preview

class or mass case study

Better Essays

Abstract

The fish market is a 20 billion dollar industry and one company has played a major role. Neptune Gourmet Seafood is an 820 million dollar corporation that has just recently invested heavily in technology, allowing their trawlers to move further out to sea to fish and maintain the quality the company has been known for. In doing so, they have found themselves reaching a decision point. Even though they have been going further out to sea, they have been bringing back larger than normal catches and because of this, their warehouse finished goods inventory has become bloated, with twice the normal supply on hand. This paper will address the decision process. In doing so we will define the problem, look at the decision …show more content…

The response by others is critical to the current issue and the decision that management is most focused on. Depending on the actions of Neptune, there will definitely be a reaction from their competitors to include the U.S. Association of Seafood Processors and Distributors (ASPD). If Neptune were to lower prices, it most likely would cause other competitors to lower their prices as well and potentially could cause a price war that none of the businesses could afford in the long run. Neptune especially could not afford this based on their cost structure (Kesner & Walters, 2005, p. 18). It could also potentially cause a backlash with customers if they feel they had been overcharged in the past.
If Neptune were to decide to provide retailers with a private brand, this could interrupt the current market. Most of the stores that Neptune supplies fish products to are a high end that would either already have a private brand from a source or may not want a private brand. If they were able to market a private brand, there would most certainly be actions taken by their competitors that were supplying the private brand. If Neptune were to start a mass brand such as Neptune Silver, they may find that it doesn’t do well with the ASPD. They could reasonably expect that it would not receive the gold seal (Kesner & Walters, 2005, para. 29). If Neptune chooses to enter markets inland, they could expect that competitors will try and limit their access.

Get Access