Case Study

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Wild Oats Markets Inc. EXECUTIVE SUMMARY Problem Statement Wild Oats had faced different problems with the industry and its competitors through the years. One of their problems was that wild oats was losing their competitive advantage. Another problem that they had encountered was the slow acquisitions in order to pay down debt and improve stability. The lower costs to improve profitability and provide an appropriate ROI after shareholders were another problem that Wild Oats were facing. They also have relatively small scale of operations as well as modest supplier leverage. They also had problems with managing relationships with increasing number of small suppliers. They also have limited product variety due to stringent selection process. And lastly, they have to define a strategy keeping with the company’s heritage that at the same time defines the company’s competitive position that is focused differentiator strategy. Alternative Courses of Action 1. Expansion in UK – and other geo-markets 2. Cross market with health and fitness centers 3. Increase demand for organic products 4. Leverage acquisition of Wild Oats to grow market share 5. Educate school children on benefits of organic/natural food Recommendation • It is recommended that Wild Oats should do leverage acquisition to grow their market share. One effective way to address some supplier problems that can grow their market share is backward integration. Lower costs to improve profitability and provide an appropriate ROI for share holders can also be a way to acquire its growth of market share. Another is the slow acquisitions in order to pay down debt and improve stability. And most importantly, define a strategy keeping with the company’s heritage that at the same time defines the company’s competitive position, which is a focused differentiation strategy.

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