Orvalho Cork

: will the company float? Industry life cycle and strategies to avoid commoditization

Abstract

This Case Study focuses on the challenges faced by Orvalho Cork, a small company in the cork industry owned by a couple of entrepreneurs who transformed cork into granulated cork. Once thriving, the cork industry has experienced a noticeable decline in recent years due to commoditization and a shift in consumer preferences to substitute materials. This study begins with an overview of Orvalho Cork and its first positive years, their operations and the environment of the cork industry as well as highlighting the factors contributing to the companies’ decline in 2019. It covers specific challenges faced by the company, including plummeting demand, increases in costs and commoditization. Orvalho Cork and the cork industry provide a great example of how managers should adapt to the business context and the current phase of the industry life cycle in order to remain profitable. This Dissertation includes a Literature Review about the impact of the decline phase on the industry and the impact commoditization has on the business environment. It addresses the main factors affecting this industry as well as strategies to prevent commoditization like, differentiation, servicing and branding. It also offers an analysis of key issues of the Case in the Teaching Notes section to help instructors to prepare the in-class discussion and provide an educational exploration with the students.

Date of Award	16 Oct 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Guedes (Supervisor)