Cod Farms Case
Jordan Sudberry
November 8, 2014
Cod Farms Case
1. Did this entrepreneurial activity come from inside or outside the industry?
Outside, Harald Dahl was a millionaire dotcom executive before he turned his focus to fish farming.
2.
3. What makes the cod farming opportunity:
a. Attractive- With the wild stock of Cod diminishing, farming cod is a great opportunity since Cod makes around 1 billion dollars a year.
b. Achievable- Norway is a Mecca for fish farming and the geography is perfect for it. “Norway is the epicenter of aquaculture's transformation into big business. With 1,000 miles of coastline and deep, protected inlets or fjords, it offers an ideal laboratory for farming salt water fish. This year it overtook China as the world's biggest exporter of seafood by revenue, even though China produces around two-thirds of the world's farmed fish. Fish farms account for 47% of Norway's seafood exports, up from 30% a decade ago.”
c. Durable- Since the wild stock of Cod is being overfished, the opportunity remains available. The demand for Cod is too high for the population of fish to grow or remain the same size leaving a great opening for fish farmers to establish a market and keep it open for years to come.
d. Value creating- With the Cod industry making over 1 billion dollars per year, the value is there. “The biggest producer of farmed cod so far, accounting for 25% of sales worldwide, is Mr. Dahl's Codfarmers. He started production in 2005 and hopes to sell 30,000 tons of farmed cod annually by 2012, not far off Norway's total 35,000 ton wild catch today.”
3. What is the source of the financial resources?
Mr. Dahl has private investors that put up over 100 million dollars, including J.P. Morgan, Morgan Stanley, and the Hearst Family.
4. Which entry strategy is Mr. Dahl using?
Mr. Dahl is opening Codafarmers as a start up venture. He is using money from investors and has taken hold of the market place with new ideas and groundbreaking technology. He
November 8, 2014
Cod Farms Case
1. Did this entrepreneurial activity come from inside or outside the industry?
Outside, Harald Dahl was a millionaire dotcom executive before he turned his focus to fish farming.
2.
3. What makes the cod farming opportunity:
a. Attractive- With the wild stock of Cod diminishing, farming cod is a great opportunity since Cod makes around 1 billion dollars a year.
b. Achievable- Norway is a Mecca for fish farming and the geography is perfect for it. “Norway is the epicenter of aquaculture's transformation into big business. With 1,000 miles of coastline and deep, protected inlets or fjords, it offers an ideal laboratory for farming salt water fish. This year it overtook China as the world's biggest exporter of seafood by revenue, even though China produces around two-thirds of the world's farmed fish. Fish farms account for 47% of Norway's seafood exports, up from 30% a decade ago.”
c. Durable- Since the wild stock of Cod is being overfished, the opportunity remains available. The demand for Cod is too high for the population of fish to grow or remain the same size leaving a great opening for fish farmers to establish a market and keep it open for years to come.
d. Value creating- With the Cod industry making over 1 billion dollars per year, the value is there. “The biggest producer of farmed cod so far, accounting for 25% of sales worldwide, is Mr. Dahl's Codfarmers. He started production in 2005 and hopes to sell 30,000 tons of farmed cod annually by 2012, not far off Norway's total 35,000 ton wild catch today.”
3. What is the source of the financial resources?
Mr. Dahl has private investors that put up over 100 million dollars, including J.P. Morgan, Morgan Stanley, and the Hearst Family.
4. Which entry strategy is Mr. Dahl using?
Mr. Dahl is opening Codafarmers as a start up venture. He is using money from investors and has taken hold of the market place with new ideas and groundbreaking technology. He