Tubb and Seba,
2021). According to (Statista, 2023) the
Figure 1: Market report (IMARC, 2022)
global market value of cheese stood at
approximately 83.4 billion U.S. dollars. This value is projected to exceed the 120 billion U.S.
dollar mark by 2028. IMARC Group estimates that the global cheese market reached a value of
US$ 77.6 billion in 2021. Looking ahead, they expect the market to reach US$ 113.3 billion by
2027, exhibiting a CAGR of 6.31% during the
period from 2022 to 2027 (IMARC, 2022).

Furthermore, government reports highlight the

economic significance of the cheese industry,
Figure 2: Volume of Cheese products in US (Statista, 2023)
both in terms of job creation and revenue generation. For instance, in the United States, the dairy
industry including cheese production over 6 million metric tons are manufactured, contributes
billions of dollars to the national economy annually and supports thousands of jobs across the
value chain (Statista, 2023). This emphasizes the industry's role as a key driver of economic
growth and development.

Moreover, Arshad et al., (2020) stated that the concept of SMEs becomes crucial, as the
enterprises often face distinct challenges compared to their larger counterparts. Reis (2021)
stated that SMEs in the cheese industry need to overcome such challenges as resource shortage,
market saturation, and intense competition in a bid to attain sustainable growth and development.
Cognizance of the distinctive characteristics of cheese market as well as elaboration of
successful growth plans which can be implemented by companies such as Loggie Cheese
Company are thus of utmost importance for the long-term survival and profitability.

Naradda Gamage et al., (2020) found that there are food industry SMEs which face difficulties of
market entry, product differentiation and brand building. The study emphasizes on innovation
and product development as the major forces that drive growth for SMES operating in niche
areas like artisanal cheesemaking. Also, the partnerships and supply chain management which
were highlighted by Mofokeng and Chinomona (2019) is pivot in improving SME
competitiveness and market reach. Interacting with distributors, retailers, and other market
players gives SMEs a competitive advantage through bigger markets and resources, which
trigger their growth and expansion.

It would be an underestimation to neglect how significant such contributions are in the

addressing of the identified research gaps of exploration of growth strategies of cheese
company’s SMEs as they offer valuable insight for the real-life problems and opportunities for
cheese industry SMEs. Researchers fill in the blanks this way and eventually make sure that
companies like Loggie Cheese Company have evidence-based strategies of innovative product
development, which perfectly suit their individual needs and role in the market, and hence
contribute to their sustainable development and strong competitive positioning. Here, Loggie
Cheese Company is an outlier among all companies operating in cheese sector as a whole.
Cheese Company, a small-scale cheese manufacturer with a focus on artisanal cheese making,
operates in a niche market catering to consumers that appreciate superior craftsmanship, unique
taste profiles, and the strong tradition and heritage associated with the company (Bracken, 2019).

Importance of studying Loggie Cheese Company is that it uses unique technique of cheese
producing which mainly focuses on artisanal methods, locally sourced raw materials and
sustainable practices (Ercan, Soysal and Bozkurt, 2019.). Unlike the large-scale cheese industry,
Loggie Cheese Company is characterized by small-batch methods producing the finest cheeses
where more care can be taken and customization is possible to meet consumers’ preferences. In
addition, the geographical position of Logan Cheese Company has enormous influence over the
firm’s business environment and market dynamics (Simão et al., 2022). Loggie Cheese
Company, being located in a rural area of UK with a milk farming legacy, thus, has close ties to
nearby dairy suppliers and has access to a supportive community of consumers and stakeholders
(Süvari, 2022).

Carrying out research in the setting of Loggie Cheese Company is an invaluable means of
understanding the challenges and opportunities that are linked to artisanal cheese production and
the growth strategies for SMEs. Through the analysis of the organization's activities, positioning,
and growth dynamics, researchers can obtain examples of best practices, insights from
experience, and possible improvements in the dairy industry.

1.2 Aim of Research

The purpose of this research is to investigate the cheese company’s strategies of viable growth
that can work for small and medium enterprises (SMEs) using Loggie Cheese Company as a case
study. Through an exploratory lens, the study seeks to provide growth strategies for small and
medium-sized enterprises in the cheese industry that can improve and enhance the
competitiveness of Loggie Cheese Company in the cheese market.

1.3 Research Objectives

1. To conduct literature on Growth strategies and identify effective strategies

2. To explore the expansion grid strategy (ansoff) on growth of Logie Cheese Company
 3. To explore the influence of product innovation and Customer experience on growth of
Logie Cheese Company (guidance SME).
4. Based on findings, propose a growth strategy for Logie Cheese Company.

1.4 Research Questions

1. When exploring growth strategies, what are the effective strategies identified in the
literature?
2. How does the expansion grid strategy (Ansoff) contribute to the growth of Logie Cheese
Company?
3. Why and how does product innovation and customer experience influence the growth of
Logie Cheese Company, particularly considering its status as an SME?
4. What is the suitable growth strategy for Logie Company based on the literature review?

1.5 Significance of the Research

This research holds paramount significance in addressing the critical gaps of exploration of
growth strategies in understanding effective growth strategies tailored for small and medium-
sized enterprises (SMEs) within the cheese industry, with Loggie Cheese Company as a focal
case study. By synthesizing existing literature on growth strategies, exploring the application of
the expansion grid strategy (Ansoff) in Loggie Cheese Company's context, and assessing the
impact of product innovation and customer experience, this study aims to offer actionable
insights for enhancing competitiveness and sustainability in the cheese industry. The findings
will contribute to informed decision-making processes for Loggie Cheese Company and similar
SMEs, driving economic growth and fostering innovation within the sector.

1.6 Structure of the report

The report's structure is as follows:

Chapter 1: Introduction sets the stage by defining the research scope and objectives.

Chapter 2: Literature Review synthesizes existing knowledge on growth strategies in the cheese
industry.
Chapter 3: Research Methodology details the approach used.

Chapter 4: Discussion interprets findings.

Chapter 5: Conclusion and Recommendations summarize key insights and propose actionable
suggestions.

Literature Methodology
Introduction Review Reseach ( Approach,
Background, Aim,
Literatire review Philosphy, Strategy),
objectives, Purpose Data Collection
on objectives

Analysis
Recommendations Discussion of
and Conclusion Findings Quantitative
Analysis

1.7 Conclusion

In conclusion, this chapter summarized the background and presented the aim, objectives,
research questions and significance. Furthermore, the chapter presents the structure of the
analysis. The next chapter case study will present the literature review.

New reference:
Simão, G.L., Wegener, M.K. and Antonialli, L.M., 2022. Competitiveness capability in the last
large remaining Australian dairy cooperative. Journal of Co-operative Organization and
Management, 10(1), p.100163.