How will they find the solution?
This is my assignment from my Global Studies Management course, It represents Loblaw's struggle in each market and it's future complications.
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Although we cannot lie about Loblaw’s success through its career, but regarding to many companies they face a lot of issues throughout their life.
The Weston company has expanded greatly throughout Canada in the past decade, it has and is currently facing many hardships throughout its expansion to the US. Loblaw’s has a rough time getting into the US grocery market and be sustainable throughout its procedural functions. Due to the large market of competitors in the US, Loblaw’s would have a hard time coming into a new market without any competitive advantage.
Although Loblaw’s dominates the Canadian market, it still faces a major competitor which is Walmart Inc. They’re target plans are more cost efficient leading to lower prices and more revenue due to the immense amount of income from the larger demand. Loblaw’s had to cut down some of its franchise stores due to the lack of sales and marketing attributes, but it still remains to stay strong and surviving through its accomplished locations throughout Canada.
For Loblaw’s to have an advantage on Walmart’s market, they must release the targeted products needed to be sustainable and also they must lower costs for them to have a better market chance to drive in more customers who are willing to spend their income on the products.
For them to be able to get into the US Market they must first have a sustainable competitive advantage in Canada just in case they do not succeed. Developing strategic plans in which they overcome the market of competitors will be a big advantage to their success in Canada and the US.
Loblaw’s has many objectives to accomplish when entering the US market but setting a foundation down for itself would benefit themselves enough to be able to take risks for the overall better of the company.
The Weston companies face some problems where they are having some issues with the expansion of Loblaw’s into bigger markets in the US and Canada. Due to the immense competition, Loblaw’s must perform at the best of the market for it to stay and not get defeated by another competitor. Some strategies that can be applied to the US market is, bringing in their own brand into these markets and letting it make a name for itself, therefore when Loblaw’s does open up more franchises in the immense market, they will have a better chance at surviving due to the existing brand loyalty being created by these Loblaw’s products. One of the major drawbacks of Loblaw’s supplies is that they are too overpriced to compete with these other big companies like Walmart, whereas they have low prices and a large quantity they can provide for many of customers.
Walmart is one of the main reasons for Loblaw’s not competing well enough in the market, Walmart’s strategy is so reinvented that Loblaw’s stands no chance unless they start producing for a low cost so that their products can compete in the same market at Walmart. Releasing their brand would allow them to not take a big risk but more of a experiment, if it succeeds then they are able to compete in the competitors market.
Stakeholder Engagement
Stakeholder interviews were held to gather information about the company’s procedures and outcomes. The feedback received has helped tremendously shape the report structure for this year. The engagement helps govern the company and its values. Also collaboration is required to overall establish a better outcome and environment.
Offshore Sourcing
Loblaw’s were the first to establish a fire safety plan for its locations offshore which is Bangladesh. They are moving to establish a better living standard there for employees and a better health safety plan was established to make sure the least causalities would occur.
Sustainable Sourcing Strategy
Loblaw’s is working with sources who actually have some interest for the environment and want the bell being for all humans and animals. Loblaw’s has partnered up with food companies who actually mark their numbers and are aware about the environment.
They focused their departments on:
• Seafood
• Palm oil
• Beef
Emerging Issues
Loblaw’s is a company who has a good standard under their name, they make sure they provide clean supplies to consumers as they are the ones providing the supplies they must make sure its healthy and clean. So Loblaw’s has some issues concerning the safety and health of its suppliers foods and this is a big concern because they let their customers know exactly what they are providing.
Some issues emerging in this region are:
• GMOS
• POLLINATOR CONSERVATION
• CHEMICALS OF CONCERN
• Animal welfare
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