Yorktown Technolgies Case Analysis
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