Prelude Lobster Case Summary

Threat of new entrants – low In-shore fishing is not very capital intensive. Starting from scratch costs $20,000 – 30,000, but anyone with a boat and a few traps could start a lobster catching business. However, if you want to catch lobsters in large volumes, you’ll have to go offshore fishing as Prelude does. Investments in technology and equipment to offshore fish can run upwards of $1.8 million dollars as did Prelude’s 4th ship.

Bargaining power of suppliers – not really applicable in this case. Unless one considers Mother Nature to be the supplier. Lobsters are pulled directly from the ocean.

Bargaining power of buyers – High. The wholesale lobster dealers that Prelude sold to knew when the company had a big catch and would