Business Case Study: Siam Canadian Food Co., Ltd
Introduction of the Company :
SIAM Canadian Foods, founded and managed by Jim Gulkin, is a Bangkok-based Canadian-owned company that has been involved in the seafood brokerage business for almost 10 years. It was started in April 1987 after Canadian Jim Gulkin quit his job in the oil industry and invested his life saving of Cdn$130,000 in the business. When first starting out , Gulkin was total inexperienced in the food brokering business.
SC’s role as a food broker was to indentify overseas customers, usually food importers, and negotiate sales with them on behalf of ...view middle of the document...
The Impact of New Entrants related to sea food business is high which will increase the competition for Gulikn's Business.
Suppliers: Micro business, Fishermen, contractors and etc., As there are ample number of small business suppliers and good percentage of availability of renewable natural resources (sea food) the power of suppliers is minimal. Furthermore, Gulkin has a good relations and financial capacity to hire his own personnel for suppliers under Laws.
Buyers: Restaurants around the world, local and global food businesses, food processing Organizations, Government and etc., The Power buyers can be said as Low, as the food is the basic need for everyone and the food industry sector is developing day by day. There is a growing demand for the sea food from different parts of world.
Substitutes: Vegetables, Meat, cereals, pulses, Fruits, stomach filling drugs, supplements, snacks etc., The list for the substitutes for sea food can be endless. Even in the absence of sea food, there are whole bunch of substitutes for sea food which can be preferred by consumers results in reduction of sale margin and the power of substitutes is high..
Competition: PL Corporation, Hong Kong- based Sun Wah and A sourcing division of the Japanese trading giant, Mitsui, Local and global sea food businesses and entrepreneurs etc., The competition for any business has two sides. In this context, it plays a negative role by reducing market share, profit margins, increase in rivalry, unhealthy competition and stressful. Being a developing business, there are already existing related businesses giving competition which disturbs the operations strategy often. Thus, the competition influence on his business would me high.
a) Give up the idea of Invest in Burma:
Since Burma is still a developing country, relationship is important in doing business. One of its competitors is supported by General Ne Win’s son-in-law. And some of its competitors from Japan have solid financial position to do what SC could not do. These competitors have some special advantage over SC to build a business in Burma. It is hard to compete with them. Besides, SC might run the risk of losing some key clients who would discontinue doing business with it.
|Advantages |Disadvantages |
|Avoid risk |Needs huge finance |
|Save business name |Missing chance to be globally |
|Can invest in better country |Sacrifice development |
b) Invest in Burma:
After a Knowledgeable research by Gulkin about Burma market, the economic figures were very promising and it is worth investing in Burma as...