The Cluster Concept as a Growth Strategy
CLFG’s Chairman Dr. Ceferino L. Follosco is a staunch advocate of the cluster concept, using value-chain analysis. A cluster consists of companies in the same industry and/or related industries, with vertical and/or horizontal linkages.
The growth of CLFG was aligned along this cluster concept. As a young company, its products and services were mostly agriculture-related (agricultural implements). Then, as a natural progression, the company ventured into water-related businesses (irrigation systems, water tanks, swimming pools, water treatment systems). This led to food-related enterprises, as water is a key ingredient in food processing. Support services in the areas of finance, consultancy and asset management were established as affiliate companies. Today, within CLFG’s organizational structure, the following clusters have emerged:
- Agriculture (Tractors, Tractor Implements, Tractor Accessories & Parts, Agricultural Equipment & Machinery, Agricultural Services, Agricultural Commodities, Agricultural Ventures)
- Manufacturing (Equipment Fabrication, Tank Fabrication)
- Water (Swimming Pool Equipment & Accessories, Pumps, Storage Tanks, Water Systems, Water Treatment Systems, Water Treatment Chemicals, Irrigation)
- Food (Powdered Fruit Juice, Bakery Mixes, Seasonings, Tea)
- Services (Warehousing, Office Space Leasing, Equipment Repair, Engine Overhauling, Equipment Installation)
- Finance (Equipment Financing, Business/Capital Financing, Personal Loans, Travel-Assistance Loans)
- Energy (Gasifiers, Energy Venture Financing)
- Real Estate (Agricultural Lots, Residential & Commercial Lots)
The organization’s dynamism is driven by its founder and its competent team of engineers and support personnel. Growth is ensured by always adapting to new business opportunities.
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