4.1 Theoretical Framework – SWOT Analysis.
A first analysis used in this study is SWOT analysis. SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats (SWOT) involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors, favourable and unfavourable to achieving that objective. The SWOT analysis presented in this Chapter will give brief details of those factors both internal and external to the projects, which will be affecting the overall operation of the projects.
In general, SWOT analysis involves specifying a four-cell matrix to identify the ‘Helpful’ and ‘Harmful’ factors of Internal and External Origin shown in figure 4.1. The strengths are attributes of the organization that are helpful to achieving the objective. The weaknesses are attributes of the organization that are harmful to achieving the objective. The opportunities are external conditions that are helpful to achieving the objective. Finally the threats are external conditions which could do damage to the business’s performance.
Figure 4.1 SWOT ANALYSIS – FOUR MATRIX ANALYSIS
66 4.2 Empirical Application.
SWOT analysis is going to be used in this study to investigate whether the situation in Kiribati is favourable or not to fisheries development activities. Previous studies have identified both the pros and cons associated with developing a fishing industry in Kiribati (Barclay (2006). Some authors favour developing the fishing industry in Kiribati given the large EEZ of Kiribati Government of Kiribati (GoK) (2003); Awira (2004); Savins (2001). However others do not favour developing the fishing industry in Kiribati given the limited infrastructure, limited knowledge in today’s modern fishing methods, and in particular the weakness of the fishers in Kiribati to compete in the international market (Chapman (2003).
The SWOT analysis in this Chapter will provide a qualitative picture of the factors that may either help or hinder the development of a tuna fishing industry in Kiribati. The identified fisheries development options will then be analyzed using a Cost-Benefit Analysis (CBA) to measure the net worth or net benefit of investing in these identified fishing options. The identified development options are case studies which have already been identified by fisheries experts. The CBA is the second analytical tool that is also going to be used in this study. The identified development options and the CBA will be discussed further in detail in Chapter Five.
The SWOT analysis should reveal whether there is need to improve some areas like infrastructure and flight availability, before a successful fisheries project can be undertaken, or whether there is need for the government to review some of the government policies in order to be more supportive of the tuna industry. Most importantly the SWOT analysis will also suggest what the government should do to ensure that the strengths and opportunities are taken into account to ensure that viable opportunities are considered and enable them to fit and work well.
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Data and information for the SWOT analysis, was obtained mainly from interviews with fisheries experts in Kiribati, and throughout the region who shared their views and experiences on the existing situation and business environment in Kiribati with specific regard to developing the tuna fishery. The interviews were conducted primarily face to face and via emails when the interviewee could not be interviewed in person. Secondary data was also gathered from published researches and articles from regional organization mainly from SPC, FFA, and WCPTC. Unpublished but Official information and data are also collected and used in this study.
4.3 SWOT Analysis: Implications for fisheries development in Kiribati.
The following two tables (table 4.1 and 4.2) summarize the list of helpful and harmful factors related to the establishment of the tuna fishing industry in Kiribati. The first table relates specifically to a small-medium scale tuna fishing project and the second table relates to the large scale tuna fishing project. The two summary tables are followed by a detailed discussion of the SWOT analysis. As can be easily seen from the two tables, many of the elements of the SWOT analysis are independent of the scale project. As a consequence, most of the detailed discussion in the SWOT analysis will apply to both small-medium and large-scale projects. Specific comments will be made to highlight those factors (either harmful or helpful) that favour a specific scale or size of investment.
The two summary tables clearly demonstrate that there are many potential obstacles to the successful development of a domestic fishery in Kiribati, regardless of the scale of development. Decision makers and donors would probably prefer to see a relatively longer list of strength factors, but it should be stressed that the list of opportunities also provides information and requirements that favour the establishment of a tuna fishing industry under certain circumstances. This is useful information for the government.
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Table 4.1: Summary Table for SWOT analysis of Small-Medium tuna fishing industry in Kiribati.
HELPFUL HARMFUL