Agriculture is one of the largest and oldest industries in the world. In the U.S. and many other countries, farmers often struggle to turn a profit given the variances of weather and commodity prices. Some working farms are turning to tourism as an additional and complementary revenue source. A study from the U.S. Census of Agriculture in 2007 found nearly 25,000 farms providing some level of agri-tourism and recreation services. There were 2.2 million farms in the census, almost triple the number from 2002. In 2010, the Department of Agriculture announced a new grant program aimed at providing public access to private farms for such purposes. Small farms worldwide are participating in this trend by offering “pick your own” crops in season, as well as small bed-and-breakfast experiences.

QUESTION

Agriculture is one of the largest and oldest industries in the world. In the U.S. and many other countries, farmers often struggle to turn a profit given the variances of weather and commodity prices. Some working farms are turning to tourism as an additional and complementary revenue source. A study from the U.S. Census of Agriculture in 2007 found nearly 25,000 farms providing some level of agri-tourism and recreation services. There were 2.2 million farms in the census, almost triple the number from 2002. In 2010, the Department of Agriculture announced a new grant program aimed at providing public access to private farms for such purposes. Small farms worldwide are participating in this trend by offering “pick your own” crops in season, as well as small bed-and-breakfast experiences.

Perhaps one of the most successful large companies leading this marriage of industries is a dairy farm in Indiana: Fair Oaks Farms. Fair Oaks Farms is home to 30,000 cows and produces enough milk to feed 8 million people. Fair Oaks is also participating in the education market as a popular destination for school field trips. Other attractions include the “Birthing Barn,” where calf births can be viewed live; the Cheese Factory; and Mooville—a themed outdoor play area. Fair Oaks Farms hosts some 500,000 tourists each year, who come to see the hands-on adventure center and the working milking operations. A video of the operation is available: www.youtube.com/watch?v=Dz_gE4887. Such ingenious business diversification can offer many benefits to the agriculture industry.

3-1) What other industrial or commercial industries could benefit from such potential tourist or recreational revenues? Discuss what new and complementary capabilities would need to be developed in order to succeed.

3-2) In your group, list other industry combinations you have seen be successful. Consider why you think the combination has been a success.

ANSWER

Exploring Successful Industry Combinations: Boosting Revenue and Customer Experience

 The potential for tourist or recreational revenues extends beyond the agriculture industry, and several other industrial or commercial sectors can benefit from diversifying into tourism. Here are a few examples:

 Manufacturing and Industrial Tours

 Industries involved in manufacturing, such as automobile manufacturers, breweries, wineries, and electronics manufacturers, can offer tours to showcase their production processes. Visitors can gain insights into how products are made, witness the behind-the-scenes operations, and engage in interactive experiences. This can be a unique and educational attraction for tourists interested in the manufacturing sector (Chow et al., 2017).

To succeed in this venture, companies would need to develop visitor-friendly facilities, including designated viewing areas, informative guides, and interactive exhibits. Safety measures and regulations would also need to be implemented to ensure the well-being of visitors within industrial environments.

Technology and Innovation CentersTechnology companies, research laboratories, and innovation hubs can leverage their expertise and cutting-edge technologies to create visitor experiences. These centers can provide interactive exhibits, demonstrations, and workshops to educate the public about emerging technologies, scientific breakthroughs, and their practical applications.

Successful implementation would require the development of engaging and informative displays, hands-on activities, and knowledgeable staff who can explain complex concepts in a simplified manner. Additionally, incorporating virtual reality or augmented reality experiences can enhance the overall visitor engagement and understanding.

Energy and Sustainability Tours

 With the growing emphasis on renewable energy and sustainable practices, industries involved in clean energy production, such as wind farms, solar power plants, and waste management facilities, can attract tourists by offering guided tours. These tours can educate visitors about the benefits of renewable energy, waste reduction strategies, and environmental conservation efforts (Fei et al., 2015).

To succeed in this domain, companies would need to invest in visitor infrastructure, including visitor centers, informative signage, and guided tours. They can also provide interactive exhibits and workshops to engage visitors in learning about sustainable practices they can adopt in their own lives.

In each of these examples, the key to success lies in creating a captivating and educational experience for visitors. Companies would need to invest in developing visitor-friendly infrastructure, hiring knowledgeable staff, and implementing effective marketing strategies to attract tourists. Additionally, ensuring safety, complying with regulations, and maintaining a balance between the industrial operations and the tourist experience are crucial factors for long-term success.

The combination of different industries has proven successful in various instances, creating new opportunities and enhancing the overall customer experience.

 Here are a few examples of industry combinations that have achieved notable success:

 Hospitality and Technology

The hospitality industry has embraced technology to enhance guest experiences and streamline operations. Hotels and resorts have incorporated advanced technologies like mobile check-in, smart room controls, and personalized recommendations based on guest preferences. By leveraging technology, these establishments have improved efficiency, convenience, and overall customer satisfaction.

The success of this combination can be attributed to the seamless integration of technology into the hospitality experience, creating a personalized and efficient service for guests. This enhances the overall guest experience, leading to increased customer loyalty and positive word-of-mouth.

Entertainment and Food & Beverage

 Movie theaters, concert venues, and amusement parks have integrated food and beverage services into their offerings. Instead of relying solely on ticket sales, these entertainment establishments generate additional revenue by providing a wide range of food and beverage options to patrons. This combination not only adds convenience for visitors but also creates a more immersive and enjoyable experience.

The success of this combination stems from the synergy between entertainment and food & beverage services. By offering diverse culinary choices and unique dining experiences, these establishments cater to a broader range of customer preferences and extend the duration of visitor stays, resulting in increased revenue (Kraak & Story, 2014).

Retail and E-commerce

Traditional brick-and-mortar retailers have embraced e-commerce platforms to expand their reach and enhance the customer experience. By combining physical stores with online shopping options, retailers can offer customers the

 convenience of browsing and purchasing products both in-store and online. This omnichannel approach allows retailers to meet the evolving expectations of customers and tap into the advantages of both offline and online retail.

The success of this combination lies in the integration of the online and offline shopping experiences. Retailers that have successfully implemented this strategy provide seamless transitions between physical stores and online platforms, offering features like click-and-collect, personalized recommendations, and a unified shopping experience across channels.

In each of these successful industry combinations, the key factors contributing to their success include innovation, customer-centricity, and the ability to adapt to changing market trends. By identifying opportunities to merge industries, companies can tap into new revenue streams, enhance customer experiences, and gain a competitive edge in the market.

References

Chow, H., Ling, G., Yen, I., & Hwang, K. (2017). Building brand equity through industrial tourism. Asia-Pacific Management Review, 22(2), 70–79. https://doi.org/10.1016/j.apmrv.2016.09.001

Fei, H., Yang, Y., Peng, Z., Ruan, G., Zhong, Q., Li, L., Samuel, E. L. G., & Tour, J. M. (2015). Cobalt Nanoparticles Embedded in Nitrogen-Doped Carbon for the Hydrogen Evolution Reaction. ACS Applied Materials & Interfaces, 7(15), 8083–8087. https://doi.org/10.1021/acsami.5b00652 

Kraak, V. I., & Story, M. (2014). Influence of food companies’ brand mascots and entertainment companies’ cartoon media characters on children’s diet and health: a systematic review and research needs. Obesity Reviews, 16(2), 107–126. https://doi.org/10.1111/obr.12237