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Fishing for New Opportunities Walter Neely who lives in the south had business called Mississippi’s Best Catfish. He ran a successful business in the market and catfish were easy to raise and commercialize. Eventually the local demand for catfish grew nationally and the Catfish Farmers association had done a great job promoting the product. Recently a new smoked catfish market opened up and it was imported into the U.S. from Nigeria. Other new entrepreneurs setup a smoke catfish and other fish operations, but their impact on the market was minimal. In fact they were buying the catfish from farmers and not raising their own, so they were more customers than competitors. This was unsettling to Walter and other catfish farmers because the Nigerians were selling their packaged smoked catfish at lower prices. The catfish farmers came together and tried to come up with different plans to try and beat out the Nigerian farmers. One thought they should band together as a team and lower their prices, to undercut the Nigerians. Another farmer thought that they should look at investing into a $30,0000 large scale smoker and smoke their own catfish. Making an investment so large as $30,000 that they need to do more research on smoking catfish. (Page 23) 1. What do you think is/are the key issue(s) in this situation? ● Introduction of imported smoked catfish into the U.S. market ● U.S. catfish farmers have higher prices than Nigeria's catfish product ● The U.S. farmers not being able to beat out the Nigerian catfish ● Expensive smoker to help the domestic producers 2. How could the entry of the Nigerians into the catfish market affect domestic producers? Since this is a new product enter the catfish market in the U.S. American southerners might be interested in a new type of cooked catfish. This could possibly put some local producers out of business because of competition. When the same goods are on the market, certain Americans will buy the lower priced item. Some of the domestic producers might need to lower their prices on catfish in order to compete with the Nigerians. If the domestic farmers have to lower their prices then lay offs might happen to their employees. Since Nigerian fish is cheaper than U.S. domestic producers, the U.S. agriculture department might lower funds for local producers. Public schools would be served this fish from Nigeria instead of local producers. In the end many producers might have to close up shop because of heated competition. 3. What do you think Walter should do in this situation? There are four possible solutions for this case. Walter store should lower their price into a decent price that is near to Najerans’ price. Second, walter can invest more and create his own smoked fish. This may be expensive. Yet, Walter will be a great competitor to the Nigeria's company. Plus, if Walter is going to do that, He can have contractual agreements with other farmers. Contractual Agreements mean that other framer will part of his new company and represent it. In other word, Walter will give Licensing License to other local farmers to produce the products. Lastly, if all the other ideas did not work, Walter should have contractual agreements with Nigeria's catfish company and sell their products. 4. What action do you think will benefit Walter’s company, and possibly other catfish farmers, the most? If the local catfish farmers all invested in the smoker and the cost of smoking and selling the catfish will be cheaper than the Nigerian catfish with still making a profit that would be the smartest way to beat out the Nigerians. The farmers will most certainly lose out on some profit from lowering their prices in the beginning but in the long run after they beat out the Nigerian catfish they will be making more profit with controlling the market in catfish. This will benefit Walter and other catfish farmers the most, as until there is a tariff imposed on Nigerian catfish there is nothing that will raise the price of Nigerian catfish until they put all local competition out of business.
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Fishing for New Opportunities
Strategic planning is a critical issue that fishing-related businesses must focus to increase
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Just what I was looking for! Super helpful.

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