The company that has been selected for the task is Horizon Fisheries of Maldives who is looking to expand their product canned tuna to UK market. The report includes the critical use of the business tools and framework that help in analysing the suitability of the new foreign market. Further, it includes the analysis related to the appropriate mode of entry that can be utilized by the company to enter into the market to grab the opportunities. In the end, it includes the management of its human resources; operational function; marketing and cross-cultural issues. Moreover, recommendations to the company have been suggested with the motive to achieve a competitive advantage in the market of UK.
Horizon Fisheries Private Limited is a processor of the fish and the products related to the fishery that is based in the Maldives. The company provide the products for the international and domestic market. The operations of the company began in the year 2003 after taking the Maandhoo Fisheries Complex from the Maldivian Government (Horizon Fisheries, 2018). The company became the leading tuna fish processing and the marketing companies in the area of Maldives. Horizon Fisheries is dedicated towards the leading fisheries trade in the area of Maldives alongside in delivering and offering the highest quality sustainably caught tuna.
The scope of the paper is limited towards analysing the market and recommending to the company for the expansion of canned tuna in the UK market.
The purpose due to which the paper has been formed includes the analyses related to the market opportunities for the company in the UK market.
This section of the report reflects that the company is willing to internalization of their products in the foreign market. The internalization refers to as the expansion of the business from the home country to a foreign market. Similar to this, Horizon fisheries Maldives is internalization its product.
Canned Tuna is the product that is offered by Horizon fisheries to offer an improved quality of tuna in two-piece TFS lacquered cans with the plain and simple open ends (EOE). The company provide this product in different styles which include solid chunks and flakes that are available in the diverse types of media like brine, spring water, sunflower oil, soybean oil, olive oil and vegetable oil (Horizon Fisheries, 2018). The company ensure that they select the raw material for the canned tuna effectively. Moreover, the quality and safety standard is ensured by the company every stage in the process by the HACCP system.
The canned tuna is going to be introduced in the market of UK and it is essential to realise that tuna dominate the UK retail seafood market in terms of volume. This has been found that the demand for tuna in the market of UK has been increased. This can be evidence that in the year 2014 and 2013 all the tuna from UK vessels were landed abroad with the majority landed in the area of Spain. In addition, tuna landing from the US vessels increase to 13.7% to 222 tones. In addition to this, their value also increases 4.1% to £549k which leads to an 8.5% decrease in the average price of the product to £2.47/kg (Seafood Industry Factsheet, 2016).
The rise in the export of tuna helps the country to make the high profit with the help of effective imports. Thus, this can be said that the market of UK is good for Horizon Fisheries as they can easily expand their products in the market. Along with this, the demand of the people is increasing which is clear from the below image which shows that people had made the purchase of 174.1m units and serving in the year 2014 (Seafood Industry Factsheet, 2016).
The above image reflects that the market of canned tuna in the UK is increasing with the tremendous rise in import with 113,178.9t in the year 2014. Thus, this can be said that the country is viable for the expansion of the product as it will help in meeting the future goals of the company.
This section of the report includes the critical analysis of the different marketing tools in analysing the host country (UK) and industry for the Horizon Fisheries who is willing to expand their business.
A PESTLE analysis is a framework that helps in analysing the external factors that can affect the working of the company (Baker, 2014). Thus, Horizon Fisheries need to evaluate the factors that can affect them while expanding their canned tuna product in the UK.
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Political factors |
The government of UK maintain the stability which means that there will be no frequent changes in the policies and regulations in the industry (Ho, 2014). Thus, this offers an opportunity to company expand the business as there will be no changes in the seafood industry where they can run their operations effectively. Though, the expansion of the business is possible with the permission of the government for which the company need to abide by all rules and laws. |
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Economic factors |
The economic factors that affect the working of the company include GDP, inflation rate and purchasing power of the country. The GDP of the UK was 2622.43 US Dollars in the years which are quite less than the previous years (Trading economics, 2018). Though, this is expected that in the coming year there will be a rise in the GDP of the country which shows an opportunity for the business to earn a profit and to meet their goals. The rise in the GDP leads to an increase in the purchasing power of the company which leads to the rise in the demand of the canned tuna. |
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Social factors |
The social factors include the change in the preference and taste of the people present in the UK. This has been found that currently, the demand of the canned tuna is on a hike which leads to the opportunity for the country. Though, in the coming years, there might be a change in the preference of customers to other substitutes and products available in the market which is one of the biggest threats for the company. |
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Technological factors |
The technology advancement is one of the biggest threats for the companies (David, 2011). The UK is considered an advanced country in terms of the technology which leads to the threat for the company as they have to bring improvement in their operations in terms of the technology. In the UK, the advancement in technology leads to the rise in the competition among the companies. This technology can be related to the effective supply of the canned tuna and its logistics. Thus, this will make the Horizon Fisheries adopt the technology which is one of the opportunities but for this, the company need a huge capital. |
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Legal factors |
Horizon Fisheries find that there is the presence of certain legal laws and regulations that are related to the business in the UK (Dawson, 2014). The company is supposed to follow the European Food Safety regulations. In addition to this, the HF company need to abide by all the laws related to the legal proceedings with the additional laws like the Employment Rights Act 1996, the Employment Act 2002. |
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Environmental factors |
The seafood related department remains responsible for the major issues related to the environment. The sourcing of the fish has been done from the seas which get affected. The company is dedicated to achieving excellence in sustainability and environment by the optimal use of electricity, water and natural resources (Horizon Fisheries, 2018). |
The porter diamond model is the model that is designed with the help to understand the nation’s competitive advantage (Kotler, 2015). The analysis of the porter’s diamond model has been done with the motive to critically analyse the success of Horizon Fisheries canned tuna in the UK market. The major 4 factors which affect the working of the organisation include: –
The implementation of these factors related to the company is discussed below: –
The culture of the UK include the cuisines that are ethnic which is preferred by the people which are roast beef and Yorkshire pudding majorly. Though, the rise in education and flavours in the foods has brought a rise in the consumption of fish. Moreover, the consumption of fish is a part of the English diet which means that they consume the fish in any of the forms. Thus, this is the reason due to which the industry of the tuna is increasing with the rise in demand for seafood by the customers in the UK. This has been found that average UK adult is eating more fish than the generation ago which is possible because of the education. The data from the NFS (National Food Survey) and EFS (Expenditure and Food Survey) reflects the way through which the per-head consumption of fish has increased.
Risk management includes the identification, evaluation and prioritization of the different risk that might be faced by the company in running the operations in the foreign market (Lovelock and Patterson, 2015). The risk management includes the steps that are required to be taken by the company to mitigate the same after analysing. Horizon Fisheries Company needs to find the risk for their operations in the UK so that they can take the essential steps to mitigate the same.
Overfishing: – Overfishing is one of the major risks which is faced by the company as overfishing is jeopardising global tuna industry which is totally worth of more than $42 billion. This has been found that the overfishing is affecting the environment of the country and making the species at the risk of extinction. Along with this, this has been found that tuna is one of the essential sources of the revenue for the communities involved in the fishing. This has been found that to manage the risk the communities are sourcing the fish from the different oceans of the world like India, islands in Pacific and many others.
High competition: – The high competition is one of the risk factors that might be faced by the company in the UK. There is the availability of a large number of companies who are offering their products which leads to competition. These companies who are giving tough competition include Andrew Marr International, Young’s Seafood, Icelandic Seachill and many others (Intrafish, 2017). Every company is putting the efforts and making strategies to sell quality canned tuna effectively. This risk can be managed by the HF by analysing the strategies adopted by the competitors in the market and improving their strategies which will help them in generating the revenue.
Market entry strategy is the strategy that is the planned method of delivering the goods and service to the target market outside the border. There are different types of market entry strategies which can be used by the company to enter into the market. These strategies are exporting, licensing, franchising, joint ventures and many other.
Considering the operations and activities of the Horizon Fisheries it is suggested to the company to select the joint venture as the market entry strategies. The joint venture is the market entry strategy which includes the partnership between the two or more companies. The Horizon Fisheries can perform the joint venture with the leading players in the country. This offers the benefit to the company as they will be able to share the capital, risk and profit (Lovelock and Patterson, 2015). Moreover, the company will be new to the market due to which they might not be having the exact knowledge about the preference of customers and suppliers. All these information can be captured by the HF Company with the other company with whom they are performing the joint venture. Though, along with the benefit, this strategy will also lead to the issue which includes the proper selection of the companies who can help them to grow and achieve success in the market of UK. In addition, this joint venture includes the sharing of single control as the decisions will be taken by both the companies.
The international business strategy is referred to as the plans that guide for the commercial transactions that are taking place among the different countries. There are different types of international business strategies that can be used by the company which include multi-domestic strategy, global strategy and transnational strategy (Frynas and Mellahi, 2015). Horizon Fisheries Company makes use of the transnational strategy in which the company remain on the middle ground which is in between the multi-domestic strategy and a global strategy. According to this, the company tries to manage the balance between the desires of the people in UK market so that they can make the changes in the product according to the local preference by maintaining the quality of the products. This strategy might lead to the numerous changes in the current working which mean that they need to plan it and work according to the need of the culture. Thus, changes in the current operation considering the needs lead to the involvement of additional resources, capital and knowledge with skills. In addition, it will consume the additional time of the company which leads to loss of opportunity.
The operational strategies include the method which is mainly used by the company to attain the objectives. The HF company follow below given strategies for their canned tuna in the market of UK: –
Marketing strategy is the long-term and forward-looking approach to which helps in achieving a competitive advantage. In this, the company implement the positioning strategy, this strategy majorly focuses on competing in the market (Rothaermel, 2015). The company positioning strategy is to fall in between the high-quality products with the moderate prices. The high-quality products are offered to the customers which helps them in creating the effective position of the company in their mind. The price and quality approach is important and it is majorly used in the positioning of the product in the market of UK (Hollensen, 2015). This strategy will help the company in attaining the good position over the competitors because generally the competitors charge the high price of the high quality rather offering the high-quality products at moderate and affordable prices.
Human resource strategy includes the long-term plan that is formed with the motive to meet the objectives related to the HR of the company. The major HR strategies that are followed by the Horizon Fisheries include: –
Conclusion
In the end, it can be concluded that the Horizon Fisheries of Maldives can take their canned tuna in the market of UK. This is the way through which the company can achieve success and meet their organisational goals. The analysis that has been done in the report reflects that the market of UK includes numerous strategies which will provide the benefit to the company. In addition, the culture of the company reflects that the canned tuna is majorly welcomed in the UK and people like to consume the same. Further, the risk has been identified in the market which might be faced by the company. In addition, the market entry mode that is suggested to the company includes joint venture that the company should follow. In the end, there is discussion related to the Internalization Strategies that are followed by the company in the UK market.
References
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Baker, M. J. (2014) Marketing strategy and management. London: Palgrave Macmillan.
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Horizon Fisheries (2018) Canned Tuna [Online]. Available from: https://www.horizonfisheries.com/portfolio/canned-tuna/ [Accessed on 10th December 2018]
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Intrafish (2017) Who are the UK’s top fish and seafood suppliers? [Online]. Available from: https://www.intrafish.com/news/1332041/who-are-the-uks-top-fish-and-seafood-suppliers [Accessed on 10th December 2018]
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Seafood Industry Factsheet (2016) Tuna [Online]. Available from: https://www.seafish.org/media/Publications/Factsheet_-_Tuna_Industry_2014.pdf [Accessed on 10th December 2018]
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