Azalea Seafood 5 Forces And Swott Analysis

1. 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

* Buyer's switching costs are low

* Buyer's have bargaining power due to the difficulty of value-added seafood products to sell directly to individual customers

SWOT Analysis

Strengths

* Capable top management

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