Azalea Seafood Gumbo Shoppe Group paper, 5 page limit
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? The competitive environment in the value added seafood industry, while not significantly threatening, does still have its challenges. Addison and Rathle acknowledge that there is not a large competitive market for their specific area, although there are four or five that market gumbo. They acknowledgee that their largest competitors are all the other food items in the store that can be purchased. This also relates to marketing competition as Azalea used a food broker and administrative staff to monitor product delivery and store marketing exposure. Finally, there are corporations that have larger, state of the art facilities which prevent Azalea from expanding into larger demand markets. Michael Porter, a Harvard professor developed a model to assess key components of the competitive environment. First are the competitors. While currently not faced with stiff competition from peer competitors, Azalea’s largest competitors may be the ones yet to arrive as Azalea is based mainly on its gumbo. It is vulnerable to a competitor that may enter the market who have a broader range of products to offer or a better tasting product. More aggressive companies with more aggressive marketing campaigns stand to threaten Azalea’s exposure. Also, while not threatening the niche that Azalea has carved out, large companies with state of the art, USDA approved processes create a “glass ceiling” that Azalea can not break through without expansion or creative marketing. The next element is threat of entry. Azalea appears to have a very loyal base of customers both in the large markets and the smaller individual vendor community. However, the industry could expand at any time and with many unfilled areas of seafood product...
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