Research on Beyond Meat’s Profitability Problems and Strategies

Abstract

With the rapid growth of the global population, there must be suggestions on the world's food security. Artificial meat may become a potential substitute for conventional meat. Despite the increasing demand in the worldwide range and the mass injection of venture capital, the industry faces a shortage of profit, sometimes even a loss. Therefore, an investigation of what causes the failure of profitability in this newly-born industry should be done. This article mainly contains the following four methods: literature analysis, case study, induction and generalization, and the method of comparison. This paper focuses on Beyond Meat, one of the dominant companies in the alternative meat industry as a typical case. It is concluded that the inadequacy of operating revenue and the redundancy of expense are two primary defects of the enterprise, as the firm's profile has been drawn and six key indexes of profitability computed. To solve the problems in the future, the management layer is supposed to improve the advertisement plan, cut down its processing and selling costs, guarantee a certain level of cash flow, focus on product research and development and strengthen the nexus with strategic partners. A combination of the strategies mentioned above can be used as a tentative reference for future business and operating proposals in the artificial meat industry at company's level.