Yorktown Technolgies Case Analysis
By: melany • Case Study • 696 Words • May 16, 2010 • 5,369 Views
Yorktown Technolgies Case Analysis
I. Problem definition:
Trying to find a marketing and distribution strategy that would help the company reach its revenue goals.
II. SWOT Analysis:
1-Strengths:
• The company raised additional capital to fund its business operations and had more than three dozen different investors
• The firm will be launching the first commercially available biotech animal in the U.S
• Yorktown Technologies grabbed the attention of the media and the news of the upcoming Glo fish launch was on the front pages of many famous magazines
• $ 4 million out of $ 700 million was spent on Yorktown Technologies products by consumers.
• Yorktown technologies' suppliers and distributors have been regular suppliers of tropical fish to the 3 major retail chains
• The company was given exclusive rights to lines of red, green, yellow and orange fluorescent zebra fish which provided the company with an effective barrier to entry against potential competitors
2-Weaknesses:
• Generated more than $ 120,000 loss in 2004
• There is no enough money to support a national advertising campaign
• Not being able to sell the Glofish in California which is an important market with high population
• High demand on limited supply
• Some countries are still not convinced with the safety of the GloFish
3-Opportunities:
• California is a very important market that has a population of 33 million who are willing to buy innovative products
• International markets where the fish can be sold mainly Asia
• Zebra fish are known to be very popular ornamental fish with more than 200 million sold in the U.S alone
• Two dozen regional wholesalers located throughout the country distribute freshwater ornamental fish to an estimated 5000 retail establishments for sale to consumers
• Total sales of pet stores are increasing at an annual rate of 7%
• Consumer market for freshwater ornamental fish and related products in U.S exceeds $700 million annually and is growing at a rate of 9% a year
4-Threats:
• The blanket regulation that the California Fish and Game Commission passed and that prohibited the possession of genetically modified fish in California
• Number of pet stores in U.S is declining at annual rate of 2%
• The anti-biotechnology groups that are trying to stop or disrupt the launching of Yorktown Technologies by spreading misinformation about the safety of the fish
• The ethical and environmental questions regarding the sale of the genetically modified fish
• The strong competition in Asia especially Taiwan where genetically modified fish is being sold and rumors say that some of them are being introduced in the U.S
III-Alternative courses of action:
1-Alternative one:
Opening a Glofish Kiosk in a shopping mall
Advantages
Disadvantages
• Shopping mall kiosks have enjoyed explosive growth in terms of revenue and numbers
• Offering GloFish branded tanks and supplies
• These outlets sells variety of products • High renting cost per year
• Customers might get confused with the availability of different products
• Small space
2-Alternative two:
Possibility of marketing the Glofish product line through the internet directly to consumers