Adaptive Community for the Continuity of Education and Student Services

National Teachers College

ATAYDE, ARMIDA T.

Bargaining Power of Customers

Intensity of
Threat of Substitute
Competitive Rivarly Competitive
Product
Rivalry

Bargaining Power of Suppliers

In the shrimp production industry, there are primarily two varieties of rivalries:

Producer- Producer Rivalry – The foreign producer who export to the United States and local
shrimp producers to the United States. Due to cheaper labor costs, lower rent, and a suitable
climate in their country, exporters have natural advantages over local producers. They are more
productive, and they can harvest three times a year. Thus, In comparison to local producers, they
are able to produce and export shrimp at a very reduced cost.

Producers - Consumer Rivarly: In the United States, there is a conflict of interest among shrimp
buyers. The low-cost land and pleasant climate. As a result, there is a larger yield per acre and
harvests three times per year. In short, Brazilian producers benefit from production economics,
which covers them from this threat.

Threat of Substitute Product: A consumer who prefers to eat shrimp will continue to do so and
will not, obviously, replace it with any other seafood.

Consumer Bargaining Power: In todays world, the customer is always king, but considering the
supply of shrimp from Brazil to the United States. The American Seafood distributors
Association fully supports Brazilian producers.

Supplier Bargaining Power: As a major supplier, there is definitely some bargaining power with
Brazil, but because there are so many other competitors, the bargain power is diluted.

Intensity of Competitive Rivalry: The presence of several suppliers in the sector heightens of the
level of competitors. These competitors ; The Southern Shrimp Alliance, Brazilian producers,
and five other countries.