Centrolac

Purpose The purpose of this paper is to discuss Centrolac, a Nicaraguan company engaged in processing ultra-pasteurized milk, and provides abundant information for readers to decide on vertical vs horizontal integration to deal with the changing competitive environment. It has been prepared to simplify discussion and knowledge about the competitive field (where to compete); generic cost-leadership and high-perceived-value strategies (how to compete); and the action required to attain positioning (how to implement it). Design/methodology/approach The case study is based on primary research conducted in conjunction with the company, including interviews with senior management and a broad document review. Secondary research was also conducted into the relevant environmental, industry and competitor trends and characteristics. Findings The case study presents topics of competitive positioning and how current company strategy can have a significant impact on future growth decisions. Originality/value This case study is for use in an MBA-level business strategy course with a focus on strategic positioning and growth paths. However, it can also be used for MBA corporate strategy courses in relation to corporate expansion on issues linked to organic growth within the same business (expansion into new dairy products) or vertical integration (integration into dairy-farming).