Huon Aquaculture Analysis Assignment Sample

• Subject Name : Management

Publicised Scrutiny and Mediatised Environmental Conflict

Table of Contents

About.

Industry analysis.

General environmental analysis.

Competitor Analysis.

Opportunity.

Threat.

Internal analysis.

Capabilities.

Core Competencies.

SWOT Analysis.

Current Strategies.

Strategies.

References.

About

Huon Aquaculture is one of the largest salmon producers in Australia. Its operations range from hatchery and marine farming to processing and harvesting. This organization is the largest aquatic and food processing company in Tunisia. The company was founded in 1968. Moreover, this company has grown to become second largest salmon producer in the country after ASX registrar Tassal. The company engages 488 Tasmanians and producing 25,000 tons of salmon per year (Huon Aquaculture, 2020).

Industry Analysis

Huon Aquaculture is a locally owned public organization that earns from farming, hatching, marketing, processing, and sales of trout and salmon product. The organization employs about 680 people working in Australia and is based in Dover, Tasmania. This organization is listed on the ASX with the code “HUO”. This organization is family-owned and operates vertically united salmon producer within Australia. The company specializes in farming, hatching, processing, marketing, and sales of Ocean trout and Atlantic salmon. These categories include export markets and domestic markets. Their main product is fresh HOG salmon. The company has invested 400 million dollars over the past five years to ensure it can meet Salman's needs over the past five years. To work on a larger scale and in the contagious region in Tasmania, Huon aquaculture continues to modernize and engineer solutions using technology so that it can be installed on the edge of aquaculture. The company produces more than 20,000 tons of ocean trout and Atlantic salmon each year as well as it is manufacture of smoked salmon products. This organization provides a wide range of products from the overall fresh fish to smoked salmon to markets across Australia and worldwide. It provides breakfast, lunch, dinner, reserve selection, seafood, and snacks (Cullen-Knox et al. 2019).

General Environmental Analysis

Huon aquaculture mainly focuses on processing, farming, marketing, and distributing high-quality Atlantic salmon products (and some trout) to a wide range of retail and wholesale customers throughout Australia and Asia. My favorite industry is the salmon industry and to some extent the fishing industry in Tasmania and Australia. Australia is a huge coastal country with competitors in the market. Moreover, Huon aquaculture is proud of the Australian salmon industry for its ability to produce, grow and add value. This organization has a proud Tasmanian heritage history and has formed an accepted band since 1986. Huan is proud of his commitment to farming methods and corporate marketing initiatives that have enabled it to further strengthen its position as a global salmon producer. While this organization is now portion of duopoly in Tasmania, it is competitive.

Competitor Analysis

The number of competitors in this industry is very few, managed by Huon Aquaculture. The main competitors are Tassal Group Limited, Petuna Pty Limited, Marine Harvest Limited, JicaFoods, Diamond of California, Mickey’s Muffins, and Powerful. In general, it is also large in size. It means that organizations in the industry will not create move without paying attention. It creates competition among current companies as a weak force in the industry. Very few competitors are big market partners. This means it will compete with its position and be the market leader. This creates competition among existing companies to become a strong force in the industry. This organization is growing each year and is probable to do this in the next few years (Kirkpatrick et al. 2019).

The products made in the industry are very different from those produced by Huon Aquaculture. Therefore, this is difficult for competing companies can be victorious over each other because each product is unique because it creates competition amid present companies as a strong force in the industry. The industry needs to increase capacity by increasing production. This upsets the balance of industrial demand and often leads to overproduction. Excess production means the company has to lower prices to sell products. It creates competition among current companies to become a strong force in the industry.

Opportunity

The significant population growth and great growth opportunities for business organizations, especially in existing or potential customer segments. Besides, changing customer preferences, needs, and tastes can be an opportunity if the business firm has good knowledge about market. The development of new technologies can be used to support in the production process and delivery of services or products to incorporate innovation into product activities. Integration of advanced technology can increase efficiency, reduce costs, and accelerate the recognition of innovative products. As a result of the change in taste, customers can select new and creative products. The emerging trend of social media marketing and e-commerce can be a great opportunity for the organization if Huon aquaculture can ensure a strong online presence on various social networking sites. Furthermore, the rise of new niches market delivers opportunities for business and product line expansion. In addition, subsidies given by the government and other policies to create the business environment more friendly for Huon Aquaculture is a positive factor of external environment (Kirkpatrick et al. 2019)

Threat

The changing regulatory structures as well as introduction of new stringent regulations enforce a major threat to Huon Aquaculture. This makes compliance with legal standards for business more challenging and complex. Incapability to abide by the changed regulation increases the risk of costly lawsuits. Moreover, the lack of capable labor within the marketplace can make it problematic for companies to attract the right skills.

The emerging number of indirect or direct competitors significantly affects the company's capability to expand and maintain its customer base. The worsening economic condition can affect business performance while affecting directly purchasing power and spending patterns of customers. Increased inflation increases production costs and affects the profitability of organization. The increasing trend of environmental sustainability has become a key threat if the environment is not environmentally friendly. This organization drew criticism and negative publicity from the environment and influences brand image within the competitive market. Along with that, globalization forces this company to cross national restrictions and manage cultural diversity that can have detrimental effects if the company does not have cultural intelligence (Hanson, 2014).

Internal Analysis

The geographical presence in various regions can be the main strength of this company. It determined the organization’s scope to the target markets and make sure simple convenience. With the help of a broad product portfolio, organization is able to expand their customer base and offset the loss from one product division with the advantage got from other products. The company can have a variety of intellectual property right that makes their product offers exclusive and unique, making it problematic for competitor to emulate. The efficient IT infrastructure can enhance operational effectiveness and improve knowledge about the modern market trend. Conversely, a current cash or asset deficit that does not adequately affect liquidity and does not impair business performance in general. Inadequate budgets for promotional activities and marketing undermine the company's capability to develop its customer base and inspire repurchases. In addition, high employee turnover and low organizational commitment can increase the costs of recruitment and decrease productivity in the company (Oldham et al. 2018).

Capabilities

Huon Aquaculture has many stores in almost all countries, it is maintained by a strong distribution network that ensures that its products are accessible easily to the large number of clients. This organization has strong relationships with dealers who not only supply their products but also focus on product promotion and corporate training. Furthermore, this organization has a healthy economic position with sustainable profits over the past five years, as well as accumulated profit reserves which can be executed to finance future capital expenditure. In addition, this organization has a larger base of assets that provides better liquidity (Gürel and Tat, 2017).

Core Competencies

Huon Aquaculture has earned positive returns with the success of capital invested in various projects in the past. More efficient use of resources and cost reduction have allowed different stages of production. This allows for consistent product quality and provides the capability to scale down and scale up production according to market demand. Huon Aquaculture has invested heavily in training its employees to create skilled and motivated employees. There are people from different geographical backgrounds, cultures, races, and education who have different ways of working and different ways to support organizations and professionals who recognize teams and work.

The innovative team of Huon Aquacultural Group Limited has allowed them to bring new product and enter new marketplaces. It has a strong existence on social media with many followers on popular social media platforms. This organization has a high-level customer engagement on such platform with low customer response time. It has an interactive and well-functioning website that attracts lots of sales and internet traffic. It has a great portfolio of products supplying a wide variety of products. It has many unique products offers that are not provided by competitors (Phadermrod et al. 2019).

SWOT Analysis

Current Strategies

Huon Aquaculture can take advantage of the economy of different scales of the industry by fighting new entrants through profit margins. This organization focused on innovation to differentiate their products from its competitors. It can be used for marketing to create a strong brand identity. It can purchase raw material from suppliers at low prices. In case, the cost of the product is not appropriate for the organization, it may be possible to switch suppliers due to lower replacement costs. They may have multiple suppliers in the supply chain. This organization have different suppliers for different geographical locations. Therefore, it can confirm efficacy in the supply chain. The industry is an important customer for suppliers, this company can benefit by establishing close relationship with the suppliers (Yüksel, 2012).

Over 30 years of history, Huon has certainly fit the demand. This long-term strategy has enabled businesses to invest significantly in freshwater, marine operations and processing function as part of a controlled growth strategy. This strategy is now fully operational and will provide the high volume of production although maintaining consistency, increasing the quality of the fish, and improve its productivity to drive high margin.

Strategies

The future strategy of Huon Aquaculture should be in line with the needs and requirements of the target market. The organization can focus on delivering more quality in its products. Therefore, consumer will choose a product that offers higher quality at a lower price than alternative quality products at higher price. The organization should provide effort on differentiating its products. It will ensure that consumer will get their unique products and it will not be easy to replace products that do not offer this unique benefit. The organization can provide unique benefits to its buyers through better understand their requirements using market research as well as offering what the buyers want. The organization should also focus on differentiation and innovation to attract more consumers. Product quality and differentiation are significant for the consumers in the industry and can attract many customers with its attention (Bleakley, 2019).

In other words, the organization must build the large customer base because the ability of buyers to bargain is not strong. They can do this through marketing exertions to increase brand loyalty. The company is able to benefit of its economy of scale to make cost benefits and sales at low price to low income consumer in this industry. Therefore, the company will be able to attract many buyers. In this way, Huon Aquaculture should conduct market research to recognize the supply-demand circumstances in the industry and to prevent overproduction.

References for Huon Aquaculture Analysis

Bleakley, P., 2019. Big fish, small pond: NGO–corporate partnerships and corruption of the environmental certification process in tasmanian aquaculture. Critical Criminology, pp.1-17.

Cullen-Knox, C., Fleming, A., Lester, L. and Ogier, E., 2019. Publicised scrutiny and mediatised environmental conflict: The case of Tasmanian salmon aquaculture. Marine Policy, 100, pp.307-315.

Cullen-Knox, C., Fleming, A., Lester, L. and Ogier, E., 2019. Publicised scrutiny and mediatised environmental conflict: The case of Tasmanian salmon aquaculture. Marine Policy, 100, pp.307-315.

Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).

Hanson, R., 2014. Tasmanian salmon producer Huon Aquaculture plans big expansion. The Mercury. October, 15.

Huon Aquaculture. 2020. Salmon Farm Tasmania | Order Online & Delivery - Huon Aquaculture. [online] Available at: <https://www.huonaqua.com.au/> [Accessed 18 September 2020].

Kirkpatrick, J.B., Kriwoken, L.K. and Styger, J., 2019. The reverse precautionary principle: science, the environment and the salmon aquaculture industry in Macquarie Harbour, Tasmania, Australia. Pacific Conservation Biology, 25(1), pp.26-33.

Oldham, T., Oppedal, F. and Dempster, T., 2018. Cage size affects dissolved oxygen distribution in salmon aquaculture. Aquaculture Environment Interactions, 10, pp.149-156.

Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, pp.194-203.

Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52.

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