SmartMart is a popular retail grocer that has been very successful in organic, healthy and sustainable products by providing environment friendly foods to their customers. Their main customer segment is the affluent class for whom the quality of product matters more as compared to the pricing. It focuses more on preserving its brand loyalty and keeping its brand name intact. This is the main point of differentiation for SmartMart to be competitive in the market. Company’s long term goal is to focus on sustainable growth by going green and be an unmatched player in the market for organic food by getting higher financial returns for their shareholders.
The case states that SmartMart is at a crisis stage. It is facing great competition from CSA …show more content…
I found out that in the current model, there are medium forces acting on the buyer, supplier and the rivalry from the competition and high forces acting on the threats for new entrants and substitute products. To eliminate these high forces on the model, SmartMart should change their present model of grocery store and target the smaller stores as a new model. In my analysis, I found out that it will be more difficult for the company to compete with big players such as Big Mart as competing with the bigger shopping marts will increase the force acting on rivalry section of porter model. Moreover, entering in the larger market will make SmartMart change its style of operation, making it less sustainable in future. This will result in non-compliance with their mission statement and hamper its brand …show more content…
While working with FDA and government, SmartMart could benefit by building reliability and trust among customers. This will create shared value for the businesses and the environment by producing more sustainable products. The society will benefit from healthy food and the company will generate more revenue. This new label will increase awareness among the customers about the contents of the organic food, helping consumers to take an informed decision when buying the organic product. This decision will also increase competition among other organic food providers, and they will be forced to produce healthier and sustainable food for the
The case states that SmartMart is at a crisis stage. It is facing great competition from CSA …show more content…
I found out that in the current model, there are medium forces acting on the buyer, supplier and the rivalry from the competition and high forces acting on the threats for new entrants and substitute products. To eliminate these high forces on the model, SmartMart should change their present model of grocery store and target the smaller stores as a new model. In my analysis, I found out that it will be more difficult for the company to compete with big players such as Big Mart as competing with the bigger shopping marts will increase the force acting on rivalry section of porter model. Moreover, entering in the larger market will make SmartMart change its style of operation, making it less sustainable in future. This will result in non-compliance with their mission statement and hamper its brand …show more content…
While working with FDA and government, SmartMart could benefit by building reliability and trust among customers. This will create shared value for the businesses and the environment by producing more sustainable products. The society will benefit from healthy food and the company will generate more revenue. This new label will increase awareness among the customers about the contents of the organic food, helping consumers to take an informed decision when buying the organic product. This decision will also increase competition among other organic food providers, and they will be forced to produce healthier and sustainable food for the