Competition in the international cherry market: A competitiveness analysis of the developing country

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Jose Carlos Montes Ninaquispe ORCID logo, Marco Agustín Arbulú Ballesteros ORCID logo, Diego Alejandro Ludeña Jugo ORCID logo, Milagros Lamadrid Aldana ORCID logo, María de los Ángeles Guzmán Valle ORCID logo, Luis Edgardo Cruz Salinas ORCID logo, Gary Christiam Farfán Chilicaus ORCID logo, Hugo Daniel García Juárez ORCID logo

https://doi.org/10.22495/cbsrv5i3art3

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Abstract

This research assesses the competitiveness of Chilean cherry exports, with a specific focus on the Chinese market, identifying sectoral challenges and opportunities. Implementing quantitative, descriptive and non-experimental methodologies based on previous studies (Montes Ninaquispe et al., 2023), it utilizes the Herfindahl-Hirschman Index (HHI) for market diversification, the Trade Competitiveness Index (TC), and the Revealed Comparative Advantage Index (RCA) based on previous studies (Arbulú Ballesteros et al., 2024). The analysis reveals a significant concentration of exports to China, representing over 88 percent of Chile’s total cherry exports from 2018 to 2022, despite market volatility and a general trend of growth in both volume and value. The HHI indicates a high concentration risk due to dependency on the Chinese market, while the TC and RCA highlight a strong competitive and comparative advantage in this sector. The study concludes the need for market diversification to reduce dependency risks, suggesting the exploration of new markets like Thailand, South Korea, and Ecuador, alongside improvements in marketing strategies. Additionally, it recommends enhancing corporate innovation and operational efficiency via advanced production technologies and optimizing logistics and supply chain management to sustain the competitive advantage of Chilean cherry exports.

Keywords: International, International Relations, International Trade, Cherries, Chile, Competitiveness, Agro-Export Sector, Exported Fruits

Authors’ individual contribution: Conceptualization — J.C.M.N.; Methodology — D.A.L.J. and M.L.A.; Investigation — J.C.M.N., M.A.A.B., D.A.L.J., M.L.A., M.d.l.A.G.V., and L.E.C.S.; Writing — J.C.M.N. and M.A.A.B.; Supervision — J.C.M.N., G.C.F.C., and H.D.G.J.; Project Administration — J.C.M.N. and M.A.A.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: O18, O33, R11, R58

Received: 21.01.2024
Accepted: 13.06.2024
Published online: 18.06.2024

How to cite this paper: Montes Ninaquispe, J. C., Arbulú Ballesteros, M. A., Ludeña Jugo, D. A., Lamadrid Aldana, M., Guzmán Valle, M. d. l. A., Cruz Salinas, L. E., Farfán Chilicaus, G. C., & García Juárez, H. D. (2024). Competition in the international cherry market: A competitiveness analysis of the developing country. Corporate & Business Strategy Review, 5(3), 27–35. https://doi.org/10.22495/cbsrv5i3art3