Question

points to its shrimp-farming industry as an example of how world markets. One decade ago. Brazil exported a meager 40 oday, Brazil exports more than 58,000 tons of shrimp, with pete in tons y one-third of that going to the United States. Brazilian shrim er, potentially face a new challenge in the upcoming years. The ers, arme however Sou hrimp Alliance-a U.S. organization representing shrimpe a dumping complaint alleging that Brazil and five other shrimp-producino ing the United States' borders. Brazilian producers and the other five countri age such as lower labor costs, availability of cheap land, and a more favor- ng caln es are selling shrimp below "fair market value." The org for the anizationi Unit rimp enter named in the complaint counter that they have a natural competitive advan- able climate, resulting in a higher yield per acre and permitting three harvests per year. In what many see as a bold move, the American Seafood Distributors Association-an organization representing supermarkets, shrimp processors, and restaurants-has supported Brazilian and other foreign producers, arguing that it is the Southern Shrimp Alliance that is engaging in unfair trade prac- tices. Describe the various rivalries depicted in this scenario, and then use the five forces framework to analyze the industry

Answer 1

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Industry Analysis �Rivalry described is industry Rivalry from Existing Company. �This also shows in a way the power of buyers i. e the companies in American Market. �Another interesting power seen is support form competitors/exporters in local market and other export oriented countries against external threats of America. �these other export oriented countries were one a fierce competitor before the dumping duty was in consideration. �Another force working is the low cost strategy which benefits the Brazilian exporters. �This dumping duty hander to a large extent the entry for a new company as the opportunity is reducing and no new company would have resources as and expertise for the current saturated market �Threat of substitute is not significant immediately as the shrimp lovers might not shift to other sea food instantly but eventually in long term substitute will be done. �Bargaining power of suppliers is that they can leverage the trade \r\n