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Porters Five Forces Analysis and Ajax Business-Level Strategy




Supplier Power



The suppliers can be analyzed on two levels: those who supply the wholesalers, and the wholesalers who supply retailers, including retail fish outlets and restaurants, the two most important takers of lobster and other fish products


Supplier concentration is low on the fishing side. With 92 deep-canyon lobster boats, and thousands of shallow-water trap boats, there is an enormous variety in the types and suppliers of the basic product. In order to better understand the supply, one should differentiate the inputs into two important segments: shallow-water suppliers tend to bring chicken and lower-poundage lobsters, with widely varying supply depending on the degree of overfishing. Deep-water fishermen bring in higher-poundage lobsters, which are of greater appeal for restaurants and fish retailers. Thus, though both supplier types bring lobsters to wholesalers, the deep-water suppliers have a more steady supply, holding tanks to overcome momentary drops in demand, and larger (and therefore more desirable and more expensive) lobsters......

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