Strategic Analysis: Five Forces of Fujairah Fish Market (Jadeen Samak)

This report presents a Five Forces analysis of the Fujairah Fish Market, focusing on the business Jadeen Samak. The analysis examines supplier power, buyer power, competitive rivalry, threats of new entry, and threats of substitutes. The report highlights that the market is driven by supply and demand, with prices influenced by seasonality. The power of suppliers is low due to the high number of fishermen. Buyer power is also low due to the presence of various buyers, including consumers, businesses, and government agencies. Competitive rivalry is moderate because of the multiple fish traders. The report finds that new entry into the market is relatively easy due to low barriers, while the threat of substitutes is high because of the availability of many types of fish and alternatives like seafood and vegetables. The report concludes that the Fujairah Fish Market is highly competitive, influenced by the discussed forces and the market dynamics. This report provides a comprehensive overview of the competitive landscape within the Fujairah Fish Market.

Running Head: FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET 1
FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET
Institutional Affiliation
Name

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Introduction
For 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 power
Supplier 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 also
concerned 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 fishermen
associations. 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 3
significantly 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 Power
The 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 Rivalry
This 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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switch from one supplier to the other offering products at a lower cost (Magretta, 2012). In
extreme cases, high competitive rivalry can cause price wars. In Fujairah Fish market there are
many competitors involved in the fish business. These fish traders include local traders and those
who buy some types of fish from markets out of Fujairah for sale in the Fujairah Fishmarket.
Fishes such as Scull, Kanad, and Hammour are bought from Ras Al Khaimah, Dubai and Dibba
Al Baiaa. For such traders, their prices are high. Fish types such as Black marlin, Blue marlin.
Red snapper and Barracuda are locally available. The availability of multiple Fish traders makes
the market relatively controllable by the powers of supply and demand (Stokes & Lomax,
2008). There is also low competitive rivalry as a result of high numbers of fish traders.
Threats of New Entry
This force is focused on the ease or difficulty involved in joining the market for a new entrant.
The easier it is a to join a market, the riskier the market is as new entrants pose the risk of
depleting market share enjoyed by existing businesses (Michaux, Cadiat & Probert,2015).
Entry into a market is affected by factors such as high initial cost, availability of input and the
existence of renowned brands and economies of scale. The more profitable a market is, the more
it will attract new entrants. Increased number of entrants into a market reduces profit margins.
Fish market in Fujairah market is considered a profitable venture and that informs the increasing
numbers of people venturing into the fish business (Schermerhorn, 2009). The fish market is
made up of both small and medium businesses. The business also involves relatively small
amounts of capital and has no legislative aspects restricting entry. Although the municipality and
the fishing committee are key players in the industry, their role is to ensure compliance. These
factors mean that it is quite easy for a new entrant to venture into the fish market in Fujairah.

FIVE FORCE ANALYSIS OF FUJAIRAH FISH MARKET 5
Treats of Substitutes
This force is involved in the analysis of easy it is for consumers of a certain product to switch
from one product to another that can be used to satisfy the same human want. Switching to
alternatives can be caused by factors such as changes in price or quality of a product. This
analysis also looks at the number of competitors available in a market and how their products
compare or differ (Ramesh, 2007). Inclinations of buyers to change as well as costs are the
primary determinants of threats of substitutes. In Fujairah fish market; the threat of substitutes is
quite high. There are numerous types of fish whose costs differ according to availability among
other factors. An increase in the price of fishes such as Hammour, Scull and Kanad can make
their consumers shift to the less costly types. Apart from fish substitutes, other threats include
vegetables and other types of seafood.
Conclusion
Fujairah Fish Market is a very competitive market. The market is made up several traders who
either get their fish locally or from other towns and cities within UAE. The forces of supply and
demand are the main price determinants. The five forces discussed by Michael Porter are quite
visible in the market. The large numbers of suppliers, competitors and buyer reduces their market
bargaining power. It is also relatively easy to enter the market as a result of the few entry barriers
that are involved. The market is affected threats of substitutes as a result of the availability of
many types of fish and alternatives from other types of seafood and vegetables.

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