Introduction
Sobeys has been at the forefront in supplying quality and fresh food to mots Canadian households for over 100 years. This implies that the company was incepted over 100 years ago, and has continued to be in the market for this period of time. With such sustained operation come hidden implications attributed to growth of the company. While this company has strived to attain its apical destination in the supply of fresh and quality groceries to the Canadian population, its presence in the market has been the preeminence to its success and manifestation as a leading supplier of these products in the entire country (Zentes, & Schramm-Klein, 2011). Since health has remained a mainstream anchor to this company, its supplies has tended to meet the very desirable products that complement its agenda in fulfilling its missions and aspirations. This essay will focus on the implications of growth attributed to Sobeys, and how such growth contributes to either positive or negative impacts within its growth portfolio.
Growth Vectors with pros and Cons
Sobeys Inc has experienced a robust growth in its activities since its inception, and this growth has been sustained for this period of time that it has been into market. In typical marketing scenario, growth is attributed to management efficiency, which responds to the market dynamics, and takes very proactive roles in the best interest of its growth and operation. While growth is desirable to any business, and in any case people would attribute growth to positive prospect, it equally subjects a company to a rare situation of circumstances, which must be met with due openness and robust operational stakes.
Growth vectors in this company have significant implications to its stake in the market. One of the growth vectors that could be used to define the operational portfolio for this company refers to its extensive involvement in the Canadian economy. Initially, this company had a smaller operational scope delivering meat products to a few families within the city centres (Ketchen, et al, 2011). This has changed exponentially, with the company shifting scope, and attending to the needs to the entire market. In fact, the effect of Sobeys’s supplies in meat and grocery products is felt in the entire country.
Extended market scope and coverage has an advantage since it spearheads [positive growth to the economy, notwithstanding the growth evident to the company. In this context, Sobeys expansive market growth to integrate the entire Canadian market has acted as an avenue in which it propagates the idea of freshness of food supplies within the country. In fact, the traditional idea of fresh food delivery done 100 years ago is still felt and enjoyed by the Canadians. This a positive advantage as Sobeys has ridden on it to achieve its mainstream objectives and missions.
Other than the prospect or fulfilling its mission of refreshing the entire Canadian economy, the company has exploited its growth vectors and its stronger stake into the market in order to expand and diversify its supplies. This company began on the premise of delivering quality, and fresh meat to the Canadian population, but has currently diversified its operation’s, and engages in multiple activities including offering restaurant and catering facilities. In fact, its initial idea has generated myriads of opportunities, which have become the company’s operational pillars (Krafft, & Mantrala, 2010). Other advantages associated with its growth vectors better market positioning against its rivals, an even stronger financial muscle to command the market in terms of the supply of fresh meat and grocery products.
However, its growth based on diversified market front could subject the company to a lot of hurdles. One of the problems associated with expanded operational scope refers to diseconomies of large scale. Expanded growth might subject the company with a severe operational hurdle, which might translate losses being incurred by the company. This is one preeminent shortfall that arises due to expanded company growth (Snell, Weinberg, & American Bar Association., 2005). For example, an expansion to supply more products or venture into a different line of services would mean that it has to contend with the challenges in these new sectors, which Sobeys might not be privy to.
Other challenges attributed to expanded growth include higher operational expanse, even to unproductive operational lines; this is a subjective limitation to the company’s operational framework.
Analysis of Alternatives
Idea to Remain the Same
The idea to retain the status quo in terms of its operations could be informed by the prevailing market conditions. While it is the aspiration of every company to grow, certain circumstances could inform its prospect to remain stationery and never to expand. One such condition that could make this informed decision is where the company’s operational environment is projected to shift focus on its current supplies. For example, a market that is projected to change its eating habits, and adopt an alternative product would attract such measures. Therefore, it is prudent to sustain the current operational portfolio, while projecting a transition to a favorable product to the target population. Circumstances like cultural; and religious predispositions might bar believers from consuming certain beefs, so they would transcend from consuming beef to the rival products (Lamb, 2012). These circumstances could inform Sobeys decision to rescind an expansion idea, but instead stay put to its current size in these markets.
Product Development
The idea to enfranchise on the product development could be informed by the current market forces. In this context, Sobeys would adopt product development strategies in order to meet the demands and desires of the market. One of such product development frameworks includes packaging fresh and cooked meat products and delivering them to the clients’ doorsteps. Other measures attributed to product development include undertaking proper product blend, like orchestrating better technologies in the development of complement organics, among other wide range of products that meet the demands of the clients (Ketchen, et al, 2011).
Markey Development
Market development refers to essential platform where the target market is sensitized about the existence of a product. There are several approaches in which the market could be developed in order to meet the demands for the Sobeys products. One such strategy includes providing free information about different types of products. In fact, Sobeys has rolled about a free program about cooking tips at homes, and encourage most Canadians to do clocking for themselves, and should not overly rely on fast foods. In addition, this company has been on a charm offensive to offer positive services to the society. One such portfolio involves the CSR activities through its mainstream education program to the less fortunate, but brighter Canadian children (Zentes, & Schramm-Klein, 2011). Therefore, market development portfolios are key manifestations that Sobeys has implemented in order to realize its objectives of becoming a giant fresh food supplier in the entre Canadian market, and it stull astonishes the society with its ability to maintain this lead. These portfolios of market development have steered the company in the lead for over a century.
Market Penetration
Market penetration strategies are very critical to the growth and expansion of a company. Sobeys is well poised for to fully entrench this mechanism within its fold. The first element to market penetration involves proper advertisement of the company’s product. Effective promotion is informative to the target audience, and ensures that proper information is disseminated to the market. Market promotion through advertising and other modes of promotion offers positive prospect to the performances of a product into the market. Other than publicity, market penetration could be earned through price wars (Krafft, & Mantrala, 2010). Price wars refer to a systematic price cuts in order to suit the market demands way below the rival product. As an established company, Sobeys could rely on this portfolio in order to capture new markets, while undertaking its sustainability prospects.
Recommendations
The first recommendation for this Sobeys is to venture into external markets in order to spur the experience of freshness and quality food supplies to other countries. This initiative is possible based on its wide operational scope, and the competitive advantage it has gained from the local market (Zentes, & Schramm-Klein, 2011). With its huge financial muscle, this company can comfortably spread its wings too other countries, and widen its market base. Measures attributed to market penetration would apply for this company.
Core market penetration would be undertaken in a series of steps, which are significant to the effectiveness of this move. A detailed implementation plan for this plan will be explained below:
Implementation plan to the Company’s entry to the New Market
References
Ketchen, D. J., Short, J., Open Textbook Library,, & BC Open Textbook Project,. (2011). Mastering strategic management.
Krafft, M., & Mantrala, M. K. (2010). Retailing in the 21st century: Current and future trends. Heidelberg: Springer.
Lamb, C. W. (2012). Marketing. Toronto: Nelson Education.
Snell, P., Weinberg, L., & American Bar Association. (2005). Fundamentals of franchising, Canada. Chicago, Ill.: Forum on Franchising, American Bar Association.
Zentes, J., Morschett, D., & Schramm-Klein, H. (2011). Strategic retail management: Text and international cases. Wiesbaden: Gabler.
