Case Study

AJAX CASE STUDY ON STRATEGY AND DEVELOPMENT

Analyze and discuss Ajax 's competitive environment using Porter 's five-force model . Your discussion should include comments about the industry 's overall attractiveness

Basing from the five forces of Porter 's theory of business growth there are several measures of opportunities as well as limitations and threats that a business man and business organization as well needs to face . In the case of Ajax Company , the said threats and limitations could be noted as follows

SUPPPLIER POWER

In terms of supplier power , Ajax

is in a fine position when it comes to equipment . This is primarily because of the fact that they are the ones producing and designing their own vessels for accomplishing lobsters from sea . However , when it comes to the lobsters [their main product] the supply is rather unpredictable . Obviously , since it 's the sea they have to deal with in getting their supplies , they are expected to take on several necessary steps that would make their supply a lot easier to adjust with which primarily involves shifting to other sea-food supplies BARRIERS TO ENTRY

The barrier of entry that governs the company involves the limited area of fishing that the company is able to access . Most likely , the said limited area also limits the gains and profit of the company from the yielded results of their fishing operations

BUYER POWER

The main clients of the company are the huge restaurants as well as grocer and market establishments that prepare lobster for public consumption . However , although the clients are sure to buy , the level or quantity of products [lobsters] that they are to purchase is not that certain . Usually , they only purchase what they intend to sell in that day . This then makes the profit of the company , even when they have good lobster catch , an unpredictable aspect of the organization 's operation as well

THREAT OF SUBSTITUTES

As mentioned earlier , both the lobster catch quantity and the client- quantity of products is unpredictable in terms of business operational procedures of the organization . This is the primary reason why there is a huge need for the business to consider adjusting their concentration of product-catching to other sea-food products . Through this , there would be better chances that their products would be widely accepted by their clients as the products are diversified depending of the need of the clients

DEGREE OF RIVALRY

There are at least two major companies that stand as a rivalry against the Ajax lobster . The Deep Deep and the MATCO company stands in a strong position against that of the position of Ajax in the competition . Most likely , the edge of Ajax is that it has larger supply of vessels for catching lobsters and has much larger area of [sea] that is utilized for the catching of the sea-products

Identify and discuss the business-level strategy used by Ajax . Your discussion should include comments about the effectiveness /appropriateness of such a strategy . In other words explain why you think the...