P
ProHub
English 简体中文 繁體中文
Medium Growth Strategy M&A Vertical Integration

Big Ten Bivalves

#Food/Aquaculture #Agriculture #Chemicals #Food & Beverage
ProHub Comment

This is a well-structured supply-side growth case that tests the candidate's ability to identify bottlenecks and recognize vertical integration as a strategic solution. The case combines operational analysis (capacity constraints), financial modeling (revenue calculations and survival rates), and M&A evaluation, with a market sizing component. The key insight is recognizing that demand is not the constraint—supply is—which directs the analysis toward the hatchery acquisition.

Estimated Time 15 minutes
Difficulty Medium
Source ROSS
50 / 100
Your client is the CEO of Big Ten Bivalves (BTB), an oyster farm based on the east end of Long Island, New York. The company was founded only a few years ago but has quickly become a premium purveyor to New York City and The Hamptons’ top chefs, with their oysters served at elite establishments such as Eleven Madison Park. Known for their sustainable farming practices and high-quality oysters, Big Ten has garnered significant demand. Their proximity to New York City means that their oysters are always fresh when they arrive to restaurants. However, as Big Ten’s oysters have gained popularity, the company has struggled to keep up with demand and growth has stagnated. Big Ten Bivalves has hired you to analyze the current market dynamics, the company’s operational strengths and weaknesses, and potential strategic options. Your goal is to recommend a robust growth strategy that will enable Big Ten to scale effectively and meet their increasing demand while maintaining its reputation for quality and sustainability.

Clarifying Information

  1. Last year, Big Ten had $1 million in revenue. Their goal is to scale to $5 million/year in five years’ time.
  2. Big Ten has three main customer segments: Restaurants, Private Events, and Direct-to-Consumer Sales. Their customers are all located within New York City and Long Island (within 80 miles of the farm). Big Ten believes there is sufficient market demand to absorb their 5 million oysters/year.
  3. Big Ten Bivalves buys oyster “seed”, which are baby oysters about the size of a dime, from a hatchery each spring. There are a limited number of hatchery suppliers and pricing is competitive. Big Ten Bivalves then cultivates these oysters over the course of 12 months until they are about 3" in size and are ready to be sold to customers. Oysters grow in metal cages which sit at the bottom of the bay. About 2/3 of oysters survive from seed to market size. Big Ten Bivalves distributes all of its own oysters directly to clients.
  4. Big Ten Bivalves competes with other oyster farms around the country who distribute to NYC. Most of these farms are small mom-and-pop farmers who sell around 100k oysters per year, but there are 3 farms who are large players with established national brands and distribution.
  5. Big Ten Bivalves has considered branching out into other species, like clams or kelp, but for now is solely focused on scaling its oyster business.