Strategic Management: Competitive Advantage - Case Study Example

After looking at the prospective side of the place we then conduct a SWOT analysis of Guajilote. We also look at the competitive advantages or strategies which Guajilote possess making it key destination in the whole area. We then describe the value chain in the production and sale of mahogany in Honduras. Finally we try to find out the strategic alternatives to Guajilote. Before really looking into the discussion of Guajilote as prospective business destination, let's first understand the whole concept of Guajilote Cooperativo Forestal so as to get a better understanding of the whole scenario.

Guajilote which is pronounced as wa-hee-low-tay was a forestry cooperative that operated out of Chaparral, a small village located in the buffer zone of La Muralla National Park in Honduras'. It is present in Olancho province which is one of the 18 Honduras provinces. It is located on inland bordering Nicaragua. Basically the whole concept of the cooperative was one result of a relatively new movement among international donor agencies promoting sustainable economic development of developing countries' natural resources.

One thing we need to note is that a cooperative in Honduras is similar to a cooperative in the United States. It is an enterprise jointly owned and operated by members who used its facilities and services. Now let's give a brief history of Guajilote. Guajilote was founded as a sub division of United States Agency for International Development Project or popularly known as USAID. The whole centre stage of the project was about the development of La Muralla National Park as an administrative and socio-economic model which the Honduras Forestry development service could transfer to Honduras' other national parksThe Guajilote Cooperativo Forestal was given the right to exploit naturally fallen and not chopped down mahogany trees in La Muralla's buffer zone.

One thing we can understand is that it was the only venture in Honduras with these rights. Usually a buffer zone is the designated area within a park's boundaries, but outside its core protected zone. People were allowed to live and engage in economically sustainable activities within this buffer zone. So now that we have seen the background of the whole thing, we can look into the other aspects. The whole idea of Guajilote cooperative Forestal as a business venture is an interesting idea. We can say that the whole process has indeed created wealth for its members.

Not only the financial aspect even with the corporate social responsibility angle, it forms a nice plan with its core functionality of keeping the national forest free of debris which could actually cause destruction to the area and to the environment. Another to be noted is that the whole concept can keep the peasant farmers from over running the preserve. This thing can actually benefit because to consider any position or area as a long term prospective of business venture. Also it has been able to raise the product prices.

Another thing is that there has been improvement in the condition of the members. One more thing to be considered as business venture is the position and placing of the area with respect to companies and organization and from outlook view and analysis of Guajilote in particular and Honduras in general we can say that the concept of business center is still nascent in the region and the whole area can be described as in the