The fragile strength of a leading Polish yoghurt company (case study of Bakoma)

Abstract

Purpose -The purpose of this paper is to investigate the case study of Bakoma, which is a leading Polish yoghurt-producing company that has achieved a remarkable success, but now is facing serious challenges from multinationals. The authors aim to analyse its development model, marketing strategy, and competitive position. Design/methodology/approach -The paper is based on the authors' own case study. They gathered the necessary information from company documents, both published and unpublished, as well as a series of in-depth interviews with representatives of Bakoma and other key players in the Polish dairy market. Findings -The authors found out a strong interdependence of the business and political spheres, especially during the initial phase of the Polish systemic transition. Secondly, foreign partners played a major role in the creation of the company (inflow of capital from an American businessman of Polish origin), acquiring access to technology licence (Onken), and capital investments and transfer of management skills (Danone). A major strength of the company is its innovative marketing strategy based on a perfect knowledge of the specificity of Polish consumer preferences. Nevertheless, the Polish yoghurt market as an important segment of the dairy market becomes gradually more and more dominated by multinational corporations, especially of French and German origin. Originality/value -This paper provides original insights into the development and marketing strategies of a leading Polish yoghurt company facing strong competition from multinationals. The results may be useful to managers from Central and Eastern European dairy companies.

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