AquaBounty are greatly advantaged for its cheap production cost of GMO salmon. Its position in the first quadrant stipulates that the cost-effectiveness is an added value to the technology and the fish industry. This will be an important success factor for AquAdvantage Salmon to emerge in the market with a strong selling point. Cost has a high importance input, as seen in Figure 1, as AquaBounty performs best in this area in comparison to its competitors. AquaBounty are able to lower their production cost to 75 cents per pound of AquAdvantage salmon as compared to the $1 per pound of conventional salmon. In addition, AquAdvantage Salmon technology also performs well in its product qualities. The GMO salmon uses up 75% of the amount of feed
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Such long line of production could add up in cost. However, it is even more important to build an even larger market share by expanding its production to recognized supermarkets that are available nationwide such as Costco and Whole Foods. Instantaneously, AquAdvantage salmon are available to be marketed throughout 43 states. Its efficiency in accelerated growth becomes very much handy. Mass production will require high transportation and containment cost. Moreover, it’s very first level of production involves transferring the eggs from Canada to Panama for breeding purposes. AquaBounty should be able to identify the fixed costs involved in every batch of production. Proper management is vital for its mass production and the company focus on its cost-benefit analysis to maximize profit margin and remain as the cheapest player in the market. It has already been measured that the cost of producing a full grown AquAdvantage salmon is 25% cheaper than the cost of producing the conventional Atlantic salmon. The lower cost should be able to be carried down to the consumer level if the company pays attention to cost throughout the production line. Price and value has a very big influence to consumers, especially when salmon is considered a
Such long line of production could add up in cost. However, it is even more important to build an even larger market share by expanding its production to recognized supermarkets that are available nationwide such as Costco and Whole Foods. Instantaneously, AquAdvantage salmon are available to be marketed throughout 43 states. Its efficiency in accelerated growth becomes very much handy. Mass production will require high transportation and containment cost. Moreover, it’s very first level of production involves transferring the eggs from Canada to Panama for breeding purposes. AquaBounty should be able to identify the fixed costs involved in every batch of production. Proper management is vital for its mass production and the company focus on its cost-benefit analysis to maximize profit margin and remain as the cheapest player in the market. It has already been measured that the cost of producing a full grown AquAdvantage salmon is 25% cheaper than the cost of producing the conventional Atlantic salmon. The lower cost should be able to be carried down to the consumer level if the company pays attention to cost throughout the production line. Price and value has a very big influence to consumers, especially when salmon is considered a