Competitive analysis: a determinant in Freshood Express Store expansion strategy

William Makumbe, Cuthbert Tsikira

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Case Studies
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Freshood Express Store was a convenience store owned and managed by Mr Cuthbert Tsikira. Freshood Express Store operated grocery convenience stores in partnership with a government-owned fuel retailer in Zimbabwe. It operated two grocery convenience stores in Harare and Bindura. Its business environment was a complex and highly competitive industry with large retailers such as OK supermarkets and TM-Pick n Pay. These large retailers enjoyed massive discounts from powerful suppliers, which enabled them to charge low prices in the market. However, Freshood Express Store, as a small business, sourced their stock from the same suppliers on a cash basis. The playing field was thus uneven. In early 2021, Freshood Express Store was offered two sites to open new establishments. These two sites were more than 200 km out of Harare, the major supplier hub for Freshood Express. In addition, large retailers had existing operations in the two proposed sites, thus adding serious competition. The dilemma confronting Mr Tsikira was as follows: Could he direct limited resources to existing establishments or new markets? He wanted a sound business analysis of the attractiveness of the proposed two markets before making a management decision to invest resources. The case focuses on the need to perform industry analysis before making strategic decisions. The use of the Porter’s five forces model and the force field analysis model to validate decisions after an industry analysis is the high point of the case.

Subjek

STRATEGIC MANAGEMENT
 

Katalog

Competitive analysis: a determinant in Freshood Express Store expansion strategy
ISSN: 2045-0621
12p.: pdf file.; 827 KB
English

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Pengarang

William Makumbe, Cuthbert Tsikira
Perorangan
 
 

Penerbit

Emerald
New York
2024

Koleksi

Kompetensi

 

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