Porter’s Five Force Analysis

Comments
If new players enter, then more cost will incur in
Threat of New Entrants – High, Low barriers & hence higher threat services or marketing. Existing players may decrease
• Barriers to entry is low, anyone can join the market. No licenses, registration, no large capital prices to discourage new players from entering. It will
requirements, or patents, etc. lead to higher costs and lower profit margins
• Some economies of scale can be achieved in bulk purchase of fish and consolidation of
marketing. In general fish processing is labor intensive
• Brand loyalty is low. Customers can switch to any fish suppliers, who supplies fresh fish
• Capital requirements are medium. E.g. office space, furniture's and computers, freezer,
containers, etc.
Bargaining Power of Suppliers – • Cumulative experience required is low. Anyone was gain fish selling experience quickly Bargaining Power of Buyers – High
Medium • Government Policies – Ban on salt water fishing during June to August during fish breeding • Number of consumers are high – 35%
• Suppliers are available at Local, season of population consumes fish.
Regional, National & International Level - • Access to distribution channels is available, once they understand market and network Individuals consume-66% &
Fishers, Fisher’s Cooperative societies, • Switching costs is low, as consumers can easily switch to new players Restaurants consume-34%
suppliers is AP & TN, suppliers from • Order volumes - Individual would order
Vietnam and Thailand for INR 400-500 per order, whereas
• Differentiation of supplies are – restaurants would order for INR 8,000-
freshwater and saltwater fish Rivalry among existing competitors – High 10,000
• Fishers need boats, fishing nets, freezers, • Fishbay has many competitors like - Fish Markets, Retail Chains like - Reliance, AB, RPG, State • Customer concentration is low and
fishing skills, etc. Fisheries Corporation, Regional & National online fish retailers, Fish imports from Vietnam and Customers don’t have brand loyalty
• Supplier concentration is low and number Thailand • Differences between competitors
fishers are available in the market are • Diversity of Competitors is high - existed in terms of services being
decent • Industry Concentration is low and it’s distributed among local fish sellers, retail outlets, state provided – hygiene, freshness, variety,
• High volume purchases can lead to lower corporations location convenience, timing, delivery,
prices, as fish is perishable and high cost • Industry Growth is high and overall per capita income and standard of living increases cleaning, cutting, etc.
to store • Variety of fish sold by are fresh fish and salt fish. • Fish is highly price sensitivity
• Fish cost relative to total purchases is • National & Regional online players offered additional range of seafood, loyalty program, and • Switching costs is low and consumer
high in fish processing replacement. Modern fish outlets sold dry fish and frozen fish, convenient mall location. State has high ability to substitute to either
• Forwards integration is possible but it’s fisheries provided infrastructure facilities to fish sellers, and prices were fixed. different supplier or alternative
currently limited • Quality differences exists in services and convenience products
• Uniqueness of each supplier’s depends • Brand Loyalty is low and customers can switch easily to different suppler • With online sales customers have
on the variety and freshness of fish • Barriers to exit to for state corporation is high, as they have high infrastructure costs. For access to information’s on suppliers,
• Switching costs is low, as players can others it is low, due less fixed costs and loans. prices comparison, etc.
easily switch to different suppliers • Switching Costs is low, as consumers can easily switch to competitors • Fish buying costs is relative to total
• If not similar, but substitute lean protein purchases is low. Fish quality &
foods are available in the market freshness is important
Comments Comments
Suppliers have low to medium powers to Threat of Substitute Products – Medium, Multiple substitutes & hence high threat
• Substitute products available are basa fish, frozen and dry fish, meat products, eggs, cheese, Competitors rivalry is high and it leads to
raise prices, and hence the industry has lower price wars. For better market share, players
profitability potential etc. are sources of lean protein
• Buyer propensity to substitute is high as fish prices increases. would have to spend on marketing, leading
• Relative price performance of substitute is high, as Basa cost only 300 per kg, and other to lower profit margin
substitutes are also comparatively cheap
• Perceived level of product differentiation is low. Fish variety and freshness is key. We see only
service differentiation
• Switching costs is low, as consumers can easily switch to different substitutes

Comments
Players have to spend more on marketing to sustain. Players have to invest heavily in services and
lower the prices. It will lead to higher costs and lower profit margins