Azalea Seafood 5 Forces And Swott Analysis
Essay Preview: Azalea Seafood 5 Forces And Swott Analysis
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Rivalry among competing sellers (Moderate)
* Customers switching costs are low
* Demand for products is starting to grow
* Compete aggressively for favorable product placement in supermarkets
2. Competitive Force of Potential Entry (Moderate-Strong)
* Economies of scale are fairly low to initially enter the market as a value-added seafood producer
* Customer loyalty and brand preference is high. If first-time customers are pleased with their experience, then they are likely to be repeat customers.
* The industry is beginning to grow
* Many unfilled niches to pursue
3. Competitive pressures from Substitute Products (Moderate)
* Attractively priced alternative products are rapidly available
* Very low competition for gumbo
* In a sense Azalea has to compete with every other product in the store such as steak, fish, chicken, etc.
* Customers have low switching costs
4. Bargaining Power of Suppliers (High)
* Considerable latitude in the choice of suppliers since the purchase of such items as raw seafood, raw vegetables, and packaging are commodity-like in nature and are available from multiple suppliers
5. Bargaining Power of Buyers (High)
* Buyers have higher leverage since they make their purchases in large quantities
* Buyers switching costs are low
* Buyers have bargaining power due to the difficulty of value-added seafood products to sell directly to individual customers
SWOT Analysis
Strengths
* Capable top management