Ep. 15. Strategically Aligned Value Chains

For this episode, let me give you a preview of the topics I’m going to talk about: commoditisation, economies of scale, standardisation, critical mass, logistics, efficiency, intensive distribution, technology, breeding, deseasonalisation, convenience, innovation, and much more.

All of those terms are ingredients of something we call strategically aligned global chains, and to explain it I’m going to use the history of the banana in the world.

What does it take to turn a strange, exotic fruit into something the entire world’s population eats every day?

How do you go about enormously expanding the supply of a product while at the same time dominating its markets and developing its demand?

Because this is the story of how a food that was almost unknown in the northern hemisphere at the end of the nineteenth century became an irreplaceable part of our modern diet. A product that has built empires, provoked wars, toppled governments, and to which we owe expressions such as “banana republic”.

And we have to admit that the banana industry has done a spectacular job of turning it into an affordable, everyday product. However, being cheap (affordable) may be a necessary condition for such success, but it is not a sufficient one.

Welcome to a new episode of Freshconomics Podcast!