Bacalao Superior Vs Noruega
Company Noruega focusses on low unit cost, large volume strategy and benefits from economies of scale.
Noruega's Dominican market has a stable and continuous demand and places less importance on size, source or mix of fish. While supplying a fairly good grade and desirable product, Noruega exploits its supply chain and caters to this demand by focussing on efficiency to minimise its cost in sourcing, standardise production, process engineering, capacity utilisation, logistics, service as well as marketing. (Porter,1980). This gives them the edge albeit, a minimal margin per unit. Using frozen and farmed fish means the production process need not be seasonal. It also enables sourcing fish when cost is low and selling or producing when cost is high. Armed with a huge market share, Noruega can use the supplier as well as buyer power to lower costs further (Porter,1980). Farming, though an initial high capital investment, is intended, in the long run to stabilise and increase raw material supply. With large volumes, fixed costs are more spread out and the asset turn is high. (Christopher, 2011)
Standard packing with generic name and full container loads very greatly reduce the outbound logistics costs per unit. Since the market it happy with any mix of fish, there is no benefit in differentiating.
“Once achieved, the low-cost position provides high margins which can be reinvested in new equipment and modern facilities in order to maintain cost leadership.” (Porter, pg 36,1980)
However, in the long run, not enhancing or updating service or product, could cost Noruega their cost advantage (Christopher, 2011)
Company Superior strives to be unique in Portugese Bacalao market by focussing on providing superior quality of cod.
The area of origin, size and freshness of the cod are some of the attributes, where a buyer needs 'assurance' to justify a high price. Co.Superior gains its competitive edge in delivering value - fresh Norwegian cod
Noruega's Dominican market has a stable and continuous demand and places less importance on size, source or mix of fish. While supplying a fairly good grade and desirable product, Noruega exploits its supply chain and caters to this demand by focussing on efficiency to minimise its cost in sourcing, standardise production, process engineering, capacity utilisation, logistics, service as well as marketing. (Porter,1980). This gives them the edge albeit, a minimal margin per unit. Using frozen and farmed fish means the production process need not be seasonal. It also enables sourcing fish when cost is low and selling or producing when cost is high. Armed with a huge market share, Noruega can use the supplier as well as buyer power to lower costs further (Porter,1980). Farming, though an initial high capital investment, is intended, in the long run to stabilise and increase raw material supply. With large volumes, fixed costs are more spread out and the asset turn is high. (Christopher, 2011)
Standard packing with generic name and full container loads very greatly reduce the outbound logistics costs per unit. Since the market it happy with any mix of fish, there is no benefit in differentiating.
“Once achieved, the low-cost position provides high margins which can be reinvested in new equipment and modern facilities in order to maintain cost leadership.” (Porter, pg 36,1980)
However, in the long run, not enhancing or updating service or product, could cost Noruega their cost advantage (Christopher, 2011)
Company Superior strives to be unique in Portugese Bacalao market by focussing on providing superior quality of cod.
The area of origin, size and freshness of the cod are some of the attributes, where a buyer needs 'assurance' to justify a high price. Co.Superior gains its competitive edge in delivering value - fresh Norwegian cod