This paper presents a strategic external analysis on the shrimp industry using two tools, namely, PEST analysis and Michael Porter’s Five Forces Model. Environment analysis is then summarised with the help of SWOT Analysis model.
Global expansion in this industry has put forward many opportunities for future growth. Xavier’s core competency and capability in the industry leverages competitive advantage for him. We have analysed the option of joint venture with foreign company which will help Xavier to solve many international business problems and also give him edge over others by providing further expertise in processing and marketing, as well as required investment …show more content…
Shrimp farming does generate some employment, but the industry cannot be viewed as labor-intensive considering the small number of people employed per area unit of production. Most of those who find jobs are hired as unskilled laborers and guards, and wage rates for unskilled workers in coastal communities tend to be low, reflecting the opportunity cost of labor. The process of shrimp mariculture development contributes directly to low wages by reducing local opportunities through conversion of open access multiple use resources into privately owned property.
Shrimp farming has destroyed an estimated 800,000 hectares of mangrove forests in Asia and created improbable saline deserts in some of the world’s wettest countries. In the United States, environmentalists are also concerned about the impact of shrimp farming on other species, such as turtles, and vegetation such as mangroves, the trees whose roots form a dense tangle that harbours marine life like wild shrimp.
Internal Environment Analysis
Health concerns of people throughout the world were forcing them to eat more fish rather than shrimps. It becomes important for the shrimps industry to save shrimps from any disease and keep up the interest level of shrimp eaters. Xavier’s family was opposed to borrow money from the banking system in Ecuador and