Superstore Strengths and Weaknesses SWOT Analysis Attached below the Swot analyzes what I need is to answer the following questions;1- identify the strengt | Course Hero
Superstore Strengths and Weaknesses SWOT Analysis Attached below the Swot analyzes what I need is to answer the following questions;1- identify the strength your company would need to develop to take advantage of the opportunity 2- identify the weakness your company would need to eliminate based on the threat SWOT analysis
The SWOT analysis on Real Canadian Superstore (Superstore) is summarized as follows.
Strength
– It is one of the biggest grocery stores in Canada and it has been popular by
local Canadian consumers.
– They offer cheap and fresh products (it is Superstores corporate DNA).
– They sell variety of products including not only grocery but also other
products such as clothing, electronics and houseware.
– They have loyal customers because of loyal membership.
– They sell made in Canada products, which is considered to be authentic
and healthy.
Weakness
– Superstore is not known and recognized by American consumers.
– There is no uniqueness in term of similarity of Canadian food and American
food.
-Good and fresh food is not unique positioning in the U.S. grocery market.
– It is not profitable in short term to sell products at low price.
– Perishable products expires and get old soon after importation.
Opportunity – There is high demand for essentials such as grocery products under COVID19 pandemic.
– There is high demand for online shopping under COVID-19 pandemic.
– There is high demand for healthy food.
– American people are familiar with Canadian food culture because American
and Canadian diet are westernized and similar.
– There is demand for Canadian products by Canadian immigrants living in the
U.S.
Threat
– There are quite a lot of competitors in food retail industry in the U.S.
– It has been economic recession under COVID-19 pandemic.
– There is no particular demands for Canadian products by American
customers.
– There are possibilities of another similar Canadian stores opening.
– There are import and FDA regulations in the U.S.
Based on the SWOT analysis, there are linkage between strength and opportunity.
First of all, according to Statista, there are high demand for healthy food by American
consumers. In particular, the study shows that half percentage of Millenials (the age group
between 25 to 34 years old) is interested in healthy foods. Also, 45% of Gen Z (the age group
between 18 to 24 years old) and Gen X (age group between 45 and 54 years old) respectively
are health conscious. Canadian foods are considered to be a lot healthier that American one
because Health Canada, Canadas equivalent to the U.S. Food and Drug Administration (FDA)
has enacted food policy that makes Canadian food healthy. There are some ingredients that
Canadian government banned but are still found in American foods. For example, Potassium
Bromate is banned by Health Canada because the study shows it is linked to kidney and
nervous system damage and cancer, but it is found in American foods. Superstore can promote
Made in Canada foods, which are strength of Superstore, as healthy food, targeting on
healthy conscious consumers.
Secondly, there is opportunity for online shopping since COVID-19 Pandemic. According to
Comscore research, the online spending on grocery has increased to $10.2 billion in Q1 2020
compared with $4.1 billion in Q1 2019. The expert says that the trend of online shopping will
remain at a high level. Superstore take advantage of high demand for online shopping by using
their strength of selling made in Canada products with high quality such as organic maple
syrup, organic honey and fresh fish all from Canada. American health conscious consumers are
willing to pay premium price on fresh and authentic Canadian products.
Reference:
– https://www.statista.com/chart/16796/us-interest-in-healthy-food/
– https://www.botanicalnutrition.com/canadians-eat-better-than-americans/
– https://www.comscore.com/Insights/Blog/Grocery-is-Top-Mobile-Spending-Category-forFirst-Time
Repko, M. (2020, May 01). As coronavirus pandemic pushes more grocery shoppers online,
stores struggle to keep up with demand. Retrieved July 05, 2020, from
https://www.cnbc.com/2020/05/01/as-coronavirus-pushes-more-grocery-shoppers-online-storesstruggle-with-deman
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