Fishbay.in is an online fish store facing a decision about whether to continue serving individual customers or target restaurants. Currently it delivers small orders from individual customers daily, but restaurants offer larger bulk orders at lower prices. The owner must choose to prioritize one market segment due to limited resources. Targeting restaurants could increase profits through higher volume but reduce margins, while individual customers are less price sensitive but order smaller quantities. The owner must optimize their strategy within constraints.
Fishbay.in is an online fish store facing a decision about whether to continue serving individual customers or target restaurants. Currently it delivers small orders from individual customers daily, but restaurants offer larger bulk orders at lower prices. The owner must choose to prioritize one market segment due to limited resources. Targeting restaurants could increase profits through higher volume but reduce margins, while individual customers are less price sensitive but order smaller quantities. The owner must optimize their strategy within constraints.
Fishbay.in is an online fish store facing a decision about whether to continue serving individual customers or target restaurants. Currently it delivers small orders from individual customers daily, but restaurants offer larger bulk orders at lower prices. The owner must choose to prioritize one market segment due to limited resources. Targeting restaurants could increase profits through higher volume but reduce margins, while individual customers are less price sensitive but order smaller quantities. The owner must optimize their strategy within constraints.
Fishbay.in is an online fish store facing a decision about whether to continue serving individual customers or target restaurants. Currently it delivers small orders from individual customers daily, but restaurants offer larger bulk orders at lower prices. The owner must choose to prioritize one market segment due to limited resources. Targeting restaurants could increase profits through higher volume but reduce margins, while individual customers are less price sensitive but order smaller quantities. The owner must optimize their strategy within constraints.
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Fishbay.
in Fishing on the Net
Group-10 Fishbay.in, an online fish store which started their business by identifying I the market gap which demanded the purchase of fish from a smooth, N hassle-free channel. It gave its customers the option of choose the type of fish and the cut they wanted. T R • Orders placed till 3 p m - > delivered on the s a m e day, • Orders placed in evening - > delivered the following day O • Average footfall of customer amounted INR 10000, which increased to D 1 5 0 0 0 INR or even 1 8 0 0 0 INR on weekends. U D u e to the popularity and efficiency of Fishbay.in, m a ny nearby restaurants C started to order from Fishbay.in, relatively in large quantities but at lower T prices. I • These clients normally placed an order once every three days • Each order amounted to between INR 8 0 0 0 and 1 0 0 0 0 O • Major advantage in this case was the low transportation costs and low N chances of spoilage in transit. PROBLEM STATEMENT Mohammad Haneef, the owner of FishBay.in, is faced with a crucial decision regarding the direction of his business.
The dilemma revolves around whether to stick to the original business plan, serving individual fish buyers who are less price-sensitive but order smaller quantities.
Haneef is considering catering to restaurant business opportunities, which would involve serving larger orders but at lower negotiated prices.
The primary issue at hand is the need for Haneef to choose between two distinct market segments – continuing with individual fish buyers or switching to the commercial market by serving restaurants.
The challenge is exacerbated by limited resources, as Haneef does not have the capacity to pursue both consumer segments simultaneously.
The decision requires careful consideration, as Haneef aims to optimize his business strategy within the constraints of resource availability. SWOT ANALYSIS
• Backing of a larger • High Competition
company • Low income in • Government’s new off-season • High growth fish market • Strong market with • Online potential • Fluctuation in fish working families payment price due to product
Threats Strengths
Weaknesses
Opportunities who didn’t have the • Geographical option not expansion perishability time to go to the available • Dependency on fish markets. • Demand by • Small staff local neighboring states • Built customer businesses for supply during the off season loyalty by offering discount coupons The extent of rivalry is high in the market, government The bargaining power of the The bargaining power of the is supporting the local buyer is relatively medium supplier is quite low, sellers to set up businesses because the buyers have because the market is overly in the market, meeting other alternatives. crowded with suppliers. standards of hygiene and high perishability factor
Bargaining Power Bargaining Power
Extent of Rivalry of the Buyer of the Supplier
Porter’s Five Forces The threat of new entrants is also very high, because The threat of substitution is the government is relatively low for this subsidizing the local sellers
Model market to rejoin the market and
develop the physical market of fishing
Threat of Threat of New
Substitution Entrants Pros Cons More customers may Strengthen the shift to physical Alternative: I brand image of the company market, after the renovation of the markets New entrants Enhance the profit m a y make the Fishbay.in can stick with its margins because competition initial business plan most customers enter fierce, forcing the the market based on company to catering of to individual word of mouth shrink its price, in buyers. order to attract more customers
Customers are Customers
not price ordered in sensitive smaller quantities Cons The Pros It will enhance the profit of restaurants the can force company by negotiation. selling on volume. The profit margins It will capture are lower larger and than bulk sales. selling to customers Alternative: II directly It will help company sustain the demand in future. The company should invest money and change the target market from consumers to restaurants because it will enable them to make profits through volume of scale. It will offer a continuous stream of cash flow. Through the case analysis and mutual understanding, the company should take the C Alternative-II of shifting its business and target market to restaurants. Reasons for the same O are as follows: • The shift will ensure the sustainability of the business, even if the physical re- N markets establish themselves. C • There is less threat of losing the market share because the long can make companyterm binding contracts with the L • restaurants. U • Company can maintain profits money through economies of scale. the company decisions regarding S The availability of bulk will help make important future investments. I It is depicted that the Indian market has the potential of selling the O products in India, which means that doing business through ecommerce is supported and trusted. Since with the government N subsidizing the business of local small sellers, it is high time for FishBay.in to shift and diverse its offerings from local consumer to commercials restaurants. This move will sustain the operations of the Thank You
