INDIVIDUAL APPLIED ANALYSIS
OPEN WATER FISH FARMING IN B.C
Fads, Trends, Megatrends and Wild Cards 4
Wild Cards 5
PESTEL Analysis 6
Five Forces Model 9
Threat of New Entrants 9
Threat of Substitutes 9
Bargaining power of Customers 10
Bargaining power of Suppliers 10
Competitive Rivalry 10
The purpose of writing this Report is to spot light on the aspects of Strategic Management. The concept of Critical thinking will be applied to different factors and forces in a specific business environment. The report will emphasis on Open water fish farming in B.C. The first section of the report will explain the Fads, Trends, Megatrends and Wild cards to Fish farming, how the factors have impacted the industry over time.
The second section of this report will show a PESTEL Analysis of Open water fish farming. The Analysis will explain how these factors affect the industry and have impact on the Fish farming in B.C.
The third section of this report will describe the Five forces model of this specific industry, these forces will explore the competitiveness and strategy’s potential in respect to Open water fish farming in B.C.
Fads, Trends, Megatrends and Wild Cards
Fads- With the applied concept of Critical thinking, my research came to a point for a fad. In the 20th Century, due to decreasing number of wild salmon, the government of British Columbia began to support hatchery production of the specie. The efforts were started by Fish farming in high number, most farms were located at North Vancouver and very less on the Vancouver Island. Because of this it was a new industry, some species were not harvested and were unable to get habitat and grow. The reason for incapability to harvest was mainly their Size. In 80’s the prices of salmon were so decreased, many businesses were shut down as a result because of lack of finance.
Trends- As per my research on Open water fish farming in B.C., Healthy lifestyle is a trend for fish farming. People are increasingly concerned with their health and the benefits which seafood offers. Fishes like Salmon, Mackerel, Anchovy, Tuna and Sardine are rich in Omega-3, which is vital for heart and brain health. Gradually, people are changing their eating patterns to healthy source of fats, protein, vitamins and minerals and are adapting to healthy lifestyle. Especially people with heart and brain problems are recommended Omega-3 fats by doctors, dieticians and health professionals. The production of the Omega-3 Fish oil supplements has increased over the years and consumption of these pills by people in their everyday life and routine has also increased at a high pace, which is obviously possible because of high availability of these fishes in the Pacific Ocean. Increased awareness for health regarding health issues, eating patterns and healthy lifestyle has made it a Trend for today’s generation to consume these fishes in their daily life either in the form of food or omega-3 supplements.
Megatrends- The B.C. fish industry participate highly in the economy of province and Canada. From generations, Fish faming industry of B.C. is providing employment to thousands of families. People have found their living in fish farming from back long time. It provides bread to different families who are indulged in this business either directly to fish farming or its sale in further markets.
Climate change has always impacted the industry. Increase in global warming, rising temperatures of sea waters, rise in annual temperature of climate makes the water warmer and thus affect the sea life and fish species.
Moreover, the people of B.C. and Canada have fish consumption in their daily diet from long time. It is a food industry of B.C. which satisfies its people and of other provinces too. People like to consume fish in their daily routine at home and the same is also served at outdoors and restaurants, which is obviously a Megatrend for Fish Farming Industry of B.C., the reason for which it is loved by people from generations.
Wild Cards- The Trans Mountain pipeline between B.C. and Alberta may be a serious threat for Open water fish farming industry of B.C. If the project passes, the tonnes of oil will be transported by oil tanker ships and if even one of them spills, the marine life will be shattered, and different fish species could die. The pipelines will be passing from city and sea which is really a potential risk for fish farming of the province.
The dispute on ending the Open water fish farming in B.C. by 2025 is also a major issue for the industry. If it happens then it would result on living of large number of people and a threat for the industry and economy.
Natural calamities like Earthquake, Tsunami and Hurricanes are also Wild cards for fish farming. They do mass destruction of habitat and nature, if unfortunately occur. Economy, industry and eco system is totally disturbed by such threatening natural disasters which may occur in the oceans. Thus, these can be the Wild cards for Open water fish farming in B.C.
Political- The Political Analysis of Open water fish farming in B.C. has come to a point that First Nation people and leaders are emphasizing on preserving the Wild pacific species of Salmon. A new group comprising of First nation leaders, scientists, business leaders and other people known as Wild first wants the Government of British Columbia and Government of Canada to convert the open water salmon fish farming industry into the land-based aquaculture in the B.C by the year 2025. On the other side Chamberlin, Vice president of B.C. Union said that it is unacceptable for British Columbia and the cage fish farming on coastal waters is coming from past and the same will continue in future.
Economical- When seen from economic point of view, the Wild fisheries of British Columbia are contributing to economy of Canada at high level. The aquaculture and marine fisheries of B.C. are a base living for number of coastal communities. From recreational fishing to sport fishing the weather conditions of B.C. well support the industry. The Open water fish farming industry of B.C. is comprised of Salmon farmers and Processors, Suppliers and Customers which are directly related to each other. Each sector relies on other sector. As per the data of 2006, (Carly Paracholski, September 16, 2017) the Salmon sector of the province created 1600 jobs, 1500 were created by aquaculture as whole. Estimates show that there are 137 salmon farming tenures in British Columbia. As per the data of 2010, the production value of the country was 927 Million, out of which B.C. holds 58% of the share. Thus, it contributes to the Canadian Economy too with a higher percentage.
Socio-Cultural- The interest of First nation people to the issue of fish farming is critical and sensitive. They want to protect the wild salmon by land based marine aquaculture, so they want to water fish farming. Fish farming has been a source of living for people from different communities and societies from long back time. Change from open water to land based farming may be a threat for their daily living. The People of British Columbia eat seafood are also an important consideration because they belong to the precious land and the decision of government should be in favour of people and Fish farming industry so that it can benefit the people of Canada.
Technological- When analysing from technological point of view, the question for technological change arises. It means finding new and better ways of Fish farming. The technology of Land based farms is a question to open water fish farming in BC. Rather than fish farming in open sea, the marine aquaculture may be shifted to land-based operations, but the costs of such systems are high as compared to open farming method. Dunn, director of B.C. Salmon farmers association has mentioned that the industry has started to move away from the open pen method of fishing. Preservation of Wild salmon can be done by land-based farming but must be effective to succeed.
Environmental- The environmental factors which affect the Open fish farming industry of B.C. are Fish diseases, marine debris and organic waste and pesticide treatment for sea lice. The diseases and viruses among the fishes is a potent threat among the fishery. Many of species are victim of such diseases and die as a severe result. Marine debris and the organic waste is the natural waste inside the sea and sea bed which may be harmful for fishes if they eat up any debris thinking it as a food. Such waste cause can bacterial infection among the fishes. The pesticides mixed into the ocean waters to kill the sea lice are also high risk of concern for in Open fish farming of B.C.
The Natural environment and habitat of B.C. supports the fish farming to great extent but on the other side the threat of farmed salmon to wild salmon, Environmental concerns like the Changing temperatures of water and atmosphere, government projects regarding pipeline and natural calamities are the threats to Fish farming industry of British Columbia and can harm the habitat in future, which will be shock to Canada as well.
Legal- The legal aspect of Open water Fish farming in BC starts with the need for not renewing the salmon farm licenses, BC popular chefs told the Government of British Columbia. They have demanded clean oceans for best quality food to serve in their restaurants. Fish farming either in open water or land-based aquaculture must have to comply with the legal safety systems and laws like Pacific fishery regulations, pacific aquaculture regulations and Species at risk act specially to protect and preserve wild salmon. These factors affect the fish farming industry of B.C. deeply because the law protects both the habitat and environment.
Five Forces Model
Threat of New Entrants- In the Fish faming industry of British Columbia, the new entrants are the Farmers, Suppliers and Customers who will be indulged in the Land based fish farming operations. A Norwegian company, Marine Harvest invested more than US$ 30 Million in the equipment which will be used in land-based salmon farming to raise Salmon at the Vancouver Island of British Columbia. This new technique if passed, forces of business will also change giving result to such new entrants which will impact the industry in a different way. The reason for this is that whenever the technology changes, new entrants find their way with innovation to squeeze into the market and affect the working of the industry. Thus, open water fish farming of B.C. will have new entrants like the suppliers, farmers and customers, if the industry shifts their operations to land based systems transiting from open water salmon farming.
Threat of Substitutes- Different fish species are found in Pacific waters of British Columbia, these are Salmon, sardine, mackerel, anchovy and tuna. B.C. fishery highly produces Salmon and same face high demand in Canada. Salmon has its substitutes which are the other fishes, the industry produce. Wild salmon is also a substitute of farmed salmon in BC. People have choice for the substitutes, threat exists for this industry. Also, consumers have choice for other seafood like oysters, snails, trout etc. too but just love Salmon from the generations.
Bargaining power of Customers- The open water fish farming in B.C. serves its own community, people of Canada. The country’s industry is highly dependent on United States for exports. The forces and strength of U.S. market makes the power of supply from Canada. It holds much of bargaining power, B.C. chefs also refused to serve Atlantic Salmon too. When the price of Salmon decreases, the Canadian Dollar price rises. The customers have the power of better quality fishes, less price and increased value. Thus, the demand for B.C. salmon has increased from past both in the domestic and international markets and highly controls this industry of B.C. and Canada.
Bargaining power of Suppliers- In the Open water fish farming of B.C, suppliers do not hold much bargaining power. The reason for this is because the consumers of fish in British Columbia and Canada demand fishery of optimum quality and a set price. This industry is more customer oriented and is controlled by the forces of demand, as it depends on U.S. for its growth also. Suppliers are limited in number and do not control the industry much from bargaining point of view.
Competitive Rivalry- As per the data of 15/11/2016, there were 11 Licensed marine finfish aquaculture facilities. These fish faming companies compete and act as a rivalry among each other. Competition in the Open water fish farming in British Columbia is in the terms of farming, production, supply and consumption of fish species mainly salmon. The rivalries compete on Fish quality and availability. The companies have heir territorial farms in which they operate, usually are very large in size. As all the facilities are involved in the same business so the competition is tough between them in terms of supply and in British Columbia
The above paper shows how the Open water fish farming is impacted over time and has its influence on the people of Canada, mainly British Columbia. The political debates, economic effects, social impact, technological change, environmental factors and legal regulations on open water and land -based fish farming is discussed in the above report. The market forces, competition and substitutes are also discussed, showing the impact on Canada.
The interest of people to protect the wild Salmon by maintaining its quality and nutritional value is explained in the report. The critical concept of this Big industry and its change to land- based operations for the B.C. people and Canada is detailed in the above paper.
• Azpiri, J. (2016, August 30). B.C. Environmentalists: Do farmed salmon threaten wild species with disease? Retrieved from https://globalnews.ca/news/2910751/controversial-fish-farm-footage-released/
• Baker, R. (2018, April 27). Coalition calls for end to open-pen salmon farming in B.C. by 2025 | CBC News. Retrieved from http://www.cbc.ca/news/canada/british-columbia/wild-first-calls-for-end-of-open-pen-salmon-farming-1.4637585
• Gilpin, E., G., Wechsler, S., Moscrop, D., Harvey, F., M., . . . National Observer & The Canadian Press. (2018, April 09). Popular B.C. chefs ask provincial government not to renew salmon farm licences. Retrieved from https://www.nationalobserver.com/2018/04/05/news/popular-bc-chefs-ask-provincial-government-not-renew-salmon-farm-licences
• Graham, C. (2018, February 16). Growing fish for a growing World: The Future of Salmon Aquaculture. Retrieved from https://seawestnews.com/growing-fish-for-a-growing-world-the-future-of-salmon-aquaculture/
• Kingdon, A. (2017, September 04). Is There a Better Way to Farm Fish? Retrieved from https://thetyee.ca/News/2017/09/04/Better-Way-To-Farm-Fish/
• Paracholski, C. (2017, September 17). Fish Farms in BC and the West Coast US. Retrieved from https://www.seafoodx.io/articles/56/fish-farms-in-bc-and-the-west-coast-us/