strategy manegment
Aalborg University MSc. International Business Economics Spring Semester 2013 Mini-project Module 3b Case: Royal Greenland Submission of Mini-project -Module 3b: Wednesday 3rd April 2013 at 12.00 2 copies of the project are to be handed in at the secretariat. Furthermore a copy in PDF format must be sent by e-mail to Birgitte: bk@business.aau.dk Please name the electronic version as follows: Your group number + Module 3b-IBE Please write this in the subject line, when sending your e-mail to Birgitte. Oral examinations will take place on: Wednesday 10/4, Thursday 11/4 and Friday 12/4 2013. Royal Greenland Case Study Page 2 of 33 Consolidation of European Seafood Industry: The Case of Royal Greenland A/S1 In 2010 Royal Greenland purchased Westfalia Strenz, a lumpfish roe factory in Cuxhaven, Germany from its competitor, Icelandic. The main motive for the purchase was the fact that Royal Greenland had become the prime producer of lumpfish roe raw material in Greenland; and this way it could control the entire value chain. Icelandic was not in this position and had to sell off the plant because of the financial problems in the Iceland’s economy as a whole and the Icelandic company in particular. This acquisition will be discussed in detail later, but first we look at the seafood industry in general with focus on the lumpfish roe industry and then turn to Royal Greenland specifically. Seafood Market in Europe This case will focus exclusively on the European seafood market, not the worldwide seafood industry, as that is where Royal Greenland does most of its business. First, we present some key facts about the European seafood market (EU)2 in 2010.3 ? Total market supply has grown by 1% to 15.1 million tonnes in 2010. ? Imported share has grown to 9.394 million tonnes and equals 62%. ? Whitefish import has stayed stable at 89% and 91% for wild catch and aquaculture products, respectively. ? EU catches have reduced by 2.3% to 5.224 million tonnes (including non-food...