Tuesday, May 5, 2020

Food of Askew Vresus Wal-Mart-.com

Question: Discuss about the Askew's Foods Vresus Wal-Mart. Answer: Summary: Askews Foods Inc. located in Canada is facing major business threats due to the evolving of new , powerful and potential competitor, Wal-Mart in the same location. Moreover, Askews is yet to build it other new branch in the downtown of Salmon Arm. David Askew , the CEO, of the Askews is planning to go with the development of new market by providing the local customers with quality goods at fair prices. Moreover, it will maintain the age-old tradition of providing sustainable and environmental friendly product to thrive in the competitive market. Symptoms: The symptoms responsible for the major problems are the expansion of the local markets. The strengths of Askews and Walmart relative to the local market are that both the organization are experienced for more than 70 years in the local market and the products to serve the customer need are affordable and sustainable in nature. The products used by Wal-Marts are healthy and organic foods. On the other hand, Askews produces environmental friendly and sustainable products. Whereas, the weakness are that there are high employees turnover that lead to the declining of employees loyalty (Grant, 2016). Moreover, the limited product differentiation relative to local market is a major problem (Hollensen, 2015). Furthermore, if Salmon Arms Savings and Credit Unions (SASCU) approve Walmart for the financial support, Askews business is going to be affected. Major Problems: If new Wal-Mart store is being opened in Salmon Arm, then Askews have to open its new uptown store in eastern side of Salmon Arm. The major problem or issues the competitor should be addressing in the local business environment are the industry rivalry due to the threat of substitute products (Santos and Laczniak, 2015). Innovative and latest technological upgrade make the business condition more exaggerated. Moreover, the bargaining power of suppliers besides the customers is a greater issue that can influence the productivity of the organization (Dobbs, 2014). The evolving threats due to the potential upcoming and powerful competitor are a matter of great concern. Askews has to develop a new business strategy in order to thrive in the competitive environment. Cause: The cause of the major problem is the entry of Walmart in the market as Askews market condition is going to be affected. Walmart is a giant multi-national company and one of the biggest retailers in the world. However, the product of Askews is sustainable but Walmart products are more cheap and organic in nature. Moreover, Walmart is recently offering online shopping for their customers, which provide the customer the convenience of shopping from their homes. If I were on the Askews Board, I would suggest Davids plan to develop the state of art building at the eastern side of Salmon Arm to be a better option than no new development at all. As, Wal-mart entry in the business market would adversely affect the general merchandise and local supermarket s and would be a serious threat for Askews current downtown location. Moreover, the new proposed building is five kilometer away from the Wal-marts potential new location, thus it is preferable to go with this plan. References: Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), 32-45. Grant, R. M. (2016).Contemporary Strategy Analysis Text Only. John Wiley Sons. Hollensen, S. (2015).Marketing management: A relationship approach. Pearson Education. Santos, N., Laczniak, G. (2015). Marketing to the poor: A SWOT analysis of the Market Construction Model for engaging impoverished market segments.Social Business,5(2).

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