BUSOGAFARM . INPUTS LTD Following the fall ofldd Am' , , . I of producing f; , m s regun~ m 1979 new crop of industrialists came up with an idea Ugand T arm . mputs to meet the hi g h d eman d th at existed . m . the East African region, including . a. . o achieve th e,r d ream qmckly . the industrialists who were mostly graduates of engmeermg _ faculty fro m K yam b ogo Umvers1ty . . established Busoga Fann Inputs Ltd (BFIL). For ease of accessibil'ty b h f:. 1 Y t e arn:iers BFIL was located in central region of Uganda although, mitially the target market for its products was Busoga region that_lays along the fertile shores of River Nile. The company's product portfolio included tractors for commercial fanning, tractor spare parts and accessories and inputs like improved seeds, fertilisers and pest control chemicals. By the end of 1996 BFIL was the leading producer and exporter of these ranges of farJ11ing - . products in Uganda. Its sales increased year after year. This was attributed partly to the high demand in Uganda, low inflation rate and the strong shilling against the dollar. Besides, the Uganda's economy was growing at6% per annum between 1994 and 2006. The Market for Agricultural Input The globalization of the international trade together with the liberalization of Uganda's economy attributed an influx of many firms into this East African country. Any foreign firm wishing to engage in the production of farrn!ng inputs would be required by the Uganda government to possess a mere USD 15,000 as initial capital to open business in the country, For thisreason several firms like Nigeria Farm Suppliers Ltd, Enarge Agri-Business and Indo-Agri-Suppliers Ltd became th dominant players in the industry. While .the inlux of these foreign firms. were we! co med in Uganda, they posed some problems for the local firms like BFIL which lacked trained man-power, capital and new technologies to match their foreign counterparts. Th market for f;rming inputs included sugarcane growers, tea plantations and coffee farmers scattered around the country but specifically located in isoIOted and not --so easy to reach parts of the country. They lacked infrastructures liki roads, telecommunications networks and rail networks to be ace esse d by the inputs producers. arket Structure and Customer Profiles In early 1990s BFIL was the only producer of farm inputs. It was a monopoly in the industrY, Most, if not all customers relied on BFIL for supply of all the farming inputs, However, as time went on with the growth of population size in Uganda, poverty levels increased among the people in the country. This had a knock-on effect on operations of producers offarming inp~ts. Lack of infrastruciural development in sectors Jike education Jed to an increase in ignorance levels in the population. There is also a strong likelihood that prices of farming in-p~ts are to fall due to the Ukraine - Russia war. Aceording to the "Independent newspaper" published in Uganda on 04/07f2022 somO new firms that had been operating in Ukraine are planning to come to Uganda and marketing their products. However, all is not lost. There are still virgin markets to exploit in the East African region like DRC, Rwanda and Kenya. GROUP ASSIGNMENT In groups of 10 students attempt the followipg questions. Question 1 Identify in the above case the following; a) Threats to Busoga Farm Inputs Ltd b) Opportunities to Busoga Farm Inputs Ltd c) Porters competitive forces cited in.the case - Question 2 Based on the information in the case only, (OS ~narks) (05 marks) (OS marks) a) s Dhearescribe the expansion strategies BFIL can e~ I . . . - p oy to improve on its sales and market (15 marks)