The difficulty of gaining economic profit is as a result of the high fixed expenses and its unpredictability. The financial profits are as a result of the direct costs and the sum of the implicit, in conjunction with the cost of opportunity. The fishing business, therefore, is not in a position of investing or spending on the other business ventures in the stock market or the treasury bonds since this may incur better returns or the providence of the lower costs. The risks that are associated with the business are associated with the well-written business plan that includes the single-product business model, competition and the uninsured boat. It is because of the damages of the ships which get sunk or damaged, making the whole business getting destroyed.
The tuna boat which is the most excellent strategy of the Porter. It is, therefore, reliable to the for the company to rely on by choosing the varied activities that are involved in the delivery of the maximum uniqueness. The company should, therefore, find the ways to perform diverse activities or conducting them other than the focus on the competition. They would, therefore, need the disruptively of the ways of getting the course of the fish and a proper network for the activities to enhance the maintenance, warehousing, sales and the restocking of the reinforcement of one another. The other strategy is the acceptance of the tradeoffs over the expenses of the other fish with distinct features. It includes expensive fleets, which carries enormous sales. The tuna business should not move since it is the existence of the competition.
The pirate business cannot invest in this project since it lacks the knowledge of the appropriate strategies and the sustainability of the effectiveness of the operation. The company has no aims of making the tradeoffs for the shunnment of the value of the lower fish at the expense of the yellowtail. The no on the affordable methods of the fish preservations and failing in the investment of the broader markets and investments affect the Pirates Pete’s business. The tuna boat also lacks the systems that interconnect the activities which help in distinguishing from its competitors.
References
World Wildlife Fund (2018). Tuna. World Wildlife Fund Online. Retrieved from https://www.worldwildlife.org/industries/tuna
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