Grocery Checkout (Gco) Inc.
Nathan Felder must decide whether or not it is in his best interest to listen to his investors and attempt faster growth. Alternatively, he needs to be able to defend to his investors that maintaining status quo is best for the company because it avoids the risks associated with the growth options. The final decision the needs to be made is whether or not he sells the company.
External Analysis: Porters 5 forces helps to reveal the opportunities for growth. They are as follows: Rivalry- Grocery Checkout’s main competitors are Loblaw’s and Valu-Mart. Their proximity to the University of Western Ontario makes them accessible to the students, but by public transportation or their own cars. The …show more content…
As long as Grocery Checkout is the only online grocery business in London, they should have no problem exploiting their resources. Once other grocery chains start the online model, they will have more problems exploiting their resources.
Holistic analysis of internal environment- Since Grocery Checkout is the only online grocery store in London; they have a competitive advantage over their competitors. They have the resources that are valuable, rare, non-substitutable and exploitable, so as long as they are the only online grocery store in London, they can be a successful company for many years to come.
Internal and External Analysis:
A SWOT analysis will help to reveal the internal capabilities of Grocery Checkout as well as external opportunities and threats that face Grocery Checkout. Strengths * Only online grocery store in London * Strong balance sheet * Improving earnings over time * Substantial customer base * Strong current ratio for 2009 * Strong profit growth * String debt to equity ratio | Weaknesses * Company not really well known outside of University of Western Ontario * Age of receivables increased for 2009 | Opportunities * Growth with on campus store * Growth with Facebook advertising | Threats * Large chains starting the online grocery business |
Holistic analysis of SWOT- Grocery Checkout has a very strong balance sheet and income statement. They are constantly getting better each year