Analysis of Fujairah Fish Market using Porter's Five Forces
Added on 2021-04-17
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Running Head: FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET 1 FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET Institutional AffiliationName
FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET 2IntroductionFor any business entering into a new or existing market, some challenges must be experienced. What determines the success or failure of a business is its ability to counter the market-related challenges such as competition. For this reason, a business must focus on aspects that make their products unique in the market. This is referred to as a competitive Analysis (Baines, Fill& Page, 2013). Porters five forces analysis is a powerful tool that businesses use to understand the competitiveness of the business environment in which they operate. It also helps them to determine the profitability potential of their business strategy. In this report, I will explore five forces analysis for a fish business named Jadeen Samak, based in Fujairah Fish Market. Supplier powerSupplier power is concerned with the control that a supplier has in the market with regards to the prices. Apart from the power of the supplier to raise the prices of commodities, this aspect is alsoconcerned with the number of suppliers in the market. Power is determined by the number of suppliers in the market. The more the number, the less the power they have and vice versa (Das,2011). Fishes are supplied to the market by either individual fisherman or through the fishermenassociations. There are several fishermen involved in the fishing and fish supply business and who sell their products through market auction. In Fujairah, the prices of different varieties of fish are driven by the powers of demand and Supply. The market is also controlled by strict surveillance of the municipality and the fishing committee; however, these do not play a role in the setting of the prices. Seasonal variations are some of the factors that affect the supply of Fish in Fujairah. For example in seasons characterized by high temperatures, fish migrate to the deep sea to escape the scorching heat. The number of Fishermen going to the sea to fish is also
FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET 3significantly affected which reduces the supply of fish in the market. The few who brave this weather and stress sell their fish at high prices to cater for the extra fuel and effort. Because of the high number of fish supplier their power can be said to be less (Hill & Jones,2008).Buyer PowerThe Buyer power focuses on the ease of consumers to drive the prices of products down. The power of consumers is also affected by their numbers, the more they are in comparison with the number of sellers the lesser their power (Tallman, 2009). On the other hand where many sellers and few consumers, the consumer power is high. Apart from the number, buyer power is also affected by the significance attached to each buyer and the cost switching from one supplier to the other (Lamb, Hair & McDaniel, 2012). In Furahajan Fish buyers include individual consumers, business organizations and government agencies. Fish is either bought for local usage or export. There are multiple companies involved in the exportation of fish including Emirates Star fisheries. Various Restaurants are also significant buyers of fish in Fujairah. They Include the Copper Lobster Restaurant, Waves Beach restaurant and the Al Nokhada Restaurant. Other Buyers include the Fujairah Charity Association and Ministry of Climate Change and Environment who buy fresh fish for distribution to the needy families in Fujairah. The ability of multiple buyers of fish in Fujairah means that the power of buyers is low.Competitive RivalryThis force is concerned with the intensity of competition in the market. Competitive rivalry is determined by both the number of competitors in the market and their capability. Competitive rivalry is high in a situation where the number of businesses selling a product in a competitive market is small. Competitive Rivalry also rises with the ease of the consumer to
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