A short distance away a highly regulated factory is filled with expensive, custom equipment that churns out tons of product everyday. It does not produce cars or medicine or packaging. The Manischewitz factory bakes unleavened bread (flour and water only) at a specific 600º called Matzo. The tasteless, dry bread is more like a cracker and sees most of the sales during the Jewish observance of Passover.
Manischewitz spent over 14 million building a state-of-the-art food line to make the bread. High capital expenditures and regulation give the company a dominant position in Matzo and kosher food production. Imports from Israel have recently given the company some competition in terms of price and market share. What’s a kosher food manufacturer to do? The company is expanding the definition and market. Instead of being dependent on one holiday, the company is marketing Matzo as a vegan, kosher, vegetarian food base that can be used in Matzo candy or a Matzo red velvet cake.
The printing industry is a manufacturing process with high capital costs. Prints competition comes from changing communication preferences, particularly from digital competition.
How could you expand the definition and market for your products? What will be your Matzo red velvet cake?
source: The Matzo Economy, NPR’s Planet Money