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Mailings Review View Tell me what you want to do... 1:1. 1 :2 . 1 . 3 . 1 : 4 . ( : 5 . 1 : 6 : 1 : 7 : 1 : 8 : 1 : 9 : 1 : 10 . 1 : 11 . 1 : 12 . 1 : 13 . 1 . 14 . 1 : 15 . 1 . 16 . ) . 17 raliners Luge Comprehensive Cast Cooperating with Cooperatives Despite being one of Canada's oldest industries, and probably the most geographically dispersed, agriculture has always maintained a down-to-earth, communal quality. The sense of competition felt in oligopolies or monopolistic competitions seems strangely absent, or at the very least, subdued. Farmers look out for one another. They're all somehow in this together. Retailing cooperatives have long been a small but useful component of Canada's business landscape, and those serving the agriculture industry are among the oldest and most established. Valleyview Consumers Co- op in Manitoba, for instance, has been operating for over 80 years, and it has recently became part of a Farmers Edge marketing channel. Farmers Edge made the decision to leverage the established customer base of both Valleyview and Twin Valley Co-op, another Manitoba co-op, to provide easier and quicker access to its products. Like any marketing channel, in order to be successful, benefits must accrue to both producers and intermedianes. In identifying the upside for Twin Valley, purchasing manager Bruce Korosail noted, "The agricultural industry continues to evolve at a rapid pace. Equipment advancements, technology, and increased consumer demands are now the norm in this industry. Twin Valley Co-op Lid. recognizes the importance of change. As a result of this evolution, we'll be offering enhanced precision agronomy in partnership with Farmers Edge to ensure that our producer members have all the tools for success." So while the co-op retailers and their members benefit from the precision agronomy tools and technology produced by Farmers Edge, Farmers Edge benefits from channelling its products through two established retail outlets. "I'm really excited to work alongside companies like Twin Valley Co-op and Valleyview. Consumers Co- op," said Nat Howard, a Farmers Edge sales rep, when the partnership was announced. 'I feel that our Precision Solutions packages have a great fit for their customers as they strive toward sustainable farming while maximizing profits on the farm." At some point, as Farmers Edge grows, its sole reliance on personal selling to get its product to market will become either unsustainable or a competitive disadvantage. "We've grown from 90 people to 190 people in nine months," claims president and CEO Wade Barnes, but that growth hasn't just been in the sales force. In order to grow at the rate investors expect, expansion needs to happen in all facets of HR. "Some of it has to go to R&D, product development, engineering (both hardware and software), front-line tech people, and market development-and it's also got to go to building a management team that can keep developing as we grow." Questions 1. While sharing distribution with an intermediary (such as the cooperatives mentioned in this case) can be beneficial to both parties, compromises are also involved. Identify and describe any such disadvantage to either the co-ops or Farmers Edge. 2. Is the distribution coverage of Farmers Edge intensive, selective, or exclusive? Explain your answer. 3. Using level-of-service classifications, how would you categorize the co-ops cited in this case? Explain your

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