Describe two internal or external risks the given company encounters in entering the emerging market, Indian fishing industry, including how each risk impacts the company
External risk — Regulatory and policy uncertainty
The Indian fishing industry is governed by a mix of central, state and local regulations (licensing, zonal restrictions, seasonal bans, export controls, and environmental laws). Policy changes, complex permitting, and inconsistent enforcement across states create legal and administrative uncertainty.
Impact on the company: delays in market entry and operations due to slow or unpredictable permitting; increased compliance and legal costs; risk of fines, seizure of catch or vessels if rules are misinterpreted; constrained access to fishing zones or export markets that can reduce revenue and disrupt planned supply and sales timelines.
Internal risk — Cold-chain and supply‑chain operational capacity
Fisheries products are highly perishable. Entering the Indian market requires reliable sourcing, on‑board handling, local processing, cold storage, and last‑mile logistics. Weaknesses in any link—insufficient processing capacity, poor refrigeration, fragmented suppliers, or unreliable transport—threaten product quality and continuity.
Impact on the company: higher spoilage and product losses, failure to meet quality standards or contractual delivery windows, damage to brand and buyer relationships, increased working capital tied up in slow or unreliable inventory flows, and margin erosion from emergency logistics or needed capital investment to upgrade facilities.
Category: Management
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