preview

Azalea Seafood Gumbo Shoppe Business Analysis Essay examples

Good Essays

Azalea Seafood Gumbo Shoppe is in the Seafood Packaging Industry . In this industry companies take raw seafood materials and package them to sell to supermarkets, grocery stores and restaurants. While Azalea does direct sales through catering the bulk of its revenue is derived from wholesaling its foods (Appendix A). Larger compnaies in the industry typically work through a food broker that will arange selling to supermarkets or grocery stores. A major advantage in using food brokers is that preferred shelf placement can be arranged which aids in sales. For smaller companies in the industry, like Azalea, it is diffiult to have access to food brokers because they do not deal in a high enough volume.
Azalea originally found its niche …show more content…

Events like product recalls can have a terrible impact to companies in the industry. Brand recognition ensures that the benefits of the quality product are realized. With many substitutes readily available companies in the industry must brand themselves in a way that allows themselves to stick out. Often decisions in grocery stores or made quickly, and with substitutes literally right above or below having a brand image that evokes positive feelings with the end user is important. Meeting these three goals ensures that both customers, the end consumer and the retailer, are satisfied.

Porters Five Forces

Threat of New Entrants

The Seafood Packaging Industry has a few barriers to entry that work in its favor. These barriers include access to distribution channels and government policies. To sell products members of the industry need access to end users that will buy the product. This access is gained by selling to distributors such as supermarkets, grocery stores, and restaurants. Gaining access to these distributors is a difficult task. Ideally companies work through a food broker that can arrange a distribution agreement, but for smaller companies like Azalea access to food brokers is difficult. For a company to come into the market with such a large volume of sales that they could easily attract food brokers they would need a large capital base which then provides an additional barrier.

Get Access