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1. Identification of the Issues
• What is the major opportunity/problem faced in this case?
• What are the major decisions that need to be made? What are the minor opportunities/problems that contribute to the major opportunities/problems?
The main issue in the case is the company will face an increase of the production and they need to be able to handle it without dramatically change the prices. A second problem is how to benefit from this situation (seafood harvest increase) and expand the company business and therefore the revenue. The alternatives would be drop the price, or try to start a second brand, less expensive.
2. External Analysis
• What are the major factors outside the organization that contribute to the major opportunities/problems?
• What are the major factors outside the organization that will influence your decisions?
One important outside factor is the tight competition and strict rules within this market segment. Neptune is seen as premium brand, having the prices sensibly higher than other players. If they drop the prices, the other competitors may gain advantage, because it will be easier for them to position their products closer to Neptune and get more market share. Dropping the price may also produce a counter-measure from the competition, and the results may be damaging for the entire market. The reality is that seafood customers are expected to pay a high price (comparing to a steak for example), and this fact should be also used in taking a decision.
3. Internal Analysis
• What are major factors inside the organization that caused the opportunities/prob ...