One of the major global objectives for global sustainable development is food production and nutrition. Entomo is a Canadian company founded by South African brothers that produces cricked-based foods to the local market (Paquin, Sushko & Lloyd, 2022). Although Entomo operates within a competitive market, one of its strengths is the low production cost, accomplished by using the innovative farming method that significantly reduces investment in labor (Paquin, Sushko & Lloyd, 2022). Another apparent strength is using a virus-resistant species, which prevents the company from substantial losses. Additionally, Entomo not only farms crickets but produces and markets them, and engages directly with the consumers (Paquin, Sushko & Lloyd, 2022). Such an approach contributes to improved control over the company’s development and ensures that Entomo can incorporate customers’ feedback for enhancement.
However, Entomo also displays several weaknesses that might affect the company’s growth. Foremost, the company receives only 20% of its income from business-to-consumer channel, while 80% comes from business-to-business deals (Paquin, Sushko & Lloyd, 2022). As a result, the company gets smaller revenue because major deals include selling cheaper raw materials, while selling expensive consumer-packaged products (CPGs) constitutes a small part of the business. Another weakness relates to a lack of a “unified marketing strategy” (Paquin, Sushko & Lloyd, 2022, p. 4). Eventually, Entomo has not been successful in acquiring new customers despite social media and website engagement.
Nonetheless, there are significant opportunities for Entomo’s growth in the future. First, the company can increase the sales of CPGs through a collaboration with retail chains. In such a way, Entomo can reach new customers and increase its revenue by focusing on processed food production. Hence, the company might benefit from enhancing its marketing strategy through collaboration with successful marketing agencies. In addition, the company can produce food supplements from crickets as they contain protein, essential vitamins, and minerals.
The threats for Entomo refer to the competitiveness in the market. In particular, companies such as Aspire, Wilder Harrier, Naak, Bite Snacks, and Landish Foods offer insect-based protein products (Paquin, Sushko & Lloyd, 2022). Furthermore, there is a threat from large food corporations that might acquire innovative protein for their products. As international corporations are integrated into the existing retail and are better known among consumers, they can hinder the growth of such businesses as Entomo’s CPG sales.
Reference
Paquin, R., Sushko, I., & Lloyd, S. (2022). Entomo farms: Are Canadians ready to eat insects? Ivey Business School Foundation.