Azalea Seafood Gumbo Shoppe in 2004 John E, Gamble Urlif'CiNily OrS.01,11/7 Vahaina John Addison had just returned from lunch when his partner. Mike Rathle, remarked that Wal-Mart's weekly order for seafood gumbo had reached an all-time high of 200 cases. Addison was elated to hear the good news since, even though Wal-Mart had been Azalea Seafood Gumbo Shoppe's most important customer for several years, orders from the world's largest retailer had all but ceased during November 2003 because of a change in Aza-lea's shipping method and an accompanying change in Wal-Mart's internal purchasing procedure. Sales had increased considerably during December as Aza-lea tried in make sure seafood managers knew how to order the company's products using the new sys-tem_ and by the first week of January 2004. the record order suggested that all of the kinks were fi-nally. worked out. Azalea Seafood Gumbo Shoppe was among the nation's largest producers of ready-to-eat gumbo. with annual revenues in 2003 of more than SI mil-lion_ in 2004 the company *s products could be found in approximately 1.000 supermarkets and were served in about 300 restaurants in the southeastern United States. but the recent problem with receiving orders from Wal-Mart and the company's slowing growth rate Forced the two owners to think about their envisioned future for the company. After heat-ing of the Wal-Mart order, John Addison commented to Mike Rathle What we've accomplished since we bought Azalea in 1991 is remarkable. We have successfully transi-ting-led from a small retail seafood shop to one oldie largest nrnducers of gumbo in the U.S. We've gamed CrIpyriphe r 2C.NNII by Jcipp F, Grfaihte C -4 2 distribution in supermarkets. Wal-Mart %Terminer% Sam's Clubs and probably half the seafood restau-rants within 100 miles of here. However. I think that we have several issues to consider. How large do we want to get? We are comfortable now at $1 minion a year in sales, but du we want to grow to Si .5 million? Do we want sales of $5 million? $10 million? If we want greater sales, how will we achieve out growth? Should more of our gales come from superrnarketsor rood service Do we need a new plant? Should we develop new products? Should we expand our catet-ing business'' Should we reestablish retail sales of fresh shrimp and crawfish? Rathle agreed that Addison's questions were impor. tant and believed the two partners should try to settle on a strategic direction before the end of February since a great deal of their free time would be con-sumed by their catering business beginning al Mardi Gras and running through the end of the summer. COMPANY HISTORY AND BACKGROUND Azalea Seafood Gumbo Shoppe was established in Mobile. Alabatria, in 1971 by Pat Lodds. Mobile was an attractive market for seafood sales because the city's location on the northern coast of the Gulf of Mexico made fresh seafood readily available and be-cause seafood dishes were staples in most Mobil. ians' diets. Azalea Seafood Gumbo Shoppe. like other seafood shops in Mobile, offered customers fresh snapper. grouper, flounder, and shrimp caught in Mobile Bay and the Gulf of Mexico. but AzAlea

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Seafood Gumbo Shoppe differentiated itself by specializing in gumbo a popular dish in the region The shop quickly gained a reputation for its deliciou... View the full answer