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Problem: Xavier's shrimp prawn farm has been innovating and expanding over past years. It is facing the bottleneck of how to become more profitable in the future and should Xavier expand using value chain and valued added parts of shrimp business.
Analysis: the industry of shrimp has value chain which includes: shrimp farming, wholesaling, cleaning, frizzing and packaging; direct retailing or exporting, cooking and retailing. Xavier's company is at the farming process which is a very fragmented segment. The product is only raw shrimp which has low diversification and has less power on both supplier and buyer. The competition is relatively high and farmers are price takers not makers. The demand of shrimp is increasing but so is the supply. The price decreased during the past ten years suggest that the supply increase faster than demand.
The objective of Xavier's shrimp farm is to develop a profitable and environmentally sustainable shrimp farm in Ecuador. Its key success factor is its technological innovation including sophisticated system of intakes and outflows of water, feeding system, cleaning process and genetic shrimp innovation. These KSF allow Xavier to produce uniformly large size, high quality shrimp and increase the profit. The weaknesses of Xavier's farm include its weak branding, and low diversification in product. Another concern is how fast Xavier can expand.
The threats (criteria) to achieve expansion:
Analysis: the industry of shrimp has value chain which includes: shrimp farming, wholesaling, cleaning, frizzing and packaging; direct retailing or exporting, cooking and retailing. Xavier's company is at the farming process which is a very fragmented segment. The product is only raw shrimp which has low diversification and has less power on both supplier and buyer. The competition is relatively high and farmers are price takers not makers. The demand of shrimp is increasing but so is the supply. The price decreased during the past ten years suggest that the supply increase faster than demand.
The objective of Xavier's shrimp farm is to develop a profitable and environmentally sustainable shrimp farm in Ecuador. Its key success factor is its technological innovation including sophisticated system of intakes and outflows of water, feeding system, cleaning process and genetic shrimp innovation. These KSF allow Xavier to produce uniformly large size, high quality shrimp and increase the profit. The weaknesses of Xavier's farm include its weak branding, and low diversification in product. Another concern is how fast Xavier can expand.
The threats (criteria) to achieve expansion: