Azalea Seafood Case Study

Azalea seafood case study

BSM 495 Business Strategy

Professor Johan Winbladh

Azalea seafood case study

Ivaylo Peev

Ivailo.peev@abv.bg

Introduction

Found in approximately 1000 supermarkets and 300 restaurants, Azalea Seafood and Gumbo Shoppe is among the largest producers of ready-to-eat gumbo with annual revenues in 2000 of more than $1 million. The company's gumbo was their bestselling item earning nearly 90% of yearly sales. Although Azalea has a competitive advantage with its tasty gumbo, Azalea is looking to maintain long-term growth and obtain a sustainable competitive advantage. In order increase its profitability, the company needs to consider options to improve its business strategies.

Azalea Seafood Gumbo Shoppe is in a stage when development of a complex business strategy is needed because of insufficient use of production capabilities, need for a bigger market share and financial results that cannot satisfy owner’s needs. Current strategy of the company is primarily focused on increasing the market share in the United States in order to increase the amount of sales.

Q – 1: What is competition like in the value added seafood industry? What competitive forces seem to have the greatest effect on industry attractiveness from the standpoint of packaged seafood producers?

Ans: The completion is immense in the value added seafood industry. With respect to the competitive forces seem to have the greatest effect on industry attractiveness from standpoint of packaged seafood produces are as below with reference to the porter’s five forces model:

From the above porters five forces, let us discuss each force below:

(A) Threat of New Entrants: With growing demand for sea food, the value added sea food industry has also grown in line with sea food industry in many folds. As per the assumptions, the global demand for seafood is projected between 138 and 159 Million by the year 2025 as per projections .This indicates that the opportunity of value...