Chile, like most Latin American countries, is primarily based in natural resources. In 2014 agriculture represented just under 4% of total GDP, while the industrial sector contributed about 35% of total GDP in 2014. Leaving about 61% of total GDP contributed by the services sector. However, the most important sector for Chile remains the industrial sector, as Chile uses it geographic location to create a competitive advantage in many industries including but not limited to mining, food production and energy. These industries are extremely important for Chile, in terms of jobs and exports. The 4 Phases of the Salmon Industry The salmon industry can be divided into two parts; basic natural resources and manufacturing. The salmon industry dates to 1921, where the Fisheries Development …show more content…
The fall of salmon prices saw smaller firms leave the industry, while medium to large firms were actively seeking to merge and/or acquire firms to remain competitive in the industry. Several firms used vertical integration to enable them use economies of scale to reduce their production costs as well remaining ahead of the competition. It was also during this that we the emergence of clusters within the industry. There were firms that were focusing specifically on the production of salmon, while other firms were focused specifically on the marking of salmon and other fish. There were firms that would produce the nets used to cultivate salmon, while others would focus on painting the nets and maintaining them. As well there were a large number firms who just focused on the logistics of fish farming, acting as consulting companies for larger fish farming firms. The expansion was also caused by the decrease in salmon prices, which in turn lead to an increase in consumption of the good. The demand for other fish products was also increasing as the wealth of households began to increase as