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Analysis of the Business Environment and Strategy of Sealord Fishing Company

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Analysis of the Business Environment and Strategy of Sealord Fishing Company
Introduction
Sealord is the largest New Zealand based fishing company (Nissui, 2011) and is headquartered in Auckland. It is partially owned by Aotearoa Fisheries Limited and the Japanese based company “Nissui”, with each holding a 50% share.(Aotearoa Fisheries Ltd, 2010) Sealord is part owner of fishing company “Westfleet” based in Greymouth and NIMPL, a mussel farm based in Tauranga. Sealord has alliances in Europe, Asia and the United States (Sealord, 2010).The industry that Sealord operates in is that of the fishing, processing and distribution business. Sealord offers frozen and canned seafood.

Threat of new entrants
It is very hard for a new company to enter the fishing industry. Firstly they must have a great starting capital as they require boats and need to hire people. Secondly the fishing industry is bound by a lot of rules from the government. As fishing is potentially exhausting our natural resources there are many national and international regulations. Each year the government sets the quota for the whole industry (Te Ara, 2011).This is based on the “health” of each fish species. To get a quota is not easy and they are worth a lot of money. However there is a threat of new entrants in the fish processing business. To enter in this part of the business still requires a large capital injection and a large investment in marketing. But it is far easier than starting a whole new fishing company as they do not vie for the quota but only buy the unprocessed fish.

Bargaining power of suppliers
As this industry is solely after natural resources it is not dependent on suppliers. However they are dependent on the health of the sea and the fish species. In the fishing industry there are many alliances and partnerships. Most of these partnerships are focused on improving the fishing industry. Sealord is a member of the DeepWater Group, who focuses on improving and monitoring fishing standards. They research the fish stocks and find way to reduce the


References: * 3News (2011). Fishing industry demands answers from Sealord. Retrieved from http://www.3news.co.nz/Fishing-industry-demands-answers-from-Sealord/tabid/421/articleID/198250/Default.aspx * Aotearoa Fisheries Ltd (2010). AFL Annual Report 2010. Retrieved from http://afl.maori.nz/panui/publications.htm * Aotearoa Fisheries Ltd (2010). AFL Annual Report 2009. Retrieved from http://afl.maori.nz/panui/publications.htm * Kaplan, R.S. & Norton, D.P. (2001). Transforming the Balanced Scorecard from performance measurement to strategic management: part I. Accountings Horizons, Vol 15, (1), 87-104 * Morris, M., Schindehutte, M. & Allen, J. (2003). The entrepreneurs business model: towards a unified perspective. Journal of Business Research (58), 726-735. * Nissui (2011). Annual Report 2010. Retrieved from http://www.nissui.co.jp/english/ir/financial_information/annual.html * Porter, M., (2008). The five competitive forces that shape strategy. Harvard Business Review, January 2008, 79-93 * Sanford (2011). Sanford, the home of sustainable seafood. Retrieved from http://www.sanford.co.nz/ * Sealord (2011). Sealord, about us. Retrieved from http://www.sealord.co.nz/xml/default.asp * Te Ara (2011). Fishing Industry- The quota management system. Retrieved from http://www.teara.govt.nz/en/fishing-industry/6
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