IDEAS home Printed from https://ideas.repec.org/a/jfr/jms111/v4y2013i1p41-61.html
   My bibliography  Save this article

Gauging the Market and Non-Market Forces in Indian Aquaculture Industry for a Strategic Position in Fish Vaccines Market

Author

Listed:
  • Mahendra Kumar Pallapothu
  • Gary Evans

Abstract

Indian aquaculture segment has become a growth engine for the agriculture sector and is postulated to be one of the key sources of food-protein supporting the growing Indian population. Significant potential for new fish vaccine business was demonstrated previously using market and sales potential assessments; however, in addition to the overall market attractiveness, estimating the market and non-market forces in an industry is vital to ensure profitability in a new business. Therefore, this research directed attention to gauging the forces using Porter¡¯s five market forces (2008) and Prasad¡¯s (2011) non-market forces (national culture and history) framework together with measuring the benefits of complementors. Each of the forces was measured and key drivers within each force were identified. A base case revenue scenario was built on forecasts and the impact of the major forces was tied to the income statement to determine sensitivity of the revenue forecasts. The results suggest that the buyer power and the substitute power are the major competitive forces. The power of complementor products was also found significant and an entrant could counter the predicted losses in profitability due to influences of these market and non-market forces by providing product-product bundles thus reaping considerable improvements in net present value (NPV) and internal rate of returns (IRR) on investments. The NPV from this analysis thus yielded a range between $0.97 and $7.5 million with an IRR ranging between 29.9% and 35.8% depending on the variables considered in the sensitivity analysis. Therefore, to realize profit potential and many other advantages, the entrant may choose a strategy of reaching the customer with a solution package either by producing complementors internally or by joining hands with strategic partners in the industry.

Suggested Citation

  • Mahendra Kumar Pallapothu & Gary Evans, 2013. "Gauging the Market and Non-Market Forces in Indian Aquaculture Industry for a Strategic Position in Fish Vaccines Market," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(1), pages 41-61, February.
  • Handle: RePEc:jfr:jms111:v:4:y:2013:i:1:p:41-61
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/jms/article/view/2430/1344
    Download Restriction: no

    File URL: http://www.sciedu.ca/journal/index.php/jms/article/view/2430
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kevin Weng, Z., 1995. "Modeling quantity discounts under general price-sensitive demand functions: Optimal policies and relationships," European Journal of Operational Research, Elsevier, vol. 86(2), pages 300-314, October.
    2. Peilei Fan, 2011. "Innovation capacity and economic development: China and India," Economic Change and Restructuring, Springer, vol. 44(1), pages 49-73, April.
    3. Silvana Krasteva & Huseyin Yildirim, 2012. "Payoff uncertainty, bargaining power, and the strategic sequencing of bilateral negotiations," RAND Journal of Economics, RAND Corporation, vol. 43(3), pages 514-536, September.
    4. Geert Hofstede, 2009. "Business goals for a new world order: beyond growth, greed and quarterly results," Asia Pacific Business Review, Taylor & Francis Journals, vol. 15(4), pages 481-488, October.
    5. Suma Athreye & Dinar Kale & Shyama V. Ramani, 2009. "Experimentation with strategy and the evolution of dynamic capability in the Indian pharmaceutical sector," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(4), pages 729-759, August.
    6. Borchers, Bryce & Roucan-Kane, Maud & Alexander, Corinne E. & Boehlje, Michael & Downey, W. Scott & Gray, Allan W., 2012. "How Large Commercial Producers Choose Input Suppliers: Expendable Products from Seed to Animal Health," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(2), pages 1-20, May.
    7. Arnoldo C. Hax, 2010. "The Delta Model," Springer Books, Springer, number 978-1-4419-1480-4, January.
    8. Hax, Arnoldo & Wilde II, Dean, 2001. "The Delta Model -- discovering new sources of profitability in a networked economy," European Management Journal, Elsevier, vol. 19(4), pages 379-391, August.
    9. David Mills, 2010. "Buyer Power and Industry Structure," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(3), pages 213-225, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tsai, Jung-Fa, 2007. "An optimization approach for supply chain management models with quantity discount policy," European Journal of Operational Research, Elsevier, vol. 177(2), pages 982-994, March.
    2. Weng, Z. Kevin, 2004. "Coordinating order quantities between the manufacturer and the buyer: A generalized newsvendor model," European Journal of Operational Research, Elsevier, vol. 156(1), pages 148-161, July.
    3. Jones, Philip C. & Moses, Leon N. & Zydiak, James L., 1998. "Inventory investment, product cycles, and the imperfectly competitive firm," International Journal of Production Economics, Elsevier, vol. 54(3), pages 267-276, May.
    4. Ramani, Shyama V. & Urias, Eduardo, 2018. "When access to drugs meets catch-up: Insights from the use of CL threats to improve access to ARV drugs in Brazil," Research Policy, Elsevier, vol. 47(8), pages 1538-1552.
    5. David Mills, 2013. "Countervailing Power and Chain Stores," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(3), pages 281-295, May.
    6. Jokanović, Bojana & Lalic, Bojan & Milovančević, Miloš & Simeunović, Nenad & Marković, Dusan, 2017. "Economic development evaluation based on science and patents," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 481(C), pages 141-145.
    7. Hafezi, Reza & Akhavan, AmirNaser & Pakseresht, Saeed & Wood, David A., 2019. "A Layered Uncertainties Scenario Synthesizing (LUSS) model applied to evaluate multiple potential long-run outcomes for Iran's natural gas exports," Energy, Elsevier, vol. 169(C), pages 646-659.
    8. Arpita Roy & Shib Sankar Sana & Kripasindhu Chaudhuri, 2018. "Optimal Pricing of competing retailers under uncertain demand-a two layer supply chain model," Annals of Operations Research, Springer, vol. 260(1), pages 481-500, January.
    9. Li, Jianli & Liu, Liwen, 2006. "Supply chain coordination with quantity discount policy," International Journal of Production Economics, Elsevier, vol. 101(1), pages 89-98, May.
    10. Heibatolah Sadeghi & Hêriş Golpîra & Faicel Hnaien & Cosimo Magazzino, 2023. "Pricing-inventory model with discrete demand and delivery orders," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(3), pages 119-139.
    11. Mohammad Reza Gholamian & Mahdi Ebrahimzadeh-Afruzi, 2021. "Credit and discount incentive options for two-level supply chain coordination, under uncertain price-dependent demand," Operational Research, Springer, vol. 21(4), pages 2283-2307, December.
    12. Gao, Hong & Xu, Haibo, 2021. "Multilateral bargaining with an endogenously determined procedure," Economics Letters, Elsevier, vol. 209(C).
    13. Caldart, Adrian & Ricart, Joan E., 2003. "Corporate strategy revisited: A view from complexity theory," IESE Research Papers D/528, IESE Business School.
    14. Philippe Baumard & William H Starbuck, 2002. "Est-il réaliste d'étudier les mouvements stratégiques d'une firme ?," Post-Print hal-03230324, HAL.
    15. Vincent Mak & Rami Zwick, 2024. "Fairness and Transparency in One-to-Many Bargaining with Complementarity: An Experimental Study," Games, MDPI, vol. 15(4), pages 1-29, June.
    16. Sarah Auster & Nenad Kos & Salvatore Piccolo, 2021. "Optimal Pricing, Private Information and Search For an Outside Offer," CRC TR 224 Discussion Paper Series crctr224_2021_151v2, University of Bonn and University of Mannheim, Germany.
    17. Bukhvalov, A. & Alekseeva, O., 2016. "International joint venture acquisition by a foreign or local partner," Working Papers 6439, Graduate School of Management, St. Petersburg State University.
    18. Guennif, Samira & Ramani, Shyama V., 2012. "Explaining divergence in catching-up in pharma between India and Brazil using the NSI framework," Research Policy, Elsevier, vol. 41(2), pages 430-441.
    19. Moutaz Khouja & Jing Zhou, 2016. "The effect of a temporary product distribution channel on supply chain performance," Naval Research Logistics (NRL), John Wiley & Sons, vol. 63(7), pages 505-528, October.
    20. L Lei & Q Wang & C Fan, 2006. "Optimal business policies for a supplier–transporter–buyer channel with a price-sensitive demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(3), pages 281-289, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:jms111:v:4:y:2013:i:1:p:41-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jenny Zhang (email available below). General contact details of provider: http://jms.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.