Question
Mogomotsi, a 27 year old graduate from Kopong, runs a small stock farm from a family owned farm at Metsimotlhabe. He obtains supplies (supplementary feed,
Mogomotsi, a 27 year old graduate from Kopong, runs a small stock farm from a family owned farm at Metsimotlhabe. He obtains supplies (supplementary feed, medicines, tools) from local agrishops, hardwares. The government has recently secured markets in the Middle East for small stock and rolled out programs to encourage more citizens to enter small stock farming business. Demand for weaners (sheep and goats), feed, medicines and all other implements has increased. Stud breeders and large-scale farmers have ramped up production to explore this opportunity. Traditionally, livestock was sold to Botswana Meat Commission, the government has liberalized this market with all chain stores setting up to take advantage to set butchery section to sell meat.
a. In light of the above, conduct an industry analysis using Porters Five Forces Model.
b. What advise would you offer Mogomotsi to overcome the threat of increasing costs of livestock feed and medicines?
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