North West Company Essay

North West Company(NWC), is a food retailer which has two specific divisions of market is Canada and international. NWC started out in Canada and expanded to when secure Alaska commercial company, however they decided to keep the name they were already using, AC Value Center. The reasoning behind the keeping the name was due to still being able to have the local name and have the same vendors previously used. Along with this expansion NWC is moving up to become the “main food retailer for several US communities” (case study) In the Canadian food industry many of the retailers that sell pharmaceuticals and household items also sell clothes and food, this allows consumers to only have to go to one location to pick up all the items needed. The one stop shop saves the consumer time and money instead of having to shop around and it is now an idea that they expect. On the business side of the spectrum competition within the industry is very high. The threat of substitute is high, with a low switching cost and decreasing growth the companies in the industry are putting a lot on the front line employees to get customers to with business. Although the bigger …show more content…
NWC’s international performance brings in 34.8 percent of the business. Exhibit 1 shows the steadily increasing numbers for international sales 2010 at 469,442 moving to 2014 at 582,232 each year growing by around 50,000, there was a hiccup in 2011 however in 2012 it recovered the losses. As NWC continues to expand and acquiring more international companies the sales and will consecutively increase as well. Moving into the markets where they are a niche business with not many competitors they are able to be a local name as well as a mainstream brand. Using their strategy keeping the name of the company acquire to keep the international consumers’ name recognition will also help drive sales over the country