Situation Analysis:
Gujarat Fisheries Central Co-operative Association Limited (GFCCA), an apex body of the
fishermen operatives in Gujarat is facing a difficult decision about mobile fish selling vans
project. Mr. D M Patel, Senior Manager of GFCCA who was in charge of the project is not
sure about the continuation of the project . The governing body in order to make their retail
presence known in Ahmedabad, a city of about 5 million, decided to sell fish through mobile
vans. The activity was important to GFCCA since it had a lot of symbolic significance
attached to it and was also the only retail activity and increased its(GFCCA) visibility.
However, the functioning of mobile van project was facing a great deal of difficulty in terms
of Market and Competition, Costs, Location etc, the project could be a profitable venture,
however due to expenses incurred, trouble with the customers, competition with other local
fish sellers etc is making the operation of the project increasingly difficult, also the activity
showed deficit every year. Mr. D M Patel is not sure of what to present for the mobile selling
vans project to the Governing Body.
Problem Analysis:
If mobile fish selling venture is to be continued, then what measures should be taken to turn
it into a profitable venture?
Options:
Option 1: With the advent of technology, we can sell fish online, there in a great
potential for online fish business.
Option 2: Diversifying sources of income by developing new markets and discontinuing
the mobile van project.
Option 3: Recommend continuation of Mobile Van Fishing Project by making efforts to
cut costs and focusing on Profit Maximization
Criteria:
Strategic Location
Cost Minimization
Understand Consumer Habits
Target Market
Profit
Evaluation of Options:
Option 1: Digital Marketplace.
We can use digital tools for the expansion of market and nowadays, E-commerce
provides a platform to sell fishes online, there is no constraints involved in terms
of strategic location, understanding consumer habits, or target market as buyers
will order online and avail the service of door step delivery. E-commerce is a huge
platform and the area of the market is vast, it will incur some advertisement cost
and will take time to generate profit, but overtime can turn into a booming venture
and has the likelihood of tremendous growth and getting huge returns (Profits).
Though this option might provide an alternative, there still might exist skepticism
amongst consumers regarding quality, packaging, difficulty with payment options.
Option 2: Exploring new and innovative market.
Gujarat is the Third largest fish producing State in India and according to World
Bank leads in Ease of doing business. GFCCA can decide to discontinue with the
project and instead set up small retail business units and discover various other
forms to market, Fishery marketing is defined as the performance of all business
activities involved in the flow of production, which include capture fisheries and
aquaculture in both fresh and processed forms from the point of production until
reaching the hands of end consumers. We can explore various markets such as
automat restaurant ; bistro, which is a small restaurant; canteen; café; rail road
catering, which is a restaurant inside a train. Guests can dine at the restaurant or
tell their orders to the waiter ;steak house, which is a restaurant specializing in
selling roasted food; drive inn ; rathkller, which is a typical German restaurant
usually located at the bottom of a staircase or in a basement and specialties
restaurant, which is a specialty restaurant that serves typical dishes from a certain
region or country. For this purpose the main criteria would be, Strategic Location
and Target Market. Ahmedabad is predominantly vegetarian population, hence it
is wise to consider the factors such as location, competition and consumer
behaviour. It is vital to bring about market oriented innovations according to
customer’s preferences and needs. Developing and expanding the market reach
can turn out to be a profitable venture, if the market is analysed properly and
necessary steps are taken keeping in mind various aspects influencing the fishery
industry.
Option 3: Continuation of the Mobile Van fish-selling project.
Mobile fish-selling vans project as a whole turned out to be a profitable venture in
the national capital, New Delhi, and generated a surplus. So there really exists
huge potential of benefitting from the project if it succeeds. GFCCA can make
efforts to cut costs by weeding out the middlemen, like if the driver is capable of
handling cash transactions, then he can be employed and given some financial
responsibilities. The project is getting affected because competition from vendors
operating without license from the authorities. In this case of illegal vendors
should be reported immediately and strict action must be taken against vendors
violating the law. The project is also facing a setback because of population being
a predominantly vegetarian, local people not allowing vans to park, thus the
criteria of strategic location and target market should be considered, along with it
understanding consumer behaviour is very vital. Hence it is important to take
action and through strategic implementation mobile van project can become a
successful venture.
Recommendations:
I would recommend option 3, Mobile van project has future of becoming booming project if
proper attention is paid to factors affecting the project and eliminating them. It is important to
make strategic choices and implementing them at each and every stage of development
process.
Plan of Action:
For the project to be successful, it is important to take calculated measures and tap into the
growth drivers, so as to minimize cost and maximize profit. For this purpose, one should have
complete and proper knowledge scenario prevalent in Ahmedabad, to gain competitive
advantage. Care should be taken while selecting the location and target market.
Efforts should be made to cut down the expenses incurred vehicle maintenance, insurance cost
of the vehicle and driver’s etc. The project is facing competitive threat from illegal local vendors
selling fish without authorised license and former employees. Steps should be taken to stop such
activities, in case of vendors operating without license, should be reported and strict action must
be taken, whereas in case of employees, utmost care must be taken in management to stop the
possibility of leakage of critical confidential information. Preventive measures such as keeping a
regular check in the outflow of confidential information from the company, stringent security
measures and access to sensitive information etc. should be undertaken.
