In 1997, Xavier Kayser operated an extensive shrimp farming business in Ecuador. He had several significant technological advancements introduced to overcome the susceptibility of shrimp disease, a problem plaguing shrimp farms in Asia. The shrimp value chain consisted of many activities that culminated in the production of a variety of frozen entrees and dinners. To increase profitability, Xavier faced the challenge of moving up the value chain. Meanwhile, global consumer … Read more »

In 1997, Xavier Kayser operated an extensive shrimp farming business in Ecuador. He had several significant technological advancements introduced to overcome the susceptibility of shrimp disease, a problem plaguing shrimp farms in Asia. The shrimp value chain consisted of many activities that culminated in the production of a variety of frozen entrees and dinners. To increase profitability, Xavier faced the challenge of moving up the value chain. Meanwhile, global consumption of shrimp value-added products has been increasing rapidly. Foreign food processors and retailers had an interest in securing supplies through integration into the back of the shrimp farming business. A joint venture could provide benefits to both Xavier and a foreign company. This case raises concerns from the perspective of the two potential partners. Ecuador had just emerged from a political revolution interest and exchange rates were unstable, financial institutions in Ecuador have been charging extremely high interest rates and labor unrest caused fear walkouts. In a rapidly changing business environment such as Xavier should plan for its economic future?
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from
David W. Conklin
Source: Ivey Publishing
5 pages.
Publication Date: Jul 30, 1997. Prod #: 97H005-PDF-ENG
Shrimp Farming in Ecuador HBR case solution

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