tilapia farming in recirculating aquaculture systems nettlesandrew_spring2013

1 | P a g e

Tilapia Farming in Recirculating Aquaculture Systems

Presented to

Professor Dr Martin J Gannon

Submitted by

Nick DeKeyzer

Dustin Hanson

Andrew Nettles

Issue Date

April 272013

Contents 1 Hittrsquos seven external segments of the general environment affecting the industry 3

a Economic (2) 3

b Demographic (2) 4

c Political Legal (3) 4

d Technological (1) 5

e Global (3) 6

f Sociocultural (1) 6

g Physical (2) 7

2 Five forces of competitive strategy in the industry 7

a Rivalry among competing firms (2) 7

b Threat of new entrants (2) 8

c Bargaining power of suppliers (1) 9

d Bargaining power of buyers (2) 10

e Threat of substitute products (3) 11

3 Two-dimensional strategic group map for the industry 12

4 Specific competitors in the industry 14

a Competitive Environment 14

b Immediate Competitors 15

c Impending Competitors 19

d Invisible Competitors 22

5 Major Competitors and their market share 25

6 Why is our startup a good idea 26

a Macro Economics and Competition 27

b Tilapia itself 28

c Tank Design and Technology 29

d Organic Halal Kosher and Made in America 31

e Production method inexpensive energy 32

f Production method inexpensive organic feed 33

7 Our current and projected strategy 34

BA-690 Strategic Management Thesis Tilapia Farming in Recirculating Aquaculture Systems 1 | P a g e

8 An update on your selected competitor since the case ended 35

9 Competitorrsquos current and projected strategy 37

10a Izumi Dai Growth-Share Matrix 38

10b Our competitorrsquos growth-share matrix 39

11 Critical resources strengths core capabilities core competencies and weaknesses 40

12 External threats and opportunities in this industry 41

a Opportunity - Changes in consumer habits (2) 41

b Opportunity - Natural fish stocks decreasing (1) 42

c Opportunity - Technology reducing labor (3) 42

d External Threat - Regulation and labeling (1) 43

e External Threat - Adjacent aquaponic industry (3) 43

f External Threat - Distribution channels (2) 43

13 Strategy canvas and strategy curves 44

14 Suggested changes to current strategic plan 47

a Create a certified healthy source of fish protein (1) 47

b Raise supply availability to year-round operation (1) 48

c Eliminate seasonal fluctuations in supply (2) 48

d Reduce harmful ecological impacts (3) 48

15 Concrete and specific strategic and major tactical actions 49

b Win all without fighting Prioritize markets and determine competitor focus 51

16 Implementation plan and time line 53

17 What do you expect the competitor to do 54

Implication Wheel 58

18 Business Startup Scenario 59

a Phase 2 Pilot stage proof of concept 59

b Phase 3amp4 Acquisition and Production 60



1 Hittrsquos seven external segments of the general environment affecting the industry

a Economic (2)

This section will cover key items only as the economic environment is covered in great

detail in other sections of this report The tilapia industry in the United States relies primarily

on inexpensive imports from South East Asia and Latin America where labor costs are much

lower compared to the United States The fish are bred in rivers and ponds that are often

polluted with nitrates heavy metals pesticides and other carcinogens (The State of World

Fisheries and Aquaculture 2012) Our research also indicates that overseas producers are

finding it increasingly difficult to supply tilapia in sufficient amounts to satisfy US demand

Local competition is minimal and consists mostly of small aquaponics companies with

limited reach Aquaponics is the combination of aquaculture and hydroponics (cultivating

plants without soil) in a symbiotic environment Often these companies have multi-product

strategies that dilute their focus from breeding tilapia

In closing demand for animal protein in general and for healthy animal protein in particular

is rising quickly in the United States According to the USDA organic products are now

available in nearly 20000 natural food stores and at nearly 75 conventional grocery stores

(United States Department of Agriculture) The trend is anticipated to persist well into the

future


b Demographic (2)

Izumi Dairsquos (our startup company name in this thesis) customer demographics are

segmented across two groups 1 African-Americans Asian-Americans and Hispanics with

incomes above $25000 and with minimal education and 2 Caucasian consumers with

bachelor degrees and higher incomes (Dettmann July 2008) Research has also indicated that

households with graduate degrees were less likely to buy organic foods while households with

children under 18 were most likely to buy organic foods Consumers with 3 or more children or

older than 50 years old are less likely to become Izumi Dairsquos customers

c Political Legal (3)

According to Karen Mitchell Staff Environmental Scientist for the California Department of

Fish amp Game in Sacramento with whom we conducted a phone interview on 1152012 tilapia

farming in recirculating aquaculture systems does not require an aquaculture registration if

meant for personal use or for proof of concept In other words it is not required for an

operation devoted to the propagation cultivation maintenance and harvesting of aquatic

plants and animals for non-commercial purposes Izumi Dai must register its operation with the

Department of Fish and Game the moment the operation converts to a commercial business

Leaflet No 35 of the Statersquos Department of Fish and Game provides the specific information

required to register the aquaculture (California Department of Fish and Wildlife 2013)

In addition restrictions exist with regards to breeding tilapia in California due to the

resilient invasive nature of the species itself Leaflet No 35 states the following ldquotilapia will be

approved only in San Bernardino Los Angeles Orange Riverside San Diego and Imperial

counties It may be stocked there only in waters approved by the Department of Fish and


Game Only tilapia mossambica and tilapia hornorum may be stocked and recipient waters

must be approved by the Department No tilapia may be imported until the genetic integrity of

the stock has been certified This certification may be required for every shipmentrdquo

No additional legal requirements exist outside of the various certifications that Izumi Dai

would like to pursue

d Technological (1)

As described in great detail a bit later in this document Izumi Dai does not plan to compete

on price Instead we want to adopt a differentiation strategy that will render competition

irrelevant in the short run thus allowing us to operate in a Blue Ocean We have identified two

main categories of competitors aquacultures and aquaponics

Research has indicated that nearby aquaculture companies are very low tech Their

seasonal operation relies extensively on manual labor as well as on the physical environment

Tanks are located in inland desert areas where the summer heat warms the water free of cost

These harsh areas hold few employment opportunities for the local population Thus the

aquaculture companies have access to minimum wage workers As a result the aquaculture

owners have few reasons to leverage expensive technology given this context

Our interview with Richard Foxx a local aquaponics company owner on 1042012

confirmed that aquaponics operations are usually very high tech (Farming with Fish

Aquaponics 2013) Owners use technology to help with all aspects of the business such as

managing pumps and filters monitoring water quality oxygenation and flow as well as

dispensing nutrients and medication Technology also helps with fine tuning the parameters of

the operation to maximize yields Aquaponics are mostly geared towards fruits and vegetables


with fish as a necessary element to process and fertilize the water These high tech breeders

sell tilapia in relatively small quantities to the local organic grocery stores and fish markets

Izumi Dairsquos smaller separate closed loop tanks and modular equipment design approach is

highly conducive for the implementation of heterotrophic technology Such design greatly

mitigates costly disease spread complex maintenance and repair and total kill scenarios Our

technology strategy also reduces energy consumption by capturing biogas that originates from

farm detritus and horse manure In addition Izumi Dai plans to minimize costly manual labor

through the implementation of automated supervisory control and data acquisition

(SCADA) systems (Daneels amp WSalter 2012)

e Global (3)

According to the FAOrsquos ldquoThe State of World Fisheries and Aquaculture 2012rdquo global

demand for fish has increased 32 year over year World per capita fish supply increased from

99 kg in the 1960rsquos to 186 kg in 2010 Per capita consumption in the US is 241 kg per year

The rate of growth with regards to fish supply from capture fisheries and aquaculture is

outpacing the increase in the world population by a factor of 2

In recent years climate change vulnerabilities and extreme weather events have particularly

affected fish production in underdeveloped areas These areas produce most of the tilapia that

is currently consumed in the United States

f Sociocultural (1)

Izumi Dairsquos initial findings regarding psychographics about tilapia farming in recirculating

aquaculture systems were confirmed during an interview with Sage Hospitalityrsquos Corporate

Senior Vice President of Operations David Marsh (Sage Hospitality 2010) He deepened our


belief that tilapia is currently a commodity item that is used as filler when fish is not the

issue In his experience demand for higher quality tilapia is extremely limited in restaurants

and organically bred fish will be a really tough sell in the restaurant arena because tilapia is

seen as one step above junk Patrons would order halibut sole salmon not tilapia David

suggested that if Izumi Dai wanted to sell to restaurants it had to become a price leader to

compete against imported fish ldquoRestaurants just wonrsquot pay more for this low end productrdquo

said Marsh ldquoThe fact that it is known as a Chinese fish does not help eitherrdquo In addition he

mentioned that we would have to overcome the distrust for farm raised fish ldquoPeople that

want higher quality fish want wild fish as opposed to farm bredrdquo David strongly suggested

differentiating ourselves in terms of branding and quality to cater to a growing demographic of

health conscious consumers that would prepare and consume the fish at home

g Physical (2)

The external environment in Southern California is close to ideal for the production of

tilapia in recirculating aquaculture systems thanks to the ubiquitous availability of inexpensive

desert land the warm climate utilities and transportation infrastructure as well as the

proximity of 37 million potential consumers

2 Five forces of competitive strategy in the industry

a Rivalry among competing firms (2)

Small scale competing tilapia farms appear to be dispersed in Southern California

without an established major player As demand for fresh tilapia filets in the various local

markets outpaces seasonal production the local market does not appear to be characterized by

major visible rivalry Rivalry from tilapia imports are a concern because of their low cost and


high supply In a coastal region within a dayrsquos transport from a major shipping port Izumi Dai

may be targeted as a competitor by importers However the production levels at Izumi Dai will

most likely not create a disruption in the local industry until a strong brand is created and

distribution channels are established

b Threat of new entrants (2)

Barriers to entry for an aquaculture operation focused on farming tilapia in a

recirculating system are medium to high Large initial startup costs including facilities and

equipment are substantial Tilapia feed is a major recurring cost and critical supply chain

component According to a 2002 report from the North Carolina Department of Aquaculture

and Consumer Services a recirculating tilapia farm with approximately 114000lb production

capacity would require $301000 in initial construction and equipment costs and $78000 in first

year operating costs (Tilapia Aquaculture in North Carolina 2002)

Knowledge of tilapia aquaculture processes and fish biology is also needed Academics

in the fishery sciences typically focus on species studies with fishery students working at

established operations New entrants into the local market from outside established

aquaculture operations may occur if a high demand for live fish is discovered in Southern

California However as will be described in Section 5 Major Competitors existing firms use

very large scale operations Therefore opening a new aquaculture farm in a new region would

be risky


c Bargaining power of suppliers (1)

Aquaculture farms are dependent on several supplier inputs without which the fish

growing operations would cease Tilapia fry specialized filter equipment and tanks control

systems and most importantly feed are typically supplied to aquaculture firms

Feed usually represents over 50 of total intensive recirculating aquaculture costs

(Gjedrem Robinson amp Rye 2012) The growing rate of tilapia is directly related to the feeding

rate and high quality protein rich feed will grow fish to market size in approximately 6 months

With fishmeal and feed ingredients becoming more expensive as well as regulated for

ecological reasons fish producers will need to look into alternative feeds to sustain fish

production demand (The State of World Fisheries and Aquaculture 2012) Feed suppliers have

a high bargaining power and demand large bulk shipments with lead times for discounts which

enable aquaculture farms to remain profitable

Purchasing fingerlings or fry from breeders is a common practice in aquaculture

Hatcheries hold brood stock mating pairs which produce desired characteristics of fish Tilapia

hatcheries have high bargaining power over farms with no internal breeding Hatcheries could

convert from supplier to competitor by opening a grow out farm or partnering exclusively with

an aquaculture farm

To lessen the power of Suppliers Izumi Dai will be employing a vertical supply chain

strategy to cultivate feed and breed the supply of fish thereby eliminating feed and hatchery

suppliers As a result of this strategy additional labor and infrastructure will be required

However the long term feed independence will be a defining strength of Izumi Dai


Cultivating feed will allow a sustainable food source and possibly provide excess feed to

sell to agriculture firms Specialized hatcheries are a requirement for some fish species with

complex breeding habits However tilapia are aggressive breeders when provided the correct

conditions By breeding tilapia internally in dedicated hatcheries Izumi Dai will not only cut

supplier power but also decrease fish transportation stress disease introduction and

acclimation difficulties and maintain a consistent proprietary genetic strain within Izumi Dai

products

d Bargaining power of buyers (2)

Buyers for tilapia will be defined as live fish markets fish processors fish distributors

and local consumers Izumi Dai anticipates the chokepoint of distributors to produce the

highest competitor rivalry Distributors are the second tier of three between fish supplier and

customer retail and take a markup between the supplier and retail price Distributors that

control access to a large book of restaurants hotels and supermarkets have a high bargaining

power

Live fish markets allow fish trade and business relations for a small fee Fish market and

farmers market buyers have a moderate power due to the lower lot size and low sales pressure

Moving customers from fish markets sales to recurring sales will be the key to sustained sales

After initial local distribution is established Izumi Dai will attempt to focus on associating

quality to branding and become a recognizable niche brand Pull marketing would then be used

to increase customer points of sale and restaurants at grocery stores


e Threat of substitute products (3)

Substitutes to organic tilapia exist in the forms of other lean organic animal proteins

including fish and poultry However as populations of wild fish continue to dwindle and global

demand continues to grow fish substitutes will inevitably decrease Izumi Dai will market the

fish as a healthy alternative to wild caught fish which is at a higher risk of containing pollutants

and imported fish farmed in unknown conditions By focusing on these differences Izumi Dai

will distance itself from fish substitutes

In summary the combination of an apparent low level of visible rivals the medium to

high barriers to entry Izumi Dairsquos vertical integration strategy and the reduced threat of

substitute products renders tilapia farming in recirculating aquaculture systems a viable

business opportunity in Southern California


3 Two-dimensional strategic group map for the industry

Figure 1 Strategic Group Map for the Industry

The two factors evaluated in the strategic group map are output and quality Output refers

to the amount of tilapia the farm produces and sells on the market Quality deals with the

tilapia product itself A high quality product is defined as a tilapia fish which was farmed

without growth or gender reversal hormones antibiotics or other harmful chemicals or

substances Also taken into account are the overall farming conditions in which the fish is

raised A high quality product is raised in a clean controlled environment in water which is free

of contaminants or pollutants


The strategic group map reveals five distinct groups into which the selected competitors

fall Group 1 is characterized by high output and low quality In this group are the fresh and

frozen tilapia imports which primarily come from Latin American and Asian countries As will

be further examined in this report such countries while an economical choice for lower labor

costs also have lax standards regarding food and safety regulation This has led to various

health concerns regarding the seafood products they produce

Group 2 is characterized by moderately high levels of output and similarly high levels of

quality Even though the companies in this group are categorized by a moderately high level of

output their total yield is really quite small as low as 1 when compared to the amount of

tilapia imported into the US by companies in group 1 Companies in group 2 are local US

companies which boast of a certified organic product grown in a clean controlled environment

It is important to note here that Premier Foods Farms is actually located in Texas and based on

market research presumably does not sell its tilapia in the California market

Group 3 is characterized by moderate output and above average quality Although these

products are not certified organic they are produced in a controlled environment which is

monitored and kept clean of contaminants and pollutants Another factor which may preclude

these producers from receiving certification is the type of feed which they give to the fish

Organic feed is more costly and as such is probably cost prohibitive for farms operating in this

group

The companies in group 4 have a mild level of output and a high level of quality This is the

group in which Izumi Dai will compete It is important to note that even though it is classified


in the same group below Blue Ridge Aquaponics currently operates solely out of Virginia and

presumably does not have any tilapia coming into the California market

The companies in group 5 are characterized by very low levels of output and a high level of

quality The reason for the lower levels of output is emphasis or specialization Some of these

companies may be aquaponics operations whose primary focus is produce and they only use

the tilapia to complete the symbiotic environment Others like Sarasota below are hatcheries

who do not focus on fish to market operations rather they breed and raise their tilapia to sell

as fry and fingerlings

4 Specific competitors in the industry

a Competitive Environment

The competitive environment in the aquaculture industry is highly fragmented with

numerous individual companies operating in various countries around the world For the

purposes of this report only companies with a relevant focus in tilapia production will be

considered and analyzed as competitors The global competition presents itself in the form of

imports America holds the title of the second-largest seafood importer in the world with

tilapia being the third most imported seafood product in the United States Most of these

imports come from Latin American and South-East Asian countries where labor costs are low

and food-safety regulations are mostly inexistent However incidences in recent years have

spurred concerns from US consumers regarding the safety and quality of such products

Additionally demand for fish in these countriesrsquo local markets is increasing due to rapid

population growth As a result there is an increasing demand in the US for safer higher-

quality locally farmed seafood products


ldquoBecause of increasing seafood demand and low yields from wild fishery resources

aquaculture products in the US market have significant growth potential over the coming five

years (McBee 2012)rdquo This is where local competition comes into play Our research shows

that tilapia however has yet to become a fish of choice for the larger-scale US-based

aquaculture farmers Some aquaculture farmers raise tilapia seasonally during the summer

months but have yet to specialize exclusively in tilapia The most significant competition on US

territory comes from smaller-scale aquaculture farms and aquaponics operations The

distribution reach of these operations tends to be more limited thus restricting the tilapia

farmed by these entities to be sold and distributed within a closer vicinity of the farmrsquos

operations

A growing threat comes from the increasing popularity of local aquaponics operations

The threat from this growing trend is twofold First although raising tilapia is not the emphasis

of such operations some of these operations may have a large enough tilapia output to meet a

portion of our target segmentrsquos needs Secondly some firms are selling aquaponics setups

which would allow our prospective customers to reach protein independence by growing their

own tilapia as opposed to buying ours

With this competitive landscape in mind competitors have been categorized into three

categories immediate competitors impending competitors and invisible competitors

b Immediate Competitors

Foreign Importer (1)

The US is a net importer of seafood and has a small aquaculture industry compared to other

countries Consequently imports of farm-produced seafood into the US are large According to


the National Oceanic and Atmospheric Administration (NOAA) Americans consume between 6

million and 7 million tons of wild and farmed seafood annually and about 84 of that total

comes from imports half of which is farmed Total US seafood production only accounts for

about 2 of the countryrsquos consumption

Tilapia is imported into the US either frozen or fresh Both the fresh and frozen products

are imported as either a whole fish product or a fillet product The perishable nature of fresh

fish makes countries closer to the United States more suited for operating with fresh fish

products Hence the majority of fresh tilapia imports are sourced from Latin America while

Asian countries specifically China continue to dominate the frozen tilapia import market

(United States Department of Agriculture 2013)rdquo With the growing health concerns discussed

earlier and the increasing trend of organic products it is possible that a foreign competitor

could diversify into the organic tilapia market and directly compete with Izumi Dai

Such a competitor is classified as a very threatening level 1 competitor because of their

established distribution and supply chain operations and economies of scale Competing

against such a competitor would be difficult for Izumi Dai However Izumi Dai intends to

position itself not only as an organic tilapia farmer but as a local farmer with environmentally

friendly farming operations raising tilapia in the US a differentiation strategy that the foreign

competitor would not be able to duplicate

Grow Foods Inc (1)

Grow Foodsrsquo offices are located in San Marcos California It is composed of four

different divisions Grow Foods Aquaponic Systems Grow Foods Farms Grow Foods Gardens

and Grow Foods Water Management Systems In addition to producing its own produce and


seafood for market Grow Foods also acts as a consulting agency designing and manufacturing

a variety of garden and aquaponic systems for homes businesses resorts and municipalities

Unfortunately little is known about Grow Foods Inc Although attempts have been

made to acquire additional information regarding their operations and tilapia output none has

been provided In spite of the lack of information available regarding Grow Foods it has been

classified as an immediate very threatening competitor

Grow Foods Farms a division of Grow Foods Inc grows seafood in ldquoland river and

ocean based farmsrdquo which it sells to ldquoindividuals restaurants and super markets (Grow Foods

2012)rdquo With its headquarters in San Marcos California the assumption is that these farms are

operating in California and even more threatening in Southern California With the possibility

of a large commercial-scale competitor operating within Izumi Dairsquos target market location

and with little information regarding the specifics of this competitorrsquos operations Izumi Dai

should consider the threat significant until additional information can be acquired

Future Foods Farms (2)

Future Foods Farms (FFF) is one of the largest aquaponic farms in the State of California

(Future Food Farms 2013) Located on 25 acres in Brea California FFF produces organically

grown produce and tilapia which is used by FFF creator and Chef Adam Navidi in his

restaurants and catered events Some of FFFrsquos output is also sold at the local farmers markets

FFF has been categorized as an immediate threatening competitor because of its

geographic location in Southern California and its strategic alliances with key players in the

aquaponics industry


FFF is classified as a threatening competitor primarily because its focus is aquaponics

and not aquaculture and as such it has yet to reach a tilapia output level that presents a

significant threat However with FFF operating in the heart of Izumi Dairsquos target market it still

poses significant threats which have contributed to its ldquoimmediate competitorrdquo classification

FFF has an ambitious vision and a strategic marketing strategy In its mission statement

FFF states that it is their ldquomission to create a sustainable farm concept that will change both

agriculture and the restaurant industry forever and provide our customers with the ultimate

food experience (Future Food Farms 2013)rdquo With their evangelical approach FFF proselytizes

the benefits and advantages of its sustainable farming practices and high quality products

Farm tours and tastings hosted by the Chef himself are available to the public and can be

booked online via FFFrsquos website More of their marketing prowess is evidenced in their specialty

line of products that certain grocers and restaurants will soon carry

FFFrsquos founder established a strategic alliance early on with aquaponic guru Eden

Aquaponics which is discussed later in this section as a competitor An additional strategic

alliance was formed with aquaponic powerhouse Aquaplanet In addition to these strategic

alliances FFF boasts of several scientists who consult at their aquaponic garden along with

several college professors and interns who maintain and study the garden on a daily basis

(Future Food Farms 2013) These alliances and partnerships give FFF a competitive advantage

by providing FFF with valuable knowledge and input from leading industry experts and

academics


c Impending Competitors

Blue Ridge Aquaculture (1)

Blue Ridge Aquaculture is located in Martinsville Virginia and operates out of a 100000

square foot facility It was founded in 1993 and boasts of being the worldrsquos largest producer of

tilapia using indoor recirculating aquaculture systems (RAS) (About us 2013) ldquoEach year Blue

Ridge Aquaculture produces 4 million pounds of tilapia shipping between 10000 and 20000

pounds of live tilapia every day These fish are raised without the use of antibiotics or

hormones and are free of mercury (undetectable levels from independent studies) and other

industrial pollutants (About us 2013)rdquo

Blue Ridge Aquaculture is classified as a very threatening competitor because of its

ambitious strategic growth plans Currently Blue Ridge ships an estimated 75000 pounds of

live tilapia per week from the facility to distributers in major metropolitan markets in New York

Boston Toronto and Washington DC Since Blue Ridge is located on the East Coast it would be

costly to transport live tilapia to markets in California Izumi Dairsquos target market However Blue

Ridge is keeping no secrets when it comes to its desire to grow

According to the Blue Ridgersquos website Blue Ridgersquos vision is ldquoto become the leading

domestic producer of high quality seafood using indoor recirculating aquaculture systems

(RAS) The company plans to accomplish this goal by 1) sequentially expanding its tilapia

production capacity to 10 million pounds (phase I) then to 100 million pounds (phase II) 2)

developing a fresh fillet product which will provide access to larger markets and 3) developing

the production of other species in similar systems (Strategic growth plans 2013)rdquo


The threats posed by Blue Ridgersquos strategic expansion plans are twofold First although

specifics are not given regarding the markets into which they wish to expand Blue Ridge does

mention that its primary customer base is Asian and Hispanic individuals (About us 2013) With

this information in mind and considering that it has a strong presence on the East Coast there

is substantial risk that Blue Ridge could expand into Izumi Dairsquos target market in California

However even if Blue Ridge does not expand its physical operations into California it still

has plans to develop a fresh tilapia fillet product The purpose of developing a fillet product is

to ldquoprovide access to larger marketsrdquo Distributing fresh fillets is less capital intensive than

distributing a live product Thus without ever setting foot in California Blue Ridge could

potentially penetrate Izumi Dairsquos California market with its fillet product

In either of these scenarios Izumi Dai strategic advantages would be significantly

undermined It would be difficult for Izumi Dai to compete with the economies of scale

achieved by Blue Ridge Additionally Blue Ridge Boasts of 20 years of experience in the

aquaculture arena They have had the time to fine tune their operations as a result of their

extensive industry experience Izumi Dairsquos strategy to differentiate from foreign imports is

closely aligned to Blue Ridgersquos strategy This means that Izumi Dai would differentiate solely

based on organic certification something presently not touted by Blue Ridge

Premier Farms (2)

Located in Dallas Texas Premier Farms is an aquaponics farming enterprise that

ldquocombines organic growing practices in controlled ecological environments (Home 2011)rdquo The

mission statement of Premier farms is ldquoto grow organic tilapia organic ButterBoston lettuce

and organic herbs through the utilization of environmental and ecologically balanced farming


practices (About our tilapia 2011)rdquo In 2009 Premier became the largest organic tilapia

producer in the US producing a half-million pounds of organic tilapia per week

Premier has been categorized as an impending threatening competitor because of the

possibility that some of its tilapia output may be entering into Izumi Dairsquos California target

market and that it could possibly expand its operations into California Additional threat comes

from its business model which shares a close resemblance to Izumi Dairsquos model The only

factor limiting Premierrsquos ranking to only a level 2 competitor is its geographical location Had

Premier been located in California its ranking would be a very threatening competitor

Premier sells a fresh tilapia product harvesting the fish after six months of growth at an

average weight of 1-14 to 2 pounds The fish are harvested into tanker trucks and are then

transported ldquofresh off the boatrdquo to market (Operations 2011) Selling a fresh product limits

Premierrsquos distribution reach However the extent of their distribution reach remains unknown

Although efforts were made to acquire this information Premier did not share it At this point

it can be assumed that cost efficiency would preclude Premier from distributing a fresh product

in the southern California market

Regardless of whether they have a large distribution reach or not California is a popular

state for tilapia farming and there is a risk that Premier could expand its current operations

into California soil While the largest number of tilapia farms were located in Hawaii (19 farms)

and Florida (18 farms) California (15 farms) ranked first in sales (over $81 million) (tilapia

profile 2013) This fact along with the growing number of specialty and health food markets in

the area increases the desirability of the California market and the probability that Premier


may use their current operations as a template for expansion into the California market putting

them in direct competition with Izumi Dai

If Premier did expand into the California market its current business model would

significantly inhibit Izumi Dai from competing with a differentiation strategy Currently Premier

incorporates integral elements of Izumi Dairsquos business model like automated technologies and

remote management organic certification and quality and a fresh tilapia product rather than a

processed fillet be it frozen or unfrozen Furthermore Premier promotes its tilapia product as

farmed in the US boasting strict control and quality standards another strategy adopted and

employed by Izumi Dai

d Invisible Competitors

Eden Aquaponics (2)

Eden Aquaponics is an aquaponics farm located in Vista California They specialize in

custom system design fabrication and installation for residential and commercial applications

They also offer instructional classes that teach participants how to use and maintain an

aquaponic system

Currently Eden Aquaponicsrsquo focus is not to farm tilapia for market but rather to equip

individuals and businesses with their own aquaponic systems in order to meet their specific

production needs As is this business model does not directly compete with Izumi Dairsquos focus of

tilapia farming but it could possibly pose potential threats

Eden Aquaponics is classified as an invisible competitor because of its current position as a

manufacturer of custom aquaponic systems and not as a farm focused on tilapia output It is

classified as a threatening competitor because of its potential to compete on a commercial


scale in tilapia production in Southern California and because its service allows individuals in

Izumi Dairsquos target segment to become protein independent

If Eden Aquaponics decided to move into large-scale tilapia farming with its aquaponics

systems it could possibly have an advantage over Izumi Dai because of its extensive industry

experience As an example Tim Eden co-founder ldquobrings over 16 years of farming experience

over nine years of construction contracting and over three years of hydroponic gardeningrdquo to

the company (Who are we 2013) Additionally Eden Aquaponics has market presence brand

recognition and goodwill that could work in its favor if it were ever to diversify from its current

position into a position focused on tilapia production

Eden Aquaponicsrsquo current offerings indirectly compete with Izumi Dai by providing

individuals within Izumi Dairsquos target segment the means to farm their own organic tilapia Their

aquaponics systems appeal to the same health conscious consumers that Izumi Dai is targeting

Realizing the increasing trend of DIY (do it yourself) this threat might continue to increase

Although not every individual in Izumi Dairsquos segment has the means or desire to purchase

operate and maintain an aquaponics system some may which would nullify their need to

purchase such a product from a grocery store

Sarasota Organic Tilapia Farms (3)

Sarasota Organic tilapia Farms is an organic tilapia farm located in Sarasota Florida

Sarasota operates a tilapia hatchery ldquowhich produces tilapia fry and tilapia fingerlings available

for fish farms worldwiderdquo and a grow out section where tilapia are raised to market size

ldquoavailable locally in the Sarasota Florida area (About us 2013)rdquo Sarasota boasts of the best

tilapia available anywhere They attribute their high quality to ldquousing organic low intensity


methodsrdquo and feeding ldquothem organically with a natural diet high in omega3 fatty acids (About

us 2013)rdquo

Sarasota is classified as a competitor because of its working knowledge of tilapia

aquaculture operations and its potential to expand into other markets specifically California

However it is regarded as a less threatening invisible competitor due to its distant geographic

location and because its primary focus is as a hatchery and not as a distributor of consumable-

grade tilapia

Californiarsquos health conscious segment is a desirable market for anyone in the health foods

or organic foods industry A CNN article states that ldquoCalifornians in general tend to have

healthier habits ranking 10th for physical activity fourth for healthy blood pressure and fifth

for a diet high in fruits and vegetables compared with other states according to Americas

Health Rankings (Park 2012)rdquo As mentioned earlier California was number one in sales with

regards to aquaculture tilapia output Sarasotarsquos experience in the aquaculture industry gives it

a strategic advantage over Izumi Dai if it were to expand into California Additional threat

comes from their expert tilapia breeding knowledge

With their primary focus as a tilapia hatchery Sarasota prides itself on breeding three

different tilapia species Their tilapia are ldquoselectively bred for body form color and growth

rates Consequently Sarasota would have a significant advantage in breeding and stocking

tilapia that were only of the highest quality

Although its focus is as a hatchery and not as a distributor Sarasota does offer wholesale

purchases of its tilapia for local restaurants With such orders the purchaser is responsible for


pickup of the live unprocessed fish from Sarasotarsquos grow out facility Minimum order size is

50lbs (Wholesale farm pickup 2013)

Escondido Tilapia Farm (3)

Little is known about the Escondido tilapia farm An insightful commentary regarding

one individualrsquos visit to the farm is given on an internet blog site and other than that no

additional information can be found (Coburn 2011)

From the blog post it appears that the Escondido tilapia farm is a newer operation with

plans to grow and expand Some of its operations are rather innovative For example in order

to heat the water used in its tanks the farm uses a two story high pile of compost whose

internal temperature stays around 140 degrees Fahrenheit Through the center of the compost

pile is coiled a plastic irrigation hose Water from the fish tanks is pumped through this hose

which then renters the fish tanks around 80 degrees

They are classified as a less threatening level 3 competitor because their focus

according to the blog entry is as a hatchery and not a fish to market farm With their current

assets and industry knowledge Escondido tilapia Farm could possibly diversify into a fish to

market position At this point however it is decided that they are more of a hobbyist

backyard operation rather than a commercial operator

5 Major Competitors and their market share

According to the IBISWorld Industry Report of Fish and Seafood Aquaculture in the US

there are no major domestic players in the aquaculture industry Consequently ldquoconcentration

in the Fish and Seafood Aquaculture industry is minimal Many small operations compete for


the total market share with no sole operator cornering more than 50 of the total market in

2012 (McBee 2012 p 24)rdquo

To illustrate this concept consider the example of Southern Pride Catfish a subsidiary of

American Seafoods Group LLC Southern Pride Catfish operates a substantial aquaculture

operation employing about 775 people and processing more than 80 million pounds of farm-

raised catfish each year However it is estimated that Southern Pride Catfish has a market

share of less than 1 (McBee 2012)

Southern Pride Catfishrsquos operations are much more sizable compared to the competitors

analyzed in this report The reason for this is because the competitors analyzed in this report

focus solely on tilapia farming Thus with tilapia production being much smaller in terms of

output and volume compared to that of catfish it is reasonable to conclude that the market

share held by the tilapia farming competitors is even smaller than Southern Pridersquos which is still

less than 1 Therefore a market share pie chart or other graphical depiction would be

extremely difficult to produce and would add little to no insights into competitor or strategic

analysis

6 Why is our startup a good idea

From a progress point of view we have completed our research and we are now in pre-

startup mode If all goes as planned we believe to be able to produce our first fish 12 to 18

months from now For additional information please refer to our implementation plan and

timeline in section 12 of this document Currently we are extending efforts towards the

engineering components of the initiative We are documenting processes establishing

flowcharts and engineering designs to facilitate construction We are also designing a small


scale trial as a proof of concept At the same time we are meeting with potential buyers such

as specialized organic distributors other aquacultures in the area as well as potential investors

to cautiously validate some of our ideas When these action items have been taken care of

wersquoll be sufficiently informed to calculate break-even point cost object pricing and to establish

a viable implementation strategy

We believe that starting a tilapia aquaculture in San Diego is a worthwhile business for the

reasons below

a Macro Economics and Competition

Humanity currently faces numerous interconnected challenges that range from the impacts

of the ongoing economic crisis climate change and extreme weather events population

growth armed conflicts and pollution All of these challenges impact food production in

general and fish and seafood aquaculture in particular According to the Food and Agriculture

Organization of the United Nations in 2012 the aquaculture industry supplied the world with

154 million tons of fish of which 131 million tons (184kg per capita) was destined as food

While capture fisheries production remains stable aquaculture production continues to

develop Aquaculture is one of the fastest-growing animal food-producing sectors and in the

next decade total production from both capture and aquaculture will exceed that of beef pork

or poultry

US aquaculture generated $12B in revenues with profits of $59M Because of increasing

seafood demand and falling harvests from wild fishery resources due to overfishing


years


Izumi Dairsquos analysis of its competitive environment revealed global and regional

competition The global competition comes in the form of imports Most of these imports

come from Latin American and South-East Asian countries where labor costs are low and food-

safety regulations are mostly inexistent However incidences in recent years have spurred

concerns regarding the safety and quality of such products Additionally demand for fish in

those local markets is increasing rapidly due to quick population growth As a result in the US

there is a growing demand for safer higher-quality locally farmed seafood products This trend

is further confirmed by the rise of retailers such as Whole Foods Henryrsquos Trader Joersquos Sprouts

and others that have emerged and expanded substantially during the past 5 years

Following key insights from blue ocean strategy (Kim amp Mauborgne 2005) by looking across

time Izumi Dai has recognized the market growth the demand for healthier fish and the

increasingly limited imports as an opportunity to develop a blue ocean strategy and to win the

market space without much fighting (McNeilly 2013)

b Tilapia itself

Most tilapia in the US market originate with one of three species Blue Mozambique and

Nile These species have been cross-bred for many years by farmers trying to maximize fish

size cold tolerance desirability of color variations for the market place retention (fillet yield is

30 to 35 of the whole body weight) as well as to reduce cycle times and disease risks The

differences between the breeds are minute and along the lines of point of natural origin or

water temperature requirements Tilapia is a prolific invasive species that can take over a

pond or lake in short order If cultured together females will be half the size of the males (075


lbs vs 15 lbs) Males reach marketable size within 5 to 7 months from birth (Tank Culture of

Tilapia June 2009)

Tilapia hold certain characteristics that make them suitable for tank culture They can

tolerate the fish stocking density that is essential to the viability of the business Their slime

coat protects them better from bacterial infections compared to other fish Tilapiarsquos hardy

nature reduces the need for pesticides antibiotics drugs and other added chemicals They

grow quickly given good water quality and ample food but can also thrive in water of variable

quality They are omnivorous in that they can be fed vegetable matter andor animal protein

Fingerlings are produced by the females all year long This in turn results in the steady

production of new fish which facilitates a year-round tank operation

From a nutrient point of view tilapia contains unsaturated fat (13 g in 4 oz) saturated fat

(56 mg in 4 oz) calcium (113 of the daily value) potassium (10 of the daily value) as well as

a large amount of protein (23 g in 4 oz) (Banna 2011)

Given the economic demographic political technological global sociocultural and physical

criteria that define demand as discussed on pages 3-7 Izumi Dairsquos diversification strategy

hinges greatly on tilapiarsquos health and low technology reproduction characteristics

c Tank Design and Technology

Izumi Dairsquos modular flow-through tank design allows for scaling to meet demand in local

markets It also allows for quick expansion to new markets or to scale up production to meet

demand The design is centered around the concept of intensive tank culture to continuously

produce high yields on small parcels of land The smaller separate closed-loop tanks and

modular equipment design approach is contrary to the current mass production customized


setups or pond systems Izumi Dairsquos design greatly mitigates costly disease spread complex

maintenance and repair and total kill scenarios

The companyrsquos tank design includes the use of heterotrophic or ldquobioflocrdquo technology

(Avnimelech) Through mixing and aeration the nutrients that would otherwise collect at the

bottom of the tank are brought to a state of saltation which makes them available to the fish

as well as to heterotrophic bacteria The water exchange is limited to allow organic residues to

accumulate This creates an ideal environment for these protein-rich bacteria to develop

profusely in the water Research has indicated that the application of biofloc technology

reduces external feed requirements to up to 70 which represents substantial cost savings to

the company Another benefit is the reduction of toxic residues such as sulphides and

ammonia in the water This translates to energy savings related to pumping oxygenation and

filtering compared to a regular system in which the volume of water in the tank is completely

replaced every 90 to 120 minutes Finally fish growth and intensification are positively affected

by biofloc technology and so is Izumi Dairsquos bottom line

Additionally given the industryrsquos minimal use of technology Izumi Dairsquos strategy relies on a

competitive advantage that reduces expensive manual labor through the implementation of

automated SCADA systems which would control feeding stations temperature and water

quality control as well as alarms The system would be augmented with daynight cameras and

configured to escalate alarm notifications from onsite personnel to offsite stakeholders by

phone text andor email Control system parameters can be monitored centrally on a

dashboard website System configuration changes can be implemented on the fly locally or

remotely over the internet


d Organic Halal Kosher and Made in America

Research has indicated that psychographics surrounding tilapia and recirculating

aquaculture systems have improved with our target demographic Product quality and demand

creation are central to our strategy We aim to reach beyond existing demand (3rd principle of

blue ocean strategy) through finer segmentation by tailoring our offering to better meet

customer preferences for high quality healthy fish In order to differentiate ourselves from the

cheap low quality imports we intend to brand the product with the tag line ldquoMade in

Americardquo In addition research has indicated that organic local farm fresh products have

gained in popularity within agricultural products in Southern California Izumi Dairsquos plans to

leverage this new trend by breeding fish without pesticides herbicides and artificial additives

The company will comply with organic production standards regarding breeding processing

storing packaging and shipping to ensure organic certification by the US Department of

Agriculture and CCOF (About CCOF Organic Certification 2013)

Additionally we intend to apply for Kosher certification by committing to the Jewish laws of

shechita and nikkur These laws involve habitat slaughter practices and animal feed mostly

Given that the Jewish laws donrsquot represent a departure from Izumi Dairsquos planned operational

processes obtaining Kosher certification would be achievable with minimal efforts

The companyrsquos strategic plan also intends to follow Islamic law to achieve Halal which

means permissible In this context Halal relates mostly to the packaging of the fish so that

Muslims are permitted to consume the animal Since Muslims must eat halal food regardless of

price (unless not available) Izumi Dairsquos fish would have an advantage compared to the less

expensive imported tilapia


The organic seal Hechsher seal and Halal seal would be applied to the product packaging

to raise customer awareness

Given Izumi Dairsquos aspirations to certify and label its ldquohealthyrdquo fish (while avoiding enological

terminology to keep things simple) the company has decided to minimize customers making

trade-offs across less expensive alternative industries by competing largely on feelings as our

appeal to buyers is emotional This strategy represents a blue ocean in Southern California

because the competition consists of low quality imports from dubious origin (Kim amp

Mauborgne 2005) Compared to whatrsquos available on the market today Izumi Dairsquos offering

represents a leap in value which will rapidly earn brand buzz and a loyal following in the

marketplace (Kim amp Mauborgne 2005) Additionally this strategy erects barriers to imitation

as well

e Production method inexpensive energy

Izumi Dai intends to go far beyond its competitor Escondido tilapia Farmrsquos use of horse

manure and compost to generate inexpensive farm energy Hansen International is making the

manure available to us ubiquitously at no cost beyond pick-up labor and transportation We

plan to acquire inexpensive steel shipping containers that are readily available due to the trade

imbalance between the US and Asia Shipyards sell these for approximately $2500 each

These containers would be filled with horse manure (and farm waste) and laced with water

hoses to collect heat The hermetically sealed containers would be painted black to attract

heat They would also be transformed to allow for easy access at the top and other surface

areas per our proprietary engineering design The naturally occurring anaerobic digestion of

the manure by microorganisms would yield energy in the form of heat and methane also called


biogas Biogas consists of 60 percent methane and 40 percent carbon dioxide It burns cleanly

thus greatly reducing or eliminating the need at the farm for fossil fuels that produce harmful

greenhouse gases Biogas would be collected in tanks and used for electricity generation

(Youtube Frishberg)

In addition the water from the aquaculture would be recirculated through the containers

for heat exchange purposes as well When the manure has decomposed to levels of

diminishing returns with regards to energy creation (the organic nitrogen has been converted

to ammonia) it can be removed from the process and used or sold as fertilizer

Our startuprsquos innovative ideas make the process attractive for waste management

compliance especially given the strict California laws regulating odor groundwater

contamination and greenhouse gases After some time we might even become ldquoGreen

Business Certifiedrdquo by the SBA andor others so that we can apply the ldquoEco labelrdquo to our

products (Green certification and ecolabeling) Such action would add to the buyerrsquos emotional

perception of Izumi Dai as a better choice

f Production method inexpensive organic feed

In nature tilapia will feed mostly on plankton and detritus The industrial production of

tilapia in controlled aquaculture environments requires the use of commercial fish feed The

use of 40-50 protein feeds increases fish growth up to tenfold compared to fish bred in ponds

where no supplement feed was given At $6 per pound certified organic pellet fish food for

tilapia that consists of 31 protein is very expensive Feed cost is especially relevant when

realizing that each fish requires a daily feed intake of 2-5 of its body weight Tilapiarsquos feed

conversion is at about 2 lbs of feed per pound of gain


In order to control feed cost our startup intends to use the decomposed horse manure as

the main ingredient to feed a renewable source of animal protein (red worms) in a closed-loop

system (Rasing earth worms 2013) The only elements of concern for a red worm habitat are

moisture and temperature They are very easy to breed and can double their population every

90 days They eat half their weight each day which further processes the horse manure to a

high quality fertilizer (soil humus) that could be resold at premium pricing (Humus-the

foundation of living soil 2006) We intend to purchase rice andor other inexpensive organic

plant-based feeds to balance the tilapiarsquos diet to reach maximum yield

Izumi Dairsquos use of SCADA technology biogas and horse manure byproducts to keep costs

low represents a substantial competitive advantage (entry barrier) towards the companyrsquos local

competition At the same time the companyrsquos cost strategy brings its product pricing closer to

the low quality imports which simplifies the consumerrsquos decision to buy our products

7 Our current and projected strategy

Izumi Dai intends to leverage its tangible and intangible assets its capabilities and core

competencies to obtain a competitive advantage and long-term strategic competitiveness

As discussed in the previous section Izumi Dai has free access to large amounts of horse

manure that can be used for a variety of cost reducing practices Other tangible assets that are

currently in our possession are computer equipment vehicles machines and land in sufficient

quantity for the companyrsquos proof of concept Intangible assets are the company partnerrsquos core

capabilities such as newly gained business management knowledge our professional

experience in the fields of engineering technology and farming as well as software necessary

to run back-of-house administration functions


Izumi Dairsquos disruptive strategy of ldquoOrganic Halal and Kosher and Made in Americardquo

product certification enables a narrow market segment focus This initial focused

differentiation will further distinguish the company from its competitors regarding customer

value

Soon after inception we anticipate demand to increase beyond the aquaculturesrsquo

maximum annual output At that time the company will reinvest profits towards swift

expansion into other premium markets by leveraging our unique modular aquaculture design

and technology

As Izumi Dairsquos footprint increases the company will require a broader market to sell its

products The companyrsquos strategy will gradually shift towards cost leadership thanks to

economies of scale by reaching the highest levels of efficiency in high cost categories such as

feed energy and labor Reaching a cost leadership position in the US market space will be

beneficial in the long run given previously described economic factors as well as the ongoing

ecological degradation of water quality in Asia and South America In short the projected

increase in demand for healthy sources of animal protein in the US ensures a successful

outcome for aquaculture companies that are able to produce large quantities of fish at

affordable pricing to the middle class

8 An update on your selected competitor since the case ended

In light of the market share data discussed earlier in this report a single competitor will

not be selected Instead imports representing both frozen and fresh tilapia will be

consolidated and categorized as a single competitor although this category will be comprised

of various farms from different countries The logic behind this choice is that it is near


impossible to identify any one single competitor because of the minimal concentration and

high fragmentation of the competitive landscape

The bulk of frozen tilapia imports come from China while Latin American countries with

a closer proximity to the US dominate the fresh tilapia import market Although the products

from these countries are cheaper because of the low cost of labor and less stringent regulatory

policies recent incidences have led to growing concerns regarding the safety of the seafood

products produced in these countries

One such startling and recent example is published in Bloomberg Businessweek

According to the article the tilapia at an aquaculture farm located in Chinarsquos Guangdong

province are fed partly with feces from hundreds of pigs and geese These same fish are

purchased by exporters and sold to US companies ldquoThis practice is dangerous for American

consumers says Michael Doyle director of the University of Georgiarsquos Center for Food Safety

The manure the Chinese use to feed fish is frequently contaminated with microbes like

salmonellardquo says Doyle who has studied foodborne diseases in China (Uyen amp Bi 2012)rdquo The

article explains that this is not an isolated incident In fact a purportedly growing number of

farmers are adopting this practice in order to cut costs because of competition with some

farmers abandoning commercial feed entirely and switching over to feces The FDA only

inspects about 27 of food imported into the US Since 2007 the FDA has rejected 820

Chinese seafood shipments 187 of which contained tilapia (Uyen amp Bi 2012)

Similarly undesirable farming conditions have been practiced in Latin American

countries where the bulk of fresh tilapia imports to the US come from One practice of concern

is farming tilapia in lakes or ponds where the fish excrement is unable to be filtered out or


removed thus polluting the water Dr Jeffrey McCrary an American fish biologist who works

in Nicaragua said ldquoWe wouldnrsquot allow tilapia to be farmed in the United States the way they

are farmed here so why are we willing to eat them (Rosenthal 2011)rdquo

Further concerns are raised from tilapiarsquos invasive nature Reportedly tilapia has

ldquosqueezed out native species in lakes throughout the world with its aggressive breeding and

feeding (Rosenthal 2011)rdquo In the US the use of cages to farm tilapia in lakes is generally

forbidden If tilapia escape from their enclosures then they can potentially destroy the existing

ecosystem within the lake or pond as was the case with Lake Apoyo in Nicaragua When the

tilapia escaped from the cages they consumed an aquatic plant called charra which the other

fish fed off of As a result some species of plants and fish that once inhabited the lake are now

extinct

9 Competitorrsquos current and projected strategy

With more health concerns and disturbing stories regarding aquaculture operations

coming to light foreign farmers are growing more conscientious with regards to their farming

practices The importers current and projected strategy focuses on strengthening consumer

confidence by qualifying for accreditation from industry watchdogs Such certifications are

received by complying with specific standards which require farmers to adopt environmentally

responsible farming practices

Regal Springs which operates tilapia farms in Mexico Honduras and Indonesia is one

such importer who is employing this strategy Regal Springs tilapiarsquos Honduras plant has been

awarded the Global Aquaculture Alliances Best Aquaculture Practices (BAP) certification (Regal

Springs Honduras Farm Receives BAP Certification 2013) They are also the first fish farm to be


certified by the Aquaculture Stewardship Council (ASC)Such certifications and practices help

aquaculture farms and processors to do business with large corporate customers like Costco

(Rosenthal 2011)

Similar initiatives are improving farming conditions in Chinese aquaculture farms In

2012 the ASC began work in China with the objective of ldquodeveloping more sustainable methods

of tilapia farming (ASC to help China tilapia farming 2012)rdquo The project was planned to last

two years Its three primary objectives are first to make more details on the tilapia supply

chain in China available second to introduce ASC standards to China and encourage Chinese

tilapia producers to seek ASC certification and third drum up public and consumer support for

ASC-certified tilapia from China (ASC to help China tilapia farming 2012)

10a Izumi Dai Growth-Share Matrix


Izumi Dai will have an initial focused product of fresh organic tilapia Tilapia

consumption in the US is increasing steadily and will continue to increase Izumi Dai and similar

domestic aquaculture firms use the live fish market with higher market price to circumvent the

Asian and South American importers with low-price frozen tilapia fillets Increasing market

share is critical to moving into the ldquoStarrdquo investment quadrant as the industry growth is

expected to continue to increase domestic supply

Growing demand in developing nations may reduce the supply of imported tilapia

Izumi Dai will penetrate the mass frozen fillet market when import supply decreases and thus

price increases Operations will need to support not only live fish but increase production and

invest in processing and packaging for frozen tilapia By increasing the frozen fillet market share

captured from imports Izumi Dai will realize ldquoCash Cowrdquo conditions

10b Our competitorrsquos growth-share matrix


Chinese tilapia farms process and export tilapia to the US in frozen whole and fillet

portions In addition to supporting US fish demand the Chinese aquaculture industry is seeing

an increase in Chinese domestic demand Exported US frozen fillets are currently ldquoCash Cowsrdquo

Low labor and low regulation allow imports to dominate the US market share As more South

American and African aquaculture programs are established the market share will decrease

towards the ldquoDogrdquo quadrant Chinese farms may see the opportunity of live or fresh regional

tilapia as more attractive and move the Domestic tilapia category from ldquoStarrdquo to ldquoCash Cowrdquo

With this move Izumi Dai will attempt to secure US market share

11 Critical resources strengths core capabilities core competencies and

weaknesses

The competitive analysis in this thesis has identified the imports from China and South

America as our main competitor Other competitors described in this paper represent an

estimated 1 of US tilapia market share only

Izumi Dai versus overseas imports Izumi Dai Overseas imports

Critical Resources Modular tank des ign SCADA Technology (1)

Acces s to inexpensive labor (1) Access to inexpensive feed (1) Access to offshore processors (1)

Strengths

3 MBA students with proven profess ional track records (2) Easy access to intellectual capital (2) Low local competition (2) 37 million potential consumers locally (2) Made in San Diego (1)

Mas s production and cos t leadership (1) Minimal regulatory requirements (1) Existing distribution channels (1)

Core Capabilities ldquoGreenrdquo energy and feed

Their ability to manage the individual components of the process from start to finish

C ore Competencies

Fresh Organic Halal Kosher Consis tent proprietary genetic strain

High volume production

Weaknesses

Price point much higher than imports (3) Reliance on technology (2) Startup issues seed funding dis tribution plant equipment property no client-base (3) Need 12-18 months to s tart the company (2) Never done this before (1) Psychographics (3) Regulatory requirements and compliance (3) Low volume production (3)

Inability to provide fresh organic to the US market (1) Psychographics of cheap imports from ques tionable origin (3) Increas ing demand for Tilapia in the respective local markets affects their ability to supply to the US in sufficient quantities (3) Water pollution (2) Rising labor rates (2) Reliance on inexpensive labor (1) Dis tance to market carbon footprint (2) Low technology (3) Red ocean (3)


Izumi Dai versus the weaknesses of overseas imports

Izumi Dai Overseas imports (WEAKNESSES)


Rising labor rates (2) Reliance on inexpensive labor (1) Low technology (3)

Strengths

3 MBA s tudents with proven profes sional track records (2)

Easy access to intellectual capital (2) Low local competition (2) 37 million potential consumers locally (2) Made in San Diego (1)

Increas ing demand for Tilapia in the respective local markets affects their ability to supply to the US in sufficient quantities (3) Psychographics of cheap imports from ques tionable origin (3)

C ore Capabilities

ldquoGreenrdquo energy and feed Water pollution (2) Dis tance to market carbon footprint (2)

Core Competencies

Fresh Organic Halal Kosher Cons is tent proprietary genetic s train

Inability to provide fresh organic to the US market (1) Red ocean (3)

Izumi Dairsquos weaknesses versus overseas imports

Overseas imports Izumi Dai (WEAKNESSES)

Critical Resources

Access to inexpensive labor (1) Access to inexpensive feed (1) Access to offshore processors (1)

Reliance on technology (2) Startup is s ues s eed funding distribution plant equipment property no client-base (3)

Strengths

Mass production and cost leaders hip (1) Minimal regulatory requirements (1) Existing dis tribution channels (1)

Price point much higher than imports (3) Regulatory requirements and compliance (3) Need 12-18 months to s tart the company (2) Psychographics (3)

C ore Capabilities

Their ability to manage the individual components of the process from start to finish Never done this before (1)

Core Competencies

High volume production Low volume production (3)

12 External threats and opportunities in this industry

Opportunities in the eatable fish market sector favor the organic sustainable product

strategy of Izumi Dai Changes in consumer habits global environments and natural food

stocks create an immediate need for innovation and growth in the aquaculture industry

a Opportunity - Changes in consumer habits (2)

The US Millennial generation born between 1982 and 2001 differ in their food buying

habits from older generations Millennials are willing to spend more on fresh organic and

healthy food (How Millennials Are Changing Food as We Know It 2012) Processed and canned

foods are falling out of favor with Millennials who are starting families and entering into careers


after schooling Izumi Dai believes the buy local and organic trend will grow and steadily

increase fresh tilapia demand This benefits local aquaculture agriculture and aquaponic

companies

b Opportunity - Natural fish stocks decreasing (1)

Lower ocean food stocks are at the root of the initial aquaculture interest from Izumi Dai

team members Global populations are growing and the per person fish consumption is

increasing as well With nearly 85 of global fish stocks over-exploited depleted fully exploited

or in recovery from exploitation the global population will need to increase alternative fish

stocks to maintain natural ecosystems (Vince 2012) In addition man-made and natural

disasters are affecting natural fish stocks Oil spills El Nintildeorsquos and climate change along with

hydraulic fracturing pollution are wiping out lake river and coastal environments natural

ecosystems As a result of decreasing natural food stocks the aquaculture industry was

expected to increase 46 in 2012 (McBee 2012)

c Opportunity - Technology reducing labor (3)

Increased off the shelf technology with internet integration is changing the way Izumi

Dai is approaching the traditional aquaculture labor resources Our research shows that few

competitors have adopted such an off the shelf strategy Innovations in residential pond

equipment home reef aquarium alarm and control systems as well as SCADA industrial control

systems will allow Izumi Dai to reduce traditional fish labor resources Fish grow out oversight

including water quality parameters feeding and alerts will be recorded and modified by

automated systems with visible dashboards available to stakeholders over the internet Izumi


Dai will move the saved labor to auxiliary support tasks which allow for the vertical integration

of the feed and hatchery operations

d External Threat - Regulation and labeling (1)

Izumi Dairsquos major differentiator with the major import market is organic hormone and

chemical free Research indicates no major governmental or academic agencies monitor the

labeling and claims or organic and hormone use in aquaculture Izumi Dai believes tilapia

importers as well as US competitors may use the organic and hormone-free labels without

oversight thus nullifying a major marketing effort Izumi Dai will work with academics and food

agencies to propose and construct food practice oversight in aquaculture

e External Threat - Adjacent aquaponic industry (3)

Aquaponics is a related field to aquaculture By taking the effluent from fish populations

and using plants to filter out organic waste aquaponic operations produce both fish and plants

With the organic and fresh food opportunity described in the above section Izumi Dai may be

challenged by a stronger locally grown marketing scheme and perceived to be more ldquogreenrdquo

Izumi Dai is not initially interested in aquaponics as the tradeoffs between fish and plant

population would reduce the density and capacity of fish production

f External Threat - Distribution channels (2)

Farmed tilapia imports as well as ocean-caught fish have mature distribution channels

already in place High volume grocery chains and restaurants typically contract food distributors

and do not allow independent suppliers which overlap with distributor products Distributors

of course will stock products that will allow high margins and have consistent dependable

supply chains With the low labor costs and economies of scale farmed imports have


unbeatable prices in order for Izumi Dai to break into distribution it must first work

independently to distribute product and build branding until distributor clients ask for organic

local tilapia

13 Strategy canvas and strategy curves

Figure 2 Strategic Canvas for the Industry

Izumi Dai created a strategic canvas which covers 6 attributes of an aquaculture firm

ease of buying supply chain risk responsiveness health conscious sustainability and price

The attributes were given values from low to high based on producing tilapia and selling them

in the southern California region The players who received values were Izumi Dai in the initial

production years Blue Ridge Aquaculture a major large-scale US aquaculture competitor and

an East Asian importer of frozen tilapia


Ease of buying is defined by the number of point of sale locations to consumers Izumi

Dai will initially have a low footprint of retail locations This will be a large challenge for Izumi

Dai Blue Ridge aquaculture was low to moderate ease of buying due to limited geographical

range They have a large portfolio of locations in the Midwest and East We believe their

national connections would give them an advantage in Southern California Asian importers

have a high ease of buying as frozen fillets can be packaged by multiple distributors and

transported through a wide network of buyers

Tilapia supply chain risk includes supplier product flaws and timing and inventory issues

which can affect fish production and quality Izumi Dai has a low supply chain risk By investing

in self-grown sustainable feed off the shelf equipment and tilapia breeding the exposure to

risk from suppliers is low and internally managed Blue Ridge has a moderate supply chain risk

with its large operation Unique large-scale filtration systems are believed to be used along

with commercial feed Asian importers have a high supply chain risk based on downstream

partners including shipping and distributors Packaging and shipping across the Pacific along

with lead times adds risk to the quality and distribution to customers

Responsiveness evaluates the time it takes to adjust to customer requests including

packaging and quantity Izumi Dai has a moderate responsiveness score This is attributed to

the fact that the modular tank systems can be scaled with demand although an upper limit for

initial capacity exists Time to market is low as Izumi Dai is close to local markets and

customers Blue Ridge aquaculture has a high responsiveness with its large production capacity

and experience in growing production levels and distribution Asian importers have a low


responsiveness rating due to long lead times and their model of offloading frozen fish at full

capacity to lower prices

Health conscious is a rating assessing the consumer expectation of pollution and

chemical free hormone-free safe and nutritious fish Izumi Dai has a high health conscious

rating Marketed as organic and hormone-free Izumi Dai will make quality the differentiator

with imports Blue Ridge Aquaculture also received a high rating for health conscious since it is

marketed as hormone and pollutant free Feed sources are not revealed publically Asian

importers received a low health conscious score Importers have been discovered to have

poor unregulated tilapia raising conditions with measured pollutant levels found in their fish

(Barboza 2007)

Sustainability is the effect of the tilapia farm on the environment balance of resource

inputs and reuse of outputs Izumi Dai rated high in sustainability due to plans to create a

sustainable food source thus eliminating the demand for protein feed Blue Ridge rated

moderate to high Like Izumi Dai Blue Ridge uses the recirculating aquaculture model to

reduce water usage However it is unclear whether Blue Ridge uses a sustainable feed source

or relies on commercial protein feed which commonly consists of fishmeal Asian importers

received a low sustainability score since they typically use outdoor pond setups which utilize

large amounts of water and runoff Antibiotic and hormone use have unknown effects on the

natural ecosystem Price is the fillet gate price per pound Izumi Dai has a high price for fillets

Labor and infrastructure costs are required for implementing a vertical supply chain strategy

and setting up facilities in Southern California Izumi Dai believes consumers will pay the high

price for safety piece of mind and quality Blue Ridge has a moderate price with Asian


importers at a low price Although Blue Ridge has a large economy of scale advantage it still

cannot beat Asian import prices According to Virginia Tech professor Dr Lori Marsh US

aquaculture producers cannot raise tilapia for the sale price of Chinese and Thai imports

(Valencia 2011)

By reviewing the strategy canvas one can see that Izumi Dai understands it cannot beat

imports on price Instead Izumi Dai will focus on sustainability and quality as food sources

become further scrutinized in the media and supply is limited further

14 Suggested changes to current strategic plan

Given that this thesis represents a startup company as opposed to a case study of an

existing company all items included in this paper are of strategic importance to the viability of

the undertaking Additionally Izumi Dai does not plan to copy its competition because of its

reconstructionist approach that transcends market boundaries and industry structure Rather

the company intends to differentiate themselves on quality in an attempt to establish a Blue

Ocean in Southern California The sections below are based on Blue Ocean Strategyrsquos four

actions framework and highlight the importance of remaining true to our current strategy

a Create a certified healthy source of fish protein (1)

Health conscious consumers in Southern California do not have ubiquitous access to

healthy fish protein of proven origin Izumi Dairsquos strategy to certify its food as Organic Halal

and Kosher will mitigate this shortcoming Additionally the ldquoMade in Americardquo tag line will

mitigate undesirable psychographics related to tilapia and aquacultures The companyrsquos insight

and deep understanding of what its competitors and customers are about allows it to maximize

the power of market information which relates to Sun Tzursquos Deception and foreknowledge


Furthermore the companyrsquos focus divergence and compelling tagline is anticipated to lift

buyer value and create new demand

b Raise supply availability to year-round operation (1)

Izumi Dairsquos intention to leverage proximity to market as well as heterotrophic SCADA

and modular tank technology to keep operational expenses low year-round represents a

substantial advantage compared to the companyrsquos US-based competition that relies mostly on

seasonal climate and labor This strategy will allow the company to capture the fresh and

healthy tilapia market without fighting with the local competition Izumi Dairsquos fresh products

and unique brand will be in front of customers year-round which will increase their confidence

to pick our product over a seasonal competitorrsquos It also allows the company to attack its

competitors at their weakest point because they are unable to provide high quality fresh tilapia

to the local market space given their geographical location and ecologically harmful practices

c Eliminate seasonal fluctuations in supply (2)

Izumi Dairsquos strategy of vertical integration ensures constant production quality The

strategy also reduces the bargaining power of suppliers as well as buyers because no other local

aquaculture will have the capability to consistently produce tilapia of the same quality in the

short run Speed and preparation will be central to the success of the initiative

d Reduce harmful ecological impacts (3)

Izumi Dairsquos differentiating strategy to build an ecologically friendly and self-sustaining

facility represents a substantial departure from the traditional overseas fish farm that depletes

the nutrients in natural bodies of water and that generates substantial pollution in the form of

residual chemicals nitrates and carbon footprint This strategic approach is anticipated to


result in free recognition by customers and local media which in turn will help with demand

creation and branding

15 Concrete and specific strategic and major tactical actions

The IBISWorld Industry Report notes that ldquoLocal producers will continue to face

competition from importsImports will continue to challenge the viability of many US

aquaculture producers and limit growth in company numbers and employmentrdquo (McBee 2012)

In order to address the competition from tilapia imports Izumi Dai has developed a strategic

plan which focuses on avoiding the strengths of the import competition and exploiting its

weaknesses and prioritizing specific market segments

a Avoid strengths and attack weaknesses

The main strengths of tilapia importers which will be analyzed collectively and not

individually are high volume output and low price Izumi Dai acknowledges that it could not

profitably compete in the areas of volume and price when stacked against foreign importers

Consequently Izumi Dai has evaluated the weaknesses of these competitors in order to find

solid footing upon which it can compete Izumi Dai has concluded that the primary weaknesses

of the import competition which it plans to exploit are quality and location

Quality Izumi Dai will farm high quality organic tilapia Organic certification is a key

differentiator because it is a quality benchmark that imports have not attained In addition to

organic certification Izumi Dai plans to qualify for Halal and kosher certifications thus

differentiating its tilapia further and appealing to a broader market segment

Also related to quality is the farming environment Izumi Dai has plans to farm tilapia

using environmentally friendly aquaculture practices To emphasize this portion of its strategy


Izumi Dai plans to offer both physical and virtual tours of its operations The virtual tour will be

experienced via Izumi Dairsquos website On the website a patron can explore an illustrated layout

of Izumi Dairsquos aquaculture operations The patron will be able to see actual photos and videos

regarding specific aspects of the aquaculture process by selecting links available on the

illustrated layout Izumi Dai is confident that this degree of transparency will result in increased

confidence from clients

Location Izumi Dai will leverage its advantageous location in Southern California by

establishing a network of strategic alliances with local grocers processors restaurants and

markets As discussed in section 17 of this report there is a growing trend among consumers

to purchase and support locally farmed products Izumi Dai knows it can help the local

commercial players capitalize on this emerging trend Similarly Izumi Dai understands that

these commercial players could also significantly increase its brand awareness and presence in

the local community

One idea of how this reciprocity could be realized is to have informational pamphlets or

other materials about Izumi Dai on display at participating sites For example pamphlets could

be displayed at a local specialty grocer for customers to take while visiting the seafood section

The specialty grocer knows that its customers want a high quality locally farmed fish By

sharing the pamphlet with its customer the specialty grocer markets its unique product and

wins the confidence of the customer Izumi Dai benefits by receiving exposure


b Win all without fighting Prioritize markets and determine competitor focus

Through market prioritization Izumi Dai has decided to make the Southern California

specialty food market its primary target segment This market has been selected because of its

location and growth and profitability potential In order to secure footing in this market Izumi

Dai is planning to launch a marketing and branding campaign aimed at increasing both brand

awareness and loyalty The first phase of the campaign will be focused on creating a website

for Izumi Dai A website is a critical component for businesses operating in this day and age

The website will serve as a window allowing individuals to have an intimate glimpse into the

operations and culture of Izumi Dai By visiting the website individuals will be able to learn

about who Izumi Dai is and why it is unique for example highlights regarding Izumi Dairsquos

community outreach and involvement initiatives Once the website is completed Izumi Dai will

be ready to move onto the second phase of the campaign

The second phase of the campaign is a series of video journals that will be released on Izumi

Dairsquos website The video journals will chronicle Izumi Dairsquos pre-production operations like tank

set-up to its post-production operations such as its first harvested tank of tilapia The purpose

of the video journals is to promote brand awareness and loyalty by allowing viewers to

participate in Izumi Dairsquos journey and experiences

The third phase of the campaign which will also begin and run concurrently with the second

phase is the creation of Twitter and Facebook accounts The timing of such action will be

critical as speed and deception are central to the success of the initiative Pre-production

Izumi Dai plans to use these social networking sites to keep potential clients and customers

informed regarding its production schedule These sites will be a perfect platform for releasing


and disseminating video journals photos and other updates Post-production Izumi Dai plans

to use the sites to communicate news updates promotions and other relevant and exciting

material to its customer base

All three of these phases combine to form a brand experience Customers within the

specialty food segment do not only want high quality food but they also want to be a part of a

causemdashthe bigger picture By showing its clients what it does and what it stands for Izumi Dai

will be able to give their consumers an opportunity to participate in a cause which promotes

responsible farming healthy lifestyle and community cohesion


16 Implementation plan and time line


17 What do you expect the competitor to do

An implication wheel is a visual tool used for strategic decision making It addresses the

possible actions a competitor may take in response to a strategic move made by a competing

firm In this case the strategic move proposed by Izumi Dai is the central node shown in figure

12 The arrows branching off the central node point to the perimeter nodes which are the

possible actions Izumi Dairsquos competitor may take The counterpunch nodes detail Izumi Dairsquos

counter measures which it plans to implement in order to counter and mitigate the effect of

the competitions various responses

As discussed earlier the competition is comprised of both Latin American and Asian

imports The various nodes of the implication wheel specify which of the two types of

competitors is being analyzed The analysis of the implication wheel begins with the node in

the upper left hand corner and then proceeds clockwise

As discussed in section 5 the competitive landscape of the aquaculture industry is

highly fragmented with low levels of concentration Thus the actions of one firm will more

than likely not elicit a direct response from competing firms Consequently Izumi Dai estimates

that the probability that the importers will take no action in response to their strategic move is

30

Izumi Dai estimates that the probability of Latin importers responding by offering a

fresh organic tilapia fillet is 20 Section 9 of the report addresses the growing trend for Latin

importers to conform to higher health and quality standards A natural extension for these

importers would be to convert a portion of their farms to accommodate organic farming

conditions thereby capitalizing on the growing demand for organic products in the US


However qualifying for organic certification can be a lengthy process Therefore the estimated

time to implement such a strategy would be anywhere from six months to a year

Izumi Dai anticipates such a move from Latin importers and as such is planning to

immediately differentiate itself by marketing its tilapia as farmed locally in the US under US

standards A growing trend among consumers is the desire to support local farmers In fact

ldquoWhen the National Restaurant Association (NRA) unveiled the results of its ldquoWhatrsquos Hot in

2012rdquo chef survey in December few were surprised that locally sourced meats and seafood

secured the No 1 spot on the list of top 10 menu trends for this year Or that the term local

showed up in three other trends on the listrdquo (Fletcher 2012) Izumi Dai plans to leverage this

growing trend in its favor by establishing strategic alliances with local restaurants markets and

grocers

The probability that a Latin importer will respond by opening a US based aquaculture

farm in order to compete in the fresh organic locally raised tilapia market is 20 For

example Regal Springs which operates tilapia farms in Honduras and Indonesia has also

expanded into Mexico Since these companies are exporting their tilapia to the US it makes

sense for them to have operations with a closer proximity to their destination market thereby

cutting back on transportation costs and shortening the length of the supply chain Such a

transition would be lengthy taking at least one to two years before the farm was producing

Knowing that such a move by a foreign competitor may be a possibility Izumi Dai has

developed a three-pronged approach to bolster the loyalty of consumers distributers and

communities


First Izumi Dai plans to start immediately building brand awareness and brand loyalty

With an emphasis on its local presence Izumi Dai hopes to be a gregarious and transparent

operator within its community Tours of the farm will be open to the public A Facebook page

and other social media websites will be used to disseminate information and promotions Izumi

Dai wants consumers to know who they are and what they do

Second Izumi Dai will form strategic alliances with local restaurants distributors

processors and markets Currently in the Southern California area there is a scarcity of local

tilapia farms Therefore Izumi Dai will have the first move advantage when establishing

relations with these players With time Izumi Dai is confident that it will establish loyalty

through its unprecedented quality and service

Finally Izumi Dai wants to strengthen its ties to the community by embracing value

added initiatives in the form of community outreach Izumi Dai is already in talks with

individuals about concepts such as Spectrum Farming Spectrum Farming is a program

designed to help individuals on the autism spectrum find fulfillment receive treatment and

have meaningful experiences through work Izumi Dai will devise a plan to allow individuals on

the autism spectrum contribute and work on the farm as a part of their healing process

Now addressing the Asian importers the probability that Asian importers respond by

offering a frozen organic tilapia fillet is 20 The estimated time to implement such a strategy

is one to one and a half years

As a countermeasure Izumi Dai would eventually like to source a processor such as

Pacific Seafood or Ocean Beauty who could help bring a frozen organic fillet to market Such a

fillet would allow Izumi Dai to reach a broader market outside of its local presence This


product would help Izumi Dai maintain market share that it may have potentially lost if such a

product was not introduced

The probability that an Asian company responds by opening a US based aquaculture

farm in order to compete in the fresh organic locally raised tilapia market is 10 The reason

that the probability is lower for the Asian companies than for their Latin counterparts is

because the Latin companies are already firmly established in the fresh tilapia supply chain

whereas the Asians are not dominating the frozen supply chain As a countermeasure Izumi

Dai plans to implement the same three-pronged strategy mentioned earlier


Implication Wheel


18 Business Startup Scenario

a Phase 2 Pilot stage proof of concept

Funded by initial business partners with private capital the pilot stage will be an initial

grow out of tilapia to test assumptions and to have a product for additional investors and

customers This stage will include breeding tilapia and growing to selling weight This will allow

monitoring and control of water health levels and system fluctuations The alternative feed

solutions will be setup at a reduced scale and feasibility will be analyzed to reduce feeding

costs The pilot stage will be a scaled down and accurate representation of the full production

stage

Assumptions include free facilities and free labor provided by funding team members

Facilities require approximately 300 square feet with electricity and water on residential

property All equipment will be reused in the production phase

Tank and Equipment Cost Breakdown Tanks $2000 Biological filters $2000 Pump $500 Plumbing and fittings $300 SCADA Monitoring $600 tilapia Breeding Pairs $800 Heating $300 UV filter $200 Electricityyear 1000 Feed 2000 Total $9700


b Phase 3amp4 Acquisition and Production

Initial production will require approximately 5000 square feet of enclosed area for fish

breeding and grow out Utilizing an existing greenhouse or manufacturing structure Izumi Dai

will rent or lease property in San Diego County with electricity and water access With a site

obtained tank construction and equipment procurement will proceed along with transport of

the proof of concept tilapia and equipment

A sample layout is proposed below Main tanks will be 30 feet in diameter with a depth

of 4 feet Equipment including filters heaters aeration and monitoring equipment will be

collected to two pods next to each tank The hatchery area will include tilapia breeding pairs

and new fry holding Fry tanks allow young tilapia to grow in a special feed and filtering

environment up to a size allowing introduction to the main tanks Sample layout below


Costs associated over the first 5 years are detailed in below Again capital will be

provided by Izumi Dai owners with equal equity Equipment in the first year will be major

upfront costs Equipment costs in the following years are assumed to be approximately 20 on

initial investment for maintenance and replacement Unused equipment will be an opportunity

split between equipment upgrade and sales and marketing Labor will include one full-time

employee on site labor provided by Izumi Dai partners will not be compensated until the

company reaches profitability Additional labor provided through internships will be explored

with California agricultural colleges Land lease was estimated from open land with existing

greenhouse structures in Escondido California

For the purpose of a technical summation of fish production costs fully independent

alternative feed and energy were not included Savings from these initiatives will be considered

a long range opportunity Feed costs include 50 alternative feed and 50 commercial feed

Commercial feed will supplement the alternative feed through full sustainment to cover the risk

of an internal feed breakdown

Marketing will include distributor media consumer education through social media and

activity in aquaculture organizations The long range plan produces a net profit between the

fourth and fifth year of operation at a very conservative estimate of $2 per lb


Expense Tanks Biological filters Pump Plumbing and fittings SCADA Monitoring Breeding Pairs Heating UV filter Aeration Equipment Subtotal

Electricityyear Water Commercial Feed Labor Rent Truck and transportation Marketing Total

Production (live lb) Cash Inflow ($2lb) Cumulative Returns

Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography

(nd) Retrieved from Youtube httpwwwyoutubecomwatchv=JCJyyA8LlnY

(nd) Retrieved from Youtube httpwwwyoutubecomwatchv=8ng5cHEQwQQ

About CCOF Organic Certification (2013) Retrieved from Certified CCOF Organic httpwwwccoforgcertification

About our tilapia (2011) Retrieved from Premier Organic Farms httpwwwpremierorganicfarmscomfishhtml

About us (2013) Retrieved from Blue Ridge Aquaculture httpwwwblueridgeaquaculturecomaboutuscfm

About us (2013) Retrieved from Sarasota Organic Tilapia Farms httpwwwsarasotaorganicTilapiafarmscomcontentabout-us

ASC to help China tilapia farming (2012) Retrieved from Seafood Source your global seafood solution httpwwwseafoodsourcecomnewsarticledetailaspxid=18773

Avnimelech Y (nd) A practical guide book on Biofloc Technology World Aquaculture Society

Banna J (2011 February 9) Is tilapia fish healthy Retrieved from LIVESTRONG httpwwwlivestrongcomarticle377292-is-Tilapia-fish-healthy

Barboza D (2007) In China Farming Fish in Toxic Waters Retrieved from The New York Times httpwwwnytimescom20071215worldasia15fishhtmlpagewanted=allamp_r=0

California Department of Fish and Wildlife (2013) Retrieved from httpsnrmdfgcagovFileHandlerashxDocumentID=3256ampinline=true

Coburn R (2011) Escondido Tilapia Farm Retrieved from Born Activist httpbornactivistcomarchivesesondido-Tilapia-farm

Daneels A amp WSalter (2012) Joint Accelerator Conferences Website Retrieved from httpaccelconfwebcernchaccelconfica99papersmc1i01pdf

Dettmann R L (July 2008) A Demographic Profile of Organic Produce Consumers Economic Research Service USDA

Farming with Fish Aquaponics (2013) Retrieved from wwwfarmingwithfishcom

Fletcher J (2012) A Case for Sourcing Locally Retrieved from QSR httpwwwqsrmagazinecomingredients-daypartscase-sourcing-locally


Frishberg M (nd) How to Make a Biogas Plant at Home With Cow Dung Retrieved from eHow httpwwwehowcoukhow_5966772_make-plant-home-cow-dunghtml

Future Food Farms (2013) Retrieved from httpwwwfuturefoodsfarmscom

Gjedrem T Robinson N amp Rye M (2012) The importance of selective breeding in aquaculture to meet future demands for animal protein A review Aquaculture

Green certification and ecolabeling (nd) Retrieved from US small business administration httpwwwsbagovcontentgreen-certification-and-ecolabeling

Grow Foods (2012) Retrieved from httpwwwgrowfoodsinccomhydronovhtml

Hitt Ireland amp Hoskisson (nd) Strategic Management Competitiveness amp Globalization Cengage Learning Part 2 strategic actions strategy formulation slide 44

Home (2011) Retrieved from Premier Organic Farms httpwwwpremierorganicfarmscomhomehtml

How Millennials Are Changing Food as We Know It (2012) Retrieved from Forbes httpwwwforbescomsitesbethhoffman20120904how-millenials-are-changing-food-asshywe-know-it

Humus-the foundation of living soil (2006) Retrieved from Bio-Dynamic Assocation of India (BDAI) httpwwwbiodynamicsinhumushtm

Kim W C amp Mauborgne R (2005) Blue Ocean Strategy How to Create Uncontested Market Space and Make Competition Irrelevant Harvard Business School Publishing Corporation

McBee J (2012) IBISWorld Industry Report 11251 Fish and seafood aquaculture in the US IBISWorld Inc

McNeilly M (2013) The Art of Business ndash Sun Tzu Oxford University Press

Operations (2011) Retrieved from Premier Organic Farms httpwwwpremierorganicfarmscomoperationshtml

Park M (2012 February) California sets trend in health regulation Retrieved from CNN httpwwwcnncom20120210healthcalifornia-leads-health-laws

Rasing earth worms (2013) Retrieved from Red Worm Composting httpwwwredwormcompostingcomraising-earth-worms

Regal Springs Honduras Farm Receives BAP Certification (2013) Retrieved from Regal Springs httpwwwregalspringscomcertifications


Rosenthal E (2011) Another Side of Tilapia the Perfect Factory Fish Retrieved from The New York Times httpwwwnytimescom20110502scienceearth02tilapiahtmlpagewanted=all

Sage Hospitality (2010) Retrieved from httpwwwsagehospitalitycoms=david+marsh

Strategic growth plans (2013) Retrieved from Blue Ridge Aquaculture httpwwwblueridgeaquaculturecomstrategiccfm

Tank Culture of Tilapia (June 2009) Southern Regional Aquaculture Center

(2012) The State of World Fisheries and Aquaculture United Nations Food and Agriculture Organization

(2002) Tilapia Aquaculture in North Carolina North Carolina Department of Agriculture and Consumer Services

tilapia profile (2013) Retrieved from Agricultural Marketing Resource Center httpwwwagmrcorgcommodities__productsaquacultureTilapia-profile

United States Department of Agriculture (nd) Retrieved 2013 from httpwwwersusdagovtopicsnatural-resources-environmentorganic-agricultureorganicshymarket-overviewaspx

United States Department of Agriculture (2013) Retrieved from httpwwwersusdagovdatashyproductsaquaculture-dataaspxUWOFoZOG1Mk

Uyen N D amp Bi W (2012) Asian Seafood Raised on Pig Feces Approved for US Consumers Retrieved from Bloomberg Businessweek httpwwwbusinessweekcomnews2012-10-11asianshyseafood-raised-on-pig-feces-approved-for-u-dot-s-dot-consumers

Valencia J (2011) Unlikely niche Blue Ridge Aquaculture has become the countrys biggest producer in indoor-raised tilapia Retrieved from Blue Ridge Aquaculture httpwwwblueridgeaquaculturecomdocumentsRoanoke_Times_5-1-11pdf

Vince G (2012) How the worldrsquos oceans could be running out of fish Retrieved from BBC httpwwwbbccomfuturestory20120920-are-we-running-out-of-fish

Who are we (2013) Retrieved from Eden Aquaponics httpedenaquaponicscomwho-are-we

Wholesale farm pickup (2013) Retrieved from Sarasota Organic Tilapia Farms httpwwwsarasotaorganicTilapiafarmscomcontentwholesale-farm-pickup


Project Signature Page

Thesis_-_Tilapia_Aquaculture_in_SoCal_-FINAL_LOCKED-_R4


a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself










11 Critical resources strengths core capabilities core competencies and weaknesses


















Implication Wheel




Contents 1 Hittrsquos seven external segments of the general environment affecting the industry 3

a Economic (2) 3

b Demographic (2) 4

c Political Legal (3) 4

d Technological (1) 5

e Global (3) 6

f Sociocultural (1) 6

g Physical (2) 7

2 Five forces of competitive strategy in the industry 7

a Rivalry among competing firms (2) 7

b Threat of new entrants (2) 8

c Bargaining power of suppliers (1) 9

d Bargaining power of buyers (2) 10

e Threat of substitute products (3) 11

3 Two-dimensional strategic group map for the industry 12

4 Specific competitors in the industry 14

a Competitive Environment 14

b Immediate Competitors 15

c Impending Competitors 19

d Invisible Competitors 22

5 Major Competitors and their market share 25

6 Why is our startup a good idea 26

a Macro Economics and Competition 27

b Tilapia itself 28

c Tank Design and Technology 29

d Organic Halal Kosher and Made in America 31

e Production method inexpensive energy 32

f Production method inexpensive organic feed 33

7 Our current and projected strategy 34































a Economic (2)
















future


b Demographic (2)




























d Technological (1)



























e Global (3)









f Sociocultural (1)
















g Physical (2)






























be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel

































a Economic (2)
















future


b Demographic (2)




























d Technological (1)



























e Global (3)









f Sociocultural (1)
















g Physical (2)






























be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




b Demographic (2)




























d Technological (1)



























e Global (3)









f Sociocultural (1)
















g Physical (2)






























be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel









d Technological (1)



























e Global (3)









f Sociocultural (1)
















g Physical (2)






























be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel













e Global (3)









f Sociocultural (1)
















g Physical (2)






























be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel















g Physical (2)






























be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






















be risky


















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




















an aquaculture farm












products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel










products







power
















































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel












































group




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




































operations
































Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






















Grow Foods Inc (1)

























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel
























aquaponics industry





















academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel























academics









































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel











































Premier Farms (2)






































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




































Eden Aquaponics (2)




aquaponic system

































us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




























us 2013)rdquo





grade tilapia




















































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel








































analysis















reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel










reasons below











or poultry




years















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel

















b Tilapia itself










Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel





Tilapia June 2009)














































































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




























































as well
















(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel







(Youtube Frishberg)














































value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






























value




and technology

















































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel





































extinct















(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






(Rosenthal 2011)
































weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel


























weaknesses







Strengths





C ore Competencies



Weaknesses








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel








Strengths




C ore Capabilities


Core Competencies





Critical Resources



Strengths



C ore Capabilities


Core Competencies














companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






companies













































local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel





























local tilapia









































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel



































(Barboza 2007)

















(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel







(Valencia 2011)














































































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






























































the local community


























































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel






















































30

















grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel














grocers










communities


































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




































Implication Wheel










stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel












stage







































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel





































Year 1 $35000 $28000 $7000 $2500 $5000 $1600 $2000 $2000 $2000

$85100

$20000 $5000

$15000 $60000 $36000

$20000

$10000 $251100

20000 $40000

($211100)

Year 2 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8510

$20000 $5000

$15000 $63000 $36000

$4000

$10000 $161510

100000 $200000

($172610)

Year 3 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $66150 $36000

$4000

$10000 $164460

120000 $240000 ($97070)

Year 4 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $69458 $36000

$4000

$10000 $167768

120000 $240000 ($24838)

Year 5 $3500 $2800 $700 $250 $500 $160 $200 $200 $200

$8310

$20000 $5000

$15000 $72930 $36000

$4000

$10000 $171240

120000 $240000 $43922


Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




Bibliography





















































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel







































a Economic (2)

b Demographic (2)


d Technological (1)

e Global (3)

f Sociocultural (1)

g Physical (2)
















b Tilapia itself




























Implication Wheel




tilapia farming in recirculating aquaculture systems nettlesandrew_spring2013

Documents

major competitors

specific competitors

immediate competitors

impending competitors

invisible competitors

competitive environment

bargaining power of

bargaining power of