Individual Analysis Report
Open Fish Farming In B.C
Table of Contents
Section- 1 4
FAD, TREND, MEGATREND AND WILDCARD 4
Section- 2 6
PESTEL Analysis 6
Section – 3 8
Five Forces Model 8
Bargaining Power of Buyer 8
Bargaining Power of Supplier 8
Threat of Substitute 9
Threat of New Entrants 9
Industry Revelry 9
The main idea of writing this report analysis is come to be used to with the facets of strategic management and tell us that, what activities will make the company strategy successful. In the first part of the report, it includes the information related to fads, trends and mega trends of the open fish farming company and their impact on the business through strategic point of view.
The second part contains macro environment-PESTEL analysis, their meaning and by which way this analysis effect on open fish farming industry. The third section talk about the five forces model, its ethics and its examination by taking references on open fish farming in BC.
FAD, TREND, MEGATREND AND WILDCARD
FAD: – In past time, the cage technology that was used tied to the bottom and made by man hands, or by natural substances such as logs or driftwood. But now fish industry uses a fixed position and connect to the surface of sea with a weight such as concrete block. At the beginning, they used the technology in which a rope made of moving synthetics and it was attached to the buoy and subsurface and all controls was directed by humans on the work place, but that technology was also replaced by sonar and GPS facilities and this technology are operated remotely and connected via satellite.
Trend: – According to the open fish farming analysis in B.C, Climate change is one of the trends of fish farming. In past, fish farming was not a big problem because every season be on time but, few years back average temperature rise in spring and autumn that effect on fish farming because due to rise of temperature, water oxygen content decline, but the fishes need more oxygen that incurs inefficient fed that results in low growth rate of fish and health issues. Moreover, in extreme climate events more risks are involved in fish farming for instance: – high intensity storms will affect industry of open water farming and disturb method of feeding and technology in use. Increase in temperature of water also hinder the farming of cold water fish such as Arctic char and European whitefish, on the other side this condition improves the farming condition of pikeperch and percid.
Megatrend: – From the generations fish industries provided employment over the past decades. B.C farm increased the demand of salmon all over the world, that industry focus on providing stable jobs in coastal societies throughout BC and but large amount in Vancouver. This job is a challenging career and a very good quality of life for small and close to society that located near around sour. There is a wide range of career options in that industry for instance: – manager or administrator in office, outdoor work, Scientist and technicians, farm and hatchery worker, boat captions and deckhands, truck drivers, manufacturing workers and marketing employees. The main role of workers in fish farming is to keep the supply of seafood in the market for consumers. These types of jobs continue provide employment to BC people from past to the present and will provide in future as well.
Wildcard: – Any unexpected and exclusive events or expansion that results in the revolving point in the growth of a trend is known as wildcard. There are so many events that effect on the open fish farming in BC. The first one is possible BC ban on new fish farm permits, union of B.C. Municipalities made a discussion on salmon farm licensing. As an alternative, Victoria council requesting to the province to reject more open-net farming permits and point out current open-net actions in favour of land-based cages, was raised to the Vancouver Island and coastal societies for more conversation. The Earthquake is the second event that effect on the fish farming such as landslide, through landslide unnecessary mud and other substances flow into bodies of water because of this number of plant will be reduced= less food due to both the population of fish will also reduced.
Political: – According to the report of federal environment commissioner, the Federal Government is not giving their best to protect wild fish from fear by salmon farming in Atlantic Canada. The report tells us that Oceans Canada is very slow to learn the effect of Canada salmon-farming industry on wild fish and not giving their best to prevent the spread of transferable disease by not putting limit use of drugs and pesticides that salmon farms use. Wherever, other report of salmon farming in B.C. tell us the issue of Washington state that take decision of open net fish farming after an event in which more than 250000 Atlantic salmon run into Pacific waters. The report also stated that program of B.C. fish farms not been up to date after 2006.
Economical: – Salmon fish farming industry of Canada, whose development has hindered due to the worry of public by impacting on wild stock, rapid shift to land-based services that included in the report of ground-breaking. Some other people add fuel to the discussion in B.C., the main motive of this debate is to migrate the fish farm out of the ocean on the rising demand of public. If we see the integrated closed containment and crop notion, they not only make money from that industry but, they build a system that made environmental sense. There is no less then one business in B.C. that capitalise in main land-based salmon farms.
Sociocultural: – In Canada people consume very high level of fish and in B.C. as well. Fish industries are running successfully because of buyer’s keen interest in eating sea food. These industries sell fishes to local seller or restaurant and these mediators serve fish to the customers according to their demand and consumers pay for it. These fish industries also satisfy the B.C. as well as federal government because these fish industries are running from past and people of Canada connected to these fish industries by heart.
Technological: – We know that Atlantic salmon permanently been an ocean inhabitant. But after change in technology Canadian fishing industry change this tradition and able to breed this saltwater fish anyplace in the prairie provinces. Technologically, Namgis close containment facility on Vancouver Island is the very first salmon farm in North America that cultivate Atlantic salmon totally with land-based aquaculture system. This land-based fish farming cost will be greater than the net-pen fish farming system but some of the experts says that land-based farming is a money saver because in that system very little food pellets are misused as compared to other system.
Environmental: – The factor that effect the salmon fish farming industry in environmental way is, the cost that increases the stock in open-net fish farming in the oceans, but they not complete the market circumstances because splitting of sea lice into wild fish is an environmental issue and that is the main worry of fishing industry. They also pollute the ocean surface by dumping unused food. That concern could be removed if they move to land-based technique, where water is circulated regularly, and unused food would be used as a fertiliser in agricultural crop.
Legal: – From a legal point of view B.C. first nation people taking a legal step to stop the action of open-pen fish farming on its traditional land. They file a case of Aboriginal title in B.C. Supreme Court for land and water that is under Broughton Archipelago northeast of Vancouver. This case brings legal burden on 10 fish farms for their licence approved by the B.C. province. Some of the experts suggest that the Canadian government purchase these farms and then close all of them, and the other that government can do is to talk with the industry on the land -based fish farming that have limited achievement on Vancouver Island.
Section – 3
Five Forces Model
Bargaining Power of Buyer: – The future of the fish industry depends on the buyers. Consumer not only play a crucial role in success of the company but also control on the forces of the demand and supply. Due to shifting economic environment and high variety of existing seafood may result in higher bargaining power of buyer. The power of buyer depends on market situations and may very over time because of the changes in the market and supplier also change their product price according to the customer.
Bargaining Power of Supplier: – There is high amount of production of the fish in the BC than any other provinces of Canada which leads to all the power in the hands of consumers. There are less number of suppliers of the Salmon fish in BC which feed the local people of the province so neither the economy level of the province is impacted, nor the basic lifestyle of the people is much taken care by this factor.
Threat of Substitute: – In BC the open water fish farming exists, which serves the rest of the world too. If we talk about the substitute which is wild salmon because first nation people believe that the quality of wild salmon much better, then that of other fish species. BC people want to continue open water fish farming because of its large quantity, the farming offers. According to my analysis, the threat of substitute is less till the date.
Threat of New Entrants: – New entrants like technologically advanced companies which brings innovation and change cab be threat to the existing industry which use the old method of open water fish farming in British Columbia. These new entrants may disturb the market in positive way when seen from technological prospective. On the other side, it may have negative effect on the industry which is doing farming from generations.
Industry Revelry: – The industry revelry exists with the companies doing the fish farming in competition with each other. These companies have impact over each other in the teams of demand and supply as per the terms and conditions which keeps on changing over time. The operations performed by these reveals companies are quite similar to each other and makes it a tough competition in the market of open water fish farming in British Columbia.
All the data in this report relates with the open water fish farming impact on Canada as well as British Columbia. The information tells us about the wild salmon that is protected by first nation people because of their best quality. In addition to it, the report tells us about the Political, Economical, Sociocultural, Technological, Environmental and Legal analysis and their impact on open fish farming. In the end, the report shows power of buyers and suppliers in fish industry as well as the threats of new entrants and substitute that impact on the fish farm industry.
• Boychuk, E. (2014, January 06). Soon, Atlantic salmon could be grown on the prairies | CBC News. Retrieved from http://www.cbc.ca/news/technology/farming-salmon-on-land-is-possible-project-suggests-1.2482754
• Forrest, M. (2018, April 24). Fisheries department doing too little to protect wild fish from salmon farms, federal audit finds. Retrieved from http://nationalpost.com/news/politics/fisheries-department-doing-too-little-to-protect-wild-fish-from-salmon-farms-federal-audit-finds
• Linnitt, C. (2018, March 16). BC Is the Outlier on Open-Net Salmon Farms. Retrieved from https://thetyee.ca/News/2018/03/16/BC-Outlier-On-Open-Net-Salmon-Farms/
• Wilson, D. (2018, March 08). B.C. government ‘very interested’ in moving open-net fish farms onto land, minister says | CBC News. Retrieved from http://www.cbc.ca/news/canada/british-columbia/fish-farms-bc-closed-containment-donaldson-tenures-1.4566374
• Zussman, R. (2016, August 27). How a historic court decision is driving a new wave of First Nations protests | CBC News. Retrieved from http://www.cbc.ca/news/canada/british-columbia/fish-farm-protests-1.3737728