OSI Industries is a meat packing company based in Illinois. Recently, OSI has been steadily increasing its production and capacity in order to stay competitive in the hyper-competitive industry of meat packaging and processing. There are many ways that OSI is making this happen, and all of them offer OSI unique vantage points in their industry. Acquisition is one way that OSI is increasing its presence. It isn’t easy for an American company with a humble beginning to break into the European market (a move that is certainly necessary to remain competitive). OSI is doing this by acquiring companies that are already competitive in their market. Let’s take a look at some of the examples.
Recently, OSI Industries purchased Baho Foods. Baho Foods is a deli meat provider in the Netherlands that focuses on convenience products and snacks. Now, Baho Foods is already a dominant force and the acquisition of the company would be good on profit margins alone. However, acquiring Baho Foods is more than the money to OSI. Baho gives them an insight into a unique market and ties to a difficult to establish trade route, the Netherlands. Baho Foods wide variety of products adds to the growing portfolio of available products that OSI offers, but their connections to factories and farmers as well as their cemented status in the Dutch market makes them an invaluable catch for OSI.
The other example is that of Hynek in Germany. See, OSI has always faced a problem when building factories abroad. It’s easy to build a factory, but it can be difficult to create relationships with local farmers and slaughterhouses. At home, OSI already has these strong social connections, and it’s part of what drives their success. Abroad, however, language barriers, government regulations, and terrain difficulties make establishing connections based on trust more difficult. OSI Industries acquisition of Hynek shows that the company is committed to forming these relationships. Hynek has strong cemented relationships with German farmers and butchers. This connection is woven into the DNA of Hynek. This DNA is partially shared by OSI Industries making the two companies a great fit for each other.
Acquisitions in key areas have helped OSI Industries remain competitive in Europe. It helps OSI bypass language barriers, and maintain a firm grasp on the European market. OSI may be an American company, but their presence is felt throughout the European foodservice market. Something that OSI has worked hard to establish.
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