Olivia Horvath

Dr. Wissman

Strategic Management

March 27th, 2023

Aleph Farms Case Analysis

Founded in 2017, Aleph Farms, an Israeli cultured meat start-up, focuses on the

production of lab grown cultured meat through a process called "cellular agriculture." The

process of cellular agriculture entails taking and growing small samples of animal cells in a lab

to produce meat, specifically steak, that is similar in taste, texture, and nutritional value as

traditional meat. Unlike traditional forms of meat production, Aleph Farms’ business model and

developmental processes do not require animal slaughter. Because of this, Aleph Farms is able to

provide consumers with a more ethical meat source while also reducing the environmental

impact of meat production as a whole. Since their emergence, Aleph Farms was not only

challenged to develop and produce steak in a laboratory, but they also had to continually prove

that they could produce the product on a large-scale, all while maintaining competitiveness

among meat producers and their products in the market.

Throughout the case study, the competitive advantages that Aleph Farms has in the

market are reiterated, and include company attributes that show Aleph Farms unique position.

Aleph Farms set themself apart from competitors when it comes to their commitment to

sustainability, their focus on creating high-quality meat, and their investment in research and

development for new products. They are also partnering with companies and academic

institutions to accelerate the development of cultured meat. Overall, the case study demonstrates
that Aleph Farms is well-positioned to disrupt the traditional meat industry and provide a more

sustainable and ethical source of meat for consumers.

In terms of strategic planning systems, Aleph Farms has developed a clear and

differentiated strategy focused on producing sustainable and ethical meat through cell cultivation

in a lab. This approach allows the company to address growing concerns about the

environmental impact of traditional meat production while also offering a more ethical and

humane alternative. Aleph Farms' strategic planning also includes a focus on innovation, as

shown by the company's patented 3D printing technology. This technology provides a significant

competitive advantage, as it allows Aleph Farms to produce meat more efficiently and at a lower

cost than traditional methods. Aleph Farms has also implemented effective strategic decision

making systems. For example, the company has formed partnerships with other companies and

academic institutions to gain insights and resources that help expedite the development of

cultured meat. One such partnership is with the Technion-Israel Institute of Technology, which

has expertise in tissue engineering and nanotechnology. Aleph Farms has also made strategic

decisions to target conscious consumers who are concerned about the environmental impact of

traditional meat production. For example, the company recently signed a Memorandum of

Understanding with BRF S.A., a world-wide Brazilian meat and food company. This partnership,

according to an Aleph Farms press release, will simultaneously reinforce BRF’s supply chain,

decrease its environmental impact, and diversify the company’s product offering to reach the

increasing consumer demands for a variety of sustainable meat products. Furthermore, Aleph

Farms' continuous innovation is a key aspect of its strategic planning and decision making

systems. The company is constantly refining its production methods and developing new

products to stay ahead of the competition. For example, Aleph Farms recently announced the
development of a "biofarm" that will allow it to produce cultured meat at scale, with the potential

to produce thousands of steaks per day. This innovation not only enables the company to produce

more meat, but it also positions Aleph Farms as a leader in the growing cultured meat industry.

Another concept that can be applied to analyze Aleph Farms position within the meat

production industry is Porter’s Competitive Forces Model, which focuses on five essential

powers that influence competition within industries: (1) the risk of entry by potential

competitors, (2) the intensity of rivalry among established companies within an industry, (3) the

bargaining power of buyers, (4) the bargaining power of suppliers, (5) the closeness of

substitutes to an industry’s products. For Aleph Farms, the threat of new competition is

somewhat low since the development of cultured meat is complicated and requires significant

capital investment. As this industry continues to expand and gain attention on a global scale, the

possibility of more companies entering the market and increasing competition grows as well. For

example, Aleph Farms currently faces competition from other companies such as Memphis

Meats and Mosa Meat, who are also developing cultured meat products similar to theirs.

Regarding the threat of alternative products, traditional meat products are the primary substitute

for cultured meat, as it has been, and continues to be, the only real source of steak that is not

plant based. That being said, Aleph Farms' focus on sustainability and ethical manufacturing

practices sets them apart from traditional meat producers, making their products more appealing

for environmentally-conscious consumers who still crave the core elements of “real” meat in its

taste, texture, and nutritional profile. In regards to their bargaining power of buyers, Aleph Farms

aims to connect with conscious consumers who are ready to pay a premium for sustainable and

ethical products. The increased force of competitors in the market puts pressure on Aleph Farms

to develop and release products more quickly. The cultured meat industry is relatively small, but
as more companies enter the market, competition may intensify. Aleph Farms must continue to

differentiate itself through innovation and sustainable production methods to maintain its

competitive advantage.

The bargaining power of Aleph Farms may be limited, however, if more companies enter

the market, the choices of products for buyers surges, and therefore Aleph Farms will gain more

bargaining power. Aleph Farms depends on suppliers for various materials and equipment for its

production process, including cell culture media and bioreactors. As the company grows and

demand increases, it may have more bargaining power with suppliers. Additionally, Aleph Farms

has implemented strategic planning and decision-making systems to help them navigate these

competitive forces. The company's focus on sustainability and ethical production cooperates with

its long-term strategic goals of providing a sustainable and ethical alternative to traditional meat.

The company's partnerships and collaborations with academic institutions and research

organizations also assist their ability to remain at the forefront of technology and innovation in

the industry. These strategies have helped Aleph Farms position itself as a figurehead of the

cultured meat industry, a new and ever-evolving industry, and gives them an advantage in the

competitive landscape.

Aleph Farms has a competitive advantage in the market for many reasons, the primary

ones being their focus on sustainability and ethical production, innovative technology, strong

brand identity and marketing strategy, and their special ability to attract and commission top

industry players/talent. According to the case study, Aleph Farms' methods use considerably less

land, water, and other resources compared to traditional meat production, making it a more

environmentally sustainable option. This focus on sustainability amplifies their unique selling

proposition and further engages eco-conscious consumers who are willing to pay a premium for
green products. Alongside their sustainable manufacturing practices, Aleph Farms has also

developed a patented process for developing cultured meat that imitates the natural muscle tissue

development process in animals. This gives them the ability to produce meat that has the same

texture and taste as traditional meat which is more appealing to consumers who are doubtful

about alternative meat products. Furthermore, the partnerships Aleph Farms' has made with

research and academic based institutions have contributed to the company’s leading position in

technological methods and innovation in the industry, giving them a competitive advantage in the

speedily-evolving sphere of cultured meat production.

The case study calls attention to how Aleph Farms' dedication to achieving superior

innovation has propelled the company's current growth and success. In 2019, Aleph Farms

victoriously produced a steak in a laboratory, a significant breakthrough in the development of

cultured meat. This accomplishment was the result of many years spent on research and

development, as well as their strategic collaborations with academic and research based

institutions. By consistently pushing the limits of possibility within this industry, Aleph Farms

has fixed itself as a pioneer in the field, accumulating noteworthy attention and interest from

both consumers and industry representatives. Additionally, Aleph Farms' superior innovation is

boosted by their partnership with Technion – Israel Institute of Technology, which culminated in

the creation of a 3D printing technology for cultured meat. This technological innovation has the

capability to make the production process for cultured meat more efficient and cost-effective.

Their investment in leading-edge technology and partnering with dominant research institutions,

Aleph Farms has confirmed itself as a figurehead in the field and has differentiated itself from

competitors as a result.
 One of Aleph Farms' main strengths is its innovative technology that allows for the

production of high-quality meat products without having to slaughter animals. Their partnerships

with industry leaders such as Mitsubishi and Cargill, additionally assist in Aleph Farms ability to

to accelerate its progress and global expansion. That being said, there are also some potential

threats to the company's success, one of the biggest being the high production costs. Aleph

Farms must improve its production processes and develop ways to reduce costs if they want to

remain competitive in the market. They also will need to address consumers’ hesitation about the

safety and taste of alternative meat products, which could impede global adoption. Expanding

and diversifying their product portfolio while also collaborating with different retailers may

benefit the awareness and visibility of Aleph Farms. Aleph Farms should also focus on teaching

consumers about the benefits of investing in sustainable alternatives so that they are more willing

to adopt new products and so that the company can gain more insight on what people actually

want and like and apply that feedback to their developmental procedures going forward.
1. Aleph Farms and BRF Partner to Bring Cultivated Meat to Brazil. (n.d.). Sustainability.

Retrieved March 27, 2023, from https://www.aleph-farms.com/blog/brf-brazil

2. ‌Leonard, D. (2022, December 8). This Lab-Grown Meat Startup Is Cutting Straight to the

Steak. Bloomberg.com.

https://www.bloomberg.com/features/2022-lab-grown-meat-aleph-farms/#xj4y7vzkg