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Profitability, strategies and competitive position in the aquaculture sector: the Italian case

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  • The natural market selection of the Italian aquaculture farms, mainly happened in the years' 90, need to determine and check their strength and weakness points: this will be capable either to modulate the managerial strategies in function of market trend and set up entry barriers. The study has been carried out in a sample of land-based Italian fish farms, representative of the national reality, taking into account their profitability, production cost trends and managerial strategies. A static comparison in order to focus the position of each firm respect to the others and a dynamic one capable to determine the sector trend is shown. It was then determined, for each enterprise: the production cost, with its main components, the invested capital, to evaluate the congruity of the investment, and budget and ratios analysis has been done. Finally, comparison graphics have determined the global competitive position of the firms, their dynamism and the adopted strategies capable to improve profitability. The analysis shows a scenery in which only a limited number of firms reaches good efficiency through the adoption both of minimization strategies and production costs checking, capable to have an elastic modulation between managerial profitability and prices level. These firms are more competitive respect to the other ones, that show higher production costs not justifying the production levels. Concerning the investments, the analysis shows a general trend to technology innovation research of productive process and a widening productive mix taking care of custom need. This trend will allow the firms to go from the actual maturity state of the sector to an innovative one, in order to increase market share and a higher competitiveness. It is evident that the strategies to be adopted are those relating to minimization production costs, widening of productive mix and technology innovation; in such a way the firm will be capable to set up in a higher competitive scenery, both national and international, with a high qualitative product standards and low costs.
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  • Iandoli, Carla, Eugenio Alaio. 1996. Profitability, strategies and competitive position in the aquaculture sector: the Italian case. Peer Review: No. In: Proceedings of the Eighth International Conference of the International Institute of Fisheries Economics and Trade, July 1-4, 1996, Marrakech, Morocco. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2002. CD ROM.
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