Paolo Martin Uy
A Case Study on Aquarius Food Industries, Inc.
I. Central Issue
Aquarius Food Industries, Inc. experienced stable, nearly flat sales growth for the past few years. The company desires to boost sales and profit, and strengthen its position in the industry.
II. Areas of Consideration
a. External Analysis
i. Macro Environment
Security issues in Mindanao
AFI strictly implements a 30 days credit term to its customer beginning from the delivery date. However, with the recent business downturn in Mindanao partly due to the Abu Sayyaf hostage crisis, customers have been stretching these payment terms to 60 days. ii. Micro Environment
1. Industry Rivalry
Mindanao market share
In …show more content…
O4,W1,O1 – Provide monetary support to intermediaries.
T1 - Security issues in Mindanao
T2 - Lasap under new management
T3 – Increasing processed food manufacturing firms
T1,S3 - Address credit policy issue by giving discounts by if they purchase more.
T3,T2,S1,S2,S3,S4 - Further promote and strengthen ties between dealers to combat Lasap’s new management and other substitute products.
W1,T2,T1 –Promote Neptune brand through profitable discount benefits for the wholesalers.
Top 3 ACAs
S1,O1,S4 – By promoting and informing the market of Neptune’s distinct way of producing its bagoong alamang at the same time advertising to be the industry’s low-priced leader, the company might increase its market share and become the market share leader in Mindanao within its respective industry.
T3,T2,S1,S2,S3,S4/W1,T2,T1 – In order to stay competitive especially when Lasap poses a threat of grabbing the market share lead, AFI can promote and strengthen its relationship and loyalty from its wholesalers by giving reasonable discount benefits such as volume discounts. Cash discounts may also be an approach in gaining the wholesalers loyalty and at the same time being able to observe the credit policy of the company.
S3,O3 – AFI should take the Toll manufacturing proposal of SM since entering the