A case study on the transformation of a trading company specializing in aquatic products in Africa
Date Issued
2015
Date
2015
Author(s)
Chen, Chung-Hsin
Abstract
Trading company is one of the easiest start-up businesses for young entrepreneurs due to its low entry barriers. All it requires can be as simple as a phone plus a fax machine to launch. A simple definition for typical trading companies is the intermediary between buyers and suppliers. It sources the desired products for its customers or delivers the products to the market in demand. Hence, being sensitive to the changes in both supply and demand sides acts as a key success factor in the trading business. However, like any other industry, it also has risks. One of the main issues the trading industry is facing is known as a phenomenon called: “disintermediation” – where the intermediary is skipped, replaced or substituted. Given the prevalence of internet, maturity of industry and its players, global trade liberalization, and advancement in technology, it is getting harder for a trading company to sustain and survive. Strong determination, great vision, and viable strategic tactics are essentials for a start-up trading company to compete in the current cutthroat battlefields and to stand out to take the leading position. In this research, analysis on first two stages in the business life cycle of a trading company specializing in aquatic products in Africa will be examined in depth. Topics covered are: the difficulties and criteria of establishing a trading company in Africa, the growth strategy in African market with the development of competitive advantages through strategic alliance in the supply chain, and the diversification of the product lines and transformation of the organizational structure for continuous development. This research will give insights to readers on how to prevail in what seemly to be saturated and highly competitive African trading market. By applying the business model canvas, this research identifies an interesting unique pattern in the business model of trading companies when launching new products. And by following this pattern, companies can quickly design, adjust, and implement new business models for new product lines as the pattern serves as a standard guideline in optimizing the process in the business model development and modification making it easier, faster, complete, and replicable every time.
Subjects
trading company
business model
transformation
commodity
Type
thesis
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