1. Rivalry among competing sellers (Moderate)
? Customers switching costs are low
? Demand for products is starting to grow
? Compete aggressively for favorable product placement in supermarkets
2. Competitive Force of Potential Entry (Moderate-Strong)
? Economies of scale are fairly low to initially enter the market as a value-added seafood producer
? Customer loyalty and brand preference is high. If first-time customers are pleased with their experience, then they are likely to be repeat customers.
? The industry is beginning to grow
? Many unfilled niches to pursue
3. Competitive pressures from Substitute Products (Moderate)
? Attractively priced alternative products are rapidly available
? Very low competition for gumbo
? In a sense Azalea has to compete with every other product in the store such as steak, fish, chicken, etc.
? Customers have low switching costs
4. Bargaining Power of Suppliers (High)
? Considerable latitude in the choice of suppliers since the purchase of such items as raw seafood, raw vegetables, and packaging are commodity-like in nature and are available from multiple suppliers
5. Bargaining Power of Buyers (High)
? Buyers have higher leverage since they make their purchases in large quantities
? Buyer's switching costs are low
? Buyer's have bargaining power due to the difficulty of value-added seafood products to sell directly to individual customers
SWOT Analysis
Strengths
? Capable top management
? Great-tasting award-winning recipes
? Azalea's representation in Wal-Mart Supercenters and other regional supermarkets ? about 1,100 retail outlets in the southeastern U.S.
Weakn ...